Ukrproduct Group, a major Ukrainian producer of packaged butter and processed cheese, reported a net loss of GBP 2.04 million for 2024, compared with a net profit of GBP 0.39 million in 2023.
“Financial expenses in 2024 increased by 253% compared to the previous year to GBP 2.8 million, which was caused by significant accruals of commission for deferral on a loan from the EBRD, applied retrospectively for the period from October 2016 to December 2024,” the company explained in its annual report on the London Stock Exchange.
According to the report, in December 2024, the European Bank for Reconstruction and Development (EBRD) decided to exercise its right under the loan agreement and charged a commission of GBP 2.0 million, increasing the company’s liability to the bank to GBP 8.1 million.
The group’s gross profit for the past year increased by 3.9% to GBP7.12 million, while operating profit fell by 36.6% to GBP1.08 million, and EBITDA by 29% to GBP1.7 million.
As for Ukrproduct’s revenue, it grew by 13% in hryvnia over the past year, while in British pounds sterling, the increase was only 0.2% to GBP37.08 million.
“The processed cheese segment generated revenue of GBP 21.2 million in 2024, down 15% from the previous year. This was largely due to a reduction in price promotions at the national level due to rapid cost increases caused by sharp fluctuations in the dairy raw materials market and the risk of loss-making sales,” the company explained.
According to the report, the butter segment achieved revenue of GBP 5.2 million in 2024, compared to GBP 3.1 million in the previous year. This 70% growth was primarily driven by increased production following a period of slight stagnation, with the market becoming receptive to higher supply.
Sales of spreads fell by 12% to GBP 4.0 million, reflecting increased competition in the market and changing consumer preferences.
Ukrproduct recalled that in the fourth quarter of 2023, it expanded its range of products with a longer shelf life to include a new category of sandwich spreads, which showed profitable growth: sales in 2024 amounted to GBP 1.2 million.
Sales of skimmed milk powder increased by 8% last year to GBP 1.4 million, but declined by 23% in volume terms. It is noted that prices for skimmed milk powder had only limited upside potential in 2024, and the group minimized the release of this product for sale in favor of using semi-finished milk protein as an ingredient in the production of processed cheese.
Sales of kvass and other beverages increased by 31% year-on-year to GBP 2.3 million in 2024, thanks to positive kombucha sales dynamics, supported by new product launches and strong brand positioning.
Ukrproduct noted that administrative and commercial expenses in 2024 increased by 4% year-on-year to GBP4.2 million.
This increase was mainly due to higher payroll and related expenses, as well as higher insurance and consulting expenses. Other operating expenses increased to GBP 1.8 million in 2024 compared to GBP 1.1 million in the previous year.
In light of the expected deterioration in the business outlook and increased future risks, the group recognized a net impairment loss of GBP 1.1 million on financial assets, reflecting provisions made for receivables and prepayments to suppliers. In addition, this line includes a write-off of goods in the amount of GBP 0.1 million and a provision of GBP 0.4 million for blocked VAT invoices.
Ukrproduct’s net assets as of December 31, 2024, amounted to GBP 2.0 million, down from GBP 4.5 million a year earlier, while cash balances decreased to GBP 0.1 million.
According to the agricultural holding, it has been in dialogue with the EBRD since 2021 regarding the potential restructuring of the loan and accrued interest and fees, and discussions are ongoing. At present, the EBRD has not taken any action to accelerate the repayment of the accumulated loan.
Assessing its prospects for 2025, Ukrproduct assumes that the business environment will remain unstable due to the ongoing war in Ukraine and financial pressure.
“The Group will continue to pursue a prudent capital allocation policy, prioritize liquidity preservation, seek new financing opportunities, and focus on meeting its existing commitments.
EBRD, LOAN, LOSS, UKRPRODUCT
The state-owned Oschadbank (Kyiv) has provided the Lviv City Council with a second loan of UAH 668 million for a term of five years to improve energy efficiency and municipal facilities.
“Oschadbank has signed another loan agreement with the Lviv City Council—the second in the last six months—for UAH 668 million,” Oschadbank CEO Serhiy Naumov said on Telegram.
Other terms of the loan have not been disclosed.
The total amount of loans provided by Oschadbank to the Lviv City Council under signed agreements has already exceeded UAH 1.5 billion, the bank said.
It is noted that the funds will be used to develop strategic urban infrastructure, in particular roads and housing and communal services, and one of the main areas of use will be improving energy efficiency.
“The money will go to a biogas plant with combined production of electricity and heat, an electrical substation, a boiler room with connection to a cogeneration unit, and investments in the company Lvivteploenergo,” Naumov added.
As reported, Oschadbank’s share in energy lending in the first quarter of 2025 exceeded 31%. During 2024-2025, contracts worth over EUR 85 million were signed in the corporate business segment with its participation, in particular for projects to develop energy generation and storage. These include the first case on the market of bank lending for a project to install 30 MW of energy storage systems to provide ancillary services, which was implemented by KNESS as part of a tender by NEC Ukrenergo.
State-owned Oschadbank and Ukrgasbank, together with PUMB, issued a loan of UAH 2.8 billion to a defense industry enterprise in the fourth quarter of 2024 under the Program for Strengthening the State’s Defense Capabilities and Meeting the Urgent Needs of the Armed Forces of Ukraine, according to information on the website of the Ministry of Finance.
As clarified to the Interfax-Ukraine news agency by Oschadbank, the bank acted as the organizer of this consortium loan, which was the first loan to the domestic defense industry.
“As the coordinating bank for this agreement, Oschadbank has set itself the main task of creating a consortium not so much to diversify risks as to set a precedent for involving banks that do not have access to state secrets in the financing of defense industry enterprises,” commented Yuriy Katsion, deputy chairman of the board of Oschadbank, responsible for corporate business.
The shares of the participants in the consortium loan are not disclosed.
As reported, since the start of the full-scale war, Oschadbank has concluded loan agreements to support the defense industry worth over UAH 17.1 billion.
According to the Ministry of Finance, in 2024, the state-owned Oschadbank, Ukreximbank, Ukrgasbank, and PUMB provided 11 loans under state guarantees to defense industry enterprises under the above-mentioned program in the amount of UAH 21 billion. Excluding the consortium, Oschadbank issued six loans worth UAH 9.86 billion, and Ukreximbank issued four loans worth UAH 8.25 billion.
A year earlier, Oschadbank provided a loan worth UAH 6.09 billion under this program, and Ukreximbank provided a loan worth UAH 5.98 billion.
The international financial service NovaPay (TM NovaPay) issued UAH 1.7 billion in loans in 2024, the company’s press service reports.
“2024 was a period of active development of the lending business for NovaPay. During this time, the company launched new loan products – installment plans and loans for business, and the total amount of loans issued amounted to UAH 1.7 billion,” the press service of NovaPay said on Tuesday.
In particular, the amount of loans issued last year to small and medium-sized businesses amounted to UAH 281.4 million. Since the launch of the installment service in July 2024, 97 thousand loans for UAH 600 million have been issued. The average installment check amounted to UAH 6.2 thousand, the press service said.
Last year, 123 thousand transactions for UAH 746 million were executed as part of the Parcel on Credit service. The average check amounted to UAH 6 thousand.
“In 2025, NovaPay will expand lending opportunities by launching new loan products for Ukrainians and businesses, the company assured.
Earlier it was reported that the number of customers using the mobile application of the international financial service NovaPay (TM NovaPay) has reached half a million since its launch on December 13, 2023,
NovaPay was founded in 2001 as an international financial service that is part of the Nova group and provides online and offline financial services at Nova Poshta offices. The company provides online and offline payment services in more than 3.6 thousand Nova Poshta outlets across Ukraine. According to the National Bank of Ukraine, the company accounts for about 35% of the total volume of domestic money transfers.
In 2023, NovaPay was the first non-bank financial institution in Ukraine to receive an extended NBU license, which allowed it to open accounts and issue cards, and was the first non-bank to launch its own financial application with a wide range of financial services at the end of last year.
On December 20, 2024, the International Finance Corporation (IFC) of the World Bank Group signed documents to provide a $53.87 million loan to Concern Galnaftogaz to finance the construction of a 147 MW wind farm in Volyn region and technical support.
According to the IFC website, the total cost of the project is estimated at EUR261 million (including VAT), with a 16-year loan provided to the established project companies Wind Power G&I Volyn LLC and Wind Power G&I Volyn 3 LLC, controlled by GNG Retail Limited and its subsidiary Concern Galnaftogaz (together – GNG Group).
It is noted that the project involves the attraction of mixed financing, in particular from the UK-FCDO and EC-UIF, as well as the Clean Technology Fund.
Earlier, on December 4, participation in the project was also approved by the European Bank for Reconstruction and Development (EBRD), which has also already signed documents to provide the above-mentioned LLCs with a long-term loan of EUR 60 million for the construction of a 147 MW wind farm in the Volyn region.
The wind farm is expected to produce about 380 GWh (380 million kWh) of renewable electricity with zero carbon emissions annually.
In February 2024, the Antimonopoly Committee of Ukraine (AMCU) allowed GNG Retail Limited (Cyprus) to buy more than 50% of the authorized capital of Wind Power G&I Volyn LLC and Wind Power G&I Volyn 3 LLC. According to open registers, GNG Retail Limited owns 89.5% of the two LLCs, and JSC ZNVKIF Rimini (in which Vitaliy Antonov owns 83.19%) owns 10.5%.
OKKO CEO Vasyl Danyliak announced the start of construction of a wind farm in Volyn region in the fall of 2024. He explained the group’s plans to work in the renewable energy sector by the need to diversify its business, as the fuel market no longer foresees growth.
“Galnaftogaz operates one of the largest networks of OKKO filling stations, which includes more than 400 complexes with a network of catering facilities. The group also includes other businesses.
Vitaly Antonov’s GNG Retail Limited owns 90.25% of Concern Galnaftogaz shares. In October 2024, Avalia Investments Limited (Cyprus) of the founder and chairman of Concorde Capital, Igor Mazepa, became the owner of another 7.35% of the shares.
State-owned Oschadbank (Kyiv) has entered into a 5-year loan agreement with the Lviv City Council for UAH 840 million, of which UAH 718 million will be used to complete the construction of a waste processing plant.
According to the bank’s press release, the rest of the funds will be used to implement four more projects: the construction of an alternative bridge on Kovcha Street, the arrangement of two centers for veterans, and the reconstruction of the power supply system of the Pivnichna shopping center (CHP-2).
“Despite the fact that Oschadbank’s share in financing municipalities is more than 60% of the market, this loan agreement is the first in our cooperation with the Lviv City Council during a full-scale war. As a conscious bank that adheres to ESG principles, we are pleased to participate in the implementation of such an important environmental project for one of the most European cities in the country,” said Yuriy Katsiyon, Deputy Chairman of the Board of the state-owned bank in charge of corporate business, as quoted in a press release on Friday.
In turn, the Lviv City Council’s website states that the volume of construction work at the facility has reached 70%.
According to the release, once launched, the municipal waste recycling facility will be able to process more than 250 thousand tons of waste per year using mechanical and biological methods. This volume is expected to fully meet the city’s solid waste disposal needs.
The Oschad press service added that the Lviv Waste Recycling Plant construction project is also being implemented with the financial support of the European Bank for Reconstruction and Development (EBRD) and the Eastern European Energy Efficiency and Environment Partnership (E5P). The waste processing plant covers an area of 9.66 hectares.
The Lviv City Council website specifies that UAH 46.2 million of the total amount of approved funding will be used to build an alternative bridge on Omelyana Kovcha Street, and the remaining UAH 75.8 million will be used to equip two centers for veterans and reconstruct the power supply system of the Pivnichna shopping center (CHP-2).
According to the National Bank of Ukraine (NBU), as of November 1, 2024, Oschadbank ranked 2nd (UAH 340.77 billion) among 62 banks in the country in terms of total assets. The financial institution earned UAH 12.78 billion in net profit for 10 months of this year, compared to UAH 14.58 billion in the same period last year.
