||UKRPRODUCT ANNOUNCES AUDITED FINANCIAL RESULTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2009: Latest news
21 April 2010
Kyiv, Ukraine – 21 April, 2010 – Ukrproduct Group Limited (“Ukrproduct” or the “Group”) (AIM: UKR), a leading producer and distributor of branded dairy products in Ukraine, today announced its audited consolidated IFRS financial results for the twelve months ended December 31, 2009.
(Figures in brackets are for the twelve months ended 31 December, 2008)
• Ukrainian economy has slowed during the year with real GDP declining 14.8% and the Ukrainian Hryvnia (“UAH”) depreciating against GBP by 23.9% on average compared to 2008
• Group revenue declined by 16.9% YoY to GBP 43.2 million (GBP 51.9 million) but was up by 5.2% YoY in local currency to UAH 527.9 million (UAH 501.6 million)
• Revenue in branded products segment declined by 21% YoY to GBP 29.9 million (GBP 37.8 million) but was flat in local currency at UAH 365.2 million
• Market share in packaged butter segment increased to 13.5% (12%) and in processed cheese segment to 23.1% (21.6%)
• Gross profit for branded products declined by 25.9% YoY to GBP 6.5 million (GBP 8.8 million) with gross profit margin of 21.7% (23.1%)
• Global market conditions for skimmed milk powder segment improved in the second half of 2009. Revenue from SMP increased by 4% YoY to GBP 12 million (GBP 11.6 million) and by 31.7% YoY in local currency to UAH 147.1 million (UAH 111.7 million)
• Gross profit declined by 33.6% YoY to GBP 6.9 million (GBP 10.4 million) with gross profit margin of 16.1% (20.1%), following the unexpected increase in raw milk prices in the fourth quarter and a significant rise in energy costs
• Earnings per share declined by 53.7% YoY to 2.5p (5.4p)
• Positive cash flow with cash balance standing at GBP 0.2 million (GBP 0.7 million at 2008 YE) and bank facilities in place for anticipated requirements
• Proposed final dividend payment of 0.20p per ordinary share for 2009FY (interim dividend of 0.20p), making a total dividend for the year of 0.40p per share.
Sergey Evlanchik, CEO of Ukrproduct, commented: “We experienced a challenging trading environment in 2009. We recognised changing market conditions and optimised our product portfolio in response, focusing on growth in more affordable market segments. Ukrproduct adjusted its output and production facilities to take advantage of growth in these segments, whilst also focusing on reducing costs and keeping bad debts at a low level. We expect the situation is likely to remain challenging in 2010. We will therefore continue to pursue our adopted strategy and seek to reduce costs and improve profitability.”
Conference call information
Ukrproduct management will host a conference call today at 10.30 am (London time) / 11.30 pm (CET) / 12.30 pm (Kiev Time) to present and discuss the final audited results.
The dial-in numbers for the conference call are:
UK/International: +44 20 8515 2301
A replay will then be available for 7 days after the conference call. To access the replay, please dial:
UK/International: +44 20 7959 6720
PIN number: 142788#