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
Ukrposhta JSC increased its revenue by 12.1% in 2024 compared to 2023 to UAH 12.9 billion and reduced its loss by 1.9 times to UAH 413.2 million, the company’s press service reported, citing the company’s financial statements confirmed by an independent international auditor.
“Despite the difficult wartime conditions, the national postal operator continues to increase revenue and demonstrates positive financial results in 2024. According to the company’s financial statements, confirmed by an independent international auditor, in 2024 Ukrposhta received UAH 12.9 billion in revenue, which is UAH 1.3 billion, or 12.1%, more than in 2023,” Ukrposhta’s press service said on Monday.
The growth of the company’s financial performance at the level of 12% has been recorded for the second year in a row: in 2023, the company’s revenue also increased by 12% compared to 2022 and amounted to UAH 11.6 billion, the Ukrposhta press service emphasized.
In 2024, for the first time since the beginning of the full-scale invasion, Ukrposhta received positive EBITDA (earnings before interest, taxes, depreciation, and amortization). The figure reached UAH 659.3 million. In 2023, Ukrposhta had an excellent EBITDA (-22.9 million UAH), and in 2022 (-462.8 million UAH), the company said in a statement.
“Despite the stable dynamics of revenue growth, Ukrposhta still has a net loss. However, it has almost halved – by UAH 383.2 million compared to 2023 – and now amounts to UAH 413.2 million. The main factors behind the loss were currency fluctuations (UAH 246.9 million) and the cost of maintaining property whose sale was legally blocked (UAH 43.2 million),” Ukrposhta’s press service said.
Capital investments in 2024 amounted to UAH 695.7 million.
It is noted that the key drivers of the company’s growth in 2024 were income from international postal exchange – +45%; payment acceptance – +28.3%; expedited international EMS delivery – +26.6%; international shipments (small packages) – +25.5%; parcels – +10.8%.
“On paper, Ukrposhta is still unprofitable, but an international audit has already confirmed that our EBITDA is positive. That is, the company is actually in the black operationally, and the losses we record are servicing loan obligations in foreign currency, which grow in proportion to the depreciation of the national currency, and lost income from the planned sale of property. Part of the losses is the constant destruction of our infrastructure (branches, vehicles), given that Ukrposhta operates along the entire front line, where there are no other companies,” Ukrposhta CEO Ihor Smelyansky said, as quoted by the press service.
Smelyansky assured that Ukrposhta will continue reforms and investments in new facilities.
Ukrposhta emphasized that the company currently has no arrears in payments to budgets and state trust funds. In total, in 2024, the company paid UAH 3.1 billion in taxes, fees and mandatory payments, which is UAH 124.0 million more than in 2023.
Earlier it was reported that in the fourth quarter of 2024, Ukrposhta JSC increased its net income by 11.5% compared to last year to UAH 3.59 billion, having received a net profit of UAH 97.7 million for the first time since the beginning of the full-scale invasion.
In 2024, the manufacturer of agricultural machinery and special vehicles, Fregat Plant JSC (Pervomaisk, Mykolaiv region), increased its net income from sales by 34.6% compared to 2023, to UAH 188.6 million.
According to the company’s financial report published in the information disclosure system of the National Securities and Stock Market Commission (NSSMC), its loss increased by 58% to UAH 60.4 million.
At the same time, the plant earned UAH 71.1 million in gross profit, up 44% year-on-year, and its operating profit increased 1.5 times to UAH 12.6 million.
As reported, in January-September 2024, the plant increased its loss by 5.4 times compared to the same period in 2023, to UAH 41.6 million, due to a 7.5-fold increase in expenses under “other expenses” to UAH 48 million, while net income increased by 42.4% to UAH 134.7 million.
Thus, in the fourth quarter of 2024, the plant reduced its loss by 38.4% compared to October-December 2023 to UAH 18.8 million, while net income increased by 18.4% to UAH 54 million.
Fregat specializes in the production of irrigation systems, road fencing, metal structures, as well as engineering products and special-purpose machinery.
The company exports road safety fences to Germany, the Netherlands, Poland, and the former CIS countries (except Russia and Belarus), where it also supplies agricultural machinery for crop production.
The main foreign customers are BBV Baustahl und Blechverarbeitungsgesellschaft mb, Scuer GmbH (Germany), Meerman Technisch Buro B.V. (Netherlands), and Agrorada (Poland).
As of the beginning of this year, the average number of employees was 260, and the average salary was UAH 12.4 thousand (44.2% more than in 2023).
In 2023, the plant, according to its financial report, reduced its loss by 4.2 times compared to 2022, to UAH 33.6 million, while net income decreased by 16% to UAH 140 million.
As of the third quarter of 2024, Fregat Engineering Limited (Cyprus) owns more than 96.25% of the authorized capital of Fregat Plant JSC, and the ultimate beneficiaries, according to opendatabot, are members of the Dementienko family from Dnipro.
In 2024, PJSC Ichnyansky Milk and Cannery (ICCK, Chernihiv region) received UAH 77.23 million in net loss against UAH 57.67 million in net profit.
According to the agenda of the annual general meeting of shareholders scheduled for April 25 in remote mode, the shareholders are proposed to approve the results of financial and economic activities, and not to accrue dividends based on the results of work in 2024 due to the lack of net profit.
The shareholders will be asked to hear and approve the report of the company’s supervisory board and the external auditor of Creston Ukraine LLC, and re-elect the supervisory board. They will also review the provisions of the charter on the supervisory board. The chairman of the company’s management board will be obliged to re-register the information in the Unified State Register of Legal Entities, Individuals and Public Organizations.
In addition, the general meeting will decide to increase the amount of contribution of Provian LLC to the authorized capital of the company to UAH 59,521.00 and to decrease the amount of contribution of individual shareholders to the authorized capital of the company to UAH 1,473.00. The Chairman of the Management Board will be obliged to formalize the relevant changes in accordance with the procedure established by law.
Finally, the shareholders will approve the budget of PJSC IMCC for 2025.
According to the Opendatabot service, in 2024 PJSC IMCC increased its revenue by 2.9% to UAH 842.86 million, debt obligations by 10.8% to UAH 528.68 million, and assets by 14.2% to UAH 535.55 million.
“Ichnyansky Dairy Processing Plant is part of Proviant Group, which is a distributor and exporter of condensed milk produced by the plant. Proviant LLC is a member of the group of the same name along with other companies engaged in the production and sale of dairy products.
According to the information in the NSSMC disclosure system, the shareholders with large stakes in IMCC are Proviant LLC, which owns 53.7% of the shares, and Hyperion Invest Closed Non-Diversified Venture Corporate Investment Fund, which owns 43.92%.
According to information on its website, IMCC occupies about 25% of the domestic market in the segment of products it produces (bottled milk and condensed milk) and exports them to 38 countries. Its brands are Ichnia, MamaMilla, and Milada. In 2025, the company is to launch a cottage cheese production line, for the construction of which it has raised UAH 150 million under the government program Affordable Loans 5-7-9%.
Dnipropetrovs’k Rolling Mill JSC (DZPV) ended 2024 with a loss of UAH 58.32 million, which is 2.5 times higher than in 2023, according to the information on the agenda of the company’s general meeting of shareholders scheduled for April 29.
According to the draft decision of the meeting, the loss is planned to be covered by profits of future periods.
“Dividends based on the results of the financial and economic activities of JSC “RPE” for 2024 shall not be accrued and paid due to the lack of net profit,” the draft decision says.
The owners of equal stakes in DZPV JSC (49.669% each) are a large manufacturer of iron castings, Ferrum-Steel LLC (Novomoskovsk, Dnipro region), and a distributor of spare parts for agricultural machinery, Kewpart LLC (Dnipro).
As reported, Kewpart and Ferrum-Style recently announced their intention to compulsorily buy out minority shares through a squeeze-out procedure at a price of UAH 18.21 per share with a par value of UAH 1.05.
The relevant public irrevocable request to buy back shares from minority shareholders was sent to the company on March 17.
Founded in the late 19th century, DZPV produces cast iron rolls for hot rolling mills, non-metallurgical rolls, and cast iron grinding balls.
The plant’s net income, according to the Clarity-project, decreased by 48.6% in 2024 compared to 2023, to UAH 58.45 million (in pre-war 2021, this figure was UAH 288 million).
According to the results of 2024, PJSC YUZHKOKS (Kamianske, Dnipro region) increased its net loss by 4.7 times compared to the previous year – up to UAH 272.924 million from UAH 58 million 25.2 thousand.
According to the agenda of the general meeting of shareholders of the company scheduled for April 18, which will be held remotely, it is planned to consider the report of the Board of Directors for 2024 and to adopt a decision based on the results of consideration of the report of the Board of Directors for 2024.
The agenda also includes adopting a decision based on the results of the review of the report of the company’s interim CEO for 2024, reviewing the auditor’s findings, approving the results of financial and economic activities for 2024, and determining the procedure for covering losses.
In addition, the meeting will give preliminary consent to enter into significant transactions.
The draft resolutions, a copy of which is available toInterfax-Ukraine, propose to cover the losses incurred by the company based on the results of its operations in 2024 in the amount of UAH 272 million 924.570 thousand at the expense of the company’s profit for future periods.
As reported, YUZHKOKS ended 2022 with a net loss of UAH 1 billion 206.942 million, while in 2021 it made a net profit of UAH 1 billion 292.672 million.
According to the third quarter of 2024, Dashuria Ltd. (Cyprus) owns 94.9565% of the company’s shares.
The authorized capital of YUZHKOKS PrJSC is UAH 171.918 million, with a share par value of UAH 0.25.
