Ukrainian dairy firm Ukrproduct has recorded a profit increase for 2010 as efforts to shift its product mix to match changing consumer buying power, combined with strong sales and marketing initiatives, began to pay off.

The Ukrainian dairy group said today (5 April) that for the year ended 31 December, net profit was up 5.1% to GBP1.1m (US$1.8m), while revenue grew 4.3% to GBP45m.

Ukrproduct said that its second half was “particularly strong” compared to the first half, which “bodes well for a sustained recovery in 2011”. The company recorded a 40.9% increase in gross profit in the second half of the year.

CEO Sergey Evlanchik said: “Although we expect the current pressure on Ukrainian consumer finances to be maintained, we see plenty of potential for sales and profit growth through improving efficiency gains looking forwards. Also we are leveraging our existing business by expanding exports as well as our distribution services. I have every confidence that the new team will assist me in driving forward Ukrproduct’s strategy of increasing sales and improving profitability.”

Click here for Ukproduct’s full earnings statement.