Major Ukrainian cable plant Odeskabel ended January-June this year with a net profit of UAH 5.05 million, while in the first half of 2022 the loss amounted to UAH 2.52 million.
According to the interim statements of the company released on Friday in the information disclosure system of the National Securities Commission, its net income increased by 31.2% to UAH 903.44 million
The company earned an operating profit of UAH 48.62 million (11% more than a year earlier), while gross profit rose 42.5% to UAH 164.9 million.
According to “Odeskabel”, in the first half of the year the largest share (41%) in total sales amounted to wires and power cables, compared to January-June 2022 their share increased by 8.4 p.p..
At the same time, the share of cables for structured cabling systems (LAN-cable) decreased by 8 p.p. to 22.85%, fiber optic cables increased by 8 p.p. to 22.85%. – To 22.85%, fiber-optic cables – by 2.9 p.p., to 16.6%.
As reported, in the first quarter of this year Odeskabel received UAH 0.8 mln of net profit compared to a loss of UAH 21.64 mln for the same period of 2022, with net income growing by 32.6% to UAH 433.28 mln.
Thus, in the second quarter, the plant increased net income by 30% by April-June 2022, to UAH 470.16 mln, while net profit decreased 4.5 times to UAH 4.27 mln.
The main risks for the company, according to the statements, remain uncertainty of the timing of the end of the military aggression of the Russian Federation against Ukraine; dependence on the fact that prices for 90% of materials are formed on the world market, and the sales market is mainly Ukraine and neighboring countries; complication of supplies of materials; reduction of purchases of products for capital construction by telecom operators.
In turn, according to information on the website of “Ukrzaliznytsia”, during the meeting held on July 19 with manufacturers of cable products, representatives of UZ urged Ukrainian plants to participate in tenders directly, which will “minimize the risks of participation of unscrupulous intermediaries and get the best products at a favorable price”.
“Odeskabel” produces a wide range of copper and fiber optic cables, digital or LAN cables, power cables, cords and wires.
As reported, the company’s net income in 2022 decreased by 24.7% by 2021 to UAH 1 billion 561 million, the loss amounted to UAH 27.24 million against net profit of UAH 55.4 million.
Large Ukrainian cable plant Odeskabel plans to produce and sell LAN-cables for UAH 570 mln, which is 45.8% more than in 2022, and keep output of fiber-optic cables (FOC) at last year’s level – not less than UAH 284 mln.
Such plans are outlined by the company in the financial report published in the information disclosure system of the Securities and Stock Market Commission (SSMSC).
“Priority areas for development and further investment remain fiber-optic, LAN cables and power wires,” the document says.
Power cables, wires and cords, including reinforced wires are planned to produce not less than UAH 860 million.
In addition, it is planned to output communication cables in the amount of 65,3 mln hryvnias, radio-frequency cables in the amount not less than 49 mln hryvnias, and heating cables in the amount of 40 mln hryvnias.
The company states that due to the military aggression of the Russian Federation against Ukraine, a decrease in production and sales was registered in 2022 for the main types of cable products, i.e. the share of fiber optic cables and LAN-cables decreased, but the share of power (energy) and other cables increased.
Commodity output of LAN-cable amounted to 46 thousand ukm 391 million UAH, which is 49.2% less than a year earlier, and the volume of sales decreased by 49.8%.
“LAN-cable was exported to 17 countries, and the share of its export was 46.8% of total sales of this type of product,” notes Odeskabel.
Fibre-optic cables were produced 279.9 thousand ukm for 283.4 million UAH, which is 23.7% less than in 2021, and the main markets were Ukraine, Slovakia and Moldova. A total of 149.8 million UAH worth of FOCs were exported.
“Due to the military aggression of the Russian Federation against Ukraine, the main types of cable products in 2022 marked a decline in production and sales, but despite this, an increase in production on four types of cable out of 22,” – noted in the document.
According to the report, net income of the company in 2022 decreased by 24.7% to 2021 – to UAH 1 billion 561 million, the loss made UAH 27.24 million against net profit of UAH 55.4 million.
The plant received UAH 326.74 mln in gross profit, which is 6.4% less than a year earlier, and operating profit was UAH 122.26 mln, which is 1.5% more.
In 2023, the company plans to export products worth at least UAH 590 mln, while in 2022 it exported products worth UAH 649.42 mln.
At the beginning of this year Odeskabel had concluded but not yet fulfilled contracts for 179.26 mln UAH.
According to the report, the most promising, popular in the domestic market and export-oriented types of cables are LAN-cables for structured cable systems and cables for computer networks, FOC, power cables of modern designs, sections and sets of heating.
“Fluctuations in demand for cable products depend on the activities of organizations for the construction of housing, industrial facilities and telecommunications networks. The most active sales periods are the second half of the first quarter, the second and third quarters,” the company notes.
The main consumers are telecom companies, private service providers of access to the Internet, cable TV and IPTV operators, enterprises of coal, mining and processing, power supply and intermediary companies.
By the beginning of this year, the company employed 858 people, 65 fewer than a year earlier.
PJSC Odeskabel, the large Ukrainian cable plant, made a loss of UAH 53.57 million in January-March 2019, while for the same period in 2019 net profit amounted to UAH 580,000.
According to the plant’s interim statements released in the information disclosure system of the National Securities and Stock Market Commission on Tuesday, April 28, its net income decreased 2.8%, to UAH 390.56 million.
The plant received a gross profit of UAH 57.11 million in the first quarter compared to UAH 59.71 million in 2019, and operating profit amounted to UAH 160,000 against UAH 13.79 million.
Cables for structured cabling systems had the largest share in the structure of products sold (39%), the share of power wirings and cables was 24.5%, and that for fiber optic cables was 15.3%.
The plant said in the report that the interim statements were influenced by lockdown introduced on March 12 in Ukraine due the coronavirus (COVID-19) spread, a change in stock market prices for copper (the main material for the cabling and wiring products) from $6,180 in January 2010 to $5,270 in March, and aluminum from $1,800 to $1,660, which affected the cost and pricing of Odeskabel products.
Among the main risks and uncertainties in the company are the dependence on the following facts: prices for 90% of the materials depend on the world market, and the sales market is largely Ukraine and neighboring countries; a change in the currency rate from UAH 23.68/$1 in January to UAH 28.06/$1 in March; falling solvency of customers, difficulties with the supply of materials for production.
Odeskabel is one of the leading manufacturers of fiber optic cable in Ukraine. In addition, it manufactures cable products for LAN networks, telephony, etc.
