| UKRPRODUCT ANNOUNCES UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2008 : News archive
24 September 2008
KYIV, Ukraine - Ukrproduct Group Limited (“Ukrproduct” or the “Group” or the “Company”) (AIM: UKR), a leading producer and distributor of branded dairy products in Ukraine, today announced its unaudited consolidated IFRS financial results for the six months ended June 30, 2008.
FIRST HALF HIGHLIGHTS
- (Figures in brackets are for the six months ended or as at, 30 June 2007)
- Consolidated revenues up by 7.7% year on year to GBP 23.6 million (GBP 21.9 million)
- Revenues in branded products segment up by 50.6% year on year to GBP 16.3 million (GBP 10.8 million)
- Gross profit decreased by 3.0% year on year to GBP 4.6 million (GBP 4.8 million) with Gross margin of 19.6% (21.8%)
- Gross profit for branded products increased by 41.2% year on year to GBP 3.8 million (GBP 2.7 million)
- EBITDA declined by 18.6% year on year to GBP 2.0 million (GBP 2.5 million) with EBITDA margin of 8.6% (11.3%)
- Profit after tax decreased by 26.8% year on year to GBP 1.0 million (GBP 1.4 million) with profit margin of 4.3% (6.3%)
Total assets up by 16.0% to GBP 25.1 million (GBP 21.7 million)
Sergey Evlanchik, Chief Executive Officer of Ukrproduct, commented: “Ukrproduct has delivered strong growth in branded products’ revenues and gross profits in the first half of 2008. In line with our stated strategy we continue to focus on branded products, including processed and hard cheeses, and packaged butter. Our skim milk powder (“SMP”) segment has reversed its highly positive trend in 2007 and was impacted by price volatility in global dairy markets.
Looking forward, we expect sales in our core branded products, soft cheese and packaged butter, to continue growing at the same rate as in the first half. Sales in our new product segment, hard cheese, are expected to be robust in the second half as we continue to increase the production volume and receive positive feedback from customers. Furthermore, Ukrproduct introduced a new premium brand ‘Molendam’ for its cheeses and packaged butter to national supermarket chains, and we expect this brand to compete successfully with imported dairy products.
We anticipate global commodity pricing in skim milk powder to continue impacting our performance in this segment in the second half. In addition, import restrictions on the Ukrainian hard cheese and SMP exports introduced by the Russian authorities in August may impact domestic pricing in the future.
Ukrproduct's position in the domestic market and its key brands remains strong. We continue to invest in our core brand portfolio whilst exploring further growth opportunities in the Ukrainian dairy sector.”
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