Milkiland publishes the Report for the first half of 2014
The Group’s operations and performance in H1 2014 were affected by the conflict between Russia and Ukraine and a further deterioration of trade relations between these countries. As a part of this process, Russian authorities restricted the access of Ukrainian dairy producers to the Russian market. This led to a slide in the Group’s sales in the cheese&butter segment by c. 20% in value terms.
In other segments, Milkiland enjoyed growing sales both in volume and value. In the WMP segment, the sales of these products in Russia grew by 13%. The ingredients segment continued its impressive growth adding 56% in revenue.
The Group’s financial results also reflect the influence of some macroeconomic challenges the Ukrainian economy faced since the beginning of the current year. Due to the deep Ukrainian hryvnia devaluation against euro (by c. 46%) in H1 2014, the Group’s EUR-denominated revenue decreased c. 1% y-o-y to EUR 149.8 million, despite better sales in the above mentioned segments. This decrease, as well as the retaining pressure on margins because of the higher raw milk prices also contributed to a decline in the Group’s EBITDA in H1 2014 by 15% year-on-year.
About Milkiland Group
Milkiland is a TOP-5 diversified dairy producer operating in Russia, Ukraine and Poland, offering a wide range of dairy products such as fresh dairy, cheese and butter, to satisfy consumers in their everyday needs for healthy and tasty foods.
In Russia, the Group produces fresh dairy products at Moscow-based OJSC “Ostankino Milk Combine” and sells under Ostankinskaya brand. Also, Ukrainian made cheese under international Dobryana brand is sold in most of Russian regions.
In Ukraine, the Group operates 10 plants and offers wide range of fresh dairy, cheese and butter under Dobryana and Kolyada brands.
In Poland Milkiland controls Ostrowia cheese plant in the city of Ostrów Mazowiecka and sells its products locally under Ostrowia brand and for export, including to Ukraine, under international Milkiland brand.
Milkiland exports dairy products from Ukraine to over 30 countries.
Shares of Milkiland N.V. – the Dutch holding company of the Group has been listed on the Warsaw Stock Exchange since December 6, 2010.
For additional information please contact:
IR Officer, Milkiland N.V.
tel. + 380 67 327 9838