Ukrainian dairy producer Ukrproduct said it has plans in place to recover profitability after it booked a drop in full-year earnings today (25 April).
For the 12 months to the end of December, net profits dropped to GBP400,000 (US$643,800) from GBP1.09m in the prior-year. Ukproduct blamed “substantial” energy costs increase and a 25% increase in raw milk prices for the decline.
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EBITDA in the period slid 29% to GBP1.86m, while sales increased 12% to reach GBP50.5m.
Sergey Evlanchik, CEO of Ukrproduct, said the trading environment has remained “challenging” with “unemployment accentuating the squeeze” on consumer disposable incomes.
Nonetheless, he added: “Within this, Ukrproduct succeeded in building its market positions and thereby sales and aggregate gross profit in core business – branded products, distribution services, export. However on the downside margins were severely curtailed by raw milk price/fuel inflation.”
Going forward, Evlanchik said there are “robust plans” to recover profitability.
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By GlobalData“In the core business we plan to build on our momentum and further sales growth is planned. Margins will be key to this end, milk prices are stabilising at a lower level and a major cost saving capital expenditure programme is underway at Starokostiantyniv manufacturing plant.”
Click here to view the full earnings release.
