24th Jun 2015 08:49
LONDON (Alliance News) - Ukrainian dairy foods and beverages producer and distributor Ukrproduct Group Ltd on Wednesday posted a wider pretax loss for 2014, as its revenue plunged amid the political and economic turmoil in the Ukraine and the devaluation of the nation's currency, the Hryvnia
Ukrproduct said its pretax loss widened to GBP3.4 million in the year, compared to GBP553,000 a year earlier, as revenue plunged to GBP31.9 million from GBP52.2 million.
Sales of branded dairy products were hit by market conditions and the limited purchasing power of the local population, the company said, falling 5% in local currency terms year-on-year, with packaged butter and hard cheese hit the most. Despite that, profitability in the unit improved as consumer price increases offset rising input costs.
Beverages sales performed well over the year, boosted by sales and marketing activities, and performed particularly well given the supply disruption caused by the annexation of the Crimea region.
But while its overall performance resulted in a 43% rise in earnings before interest, taxation, depreciation and amortisation in local currency terms, the devaluation of the Ukrainian Hryvnia over the course of 2014 meant its revenue in sterling terms was driven sharply lower.
In the face of the volatile environment in eastern Ukraine and the Crimea region, Ukrproduct said it has been working to recover sales by adjusting its regional focus and has been focusing on improving productivity. It also said that talks with the European Bank for Reconstruction and Development have been "constructive" and said it expects the new terms on its loan facility to be approved on the second half of this year.
Shares in Ukrproduct were untraded on Wednesday, having last traded at 6.97 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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