30th Sep 2015 10:54
LONDON (Alliance News) - Ukrproduct Group Ltd Wednesday reported a narrowed pretax loss in the first half of 2015, but a huge drop in revenue as the company struggles in a market dominated by the devaluation of the Ukrainian hryvna and a ban on exports to Russia following the conflict between the two territories.
The Ukrainian producer of dairy foods and beverages, said that its pretax profit in the six months ended June 30 narrowed to GBP1.1 million from GBP2.0 million in the first half of 2014, although revenue dropped heavily to GBP9.8 million from GBP17.2 million.
Ukrproduct said that is faced significant headwinds in the first half due to a decline in the Ukrainian economy and the continuing unrest in the east of the country. The closure of the Russian market also caused further pressure by causing an oversupply of dairy products on the Ukrainian market.
"The company is adapting to this most challenging business environment and is working to restore profitability according to a programme. Sales and marketing activities are orientated to the non-occupied regions with sales geared to cash and not just revenue. Productivity improving efficiencies and cost eliminations are being achieved and more are targeted. In this volatile trading environment, working capital is subject to most strict control with cash creation the focus of all these initiatives," Chief Executive Sergey Evlanchik said in a statement.
Shares in Ukrproduct were untraded on Wednesday, last quoted at 3.40 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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