Business news from Ukraine

SVITOCH CONFECTIONARY FACTORY DOUBLES EXPORTS IN 2017

Public joint-stock company Svitoch Lviv confectionary factory under control of Nestle, a large confectionary producer in Ukraine, exported 1,328 tonnes of products in 2017, Operations Supervisor Ihor Savka has said.
“In 2017, we doubled exports compared with the previous year, to 1,328 tonnes,” he said at a press conference in Lviv last week.
He said that the company plans to boost exports. In 2018, Nestle seeks to increase production of Lion chocolate bars by 20% for these purposes.
Savka said that the largest volume of chocolate bars is exported to Brazil.
“Last year 400 tonnes of Lion bars were exported to Brazil,” Savka said.
In turn, Director for Corporate and Public Relations at Nestle in Ukraine Volodymyr Spivak said that the key importer of Svitoch products is Hungary, as well as Poland and Germany.
Savka said that the plant plans to invest UAH 95 million in 2018 compared with UAH 31 million in 2017 and UAH 149 million in 2016.
Nestle owns 96.96% of shares in Svitoch.

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AUTOMAGISTRAL-YUG LAUNCHES ASPHALT CONCRETE FACTORY IN DNIPROPETROVSK REGION

Odesa-based Automagistral-Yug has launched an asphalt concrete factory in Novomoskovsk, Dnipropetrovsk region, the company’s press service has reported.
According to the report, the factory is the 15th production facility of the company in Ukraine and the fourth in Dnipropetrovsk region.
“The factory in Novomoskovsk is built at our industrial base. We have completely restored our facility – we have overhauled and equipped a dormitory for 120 people, renewed the railway tracks, the laboratory and the repair base. About UAH 60 million was invested in construction of the factory. The total investment in production facilities in Dnipropetrovsk region is approaching UAH 150-170 million over the past few years,” Director General of Automagistral-Yug Mykola Tymofeyev said.
According to the company, the production capacity of the factory in Novomoskovsk is 240 tonnes of asphalt per hour. The new enterprise will allow the company to implement the construction of high-speed highway H-31 (Dnipro-Kobeliaky-Reshetylivka). According to the director general, the company began work on the highway last year and should build 57 km of the first category road with four lanes within several years.
Automagistral-Yug LLC was registered in 2006. According to the company’s website, it owns 10 factories producing asphalt mixes, eight own production bases of the construction divisions of the enterprise in six regions of Ukraine.

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FREENET SEES 24% RISE IN EBITDA IN 2017, EXPANDS SUBSCRIBERS’ BASE BY 11%

Freenet LLC Internet provider (the O3 trademark, Kyiv) increased its earnings before interest, taxes, depreciation and amortization (EBITDA) by 24.1% in 2017, to UAH 73.87 million, and its subscribers’ base expanded by 11%, to 134,400 users.
The press service of the company reported last week that in the past five years gross revenue of the operator soared 2.6-fold, including by 23.4% in 2017, to UAH 178.2 million.
EBITDA margin reached 50% in 2017.
Last year the company invested UAH 84.46 million in development of own networks, which is UAH 20 million more than in 2016.
Today Freenet has 17 branches and subscribers’ servicing centers in nine regions of Ukraine.
Freenet provides services under the O3trademark. It is the national operator of broadband Internet access.
The company builds networks using FTTx technology using 10 and 40 gigabit fiber-optic cables.

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SHARE OF CASHLESS PAYMENTS IN UKRAINE 6 PP UP IN Q1 2018

The share of cashless payments using cards increased from 38.4% in Q1 2017 to 44.4% in Q1 2018, the National Bank of Ukraine (NBU) has reported on its website.
The volume of cashless transactions in Internet using mobile banking applications and e-commerce grew by 66.5%, to UAH 272.571 billion, and the number of these transactions by 34.1%, to 673 million.
The central bank said that payments in the Internet had the lion’s share of total cashless transactions – 35.9% (40.7% of the total number of transactions). The share of transactions in retail chains was 29.6% (50.6%), that for transactions to transfer money from one card to another – 26.9% (6.7%) and that for transactions using self-service machines (SSMs) – 8% (2%).
Ukrainians carried out 193 million transactions to withdraw cash for UAH 341.513 billion in Q1 2018.
The NBU said that the total number of payment cards over the period grew by 3.12%, to 59.9 million, including 34.762 million actively used cards (at least one transaction in the past three months).
As of January 1, 2018, a total of 77 banks members of the card payment systems worked in Ukraine (eight less than a year ago).

SUMY NPO TO DELIVER EQUIPMENT FOR $3.7 MLN TO GROSSMANN GROUP FOR PAMUK BOOSTING COMPRESSOR STATION IN UZBEKISTAN

Public joint-stock company Sumy Machine-Building Science and Production Association (Sumy NPO) is preparing for the delivery of equipment for modernization of gas pumping units of the Pamuk boosting compressor station (Uzbekistan) for the amount of $3.7 million.
The company said that the supervisory board of the company on May 17, 2018 approved the signing of the respective contract with Ingenieurbüro Reinhold Großmann GmbH & Co KG (Germany), part of the Grossmann Group.
Grossmann Group implements comprehensive engineering turn-key projects in the oil, gas and chemical industries, as well as environment and resources.
Sumy Machine-Building Science and Production Association is one of the biggest producers in Europe of gas re-pumping units and outfitted compressor stations for various uses: centrifugal, vacuum, and chemical pumps, and centrifuges and other equipment for the chemicals gas and oil-refining industries.

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