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Hard cheese for Ukrproduct Group – MoneyWeek

Thebancausedanoversupplyonthedomesticmarketofhardcheeseandconsequentlyofbutterandskimmedmilkpowderasseveralproducerschosetoswitchtotheoutputoftheseproducts。

Morepositively,therestrictionsonexporttoRussiatogetherwiththere-introductionofthemilksubsidyregimepromptedhighermilkvolumesavailabilityintheUkraineandresultedfirstinstabilisationandlaterinagradualdecreaseinrawmilkprices。

Thishasmeantthat,despiteadecreaseinsalesrevenuescomparedtothesameperiodin2011,therehasactuallybeenanincreaseingrossprofitability。

Thefirmwaskeentoemphasisetheperformanceofitsrecentlyacquiredkvassbusiness,whichfermentsthetraditionalbeverage,whichhasresultedinasignificantincreaseinkvasssalesasthefirmexpandedthelocationofsalesandstrengtheneditspresenceintheexistingregions,resultinginincreasedprofitability。

Thecompanyshardcheesesectorhasrepositioneditsproductofferinganditsmarketpositionisgrowingthoughfromthesmallbase,whiletheprocessedcheesebusinessssharealsoexpanded,wideningthegaptoitsclosestcompetitor。

Salesincreasedbothinrevenueandtonnageterms,allowingthegrossprofittoshowasignificantyear-on-yearincrease。

Theskimmed-milk-powersectorremainedsuppressed,withprofitspushedlowerbyincreasedenergycosts,weakdemandandadecreaseinpricesbothduetoglobalmarketconditions。

Inastatementthefirmsaid:Theoutlookistoasimilareconomicenvironmentperhapsaccentuatedbyinflationarycurrencydevaluationandgovernmentspendingpretheautumnelections。

Thetradingandvolumetrendswillagainbepursuedindairyandkvass。

Marginspressuredasseasonalmilkpricesincreaseandinflationpressuresespeciallyinfuel。

ThusthecostoptimizationprogramiscriticaltoUkrproductsuccess。

WithinthesedynamicsUkrproductlookstodelivertheimprovedperformanceevidencedinthefirsthalfontheyear。

NR

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