Ukraine’s retail trade turnover will continue to grow by an average of 10% in hryvnia in 2024, UTG CEO Yevheniia Loktionova told Interfax-Ukraine.
“The main reason for the growth in consumption in the form of shopping, entertainment and restaurant visits is to counteract stress and negative news. In the new year of 2024, Ukraine’s retail trade turnover will continue to grow by an average of 10% in hryvnia,” Loktionova predicts.
At the same time, according to the forecasts of UTG’s Strategic Consulting Department, the dollar will grow by about 10% and will average 39 UAH/$ for the year.
Loktionova noted that over the two years of war, retail real estate market players have gained experience in survival and adaptation, and most of them have become flexible and adaptive to rapidly changing situations. Therefore, according to UTG analysts, despite the serious challenges, retail real estate has withstood, maintained retail turnover and even demonstrated positive dynamics.
Thus, according to UTG’s Strategic Consulting Department, the retail trade turnover in Ukraine for the three quarters of 2023 amounted to UAH 1 trillion 291 billion 065.2 million, which is 25.32% more than in the same period of 2022 and almost close to the results of the whole of 2021 (UAH 1 trillion 443 billion 832.9 million). The YoY consumer price index (change over the year) in 2021 was 10.0%, in 2022 – 26.6%, and in 2023 – 3.8%. The company emphasizes that retail turnover growth is observed against the backdrop of maintaining the NBU’s average annual exchange rate against the hryvnia.
The positive dynamics of retail trade turnover is largely due to the growth of the Ukrainian consumer confidence index from 83.9 in 2022 to 84.9 at the end of 2023.
According to UTG experts, such indicators became possible due to changes in the attitude of Ukrainians to the fundamental values of life, which led to the rejection of savings and the implementation of the “here and now” concept. The growth of turnover is also influenced by spending on emergency purchases (goods for evacuation, solar panels, generators) and the accumulation of food and hygiene products in case of store closures or logistics problems.
“Retail turnover will continue to grow in 2024, with clothing and footwear becoming the main segment in the growth structure,” Loktionova said.
UTG was founded in 2001. It has developed more than 1300 real estate concepts. Over the years, the company has leased 4.7 million square meters of commercial space in Ukraine.
Japan has purchased large-sized equipment for Ukraine with a total capacity of about 200 MW, including 5 gas turbines and 7 large transformers, as part of its support for the energy sector.
The announcement was made during a meeting in Kyiv on Sunday between Ukrainian Energy Minister Herman Galushchenko and Japanese Foreign Minister Yoko Kamikawa. The equipment was purchased and delivered by the Japanese government in cooperation with UNDP and the Japanese International Cooperation Agency Jica.
“This is very important equipment. Some of it is still on the way, but two autotransformers have already been installed, and now we are talking about two more similar ones, as well as five gas turbine units and seven large transformers. We are talking about decentralization of the power system and an additional 200 MW of capacity,” Galushchenko said at a briefing after the meeting.
According to him, the equipment provided by Japan will be distributed throughout the country.
“This fully coincides with the goals of our national energy strategy aimed at decentralizing the energy sector,” the minister added.
In her speech, Yoko Kamikawa categorically condemned Russia’s ongoing attacks on civilian objects and the population and assured of full support for Ukraine.
“It is very important to support Ukrainians to protect them this winter. The equipment that Ukraine receives from us will benefit about 5 million of its citizens,” she said.
Oil prices are falling on Monday after a steady rise on Friday and over the past week on fears that the escalating conflict in the Middle East will limit the supply of raw materials to the global market.
The decline in the oil market on Monday is facilitated by the information that Saudi Arabia will lower prices for all grades of oil for all regions in February. Prices for Asian buyers will be reduced by $2 per barrel, state-owned Saudi Aramco said on Sunday.
The cost of March futures for Brent crude oil on the London ICE Futures exchange as of 7:10 a.m. on Thursday amounted to $77.88 per barrel, which is $0.88 (1.12%) lower than at the close of the previous trading. On Friday, these contracts rose by $1.17 (1.5%) to $78.76 per barrel.
February futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) have fallen by $0.9 (1.22%) to $72.91 per barrel by this time. As a result of the previous trading, the value of these contracts increased by $1.62 (2.2%) to $73.81 per barrel.
Over the past week, Brent rose in price by 2.2%, WTI – by 3%, Market Watch notes.
Traders continue to monitor the situation in Libya, where oil production at the country’s largest field, Al-Sharara, has been suspended due to protests, as well as the situation in the Red Sea after a series of attacks by Yemeni Houthis on commercial vessels.
These factors continue to support the oil market, said Warren Patterson, who is responsible for commodity strategy at ING Groep NV.
“However, in the absence of an escalation of the situation in the Middle East, the potential for price growth is limited given the fairly good balance of supply and demand in the market in the first half of 2024,” the expert says.
Northern Mining and Processing Plant (Pivdennyi GOK, Kryvyi Rih, Dnipro Oblast), a part of Metinvest Group, posted a net profit of UAH 681.867 million in January-September 2023, compared to a net loss of UAH 2 billion 227.488 million in the same period of 2022.
According to the interim report of the company, which is owned by Interfax-Ukraine, net income for the period increased by 8.8% to UAH 14 billion 27.599 million.
Retained earnings as of the end of September 2023 amounted to UAH 10 billion 727.921 million.
In 9M2023, Northern Mining produced 1 million 414.95 thousand tons of concentrate and 2 million 233.98 thousand tons of pellets.
The company ended 2022 with a net loss of UAH 2 billion 972.333 million, while in 2021 it made a net profit of UAH 25 billion 293.042 million.
In 2022, Northern GOK produced 2 million 144.23 thousand tons of concentrate and 1 million 525.01 thousand tons of pellets. In 2022, the plant’s supplies to the Ukrainian market amounted to 3.957 million tons, compared to 12.612 million tons in 2021. The share of sales of commercial concentrate to the domestic market in physical terms amounted to 51%, which is 37% less than in 2021. The company exported 2.092 million tons of iron ore concentrate and pellets.
The plant specializes in the extraction, processing and production of iron ore.
According to the third quarter of 2023, Metinvest B. V. owns 100% of the shares in Northern Mining.
Northern GOK is part of Metinvest Group, whose main shareholders are System Capital Management (SCM, Donetsk) (71.24%) and Smart Holding Group (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.
The authorized capital of Yenakiieve Mining is UAH 579.707 million.
Podorozhnik pharmacy chain plans to expand its network to 2000 pharmacies by summer 2024, CEO of the chain Taras Kolyada said.
“Currently we have 1763 pharmacies. In 2023 we have reached 400 new pharmacies. By the summer of 2024 we will grow to 2,000 pharmacies,” he said in an interview with Forbes.
Kolyada said that the network is currently expanding at a fairly active pace: “In 2019 we opened 486 pharmacies, now 400 pharmacies per year is a habitual rhythm for us.”
At the same time, he noted that “we usually have 150 outlets in back closer – somewhere we are doing repairs and looking for people, somewhere we are signing a contract or waiting for the lease from the previous owner of the premises to expire.”
“Landlords see pharmacy as a stable business and are willing to cooperate. We are building coverage of the country. For us, the key is to penetrate the regions, small towns from Chop to Seredina Buda, from Reni to the north of Chernihiv region,” he said.
In addition, Kolyada said that in 2023, in all channels sales of “Podorozhnik” increased by 40-50% in relation to the data of 2022.
At the same time, Kolyada predicts that in general in Ukraine “the trend for network expansion remains, but the market redistribution will be in favor of system operators”.
According to Kolyada, the average investment in opening a pharmacy is up to UAH 3.5 mln.
Metinvest Group’s Kametstal plant, which was built at the facilities of Dnipro Metallurgical Plant (DMK, Kamianske, Dnipro region), posted a net profit of UAH 1 billion 359.475 million in January-June 2023, while the same period in 2022 ended with a net loss of UAH 1 billion 256.843 million.
According to the company’s interim report available to Interfax-Ukraine, net income for the period decreased by 0.8% to UAH 23 billion 415.731 million.
Retained earnings as of the end of June 2023 amounted to UAH 202.216 million.
The plant ended 2022 with a net loss of UAH 883.119 million, while in 2021 it made a net profit of UAH 120.277 million. The company’s net income in 2022 increased by 91.3% to UAH 37 billion 850.282 million. Production in 2022 amounted to 1 million 686.4 thousand tons of steel products.
“Kametstal was established on the basis of PJSC Dnipro Coke and Chemical Plant (DKKhZ) and the Centralized Steel Works of PJSC Dnipro Metallurgical Plant (DMK).
According to the third quarter of 2023, Metinvest B.V. (Netherlands) owns 100% of the company’s shares.
The authorized capital of PJSC Kametstal is UAH 170.584 million.
