“Ukrproduct Group, a major Ukrainian producer of packaged butter and processed cheese, increased production of kvass and beverages by 42.5% in local currency in the first half of 2024 and increased their output by 13.1% compared to the first half of 2023, the company said in a report to the London Stock Exchange on Monday.
Sales of kvass and other beverages in the first half of 2024 amounted to GBP1.1 million (…). This growth was driven by a combination of price increases, new product launches, distribution expansion, and favorable weather conditions for sales, the agricultural holding said.
The volume of oil sales in the first half of 2024 amounted to GBP1.8 million, which is 25.6% more in monetary terms and 9.5% more in production compared to the same period last year. Sales were made through the key sales channels – retailers, large distributors and exports.
In the Processed Cheese and Processed Cheese Products segment, sales amounted to GBP10.7 million, which represents a decrease in revenue of 2.2% in local currency and a decrease in volume of 10.8% compared to 1H2023.
“This was mainly due to financial difficulties for some clients and a shift in focus towards profitability,” Ukrproduct Group explained.
Spread sales for the reporting period decreased to GBP1.7 million, down 14.1% in local currency and 13.1% in volume compared to the same period last year. The agricultural holding explained the decline by increased competition in the market.
Skimmed milk powder sales for the six months of 2024 also decreased by 14.2% in local currency to GBP0.5 million and by 14.7% in volume compared to the same period last year, which is a continuation of the downward trend of the previous season.
Due to low prices for skimmed milk powder, the group minimized the production of this product, deciding instead to use semi-finished milk protein as an ingredient in the production of processed cheese, the agricultural holding said.
“Business development in the second half of 2024 remains extremely uncertain due to the ongoing war in Ukraine.
The Group continues to make every effort to implement its strategy in a very challenging business environment, not least by ensuring a stable electricity supply and responding to new challenges. In the next six months, the Group expects to focus on maintaining its existing production capacity, supporting sales volumes and continuously improving operational efficiency,” Ukrproduct Group summarized.
“Ukrproduct Group is a major Ukrainian producer of packaged butter, processed cheese and kvass. The company produces dairy products under the Nash Molochnyk, Nash Syrok, Molendam, and Vershkova Dolina brands and kvass under the Arsenievsky brand.
Ukrproduct Group operates two plants in Zhytomyr (one specializing in processed cheese and the other producing kvass) and two enterprises in Khmelnytsky region: a dairy plant in Starokonstantinov producing packaged butter, spreads, cheese and milk powder, and a dairy plant in Letychiv.
The group’s production capacity allows it to produce up to 70 thousand tons of dairy products per year.
