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RELEASE OF FINAL RESULTS 2006 : News archive
18 June 2007
Ukrproduct Group released the final consolidated IAS/IFRS results for the year ended 31 December 2006. As a result of various adverse factors in 2006, the group sales of £35.1 million were below those in 2005 (£39.9 million). Net profit, on a comparable basis, was also lower at £1.1 million versus £1.4 million in 2005 – mainly because of the massive increase in depreciation charge due to the modernisation of fixed assets in recent years. However, the Group’s underlying operating performance remained strong throughout the year. The operating profit (EBITDA) of £2.8 million in 2006 was virtually unchanged from 2005, and gross margin has improved considerably to 20.7% from 16.9% in 2005.
In 2006, the Group made excellent progress in further upgrades of it production base. The brand-new skimmed milk powder (SMP) dryer was installed at the Starkon site; this nearly doubled the Group’s SMP capacity. Also, the hard-cheese manufacturing plant was coming on steam as planned. Sales of the Group’s traditional branded products, processed cheese and packaged butter, although challenged by a combination of unfavourable events, withstood the competitive pressure and once again proved the backbone of the Group’s continuing success.
Commenting on the 2006 results, Iryna Yevets, Chief Executive of Ukrproduct Group Ltd., said:
“In 2006, Ukrproduct Group combatted the adverse consequences of the Russian import ban on Ukrainian dairy products and finished the year with good operating profit and a strong balance sheet. In an extremely challenging environment, we strengthened the Group’s asset base, retained its market-leading positions and preserved the Group’s core distribution capability. By improving the quality of earnings, we built the foundations for healthy organic growth in the future. I am pleased to report that the Group’s management had turned the challenges into opportunities, and as a team we expect strong performance in the year 2007. We are grateful to our shareholders for the continuing support of the Group in challenging times and are absolutely positive that the expected results will be achieved.”
Following the release of the final results 2006, the company broker WH Ireland (www.wh-ireland.co.uk) issued the research report which could be downloaded here.
The full text of the announcement of the final results can be found using the following hyperlink. |
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