Business news from Ukraine

Business news from Ukraine

LATVIAN CONCERN OLAINFARM RAISES SALES IN UKRAINE BY 21%

The Latvian pharmaceutical concern Olainfarm in January-March 2019 increased sales in Ukraine by 21% compared to the same period in 2018.
According to the concern, the share of its sales in Ukraine for the two months amounted to 8% (EUR2,852 million) of consolidated sales.
However, in March 2019, the consolidated sales of Olainfarm in Ukraine decreased by 24% compared with March 2018, to EUR172,000 and amounted to 2% of the total sales of the concern.
In total, in the first quarter of 2019, the concern increased sales by 14%, to EUR34.7 million, in March the sales of the group rose by 3% compared to March 2018, to EUR10.8 million.
In January-March 2019, Latvia (a share of 28%), Russia (26%), Belarus (16%) and Ukraine (8%) remained the main sales markets of Olainfarm group.
Olainfarm is Latvia largest and one of the largest companies in the Baltic States for production of medicines and chemical-pharmaceutical products. The portfolio of its products includes over 60 finished dosage forms, 25 active pharmaceutical substances and more than 20 chemical intermediate products.

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SALES OF TELECOM SERVICES IN UKRAINE 10% UP IN 2018

The volume of sales of services by telecommunications and postal communications enterprises in Ukraine in 2018 amounted to UAH 72.565 billion, which in absolute prices is higher than the level of 2017 by 10%, according to the State Statistics Service of Ukraine.
According to its data, the volume of services provided to the population amounted to UAH 42.9 billion, or 59.1% of the total volume of services sold, which is 12.9% up from last year.
At the same time, in comparable prices compared to 2017 the volume of services sold as a whole decreased by 0.4% and in terms of providing services to the population grew by 0.6%.
In particular, in absolute prices in 2018 the volume of sales of postal and courier services grew by 9.75%, to UAH 6.1 billion, of which services rendered to the population amounted to UAH 1.7 million, which is 27.5% up from last year.
The volume of sales of mobile communications services in 2018 grew by 9.4%, to UAH 38.5 billion, of which services provided to the public amounted to UAH 26.6 billion (13.49% up from 2017).
The volume of sales of Internet services in 2018 also rose by 13.5% and amounted to UAH 12.3 billion, of which the population was provided with services worth UAH 8.8 billion (18.9% up from 2017).

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VERKHOVNA RADA’S AGRARIAN COMMITTEE RECOMMENDS PARLIAMENT TO EXTEND MORATORIUM ON FARMLAND SALES TO 2020

The Verkhovna Rada’s committee on agrarian policy and land relations has recommended the parliament adopt draft law No. 9355-5 on extending the moratorium on the sale of agricultural land until January 1, 2020, Oleh Kulynych, who chairs the committee’s subcommittee on land relations, said on Facebook. He said the committee at a meeting on December 18 considered 16 registered bills relating to the extension of the moratorium on the sale of agricultural land. The bills offered different dates for lifting the moratorium from April 22, 2019 to January 1, 2030.
“I consider the optimal term to be one year, as proposed by bill No. 9355-5 … As the chairman of the land subcommittee, I proposed to support draft law No. 9355-5 and recommend the parliament adopt the bill as law,” Kulynych said.
The draft law provides that the Cabinet of Ministers by March 1, 2019 develop and submit a draft law on the turnover of agricultural land to the Rada.

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SALES OF SERVICES IN UKRAINE 4.8% UP IN Q3

The volume of sales of services by service enterprises in Ukraine in Q3 2018 amounted to UAH 197.1 billion, which in comparable prices is higher than the level of Q3 2017 by 4.8%, according to the State Statistics Service of Ukraine. According to its data, the volume of services provided to the population amounted to 24% of the total volume of services sold.
As reported, the volume of sales of services by service enterprises in Ukraine increased by 5.8% in Q2 2018, 3% in Q1 2018, by 0.6% in Q4 2017, by 3.1% in Q3 2017, by 7.7% in Q2 2017, and by 14.8% in Q1 2017.

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PHARMACY SALES 28% UP – BUSINESS CREDIT

Pharmacy sales in Ukraine in January-October 2018 in monetary terms increased by 28% compared to the same period in 2017, to UAH 68.665 billion. Business Credit company told Interfax-Ukraine, in natural terms sales for the specified period remained unchanged, being 1.229 million packages, while the weighted average price rose by 28%, to UAH 55.60 per unit of goods.
According to the company, retail sales of medicines in January-October in monetary terms increased by 30%, to UAH 56.732 billion, in natural terms by 9%, to 833.893 million packages. The weighted average price of medicines in January-October 2018 was UAH 68 per product unit.
As reported, in January-September 2018 pharmacy sales in Ukraine in monetary terms were up by 30% compared to the same period in 2017 and amounted to UAH 61.788 billion, while sales in kind by 1%, to 1.124 billion packages.
Retail sales of drugs in January-September 2018 in monetary terms grew by 32%, to UAH 50.805 billion, in natural terms by 10%, to 754.352 million packages.

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AIS RAISES CAR SALES BY 27%

AIS group of companies, a large operator in the automotive and special vehicles market, in January-October of this year increased car sales by 27% compared with the same period last year, to 5,500 units, the press service of the company has said.
“AIS shows a positive trend, despite the fact that the automotive market is stagnating and began to show negative dynamics,” the report says.
The income of the group of companies for this period amounted to UAH 2.7 billion, obligatory payments to the national budget (VAT, duty, excise) amounted to UAH 0.9 billion.
According to the company, during this period sales of Geely cars increased by 51%, Citroen by 33%, Peugeot by 102%. In addition, sales of MAZ trucks showed an increase of 150%.
The business program AIS AutoTrade for used cars showed a sales growth of 57%. The company is also the leader in sales of the automobile brands Renault, Citroen, Ravon, and others in Ukraine.
Among the factors contributing to the sales growth are a number of ongoing programs. In particular, due to financial products, credit/leasing sales reached 30% with the average market indicators standing at 10%-15%.

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