Business news from Ukraine

EBRD MAY ALLOCATE EUR 28 MLN LOAN TO KHMELNYTSKY

The European Bank for Reconstruction and Development (EBRD), under the Green Cities project, intends to provide Spetskomuntrans Communal Enterprise with a loan of EUR 28.5 million to finance the project for the rehabilitation and modernization of solid waste infrastructure in the city of Khmelnytsky, valued at EUR 36.5 million
According to information on the bank’s website, the decision on the project can be made on July 8, 2020. Now the project is under consideration.
The loan split into several tranches co-financed by up to EUR 5 million investment grant from the EU Neighborhood Investment Platform and up to EUR 3 million local contribution.
The project includes two phases. The phase I of the Project will address the city’s urgent investment needs with respect to the rehabilitation of the existing landfill, the construction of a new engineered sanitary landfill in compliance with the EU standards adjacent to the old one, the acquisition of new landfill equipment to ensure sustainable operation of the new landfill and improvements of the solid waste collection and transportation systems, co-financed from the city budget.
The phase II of the project includes the construction of a new material recovery facility for non-organic waste and a separate composting facility for pre-sorted organic waste. The EBRD said that this will reduce the share of solid waste going to the landfill.
Spetskomuntrans Communal Enterprise is responsible for the collection, treatment and disposal of municipal solid waste in Khmelnytsky. The company has contracts with more than 92,000 households and almost 3,000 commercial and public organizations for waste removal and disposal. The company is also an operator of the existing landfill located in the territory of the city.

, , , ,

UKRAINIAN MHP INCREASES NET PROFIT BY 1.7 TIMES IN 2019 TO $215 MLN

The net profit of Myronivsky Hliboproduct agricultural holding (MHP) in 2019 increased by 1.7 times compared to 2018, to $215 million.
According to a company report on the London Stock Exchange’s website, its revenue last year increased by 32%, to $2.06 billion, due to the increased sales of chicken, vegetable oil and semi-finished products, as well as the purchase of PP.
Export revenue amounted to $1.19 billion, which is 58% of total revenue (60% in 2018). Export revenue increased by 28% compared to 2018 due to the growth in sales of grain, vegetable oil and meat products.
Last year, MHP’s gross profit decreased by 6%, to $398 million, operating profit by 31%, to $216 million.
The agricultural holding’s EBITDA in 2019 decreased by 16%, to $376 million, EBITDA margin to 18% from 29%. This was due to low prices (both for crops and chicken), adverse weather conditions and the significant strengthening of the hryvnia.
For the fourth quarter of 2019, MHP increased its net loss by 4.3 times, to $60 million compared to the same period in 2018. Revenue for this period increased by 43%, to $551 million. Export revenue amounted to $316 million, which is 57% of total revenue.
MHP’s operating losses in October-December 2019 amounted to $2 million compared to $29 million in operating profit in October-December 2018. Gross profit decreased by 22%, to $52 million.
EBITDA margin in the fourth quarter of 2019 fell to 8% from 23%, EBITDA by 51%, to $43 million.

,