Business news from Ukraine

Business news from Ukraine

VOLODYMYR-VOLYNSKY POULTRY FACTORY INCREASES SALES BY 40% DURING QUARANTINE

PrJSC Volodymyr-Volynsky poultry factory (Volyn region), one of the largest poultry producers in Ukraine, has reached a 40% increase in sales of its Epikur brand due to the growth in demand for products since the beginning of quarantine measures in Ukraine, Head of the company’s supervisory board Alina Sych has said.
“In the conditions of market boom, the demand for poultry, as well as for many other food products, has grown by more than 50% and continues being high. Packaged products in the tray became more important, as these products are more biosafe,” she told Interfax-Ukraine.
According to Sych, this is not only because people are loading up on supplies in advance, but also most consumers mostly cook at home during quarantine.
The head of the company’s supervisory said that the sales growth of the Epikur brand increased monthly by 20%, and since the beginning of quarantine measures in Ukraine, the products had reached a 40% growth.
Sych said that in order to meet the growing demand, the poultry factory is operating at full capacity. “We try to keep prices at the same level, but due to a sharp increase in the exchange rate and an increase in the cost of goods and services as well, we are forced to respond to market fluctuations. For example, we buy chickens for rearing in the EU and the level of the euro affects the cost of production, which directly affects the price for consumers,” the head of the supervisory board said, adding that the price of Epikur products has increased from the beginning of quarantine by an average of 10%.
In connection with the coronavirus disease (COVID-19) spread in Ukraine, the poultry factory, as far as possible, transferred office workers to remote work, and for other employees, it strengthened preventive and control measures in line with the recommendations of the Health Ministry.
“We provided workers with masks and respirators, antiseptics are easy available. We regularly disinfect office premises, vehicles, and also follow other preventive measures. Now, it is impossible to enter the territory of the factory without a mask and temperature screening,” Sych said.
PrJSC Volodymyr-Volynsky poultry factory is a Ukrainian-Dutch enterprise. It is one of the five largest producers of chicken in Ukraine, occupying about 6% of the market. The infrastructure of the poultry farm includes 100 poultry houses located at 11 poultry breeding grounds, a slaughterhouse and a feed mill, as well as land for growing forage.

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SALES OF SPIRIT BY STATE-OWNED UKRSPYRT IN JAN RISES BY 62%

Sales of spirit by state-owned enterprise (SOE) Ukrspyrt in January 2020 grew by 62% compared with the same period in 2019, to 412,000 decaliters.
“This is the result of the preparation of SOE Ukrspyrt for privatization and our common struggle with the Ministry of Economic Development, Trade and Agriculture, the State Tax Service and law enforcement authorities against the illegal spirit,” acting Director of Ukrspyrt Serhiy Bleskun said.
Last month, 11 Ukrspyrt distilleries were operating. “Last year, seven distilleries were operating at the same period, and sales amounted to 255,000 decaliters of ethyl spirit,” the enterprise said.
According to the company, in January 2019, the loss-making performance of Ukrspyrt amounted to UAH 5.5 million. In turn, the net profit of SOE in January 2020 reached UAH 2.6 million.

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SALES OF NEW PASSENGER CARS IN UKRAINE IN JAN 2020 INCREASE BY THIRD

Sales of new passenger cars in January 2020 increased by a third compared to the first month of 2019, to 7,000 units, according to AUTO-Consulting. “January 2020 turned out to be very successful for car dealers. Almost all major automotive brands had two-digit growth, which gives reason to expect a very successful year,” the group said on its website.
Analysts of the group note the strengthening of the competition among brands in January 2020. Toyota was first, ahead of last year’s leader Renault, and its sales increased 81%, to 1,149 units.
Renault sales in January grew by 29%, to 1,045 units, which is slightly below the market, but allowed to stay in the lead and go beyond the 1,000 cars sold.
“Nissan has actively claimed its intention to become a leader. The Japanese brand increased sales in January by 25%, which allowed it to be third for the second month in a row,” the group said.
Skoda sales grew by 27%, to 437 units. This allowed the Czech brand dealers to bypass Kia, which closes the top five with a 9.7% increase in sales, to 430 units.
According to the analysts, Peugeot became the record holder for growth in the top 10 in January, having tripled sales, which allowed it to move to the eighth position from the 14th in January 2019 and occupy 4.6% of the market. Mitsubishi, which returned to the top 10, also noticeably increased its sales in January.
The first month of the year was also successful for Mercedes-Benz, which regained its status as a leader among premium brands: it increased sales by 53%, to 224 units.
According to AUTO-Consulting, the beginning of the year was also successful for Chinese brands: Chery increased sales by 66%, to 169 units, and the Haval brand grew seven-fold.

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SOPHARMA INCREASES SALES IN UKRAINE

Sopharma AD pharmaceutical company in 2019 increased sales in Ukraine by 5% compared to 2018. According to the company’s preliminary report, in general, in 2019, revenue from sales to European countries increased by 21% compared to 2018.
The company noted that such an indicator was achieved, in particular, due to an increase in sales in Ukraine by 5% and in Russia by 32%, as well as an increase in sales to the Balkan countries, as well as Poland, the Czech Republic, Moldova, and other countries.
In addition, the company reports that in 2019 the company received 47 permits for the use of new medicines, in particular, in Ukraine, for the preparation of desloratadine in two dosage forms, as well as two names of cosmetic products.
As reported, in January-June 2019 Sopharma increased sales in Ukraine by 35% compared to the same period in 2018.
Since January 2008, Sopharma AD has been controlling PJSC Vitamins in Ukraine, and in August 2012 it created the subsidiary Sopharma Ukraine LLC (Kyiv) to optimize its trading business.

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UKRAINIAN OVOSTAR DECREASES EGG SALES BY 17%

Ovostar Union, a leading egg producer in Ukraine, cut egg sales by 17% in 2019, to 1.147 billion eggs.
According to a company report on its website, egg production last year fell by 2.35, to 1.587 billion. The share of exported eggs of total sales grew by 4 percentage points in 2019, to 46%, and exports totaled 525 million eggs compared with 587 million in 2018.
“The decrease of shell eggs sales is accounted for by the significant reduction of trading operations in 2019. Average price of eggs in UAH terms fell by 12% y-o-y and reached UAH 1.606/egg, while in U.S. dollar terms the decrease was 7% y-o-y and the price for the year was $0.062/egg (2018: UAH 1.819/egg or $0.067/egg respectively),” the company said.
In 2019 the volume of eggs processed was 577 million, which by 9% exceeds the level of the previous year.
The volume of dry egg products output grew slightly y-o-y and reached 2,969 tonnes. The output of liquid egg products increased by 12% y-o-y up to 13,904 tonnes.

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STATE-OWNED UKRSPYRT PLANS TO DOUBLE ALCOHOL SALES IN JAN

State-owned enterprise Ukrspyrt intends to sell 440,600 decaliters of alcohol in January 2020 against 255,170 decaliters in the same period in 2019 and associates this with the results of fight against production of counterfeit alcohol.
“These figures indicate not the fact that we began to produce or consume more alcohol in the country, but the fight against the shadow turnover of alcohol. The state focused on the elimination of counterfeit alcohol production schemes that previously existed at the plants of the enterprise. We are closely monitoring the cost of alcohol and the correct purchase of raw materials. And if we see any violations, we immediately change the heads of the plants. And this is already yielding results,” acting head of Ukrspyrt Serhiy Bleskun said.
According to Ukrspyrt, in January 2020 ten factories of the state-owned enterprise will work, while seven were operating in the same period last year.
In addition, the enterprise noted that in November-December 2019 the heads of six plants were changed, and video surveillance cameras with online broadcasting were installed at six plants.
Now the company is being prepared for transfer to the State Property Fund.
As reported, the law on the abolition of state monopoly on alcohol production from July 1, 2020, supported by the Verkhovna Rada on December 3, was signed by the president of Ukraine at the end of December 2019.

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