Active launch of rehabilitation programs in Ukraine has led to an increase in the share of project sales of Sweetondale roofing and insulation products from 10% in 2023 to 38% in 2024, the company’s press service told Interfax-Ukraine.
According to Sweetondale sales directorate head Oleksandr Manuylo, the structure of demand has changed significantly compared to last year, when the main areas of sales were retail (42%) and sales to cottage low-rise construction projects (47%), as well as compared to the pre-war period.
“In late 2022 and early 2023, the main drivers of support for the construction sector were completions by large developers and commercial projects. In the second half of 2023, rehabilitation programs and some municipal programs began to take hold. According to our sales statistics, the share of project sales has gradually increased from 25% in 2021 to 38% year-to-date,” Manuilo said.
He added that due to the additional mobilization measures, the end-user flow in the retail and DIY channel has significantly decreased.
“It can be stated that investment uncertainty on the part of new commercial projects, limited funding of budget programs and lack of end-consumer activity lead to stagnation of classic sales channels. A significant shift of construction market volumes has begun, first from commercial construction to the public sector and then to military infrastructure development,” Manuilo said.
He noted that now it is extremely difficult to keep production costs at the pre-war level. The issues of supplying enterprises with electricity during blackouts, risks of missile attacks on production and storage infrastructure, border blocking by Poland, instability of supplies of raw materials and components, mobilization of certain categories of specialists have been added to the risk factors.
“We try to keep a competitive price level for our products, but forced price adjustments have occurred up to +15% depending on the direction of production,” Manuilo said.
According to him, despite the full-scale war, the company’s production units not only do not stop, but also actively develop. “Sweetondale’s team of experts and technologists have conducted research and improved products and systems. New insulation and waterproofing products have been developed taking into account all modern building regulations and European standards, which is confirmed by the relevant certificates. Updating the range of Sweetondale products is a strategic step that will improve competitiveness in the market by optimizing the range and focusing on the most effective technical solutions,” said Manuilo.
In particular, for industrial and civil construction the company presented professional lines: mineral insulation THERMOWOOL, polymer insulation CARBOLEX and bitumen insulation HYDROBASE. For private cottage and low-rise construction, ULTRAWOOL mineral insulation, STYROPLIT polymer insulation and WATERBIT bitumen insulation are recommended.
“Our internal analysis and some independent agencies state that we hold between 40 and 50% market share in our product lines. Right now, the mineral and polymer insulation product lines are operating at their potential maximum in line with seasonality,” Manuilo said.
Until 2022 Sweetondale sold 80% of its products in Ukraine. After two years of full-scale war, the export share dropped to a minimal 10% due to logistical problems as well as seasonal fluctuations in demand in European markets.
“The geography of our presence is Romania, Poland, Norway, Finland and the Baltic States. We have increased the number of foreign trading partners to utilize our production capacities. We plan to increase the volume of exports in future periods, but the share of exports will remain unchanged,” he said
According to Opendatabot, the authorized capital of Zavod “Sweetondale” LTD (“Zavod ‘Sweetondale’ LTD, USREOU Code 32944149) is UAH 13.5 million, for 2023 the company received revenue of UAH 1 billion 633.461 million, which is 73.7% higher than the results of 2022, net profit amounted to UAH 333.088 million, which is three times higher than the results of 2022.
Sweetondale was founded in 2012 by Gary Alan Stern. Initially specialized in industrial equipment engineering and leasing. Negotiations to acquire the plants owned by Russia’s Technonikol began in 2015 and were finalized in February 2018. Today, the company includes three plants for the production of roofing and insulation materials: a plant for the production of mineral insulation in Cherkassy, a plant for the production of polymer insulation and a plant for the production of bitumen-polymer roll materials in Kamenskoye.
The European Investment Bank (EIB) Group is planning new loans totaling EUR450 million for Ukrainian energy investments, including the reconstruction of hydroelectric power plants and power grid infrastructure damaged by Russian attacks, as well as the restoration of district heating networks in Ukrainian cities.
According to a press release on the bank’s website, another EUR 86 million will go to Ukraine’s national power grid operator, NPC Ukrenergo, to build drone shelters for power plants.
“We are stepping up our support to help protect and repair Ukraine’s infrastructure before winter,” the release quotes EIB President Nadezhda Calvigno as saying, “On July 22, she briefed EU foreign ministers on these measures and held a regular video conference with Ukrainian Finance Minister Sergii Marchenko to discuss progress on ongoing projects, especially in energy infrastructure.
According to her, the bank will also expand its support for Ukraine’s economy by facilitating access to finance for businesses and promoting trade with the EU.
In the business finance component of the latest support package, the EIB Group approved three partial portfolio guarantees, which are expected to lead to more than EUR 110 million in new lending to Ukrainian micro, small and medium-sized enterprises through three Ukrainian banks. It is specified that the guarantees are to be signed in the second half of 2024 with the respective banks and will support 550 Ukrainian companies, preserving about 8,250 jobs.
In addition, the EIB Group intends to provide partial portfolio guarantees to five more banks in Ukraine by the end of the year under the EU4Business Guarantee Facility, the release said.
According to the release, this week the EIB is also joining forces with Ukrsibbank, the Ukrainian subsidiary of BNP Paribas Group and one of Ukraine’s largest banks, to launch a revolving credit line of at least EUR150 million in Ukrainian hryvnia to support businesses affected by the war. The local currency facility is expected to be operational by the end of 2024. This is the EIB’s second initiative to stimulate local currency lending in Ukraine, following a partnership with Citibank Ukraine for between $50 million and $100 million in Ukrainian hryvnia.
In addition, the release notes, by the end of this month and following the signing of an agreement with the European Commission in June, the European Investment Fund (EIF) will start accepting applications under a EUR300 million export credit guarantee facility to support EU companies trading with Ukraine. The initiative will offer guarantees to export credit agencies in EU member states, as well as Norway and Iceland, that want to help export to Ukraine.
Following a videoconference on July 22, the Ministry of Finance of Ukraine announced that it expects the EIB to approve a EUR250 million package of support for Ukraine’s energy sector in the near future.
In general, according to the Ukrainian side, the volume of EIB initiatives in the public sector is 26 projects worth EUR 5.3 billion, and the volume of the portfolio of joint projects in the public and private sectors is the largest for all years of cooperation and exceeds EUR 7 billion, including about EUR 2 billion of EIB investments in all areas since the beginning of the full-scale war.
Regarding current initiatives, the parties also discussed preparations for the signing of a financial agreement between Ukraine and the EIB on the project “Implementation of the Emergency Assistance System for the Population by a Single Number 112”, as well as potential joint projects, in particular, aimed at providing housing for Ukrainian citizens.
As reported, in 2024, Ukraine and the EIB signed a Memorandum of Understanding on cooperation in the public and private sectors of Ukraine’s economy. The Memorandum identifies priority areas of cooperation for the next 10 years.
Kernel Agro Holding, one of the largest agricultural companies in Ukraine, processed 951 thousand tons of oilseeds, including 17 thousand tons of rapeseed, in the fourth quarter of fiscal year (FY) 2024, bringing the total processing volume to 3.2 million tons in FY 2024.
“This represents an increase of 27% year-on-year, primarily due to new crushing capacity added in February 2024 and the commissioning of a new oil extraction plant in Western Ukraine,” the company explained in a report to the Warsaw Stock Exchange on Monday.
According to the report, sales of sunflower oil in April-June 2024 increased by 1% quarter-on-quarter to 384 thousand tons, including 20 thousand tons of bottled sunflower oil.
The volume of silo acceptance in the fourth quarter of FY2024 was seasonally low and amounted to 53 thsd tonnes, bringing the total production in FY2024 to 2.8 mln tonnes, which is the same as in the same period last year, the agroholding said.
At the same time, the volume of grain exports from Ukraine in the last quarter of the financial year amounted to 1.61 mln tonnes, 46% of which were to foreign buyers. This is 14% less than in the previous quarter, but 2.6 times more than in the same period last year.
“For the whole of fiscal year 2024, Kernel exported 5.5 million tons of grain, up 47% year-on-year. Grain received from external suppliers accounted for 2.6 million tons of the total export volume. The agricultural holding attributed this growth to well-functioning export routes through the Black Sea for most of the year.
In April-June 2024, the transshipment volume of the group’s export terminals decreased by 8% compared to the previous quarter and amounted to 2.3 mln tons, indicating a slowdown in grain exports.
For the whole of FY2024, Kernel transshipped 6.7 mln tons of grain, sunflower oil and meal through its terminals, up 51% year-on-year. This growth was driven by the resumption of export routes through deep-water ports starting in the second quarter of FY2024. Grain accounted for 75% of the total transshipment volume in FY2024, edible oil for 12%, and meal produced from residues.
To improve terminal capacity utilization, the Group provided transshipment services to third parties in FY2024, totaling 486 thousand tons.
“Critically high temperatures and prolonged lack of precipitation in all regions of the group’s presence negatively affected the yield potential of spring crops in the fields, especially soybeans and, to a lesser extent, corn,” the agricultural holding summarized.
Before the war, Kernel Agro Holding was the world’s leading producer of sunflower oil (about 7% of global production) and its exports (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
Kernel’s net profit for FY2023 amounted to $299 million, while the company ended the previous year with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
In the first half of FY2024, Kernel’s net profit fell 3.6 times compared to the first half of FY2023, to $102 million, and EBITDA halved to $223 million, with revenue down 16% to $1.59 billion.
Foxtrot, an omnichannel electronics and home appliances retailer, has become the official distributor of Bluetti, a manufacturer of portable solar power plants and related products, Foxtrot’s press service reports.
“We always offer our customers the most modern and reliable solutions to ensure the comfort and safety of their homes. This is also the case with Bluetti appliances, which already have fans among our customers due to the high quality and innovative technologies used in production. This equipment is the perfect choice for customers looking for a backup power source in these difficult times,” said Vyacheslav Sklonny, Foxtrot’s commercial director.
Bluetti, an American manufacturer of portable charging stations and mobile solar systems, has been present on the global market since 2019 and became best known in Ukraine in October 2022. “Foxtrot started its own imports of Bluetti brand in October 2023.
The company said that it is also looking forward to innovative balcony solutions from Bluetti, which will be able to provide electricity during power outages not only to a private house but also to an apartment, making it as autonomous as possible. The terms of cooperation stipulate that most of the new models will first be presented in the Foxtrot network and then go to the general market.
“Foxtrot is one of the largest omnichannel retail chains in Ukraine in terms of the number of stores and sales of electronics and home appliances. The company operates 124 stores in 67 cities, including the frontline cities of Kherson, Kramatorsk, Sloviansk and Pokrovsk, and an online platform Foxtrot.ua and a mobile application of the same name. The number of customers reaches 14.2 million.
The Foxtrot brand is developed by the Foxtrot Group of Companies. The co-founders are Valery Makovetsky and Gennady Vykhodtsev.
Last week, Energoatom signed a loan agreement for 181 million pounds with a consortium of international banks, including Deutsche Bank and Barclays Bank, the company said in a telegram on Tuesday.
The loan proceeds under the contract between Energoatom and Urenco will be used to finance the supply of nuclear materials – enriched and natural uranium hexafluoride.
The loan is for five years. The guarantee is provided by the UK government through the UK Export Finance (UKEF) export credit agency. No state guarantees are provided by Ukraine.
As reported, in November 2023, Energoatom and Urenco signed a contract for the supply of enriched uranium product for Ukrainian NPPs until 2035, with the possibility of its extension until 2043.
In addition, the parties have two contracts in place until 2025, under which NNEGC supplies the British company with nuclear materials.
The European Union (EU) will change the rules of entry and exit in the fall: citizens of non-EU countries will be required to register their fingerprints and facial images at the border.
As reported by the MAPA public union on Monday, the relevant changes were discussed at a meeting between representatives of the Transport Community and representatives of the European Border and Coast Guard Agency at the Ministry of Community Development, Territories and Infrastructure of Ukraine.
The changes will affect transportation and travel to 30 European countries, the statement said.
“The first change concerns the introduction of the entry-exit system (EES). From now on, all non-EU citizens will be required to register their fingerprints and facial images at the border. This process will begin in the fall of this year,” MAPA said.
Another change will take effect from mid-2025: travelers will have to submit an online application to the European Travel Authorization Information System (ETIAS) before starting their trip and pay a EUR7 fee.
MAPA clarified that in connection with these innovations, transport companies will have to make changes to their booking, document verification, passenger check-in systems and adapt their operating procedures.
