Business news from Ukraine

PHARM SALES IN UKRAINE GROW BY 41% IN JAN-APR – BUSINESS CREDIT COMPANY

Pharmacy sales in Ukraine in January-April 2018 in money terms grew by 41% compared to the same period in 2017, to UAH 30.14 billion. Sales in physical terms increased by 8% in the four months, to 543.575 million packs, the Business Credit company told Interfax-Ukraine. According to the company, in particular, retail sales of medicines in money terms increased by 44%, UAH 24.914 billion, sales in physical terms grew by 21%, to 374.345 million packs.
The weighted average price of goods in the so-caled “pharmacy basket” for the four months of 2018 was UAH 55.45 for the package, the average price of medicines was 66.55 UAH for the package.
In April 2018, pharmacy sales amounted to UAH 7.178 billion, which is 35% more than a year earlier, medicines sales increased by 38%, to UAH 5.938 billion.

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TELECOM SALES IN UKRAINE 12% UP IN Q1 2018

The volume of sales of services by telecommunications and postal communications enterprises in Ukraine in January-March 2018 amounted to UAH 17.3 billion, which in absolute prices is higher than the level of Q1 2017 by 12.3%, according to the State Statistics Service of Ukraine. According to its data, the volume of services provided to the population amounted to 59% of the total volume of services sold.
At the same time, in comparable prices compared to Q1 2017 the volume of services sold as a whole increased by 4.1% and in terms of providing services to the population grew by 1.2%.
In particular, in absolute prices in Q1 2018 the volume of sales of postal and courier services grew by 39%, to UAH 1.37 billion, of which services rendered to the population amounted to UAH 987 million.
The volume of sales of mobile communications services in Q1 2018 grew by 10.2%, to UAH 9.17 billion, of which services provided to the public amounted to UAH 8.32 billion.
The volume of sales of Internet services in Q1 2018 also rose by 15.1% and amounted to UAH 2.97 billion, of which the population was provided with services worth UAH 2.578 billion.

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SILVANO FASHION GROUP FROM ESTONIA RAISES SALES IN UKRAINE BY 26% IN 2018

AS Silvano Fashion Group (SFG, Tallinn), engaged in sewing and selling women’s underwear under the trademarks Milavitsa, Alisee, Lauma and Laumelle, in the first quarter of 2018 increased sales in Ukraine by 26.3% compared with the first quarter of 2017, to UAH 25.54 million. The company noted in a report on the Warsaw Stock Exchange, due to the strengthening of the euro to U.S. dollar exchange rate, in euros its Ukrainian revenue increased by 9%, to EUR760,000.
According to the report, the network of franchise stores in Ukraine during the reporting period remained unchanged and totaled 50 points.
In 2017 the group’s sales in Ukraine grew by 58.8%, to UAH 75.2 million, and in euros by 52.5%, to EUR2.53 million
Revenues in Russia increased at a higher rate, by 27.9%, to EUR10.33 million, while revenues in other markets fell, in particular in Belarus by 13.7%, to EUR3.63 million.
As a result, Ukraine’s share in total revenue for the first quarter of this year increased to 4.7% from 4.1% in the past year and 2.9% in 2016.
EBITDA of the company for the reporting period increased by 91.5%, to EUR5.57 million, and net profit amounted to EUR4.06 million against EUR110,000 in the first quarter of last year.
The production facilities of the group unite Milavitsa factory in Minsk (Belarus) and Lauma Lingerie factory (Latvia).

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NEW COMMERCIAL VEHICLE SALES IN UKRAINE GROW BY 25% IN JAN-APR, CITROEN IS A LEADER

Sales of new commercial vehicles in Ukraine in January-April 2018 grew by almost 25% year-over-year, to 4,060, the Ukrautoprom association has reported. In April, 1,187 vehicles were sold (30% up on April 2017 and almost 20% more than in March 2018).
The association said that the leader of the April market was Citroen with 223 vehicles sold (8.6-fold rise compared with April 2017 and 65% up on March 2018). Another French brand Renault was second with 191 vehicles sold (12% up on April 2017). Ford is third with 161 vehicles sold (2.2 times more than in April 2017), Fiat is fourth with a 10% decline in sales year-over-year, to 97 vehicles. Volkswagen was fifth with 76 vehicles sold (65% up).
AUTO-Consulting Group said that in contrast with the passenger car market, the truck segment showed a good pace.
Ford Trucks was the leader with 28% of the Ukrainian market. Ford Trucks signed a deal with Automagistral-Yug to buy 122 Ford dump trucks.
MAZ occupied 58% of the medium truck market. Scania was third with the market share of 10%. MAN and Volvo followed the Swedish concern.

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FLEXIBLE PACKAGING MATERIAL PRODUCER UKRPLASTIC PLANS TO INCREASE SALES BY 10% IN 2018

Public joint-stock company Ukrplastic (Kyiv), the leading manufacturer of flexible plastic packaging for consumer goods in Eastern Europe, plans to increase sales by 10% in 2018, to UAH 2.233 billion. This is outlined in a company annual report for 2017. “In 2018, the development of the company will first aim at retaining financial stability, expanding the range of flexible packages and developing the new market segments,” the company said.
According to the report, in 2017, net revenue fell by 4.7%, to UAH 2.03 billion, and net profit grew by 6%, to UAH 137.26 million. Gross profit shrank by 29.8%, to UAH 346.03 million, and operating profit grew by 10%, to UAH 437.77 million.
Ukrplastic produces flexible packaging materials for the food, cosmetic, pharmaceutical and other industries. According to the report, in 2017, the release of packaging materials by trademarks amounted to: BIPAN – 1,340 tonnes, VIPAN – 589 tonnes, ALPAN -7,150 tonnes, SOLAN – 10,28o tonnes, and TWISPAN – 3,730 tonnes.
PJSC Ukrplastic represents the Immer Group in Ukraine.

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HEAVY TRUCKS MANUFACTURER AVTOKRAZ PLANS TO BOOST SALES BY 77% IN 2018

Private joint-stock company AvtoKrAZ (Kremenchuk, Poltava region), the sole Ukrainian manufacturer of heavy trucks, plans to boost production and sales of trucks to 1,200 units in 2018, while in 2017 the enterprise made 629 trucks and sold 677 units, according to a financial report of the enterprise for 2017. According to the document, it is planned to increase production and sales of vehicles thanks to retaining positions in the domestic market and increasing export orders.
The main sales market will remain internal, where it is planned to supply about 800 trucks, or 66% in the sales volume. The share of supplies for export is expected to increase to 34% compared with 19% in 2017. In supplies to the Ukrainian market for the current year, it is expected that 41% will be orders for state-owned structures, and supplies for municipal companies are planned to quadruple.
According to the report, in 2018, AvtoKrAZ intends to continue work on the adaptation of power units to the Euro 6 emission standard and the creation of promising truck models. At the same time, the main attention will be paid to expanding the lines of special equipment for the Armed Forces and compact trucks for public utilities companies. The main rivals of AvtoKrAZ are the trucks of manufacturers from the CIS (MAZ, KamAZ, UralAZ), which are in the same strategic group with KrAZ in terms of the price/quality ratio.
In addition, among the rivals in the markets of Asia and Africa are trucks of Chinese, South Korean and Indian manufacturers.
At the same time, according to the document, such Western manufacturers as Daimler AG (Mercedes, Freightliner, Mitsubishi, Western Star), Scania, Iveco, MAN, DAF, as well as American, Japanese and South Korean companies, which main markets were Western Europe, Japan and North America, in recent years, due to a sharp drop in demand in these markets, are forced to look for new markets in Southeast Asia, Eastern Europe, CIS countries and Africa, that is, where the positions of AvtoKrAZ are traditionally strong.
According to the company, in 2017, out of the 629 trucks produced, 43% of the trucks were dropside trucks, 35% – automobile chassis, 19% – tractor trucks, and 3% – dump trucks.
The main consumers of equipment in Ukraine in 2017 were power structures, oil and gas and municipal sectors. Abroad, the main importing countries are Georgia and Kazakhstan, Turkmenistan, African countries (Nigeria, Egypt, Mali and Ethiopia) and the Middle East (the UAE, Iran). At the same time, the volume of supplies to Ukrainian customers was increased by 50% compared with 2016.
At the same time, the company recalled that until 2013 the main sales market was Russia, where more than 50% of sales were made, and in 2013-2015, this share was reduced to 10%.
Revenue from sales of trucks in 2017 totaled UAH 945 million (90% of total revenue). Spare parts for UAH 64 million were sold (6%), casting products for UAH 23 million (2%) and other products and services for UAH 16 million. AvtoKrAZ adjusted net loss seen in 2017: it was UAH 89.73 million (according to the preliminary data it was UAH 235.6 million), which is 52.4% less than in 2016. Net revenue totaled UAH 1.048 billion (15% down).

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