27th Jun 2019 12:15
(Alliance News) - UKRproduct Group Ltd said Thursday it swung to a small profit for 2018, mainly due to foreign exchange gains and growth in revenue.
The Ukrainian producer of dairy food reported a pretax profit of GBP90,000, swinging from a loss of GBP1.2 million the year before. This improvement was mainly due to a net foreign exchange gain of GBP398,000 in 2018 compared to a loss of GBP1.3 million in 2017.
UKRproduct's revenue grew by 21% to GBP36.9 million from GBP30.5 million, as overall sales volumes grew by 4%. The company reported higher sales of packaged butter and processed cheese products, as well as increased beverage sales.
Looking ahead, UKRproduct said it expects to lift its sales volume and revenue in 2019 by launching new products and pursuing marketing opportunities.
However, the group warned there remains significant uncertainty with regards to its ability to continue operations as a going concern.
This is mainly is because UKRProduct continues to breach the covenant terms of its loan with the European Bank for Reconstruction & Development.
UKRproduct said it will look to raise funds in the second half of 2019 and believes that the EBRD will not demand an accelerated payment of the loan due to the breach of covenants.
Shares in UKRproduct were untraded in London on Thursday, last quoted at 2.90 pence.
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