DTEK Energy received a net loss of UAH 327 million in January-March 2021, which is almost 23 times better than in the first quarter of 2020 and is mainly due to the strengthening of the hryvnia exchange rate.
According to the company’s report, positive exchange rate differences in January-March this year amounted to UAH 793 million against negative UAH 6.163 billion in January-March last year.
The company’s revenue for the reporting period increased by 12.8%, to UAH 14.42 billion.
The company explained that its growth was mainly due to an increase in the volume of electricity supply by 44% compared to the first quarter of 2020, when artificial restrictions for producers were in force.
Ukrproduct Group, a major Ukrainian producer of packaged butter and processed cheese, expects to receive GBP 1.16 million (UAH 45.37 million) in net loss over 2020 (taking into account losses from exchange rate differences) versus GBP 2.03 million (UAH 79.40 million) in net profit in 2019.
According to unaudited financial data posted by the company on the London Stock Exchange, Ukrproduct’s revenue may grow by 11.1%, to GBP 55.5 million (UAH 2.17 billion), and gross profit will remain at the 2019 level at GBP 4.7 million (UAH 183.83 million).
“The gross profit margin decreased by 0.9 percentage points to 8.5%, as a result of the rising raw milk prices and a sharp dip in milk protein prices worldwide during peak supply over the summer months that was to some extent offset by an improvement of margins in spreads, processed cheese and beverages,” according to the company’s report on the stock exchange.
The company saw rise in sales of spreads by 132.8% and processed cheese products by 79.9% in 2020, driven by their rebranding and repositioning, while sales of butter declined. According to the company, last year it took first place in the ranking of exporters in terms of proceeds from sales of processed cheese products, and its market share was 59%.
Over 2020, Ukrproduct intends to receive GBP 800,000 (UAH 31.29 million) of operating profit versus GBP 1.57 million (UAH 61.41 million) in 2019.
“Despite the COVID-19 pandemic, 2020 has turned out well and been stable for the dairy industry, with the consumption and production of dairy products increasing against the background of quarantine restrictions. The dairy industry remains vital for consumers and therefore the Company has maintained its performance and has worked throughout 2020 without interruption, navigating new market realities,” the report said.
According to the report, due to quarantine measures in 2020, revenue from sales of beverages remained at the level of 2019 and amounted to GBP 1.7 million.
“In order to ensure high quality cheese production the Group concentrated on the use of its own semi-processed materials in the production of processed cheese and minimised skimmed milk powder [SMP] production due to the global dairy commodities prices contraction,” the report said.
The company said it plans to pursue stronger margins and to further escalate sales of processed cheese and spreads, as well as to improve margins of packaged butter by a continuous upgrade into the premium market segment. It is also looking into the most efficient ways of procuring raw milk, which is subject to local competition that has been strengthening and thus increasing prices.
The full audited accounts are in the process of being finalised and the Company expects to announce these within the deadlines.
