Ukrproduct Group, a major Ukrainian producer of packaged butter and processed cheese, reported a net loss of GBP 2.04 million for 2024, compared with a net profit of GBP 0.39 million in 2023.
“Financial expenses in 2024 increased by 253% compared to the previous year to GBP 2.8 million, which was caused by significant accruals of commission for deferral on a loan from the EBRD, applied retrospectively for the period from October 2016 to December 2024,” the company explained in its annual report on the London Stock Exchange.
According to the report, in December 2024, the European Bank for Reconstruction and Development (EBRD) decided to exercise its right under the loan agreement and charged a commission of GBP 2.0 million, increasing the company’s liability to the bank to GBP 8.1 million.
The group’s gross profit for the past year increased by 3.9% to GBP7.12 million, while operating profit fell by 36.6% to GBP1.08 million, and EBITDA by 29% to GBP1.7 million.
As for Ukrproduct’s revenue, it grew by 13% in hryvnia over the past year, while in British pounds sterling, the increase was only 0.2% to GBP37.08 million.
“The processed cheese segment generated revenue of GBP 21.2 million in 2024, down 15% from the previous year. This was largely due to a reduction in price promotions at the national level due to rapid cost increases caused by sharp fluctuations in the dairy raw materials market and the risk of loss-making sales,” the company explained.
According to the report, the butter segment achieved revenue of GBP 5.2 million in 2024, compared to GBP 3.1 million in the previous year. This 70% growth was primarily driven by increased production following a period of slight stagnation, with the market becoming receptive to higher supply.
Sales of spreads fell by 12% to GBP 4.0 million, reflecting increased competition in the market and changing consumer preferences.
Ukrproduct recalled that in the fourth quarter of 2023, it expanded its range of products with a longer shelf life to include a new category of sandwich spreads, which showed profitable growth: sales in 2024 amounted to GBP 1.2 million.
Sales of skimmed milk powder increased by 8% last year to GBP 1.4 million, but declined by 23% in volume terms. It is noted that prices for skimmed milk powder had only limited upside potential in 2024, and the group minimized the release of this product for sale in favor of using semi-finished milk protein as an ingredient in the production of processed cheese.
Sales of kvass and other beverages increased by 31% year-on-year to GBP 2.3 million in 2024, thanks to positive kombucha sales dynamics, supported by new product launches and strong brand positioning.
Ukrproduct noted that administrative and commercial expenses in 2024 increased by 4% year-on-year to GBP4.2 million.
This increase was mainly due to higher payroll and related expenses, as well as higher insurance and consulting expenses. Other operating expenses increased to GBP 1.8 million in 2024 compared to GBP 1.1 million in the previous year.
In light of the expected deterioration in the business outlook and increased future risks, the group recognized a net impairment loss of GBP 1.1 million on financial assets, reflecting provisions made for receivables and prepayments to suppliers. In addition, this line includes a write-off of goods in the amount of GBP 0.1 million and a provision of GBP 0.4 million for blocked VAT invoices.
Ukrproduct’s net assets as of December 31, 2024, amounted to GBP 2.0 million, down from GBP 4.5 million a year earlier, while cash balances decreased to GBP 0.1 million.
According to the agricultural holding, it has been in dialogue with the EBRD since 2021 regarding the potential restructuring of the loan and accrued interest and fees, and discussions are ongoing. At present, the EBRD has not taken any action to accelerate the repayment of the accumulated loan.
Assessing its prospects for 2025, Ukrproduct assumes that the business environment will remain unstable due to the ongoing war in Ukraine and financial pressure.
“The Group will continue to pursue a prudent capital allocation policy, prioritize liquidity preservation, seek new financing opportunities, and focus on meeting its existing commitments.
EBRD, LOAN, LOSS, UKRPRODUCT
Ukrposhta JSC will receive EUR600 thousand for the installation of modular branches from the European Bank for Reconstruction and Development’s (EBRD) Special Crisis Response Fund, the company’s press service said.
According to the company’s announcement on Tuesday, the grant was provided in support of a EUR63 million loan already granted to Ukrposhta by the EBRD.
The company emphasized that the modular branches can be quickly installed in place of stationary branches that have been destroyed or damaged by enemy shelling.
“Modular offices will also be installed in settlements “cut off from the world” – with barrier-free access, equipped with Starlink and generators, they will become an island of stability for Ukrainians,” Ukrposhta said in a statement.
In addition, it is reported that in the modular branches it is possible to send a parcel within Ukraine and abroad; pick up ordered medicines; make a transfer or pick up funds sent by loved ones; subscribe to publications; pay utility and other bills; receive a pension.
The donors of the EBRD Special Crisis Response Fund are Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Norway, the Republic of Korea, Switzerland, the United Kingdom and the United States.
The European Bank for Reconstruction and Development (EBRD) plans to invest at least EUR1.5 billion ($1.56 billion) this year to support Ukraine’s economy and businesses during the war, Reuters wrote on Thursday, citing the bank’s president Odile Renault-Basso.
She said the bank will focus on Ukraine’s private sector, especially the energy sector after repeated Russian attacks on the power grid and other infrastructure. “Our plan is to continue this level of investment. At a minimum, we are aiming for 1.5 billion euros of investment, but if we can do more…, we will,” Reno-Basso told reporters.
She also said that the bank’s activities are demand-driven and the EBRD is ready to increase its investments in Ukraine to about EUR3 billion a year after the war ends.
Renaud-Basso added that Ukraine’s energy sector was a key priority this year and also in the future, as projects to modernize the sector and develop renewable energy could drive private investment after the end of the war.
“There is a lot of potential, so this will generate a lot of interest from foreign investors and it will generate a lot of activity in the country – it will really drive the growth dynamics,” she said.
Renault-Basso reportedly met with Ukrainian President Volodymyr Zelensky and other officials during her visit to Kiev on Thursday. They discussed banking, logistics, and support for Ukrainians.
Since the start of the full-scale invasion, the EBRD has disbursed EUR6.2 billion to Ukraine, notably EUR2.4 billion last year.
The Naftogaz Group and the European Bank for Reconstruction and Development (EBRD) have discussed financing the purchase of natural gas and supporting its production in the face of Russian attacks.
As the group reported on Friday, these issues were the focus of a meeting between Naftogaz CEO Roman Chumak and EBRD President Audrey Renaud-Basso. The event was also attended by EBRD Vice President Matteo Patrone, Managing Director for Ukraine and Moldova Arvid Turkner, and Deputy Head of the EBRD in Ukraine Iryna Kravchenko.
“Strengthening the country’s energy resilience in the face of a full-scale war, ensuring a stable heating season and providing all categories of consumers with gas are our key objectives. We are grateful to the EBRD for its support and continue to work together on financial instruments to ensure Ukraine’s energy security,” Chumak emphasized during the meeting.
He also added that in today’s environment, flexible and operational solutions in cooperation with international partners allow Naftogaz to respond quickly to crisis situations and ensure uninterrupted energy supplies.
As reported with reference to the Minister of Energy of Ukraine Herman Halushchenko, Ukraine will need to import at least 1 billion cubic meters of natural gas by the end of 2025.
At the same time, according to former Energy Minister Olha Buslavets, the country will have to import 2-3 billion cubic meters of natural gas in 2025 to cover the shortage.
According to her estimates, Ukraine should go through the heating season without serious gas supply restrictions, unless there are extreme frosts, but by the end of it, reserves in underground gas storage facilities (UGS) will amount to about 4.5-5 billion cubic meters, which means an additional need to import 2-3 billion cubic meters of gas by the end of this year.
As part of a joint project with the European Bank for Reconstruction and Development (EBRD) to develop logistics for implementation in 2025, Ukrposhta JSC has announced a tender for the purchase of 31 modular premises for post offices.
According to the announcement on the EBRD’s tender procurement portal, bids will be accepted until February 14, 2025.
As reported, as part of the EBRD-funded logistics development project, Ukrposhta announced several tenders for the purchase of vehicles at the end of last year, including the repeated purchase of 100 trucks and 60 tractor-trailers in November.
In October last year, tenders were announced for the purchase of 880 courier electric scooters and 1,745 electric postal tricycles.
The results of these tenders have not been made public.
Ukrposhta is the only national postal operator in Ukraine.
According to its website, its network covers more than 27,000 settlements in Ukraine, except for the temporarily occupied ones. It consists of 24 regional branches, the Directorate of Mail Processing and Transportation, and Avtotransposhta. The company’s vehicle fleet includes more than 5.3 thousand vehicles.
The European Bank for Reconstruction and Development (EBRD) provided almost EUR2.4 billion to Ukraine last year, up from EUR2.1 billion in 2023, a record high in the history of cooperation with the country, the bank said in a press release on Thursday.
“The Bank is the largest institutional investor in Ukraine, which has significantly increased its investments since the start of the full-scale Russian invasion in February 2022. The total amount of financing provided by the EBRD in Ukraine during the war is almost EUR 6.2 billion,” the statement said.
It is noted that the priority areas of the EBRD’s activities in Ukraine remain support for energy security, vital infrastructure, food security, as well as trade and the private sector. The press service clarifies that trade finance is taken into account in the total volume along with investments.
The EBRD plans to maintain its investments in Ukraine at around EUR 1.5 billion per year, with a potential increase during the recovery phase, following an agreement reached in 2023 to increase the bank’s capital by EUR 4 billion to EUR 34 billion.
“Our shareholders have shown tremendous confidence in us by approving a significant capital increase to support our operations in Ukraine and other war-affected countries. Most of all, I would like to see 2025 become a year of recovery. This is where the EBRD is able to make the most of itself – we use our financial expertise to help rebuild better than before,” EBRD President Audrey Renaud-Basso said.
It is specified that the total amount of financing provided by the EBRD in 2024 reached EUR 16.6 billion, which is 26% more than the previous record of EUR 13.1 billion in 2023.
The EBRD was founded in 1991. According to the latest data, the financial institution has invested more than EUR 21.29 billion in Ukraine since then. The current portfolio consists of 614 projects worth EUR5.58 billion.
