Business news from Ukraine

SALES OF ELECTRIC SYSTEMS GROW BY 20-30% EVERY MONTH – PLANK ELECTROTECHNIC

The manufacturer of electric systems, Plank Electrotechnic LLC, in the Bila Tserkva industrial park (the project of UFuture Group of businessman Vasyl Khmelnytsky) has noted growth in production and sales by 20-30% a month amid problems with supplies of similar products from China and Turkey due to lockdown, Khmelnytsky has said on its Facebook page.
He recalled that the Plank Electrotechnic launched in the spring of 2019 with reaching the planned self-sufficiency by the end of this year was initially created as a small manufacturer (for 50 people) of products not previously produced in Ukraine (sockets, switches, buttons) for sale in the Epicenter K and Nova Linia networks at prices below the prices set for the Chinese and Turkish similar products.
“But what happened? Now we see the logistic collapse in China, Turkey has closed. The time and cost of sea deliveries have increased significantly, as well as their minimum volume. Now, national operators who need these products must make an advance payment and freeze a significant part of the cash turnover for the products, which will arrive in Ukraine in only three months. Thus, our products have become very popular. And, probably, we will even get ahead of our plan for this year. The concept worked, and in a closed world – even more effectively,” the entrepreneur wrote.
He said that today, the partners of the company understand that this is not the last crisis related to their commercial risks, and decide to focus on the national manufacturer.
“Distributors record the share of 20-30% in the product portfolio for local manufacturers,” Khmelnytsky said.
In addition, he said that, according to the existing demand, it is clear that construction is ongoing, home improvements are being actively done, including in improvements hospitals and schools. “And for us it is an opportunity to gain a certain market share, taking advantage of the global crisis, shifting imports. And the same can be done in other sectors. You ask how to find a niche, where to invest? Here is an idea for you: what we usually supply from China and Turkey should be produced here in Ukraine,” Khmelnytsky said.
“For Ukraine, there is only one prospect: to produce products for ourselves in order to replace imports, and even better, to enter the global market,” he said.

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SALES OF ELITE HOUSING ON KIEV’S PRIMARY MARKET PLUNGE BY 65-75% AMID LOCKDOWN

Sales of business and premium class apartments on the Kyiv’s primary market fell by 65-75% amid lockdown in March 2020 year-over-year, reaching 116 apartments, and in April the sales almost stopped, Kiev Standart has said in a survey.
“The situation with the pandemic and the introduction of lockdown directly affected sales, reducing the figure by 65-75%. According to our estimates, only 116 apartments were sold in March 2020, and this was largely due to the achievements of previous periods, and sales in April almost stopped,” the company said in the survey.
The company explained the decline in sales by lockdown restrictions, customer reactions and a shift in the demand vector towards finished facilities or facilities in the final stages of construction, with more than half of the projects at an early stage.
“We should not forget that some of the customers in the high price segment were foreign citizens. For such an investor, the main barrier is the closure of borders, which also makes it impossible to complete the transaction,” the company said.
At the same time, in January-February 2020, the company recorded a doubled sales rate compared to the same period in 2019, totaling 624 apartments.
The total supply on the market of elite new buildings as of April 1, 2020 was 515,000 square meters or 6,100 business class apartments, 72,000 square meters or 504 premium class apartments. In the first quarter of 2020, sales were opened at IFC Intergal City, phases two of UNIT.Home and Greenville Park, Delrey residential complexes.
The average minimum cost in U.S. dollars in the business segment in April decreased 5% compared with the beginning of the year, to $1,700 per sq. m., while in the premium segment, the price increased 4% and amounted to $3,100 per sq. m.
Kiev Standart experts believe that pent-up demand will positively influence the sales after lockdown, but the demand structure will change as the popularity of suburban formats increases.

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VOLODYMYR-VOLYNSKY POULTRY FACTORY INCREASES SALES BY 40% DURING QUARANTINE

PrJSC Volodymyr-Volynsky poultry factory (Volyn region), one of the largest poultry producers in Ukraine, has reached a 40% increase in sales of its Epikur brand due to the growth in demand for products since the beginning of quarantine measures in Ukraine, Head of the company’s supervisory board Alina Sych has said.
“In the conditions of market boom, the demand for poultry, as well as for many other food products, has grown by more than 50% and continues being high. Packaged products in the tray became more important, as these products are more biosafe,” she told Interfax-Ukraine.
According to Sych, this is not only because people are loading up on supplies in advance, but also most consumers mostly cook at home during quarantine.
The head of the company’s supervisory said that the sales growth of the Epikur brand increased monthly by 20%, and since the beginning of quarantine measures in Ukraine, the products had reached a 40% growth.
Sych said that in order to meet the growing demand, the poultry factory is operating at full capacity. “We try to keep prices at the same level, but due to a sharp increase in the exchange rate and an increase in the cost of goods and services as well, we are forced to respond to market fluctuations. For example, we buy chickens for rearing in the EU and the level of the euro affects the cost of production, which directly affects the price for consumers,” the head of the supervisory board said, adding that the price of Epikur products has increased from the beginning of quarantine by an average of 10%.
In connection with the coronavirus disease (COVID-19) spread in Ukraine, the poultry factory, as far as possible, transferred office workers to remote work, and for other employees, it strengthened preventive and control measures in line with the recommendations of the Health Ministry.
“We provided workers with masks and respirators, antiseptics are easy available. We regularly disinfect office premises, vehicles, and also follow other preventive measures. Now, it is impossible to enter the territory of the factory without a mask and temperature screening,” Sych said.
PrJSC Volodymyr-Volynsky poultry factory is a Ukrainian-Dutch enterprise. It is one of the five largest producers of chicken in Ukraine, occupying about 6% of the market. The infrastructure of the poultry farm includes 100 poultry houses located at 11 poultry breeding grounds, a slaughterhouse and a feed mill, as well as land for growing forage.

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SALES OF SPIRIT BY STATE-OWNED UKRSPYRT IN JAN RISES BY 62%

Sales of spirit by state-owned enterprise (SOE) Ukrspyrt in January 2020 grew by 62% compared with the same period in 2019, to 412,000 decaliters.
“This is the result of the preparation of SOE Ukrspyrt for privatization and our common struggle with the Ministry of Economic Development, Trade and Agriculture, the State Tax Service and law enforcement authorities against the illegal spirit,” acting Director of Ukrspyrt Serhiy Bleskun said.
Last month, 11 Ukrspyrt distilleries were operating. “Last year, seven distilleries were operating at the same period, and sales amounted to 255,000 decaliters of ethyl spirit,” the enterprise said.
According to the company, in January 2019, the loss-making performance of Ukrspyrt amounted to UAH 5.5 million. In turn, the net profit of SOE in January 2020 reached UAH 2.6 million.

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SALES OF NEW PASSENGER CARS IN UKRAINE IN JAN 2020 INCREASE BY THIRD

Sales of new passenger cars in January 2020 increased by a third compared to the first month of 2019, to 7,000 units, according to AUTO-Consulting. “January 2020 turned out to be very successful for car dealers. Almost all major automotive brands had two-digit growth, which gives reason to expect a very successful year,” the group said on its website.
Analysts of the group note the strengthening of the competition among brands in January 2020. Toyota was first, ahead of last year’s leader Renault, and its sales increased 81%, to 1,149 units.
Renault sales in January grew by 29%, to 1,045 units, which is slightly below the market, but allowed to stay in the lead and go beyond the 1,000 cars sold.
“Nissan has actively claimed its intention to become a leader. The Japanese brand increased sales in January by 25%, which allowed it to be third for the second month in a row,” the group said.
Skoda sales grew by 27%, to 437 units. This allowed the Czech brand dealers to bypass Kia, which closes the top five with a 9.7% increase in sales, to 430 units.
According to the analysts, Peugeot became the record holder for growth in the top 10 in January, having tripled sales, which allowed it to move to the eighth position from the 14th in January 2019 and occupy 4.6% of the market. Mitsubishi, which returned to the top 10, also noticeably increased its sales in January.
The first month of the year was also successful for Mercedes-Benz, which regained its status as a leader among premium brands: it increased sales by 53%, to 224 units.
According to AUTO-Consulting, the beginning of the year was also successful for Chinese brands: Chery increased sales by 66%, to 169 units, and the Haval brand grew seven-fold.

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SOPHARMA INCREASES SALES IN UKRAINE

Sopharma AD pharmaceutical company in 2019 increased sales in Ukraine by 5% compared to 2018. According to the company’s preliminary report, in general, in 2019, revenue from sales to European countries increased by 21% compared to 2018.
The company noted that such an indicator was achieved, in particular, due to an increase in sales in Ukraine by 5% and in Russia by 32%, as well as an increase in sales to the Balkan countries, as well as Poland, the Czech Republic, Moldova, and other countries.
In addition, the company reports that in 2019 the company received 47 permits for the use of new medicines, in particular, in Ukraine, for the preparation of desloratadine in two dosage forms, as well as two names of cosmetic products.
As reported, in January-June 2019 Sopharma increased sales in Ukraine by 35% compared to the same period in 2018.
Since January 2008, Sopharma AD has been controlling PJSC Vitamins in Ukraine, and in August 2012 it created the subsidiary Sopharma Ukraine LLC (Kyiv) to optimize its trading business.

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