Nestlé in Ukraine increased its production by 10% in 2024 and intends to repeat this growth next year, said Alessandro Zanelli, CEO of the company in Ukraine and Southeast Europe.
“Ukraine’s FMCG grew by just under 10% this year and demonstrated a strong focus on volume growth. This is a very clear sign of the resilience of the Ukrainian macroeconomy, which is hardly at war. Overall, the country’s GDP is quite resilient. We do not see the local currency, the hryvnia, collapsing. It is a steady controlled devaluation. At the same time, inflation is also relatively stable and under control,” he said at the NV conference ‘Ukraine and the World Ahead 2025’.
Zanelli noted that Nestle’s growth in Ukraine was at a similar level – just under 10% with an emphasis on volume growth, which can be estimated at 7-8%. The company’s CEO explained such indicators during the war as the result of the implemented strategy aimed at maintaining sustainability. The company’s team joined forces to protect its people, which allowed Nestle’s factories in Ukraine to continue operating even in Kharkiv. Being under constant shelling, this company also found an opportunity to increase productivity, the CEO explained. He noted that Nestle’s strategy in Ukraine also focuses on adaptability at all levels: from responding to changing consumer trends and adjusting the product portfolio and their locations to changing the timing of promotional activities and transforming communications to bring more hope and make products relevant to consumers.
Zanelli assessed the results of Nestle’s work in Ukraine as satisfactory and expressed confidence that in 2025, even taking into account possible difficulties, production growth will be similar – at least 10% per year.
The company’s CEO predicts that in the second quarter of 2025, Ukrainians and the FMGG segment will face rising inflation, which will lead to a significant rise in food prices. In addition, the shortage of skilled labor will increase. He also sees the cost of electricity as a challenge for the coming year. Zanelli said that the probability of the war ending, which the whole society is waiting for, is a possible “white swan”.
“In general, we remain optimistic, as I said, and expect about 10% growth,” Zanelli stated.
He also explained the postponement of the launch of the new plant in Volyn region from December 2024 to January 2025 by various elements of disruption, including the increase in air raids and the availability of people. At the same time, the top manager assured that the launch will take place, for which the company, along with recruiting specialists living in the region of the plant’s construction, is relocating staff from Kharkiv.
Zanelli emphasized that the location of the new plant next to another plant (Torchyn, Volyn region – IF-U) is the intention to create a food production center near the border with the European Union. The products produced by the new plant will be exported by 80%. In the domestic market, the company will increase its presence and market share through supplies from other companies.
“Usually, to make a business attractive, we first improve its efficiency and then immediately reinvest back into efficiency to grow and increase market share. It is extremely important for us to have an additional plant in Ukraine (…) We as Nestle understand that the war will end. It is too easy to come and invest on the first day after the war ends. For us, the moment of investment has come now, so we are planning for the future,” summarized the CEO of Nestlé in Ukraine.
Nestlé started its operations in Ukraine in 1994 with the opening of a representative office, acquired a controlling stake in Lviv Confectionery Factory Svitoch in 1998, and has owned 100% of the company’s shares since 2018. Nestlé’s business in Ukraine is represented by the following areas: coffee and beverages, confectionery, cooking (cold sauces, condiments, soups, fast food), baby and specialty food, breakfast cereals, and pet food.
Insurance company “Euroins Ukraine” (Kiev) for three quarters of 2024 collected UAH 474,1 mln of insurance premiums, which is 16,2% higher than in January-September 2023, according to the insurer’s information. According to the message, the largest share in premiums traditionally occupied by MTPL – 65% (UAH 306,6 mln), health insurance (VMI) – 18% (UAH 85,4 mln), CASCO – 10% (UAH 45,5 mln).
The volume of indemnities paid to the clients of “Euroins Ukraine” for nine months of 2024 increased by 27.7%, up to UAH 240.4 mln. On average the company paid about UAH 1,1 mln per day.
IC “Euroins Ukraine” is a universal insurance company operating in the Ukrainian market since 1992. It is a part of Bulgarian insurance group Euroins, which is one of the largest independent insurance groups operating in the countries of Central, Eastern and South-Eastern Europe. EIG is a subsidiary of Eurohold Bulgaria, a leading energy and financial group of Central, Eastern and South-Eastern Europe.
In January-November this year, Ukrainian enterprises reduced consumption of rolled metal products by 7.95% year-on-year to 2 million 995.6 thousand tons.
According to a press release issued by Ukrmetallurgprom on Wednesday, 1 million 135.6 thousand tons, or 37.91% of the domestic rolled steel market, were imported during this period.
According to Ukrmetallurgprom, in January-November 2024, steel companies produced 5.741 million tons of rolled metal products (118% compared to the same period in 2023), of which, according to the State Customs Service of Ukraine, about 3.881 million tons, or 67.6%, were exported. In January-November 2023, the share of exports amounted to 54.4% (2.664 million tons with a total production of 4.864 million tons of rolled steel).
The share of semi-finished products in export deliveries in January-October 2024 amounted to 46.25%, which is significantly higher than in January-November 2023 (41.79%). The share of flat products in export deliveries for 11 months of 2024 is almost at the level of January-November 2023 (39.04% and 38.46%, respectively). The share of long products is significantly lower than in January-October 2023 (14.71% in 2024 vs. 19.74% in 2023).
“In 11 months of 2024, the domestic market capacity amounted to 3254.2 thousand tons, of which 1034.2 thousand tons, or 31.78%, were imported. Thus, for 11 months of 2024, there was a decrease in the domestic market capacity by 7.95% compared to 11 months of 2023, while the share of the import component increased by 6.13%,” the press release states.
The structure of imports in 11 months of 2024 is still characterized by a significant dominance of flat products over long products (78.87% and 19.52%, respectively); in January-November 2023, the dominance of flat products over long products was also significant (75.23% and 23.98%, respectively).
According to the State Customs Service, the main export markets for Ukrainian rolled steel products in January-November 2024 were the European Union (70.3%), Africa (10.5%) and the rest of Europe (8.1%).
Other European countries ranked first among steel importers in 11 months of 2024 (50.6%), followed by the EU-27 (28.0%) and Asia (20.0%).
As reported, Ukraine’s rolled steel market increased 2.19 times in 2023 compared to 2022, to 3 million 505.6 thousand tons. The company imported 1 million 118.6 thousand tons, or 31.91% of the domestic market for these products.
Imports of passenger cars, including cargo and passenger vans and racing cars (UKT FEA code 8703), to Ukraine in monetary terms in January-November this year increased by 8.4% compared to the same period in 2023, to EUR 3.995 billion.
According to customs statistics released by the State Customs Service of Ukraine on Monday, the top three countries from which cars were imported the most were the United States, Germany and Japan, while car imports from the United States increased by 9.5% to EUR734.69 million, and their share in the structure of car imports was 18.39% compared to 18.2% a year earlier.
Cars from Germany, whose share in the import structure decreased by 0.6 percentage points to 15.24%, were imported for EUR608.9 million (4.3% more), and the share of cars from Japan decreased to 11.5% from 14.4% a year earlier – they were imported for EUR462.83 million (almost 13% less).
Imports of passenger cars from other countries amounted to almost EUR2.19 billion (56.48% share), while a year earlier it was EUR1.9 billion (51.55%).
According to the statistics, in November, imports of passenger vehicles to Ukraine amounted to EUR 360.7 million, down 1.6% year-on-year.
According to the State Customs Service, in January-November, Ukraine exported such vehicles for EUR9.5 million, while a year earlier it was EUR27.3 million, with the largest exports going to Canada (EUR1.8 million), Germany (EUR1.54 million) and the US (EUR1.53 million), while last year it was to Georgia, the UAE and Germany.
President Volodymyr Zelenskyy says Ukraine will not continue to transit Russian gas.
“We will not continue the transit of Russian gas, we will not allow them to earn additional billions on our blood. Any country in the world that can get something cheap from Russia will eventually become dependent on the Russian Federation, whether tomorrow or in a month or a year. This is their policy. Therefore, we will not transit Russian gas,” Zelenskyy said at a press conference in Brussels on Thursday.
Zelenskyy noted that in a conversation with the Prime Minister of Slovakia, he said that if there is not Russian gas, but gas from another country, and there is no payment to Russia until the end of the war, Ukraine is ready to consider this option.
At the same time, Zelenskyy emphasized that Ukraine would not allow additional earnings for Russia.
