25th Jun 2024 13:36
(Alliance News) - Ukrproduct Group Ltd on Tuesday said it returned to profit after the successful development of new product categories.
The Ukrainian company is a producer and distributor of branded dairy foods and beverages.
In 2023, the company swung to a GBP486,000 pretax profit from a GBP655,000 pretax loss the year prior.
Revenue slumped 5.4% over the period to GBP37.0 million from GBP39.1 million, although in local currency revenue rose 8.0%.
"The general growth in sales [in local currency] was due to a focus on the development of key products, namely processed cheese and processed cheese products, the development of new product categories, snacks and beverages, and the expansion of the group's presence in retail chains," the company said.
Notably, the processed cheese category saw revenue increase 27% in local currency to GBP24.9 million, whereas sales generated from skimmed milk powder decreased significantly by 52% in local currency to GBP1.1 million.
The company remains in breach of several loan agreements after failing to repay approximately GBP1.8 million before the maturity date of December 1 2022 and has missed interest payments since March 2022.
Ukrproduct said negotiations with the lender, who has taken no action to accelerate the repayment, are "ongoing but have been slowed down owing to the ongoing war".
Looking ahead, the company is contending with a multitude of challenges including employee safety and ensuring a stable power supply. Focus will be placed on maintaining existing production facilities, sustaining sales volumes, and improving operational efficiency.
Ukrproduct shares were trading at 3.25 pence each in London on Tuesday.
By Elijah Dale, Alliance News reporter
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