2nd Sep 2019 11:13
(Alliance News) - Ukrproduct Group Ltd on Monday said its first-half performance exceeded internal expectations following a rise in sales in all of its core business segments.
In the six months to June 30 the Ukrainian dairy products maker said pretax profit almost doubled to GBP723,000 from GBP375,000 a year before, with revenue climbing 50% to GBP14.8 million from GBP22.2 million.
The company became the top exporter of processed cheese in Ukraine during the interim period and increased its butter market share in the country to 10% from 7% in the first half of 2018.
Segmentally, Ukrproduct's branded products division - which includes cheese, butter and spreads - delivered a sales rise of 12% to GBP11.2 million from GBP10.0 million. The non-branded segment, which predominantly consists of skimmed milk products, saw a steep sales jump of 89% to GBP3.4 million from GBP1.8 million.
The firm's supplementary products unit - which benefited from expanded export sales of non-dairy goods such as corn and vegetable oil - posted a sharp sales hike to GBP5.8 million from GBP563,000.
Beverage sales improved by 5.2% to GBP927,000 from GBP611,000. The company attributed this to improved sales of kvass, a traditional Slavic drink made from rye bread, and the launch of a new juice and mint product named Mojito.
The company's first half performance surpassed its expectations, Ukrproduct said, despite "concerns regarding the global economy" and the uncertainty from the Ukrainian presidential and parliamentary elections.
Looking ahead, Ukrproduct said it is hopeful of repeating its first-half performance in the rest of 2019, despite "continuing political risks". It added that it will continue to pursue sales opportunities in its beverage and export markets.
Ukrproduct shares were untraded in London on Monday morning, last quoted at 3.24 pence each.
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