Milkiland, a dairy group with assets in Ukraine, Russia and Poland, in January-September 2018 saw EUR 13.42 million of net loss compared with EUR 4.55 million of net profit a year ago.
According to an unaudited report of the group posted on the website of the Warsaw Stock Exchange (WSE), revenue over the period fell by 6.6%, to EUR 98.8 million, and gross profit – by 24.4%, to EUR 15.92 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 1.8-fold, to EUR 4.38 million.
Milkiland in January-September 2018 saw EUR 3.41 million of operating loss compared with EUR 3.01 million of operating profit a year ago.
The loan portfolio of the group was EUR 86.2 million as of September 30, 2018 compared with EUR 86.6 million as of late 2017, mainly thanks to repayment of the indebtedness under the restructuring agreements with Ukrainian and Polish banks. Net debt of the group declined by 1%, to EUR 85.7 million as of September 30, 2018.
The Russian market provided for EUR 59.53 million of the group’s revenue, the Ukrainian market – EUR 28.93 million and the Polish market – EUR 10.47 million.
Cheese & butter segment contributed approximately 38% to the group’s total revenue. Segment’s revenue increased by 19% to EUR 37.34 million, the whole-milk dairy segment – EUR 47.33 million (48% of total revenue) and the ingredients segment – EUR 14.26 million (14%).
“In 9M 2018 Milkiland Ukraine focused on the development of sales of high value-added products, including innovative lactose-free cheese and whole milk products, primarily in the key accounts channel. The company also paid an attention to production and export sales of Kosher dry milk products and butter under the contract with key client from Israel,” the company said.
In 9M 2018 Milkiland put additional efforts aimed at the entering to new and development of the sales at the existing export markets. In line with these efforts, Milkiland Intermarket continued a development of the distribution network of the group’s dry milk products and butter in China. Additional volumes of cheese-like products were sold to the traditional market of the group in Kazakhstan, as well as other Central-Asian countries. The company also continued a fulfillment of the Kosher goods supply contract with the key client in Israel.
JSC Ukrtransgaz in January-September 2018 increased net loss by 35% or UAH 5.671 billion year-over-year, to UAH 22.011 billion.
According to a financial report of the company posted on its website, net revenue fell by 7% or UAH 2.84 billion, to UAH 36.688 billion, and gross loss rose by 73.7% or UAH 5.669 billion, to UAH 13.36 billion.
As reported, in 2017, Ukrtransgaz increased net loss 4.4-fold, to UAH 24.181 billion. Net revenue grew by 31.2%, to UAH 51.181 billion, and gross loss totaled UAH 14.449 billion compared with UAH 1.948 billion of gross profit in 2016.
Ukrtransgaz, fully owned by Naftogaz Ukrainy, operates a system of gas trunk pipelines and 12 underground gas storage facilities in the country.
The Danish agro-company Agromino (formerly Trigon Agri) with assets in Ukraine, Russia and Estonia in January-June 2018 saw EUR 2.82 million of net loss compared with EUR 9.46 million of net profit a year ago. According to a report of the company on its website, total revenue, taking into account the adjustment of the fair asset value and stocks, fell by 8.5% in H1 2018, to EUR 27.24 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were negative, being EUR 1.8 compared with positive EUR 9.4 million a year ago.
Consolidated assets as of June 2018 were estimated at EUR 58.32 million compared with EUR 46.77 million as of late 2017. In Q2 2018, Agromino cut net profit by 20.7% year-over-year, to EUR 8.14 million and revenue – by 9.5%, to EUR 20.25 million. As reported, Agromino in 2017 posted EUR 3.48 million net profit against EUR 25.08 million net loss in 2016. Revenues decreased by 17.6%, to EUR32.83 million.
Agromino (formerly Trigon Agri) was established in 2006. It specializes in grain and dairy production, agricultural trade.
The net loss of Bank Credit Dnepr (Kyiv) for January-March 2018 amounted to UAH 116.924 million, which is twice as much as in the same period of 2017.
According to the financial report posted on the bank’s website, its net interest income decreased by 36.9%, to UAH 40.23 million, net commission income by 30%, to UAH 29.873 million. Other non-interest loss amounted to UAH 24.105 million against UAH 30.15 million of other non-interest income in January-March 2017.
Operating expenses increased by 4%, to UAH 127.942 million.
The bank’s assets for the three months decreased by 9.36%, to UAH 8.417 billion. The loan portfolio was almost unchanged and by the end of March stood at UAH 4.116 billion.
In liabilities, the deposit portfolio decreased by 8.13%, to UAH 7.658 billion
Bank Credit Dnepr was founded in 1993. Its only owner is Victor Pinchuk.
The bank ranked 21st among 84 operating banks in the country as of January 1, 2018 in terms of total assets (UAH 9.411 billion), according to the National Bank of Ukraine.
Milkiland, a dairy group with assets in Ukraine, Russia and Poland, saw EUR 7.35 million of net loss in 2017, which is 81.1% less than in 2016. According to a company report on the website of the Warsaw Stock Exchange (WSE), revenue last year fell by 4.35, to EUR 140.41 million. Gross profit grew by 12.2%, to EUR 23.69 million. Operating profit stood at EUR 0.59 million compared with EUR 5.5 million of operating loss in 2016.
Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 1.9-fold, to EUR 10.28 million, net debt reached EUR 85.14 million at the end of 2017 compared with EUR 101.24 million in 2016. The net debt/EBITDA ratio fell from 18.6 to 8.28. Total assets decreased by 4.8%, to EUR 160.42 million.
Russia is the largest market for Milkiland contributing about 62% to the group’s total consolidated revenue in 2017. Sales in Ukraine account for about 27% of the group’s revenue and include all range of dairy products. Poland secured 8% of the group’s total revenue in 2017, while other countries account for 3%.
At the same time, revenue in the segment of whole milk products declined by 10.2% year-on-year to EUR 73.25 million compared to 2016 (52%); cheese and butter – by 9.5%, to EUR 42.25 million (30%); in the segment of dried milk and other products, revenue increased by 34.5%, to EUR 24.92 million (18%).
Milkiland in 2017 began shipping to several new markets, in particular to Israel, China, Denmark and the Netherlands. In 2017, the group invested EUR 2.8 million to support assets in Ukraine, Russia and Poland. In 2018, Milkiland intends to invest up to EUR2 million in servicing its assets and introducing new products in key group markets. “Despite some positive steps to better results and margins, in 2017 the group did not achieve a task of restoring the profitability of its business. The current year is expected to be crucial for reaching a break-even point for generation of the new value of the business. The Group’s management is going to achieve this by continuing a policy aimed at strengthening of the market positions of Milkiland in the countries of its operations, as well as on searching for new, and advancing at the existed export markets,” the company said.
France’s AgroGeneration Group with assets in Ukraine saw EUR 13.18 million of net loss in 2017, which is almost 15 times more than a year ago. According to a company report on its website, revenue fell by 10.1%, to EUR 54.2 million, gross profit decreased 30.9%, to EUR 16.03 million, and operating profit – by 92.9%, to EUR 0.84 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 9.1 million in 2017, which is 52.4% less than in 2016. Net debt grew by 14%, to EUR 45.44 million.
The share of exports sales grew to 57% in 2017 from 45% in 2016.
In 2017, AgroGeneration produced 359,200 tonnes of grain and oilseed (vs. 387,200 in 2016) over a sown area of 105,400 ha (versus 109,000 ha in 2016). The decrease in area is driven by the sale of a farm in Kharkiv region in 2017. The decline in production is mainly driven by the drought during summer 2017 that significantly affected sunflower and corn crops, although the group generally performed well above its peers.
The group plans to sow 106,000 hectares, out of which 48,000 have already been sown with winter crops. Under favorable weather conditions, the group started the fertilization for its spring crops with a reduction (versus last year) in corn and peas in favor of winter crops.
The 2018 crop season was secured thanks to the renewal of its season’s financing with Alfa-Bank Ukraine for $35 million and a $10 million prepayment contract with Switzerland’s Quadra Commodities.
AgroGeneration is furthermore implementing a comprehensive plan of cost savings. This includes a reduction of production costs and decrease in general and administrative costs for a total estimated amount of roughly EUR 4.2 million. In this context and with this cost savings plan having its full effect in 2018, the group aims to return to its recent years’ EBITDA performance in 2018.
The French group AgroGeneration was founded in 2007. It grows grains and oilseeds. In Ukraine it currently processes about 120,000 hectares. In October 2013, AgroGeneration completed its merger with Ukrainian agricultural company Harmelia.