London-listed Ukrainian dairy firm Ukrproduct said it is expecting an “encouraging” improvement in performance year-on-year when it releases its full-year earnings figures in April.

The company said today (31 January) it expects sales and margins to have a “very positive affect” on EBITDA. This trend, it said, will run through to net income after absorbing higher interest charges induced by its EBRD loan.

The forecast for higher profits comes despite what Ukrproduct called a “challenging” economic environment in Ukraine last year in which consumer spending was constrained by high inflation.

The company said the dairy sector was affected by limits on hard cheese exports to Russia and the consequent over-supply on the domestic market of hard cheese, butter and skimmed milk powder.

The firm said it will pursue growth in building on its “good market positions” in packaged butter and processed cheese with hard cheese a development opportunity.