Shares in Ukrproduct, the Ukraine dairy group, slumped today (9 December) after the company issued a profit warning on the back of a challenging domestic economy.
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The London-listed firm’s stock tumbled more than 26% after the company said its 2009 after-tax profits would come in lower than a year ago.
Ukrproduct blamed a “rapid increase” in raw milk prices and consumers switching to “mass-market brands” for an anticipated fall in annual gross profits.
The company’s second-half sales are likely to be “not less” than in the first of the year but the group said annual turnover would be lower than in 2008 due to the weakness of the Ukrainian hyrvnia against sterling.
Butter sales are likely to rise in 2009, Ukrproduct said, although hard cheese sales are expected to be down.
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By GlobalDataHowever, the company did indicate an improvement in skimmed milk powder sales, which it sees rising in the double digits in the second half of 2009.
