Milkiland publishes the Report for the first half of 2015
Further deterioration of macroeconomic situation in the Group’s key markets of Ukraine and Russia largely affected Milkiland’s operations in H1 2015. The access to the Group’s main export market of Russia remained limited, since restrictions against Ukrainian dairy export, as well as food export from the EU, were not lifted by Russian authorities due to continuing tensions between Russia, Ukraine and the EU.
The final EUR-denominated revenues were suppressed by c. 35% y-o-y to EUR 97.7 million by further devaluation of Ukrainian hryvnia and Russian rouble. Mainly under the pressure of this revenue decline, the Group’s EBITDA in H1 2015 fell by 53% to EUR 6.4 million.
In particular, Milkiland posted 23% decline in revenues in whole-milk product segment, driven by devaluation of the Group’s main operational currencies and c. 6% decrease of sales volumes. Revenues in cheese&butter segment in the first six months of the year dropped 44% mostly on the back of the decline of cheese export sales to Russia by a half. This decline was partially compensated by a 17% increase in cheese sales in volume terms in the domestic market of Ukraine combined with c. 20% growth of sales price for this product, mainly due to the inflation.
Russia remains the best performing geographical segment of the Group’s business in H1 2015 thanks to the positive results of Ostankino Dairy Combine, which managed to raise its margins based on almost stable milk processing volumes, increased prices for finished goods in line with the inflation and better product mix management.
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 Advisor, Milkiland N.V.
tel. + 380 67 327 9838 mob.