Net loss of Avangard agroholding, the largest egg producer in Ukraine, was 86.7% less in 2017, reaching $7.5 million, the holding reported on the London Stock Exchange on Thursday. Consolidated revenue fell by 335, to $127.9 million, including revenue from exports of shell eggs and dry egg products fell by 45%, to $36.7 million. Operating loss fell by 74.4%, to $3.8 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) grew almost 7.9-fold, to $11.8 million.
The agroholding said that in October-December 2017, the company saw $13.1 million of net profit compared with $17.8 million of net loss a year ago. Consolidated revenue fell by 45%, to $43.7 million, while operating profit grew 1.77-fold, to $20.8 million and EBITDA – 1.08-fold, to $23.6 million.
Shell egg production fell by 4% in 2017, to 2.399 million, while sales grew by 23%, to 1.869 million. As at December 31, 2017, the total poultry flock amounted to 9.5 million hens, down by 30% year-over-year. Average price of eggs fell by 13% in 2017, to UAH 1.17 per egg (excluding VAT).
The production of dry egg products amounted to 6,368 tonnes, a decline of 48% year-over-year. Sales of dry egg products totaled 3,264 tonnes, down by 64% year-over-year. Exports of dry egg products amounted to 2,561 tonnes, a decline of 69% year-over-year. The average sales price of dry egg products was $4.3 per kg, 23% down year-over-year.
As reported, Ukrlandfarming agricultural holding in 2017 reduced the land bank by 5.8%. Ukraine’s largest producer of eggs Avangard agricultural holding, controlled by Ukrlandfarming, whose shares are traded on the London Stock Exchange, in October 2015 completed the restructuring of eurobonds for $200 million. Previously American Cargill has withdrawn from among the shareholders of Ukrainian-based UkrLandFarming (ULF) agrarian holding, according to a ULF financial report for 2016. Cargill’s subsidiary, Cargill Financial Services International Inc. by the end of 2015, had held 1,668,749 ULF shares, or 5% of the total number. By the end of 2016, the number of shares owned by Avonex Limited had not changed, whereas the package held by Cargill was transferred to Cyprus-based Quickcom Limited’s ownership. The report says that the sole owner of Avonex Limited and Quickcom Limited is Oleh Bakhmatiuk. Cargill acquired a 5% stake in ULF early in 2014 for $200 million. Based on the sum of the deal, the total value of the holding was assessed at $4 billion.
The mobile communications operator Vodafone Ukraine plans to increase its store chain to 200 by the end of 2018 and change the franchise conditions for partner stores, Sales Director of Vodafone Ukraine Yevhen Bulakh said at a press conference in Kyiv. “By the end of the year, we plan to increase the number of our own stores to 200. We also have ambitious goals: to change the terms of partnership for our franchising stores, to change the requirements for them… with the aim of having, by the middle of next year, absolutely the same infrastructure in ours as well and in partners’ stores,” he said.
According to Bulakh, now the company has 30 own stores, as well as 400 stores that operate under a franchising scheme. He also said that by the end of 2019 it is planned to increase the number of own stores to 300-350 facilities. In addition, Vodafone Ukraine plans the use of VR-technologies in retail. At the same time, Bulakh did not specify the term when this technology appear in stores.
Trade between Ukraine and India in 2017 grew by 18.8%, reaching $2.8 billion, Indian Ambassador to Ukraine Mr. Kumar Bharti Manoj said at a press conference at Interfax-Ukraine on Tuesday. “Here two important moments should be pointed out. India became the fifth country in the volume of the export from Ukraine abroad. In addition, India is the second country with which Ukraine has the surplus in trade. Only Ukraine and Egypt have bigger surplus in trade – $1.75 billion, while between Ukraine and India it is $1.65 billion,” he said.
The ambassador said that these indicators fuel confidence that the growth of trade turnover in 2018-2019 could be 20% and 25%, respectively.
Commenting on trade relations between the countries, he said that India was the first country in terms of export of Ukrainian sunflower oil. Last year India exported $2 billion worth of oil. In addition, in 2017, for the first time, a lot of beans were exported from Ukraine to India. “Another very important factor is that the largest share of the total number of foreign students in Ukraine last year was made up of Indian students, a figure we reached for the first time in 15 years,” the Indian diplomat said.
So, according to him, today more than 10,800 Indian students are studying in Ukraine, which is 80% more than in 2015.
“I am pleased to say that in almost two years we have increased the number of Indian students from 6,000 to almost 11,000. Taking into account the fact that each Indian student spends about $5,000 a year for education, living and personal expenses, Ukraine already earns $55 million only through the provision of education to Indian students,” he said. The ambassador said that India plans to increase the number of its citizens studying in Ukrainian universities to 40,000 in the coming years, which in turn will give Ukraine about $200 million a year.
He also said that the inclusion of India in the list of countries, which citizens receive the Ukrainian visa upon their arrival to the airport, had a positive impact on the tourist flow. The number of Indian citizens, who visited Ukraine last year, increased more than 50%, to 29,400 people.
The ambassador said that one of the leading sectors where Ukraine could expect investment from India is pharmaceutical production.
President of the Indian Pharmaceutical Manufacturers’ Association (IPMA) Dr. Ramanan Unni Parambath Menon pointed out the growth of the pharmaceutical market in Ukraine in 2017 and positive changes in the regulatory field in this sphere.
“We see positive steps from regulators, in particular, changes are made to regulations and resolutions, among which there are a lot of democratic norms,” he said.
Head of the Representative Office of Dia Pharma Limited Ukraine Mr. Pandian Thamarai said that at the present, preparations made in India occupy in kind 3% of the Ukrainian pharmaceutical market, in money terms – 4.5%. “There is a great potential for Indian pharmaceutical manufacturers,” he said.
At the same time, representative of EuroLifeCare Sanjeev Bhagat said that for the growth of the volume of Indian medicines on the Ukrainian market, transparent legal regulations, as well as transitional periods in implementing changes, are required to enable manufacturers to properly prepare for the new standards. The IPMA (the Indian Pharmaceutical Manufacturers’ Association) brings together Indian pharmaceutical manufacturing companies that meet high international standards, including US FDA (the United States), UK MHRA (Britain), MCC (South Africa), TGA (Australia), WHO GMP (WHO), GMP (Ukraine), which have representative offices in Ukraine.
The Cabinet of Ministers of Ukraine has approved the form and the rules for presenting reports on the signed real estate sale and purchase contracts and payment of obligatory pension insurance tax by notaries. “Notaries quarterly, until the 20th day of the month following the reporting quarter, are required to submit a report on the signed immovable property sale and purchase contracts and payment of the compulsory pension insurance tax to the Pension Fund authorities at the location of the notary public office or private notary’s workplace using the approved form,” the press service of the Ministry of Social Policy said, citing a government decision.
According to the decision, real estate purchase and sale contracts are endorsed by notaries with documentary evidence of the payment of the levy on transactions on purchase and sale of real estate.
When endorsing sales contracts, a notary shall verify the payment of the fee by the buyer and demand the respective documents.
“The form of the report on the signed immovable property sale and purchase contracts contains information on the number of concluded real estate purchase and sale contract, the value of the property and the amount of the compulsory pension insurance tax paid,” the press service said. The implementation of the resolution makes it possible to improve control over the payment of the tax and ensure the completeness of revenues sent to the national budget
