Business news from Ukraine

INSURER INGOSSTRAKH HAS 5-FOLD RISE IN NET PROFIT

Private joint-stock company Ingosstrakh (Dnipro) saw UAH 378.2 million of net profit in 2017 (some 5-fold rise year-over-year).
According to a financial report of the company posted in the information disclosure system of the National Commission for Securities and the Stock Market, last year Ingosstrakh collected net insurance premiums worth UAH 737.856 million, which is 41.5% less than a year ago. Some UAH 77.42 million was sent to reinsurance, which is 2.4 times more than a year ago and UAH 193.5 million of payments in claims were made (82.2% down).
Administrative costs were UAH 22 million, while a year ago they stood at UAH 6 million.
Ingosstrakh was registered in 2004. Its core business is provision of risk insurance services.

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UKRAINE’S LARGEST SUGAR PRODUCER ASTARTA WANTS TO KEEP EUR 61.84 MLN PROFIT UNDISTRIBUTED

Agro-industrial holding Astarta, Ukraine’s largest sugar producer, wants to keep EUR 61.84 million in net profit for the financial year 2017 undistributed. This decision is on the agenda of a meeting of the holding’s shareholders scheduled for May 25.
In addition, the shareholders will consider the re-appointment of Viktor Ivanchyk, Viktor Hladky and Marc Van Campen as board members, along with the appointment of Gilles Mettetal as non-executive director and resignation of Vladyslav Bartoshevsky as non-executive director and deputy chairman of the board of directors.
Another issue on the agenda is the appointment of Zeljko Erceg as Chief Operating Officer of Astarta Kyiv LLC. He will temporarily head the company in case the entire board is temporarily unable to perform duties.
In addition, the shareholders may decide on the prolongation of the buyback program for another 18 months (from the date of the shareholders’ meeting). The company can buy out no more than 2.5 million shares at a price not higher than PLN125 per share.
The agenda also includes the issue of authorizing the board of directors to organize the issue of shares to the amount of up to 10% of current issued and paid-in share capital, as well as the restriction or cancellation of any existing pre-emption rights in shares. All actions are carried out within one year, starting from the date of the annual meeting of shareholders whose permission cannot be withdrawn.

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UKRPRODUCT EXPECTS UAH 16.2 MLN OPERATING PROFIT

Ukrproduct Group, a large Ukrainian producer of packaged butter, processed cheese and kvass, expects operating profit of about UAH 16.2 million (GBP500,000) in 2017 compared to an operating loss of approximately UAH 7.4 million (GBP200,000) in 2016. “The Ukrainian dairy foods and beverage producer is guiding for revenue of around GBP31 million for 2017, which would be a strong increase on the GBP20.2 million posted in 2016. Operationally, Ukrproduct expects a profit of approximately GBP500,000 after an operating loss of GBP200,000 in 2016, which will boost earnings before interest, tax, depreciation, and amortization,” reads a report by Ukrproduct on the website of the London Stock Exchange.
“Despite these improvements, the company is expecting an overall loss due to the negative impact of foreign exchange,” it states.
According to a press release, by the end of 2017 Ukrproduct estimated its net liabilities at UAH 429 million with free cash stocks of UAH 18.7 million. However, after the end of the financial year, the financial situation of the group improved after a new loan agreement for UAH 65 million with Creditwest Bank and the subsequent full repayment of the loan from OTP Bank.
Ukrproduct notes that in 2017 the Ukrainian economy demonstrated the encouraging GDP growth, while wage growth led to an increase in consumer confidence, which improved the trading capacity of the group within the country, despite the continuing competition in the market. In addition, the weakening of the hryvnia provided Ukrproduct with additional opportunities for business development in export markets, the report says.

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