Press-release
Milkiland publishes the results for the first half of 2017
In H1 2017 some positive signs of macroeconomic stabilization in Ukraine and Russia, the core markets of Milkiland, including restoration of GDP growth, calmed currency exchange rates of UAH and RUB against EUR, the reporting currency of the Group, lower inflation rates in comparison with 2014-2016, became evident. At the same time, the real income of the population in these countries remained stagnating.
Being limited in growth opportunities in the core markets of its operations, in this period Milkiland put an additional efforts aimed at supporting of profitability of the business by selling of high value-added dairy, as well as at the entering of new export markets and catching the opportunities of profitable international trade in the global dairy market.
In particular, growing global demand and prices for butter triggered Milkiland to find the new markets for butter in Israel, by selling this product, which passed the kosher treatment, as well as in the Netherlands. The Group also opened the new destinations of sales of dry milk products and different types of cheese, including to several European countries under the framework of FTZ Agreement between Ukraine and EU.
As the result, for the first time in the last three years Milkiland managed to return on track of positive dynamics of the Group’s financials and creating a new value for its shareholders.
The Group’s EUR-denominated revenue in H1 2017 increased c. 1% y-o-y to EUR 74.4 million, while gross profit of Milkiland rose by 31% to EUR 14 million, also fueled by the lower costs.
Better profitability of the business in the first half of the current year in comparison with H1 2016, was reflected in EBITDA increase by 47% to c. EUR 5.0 million.
This also led to generation of c. EUR 1.6 million of net profit in H1 2017 contrary to the loss of c. EUR 15.1 million in the same period of the last year.
For the full text of the respective Report, please use the following link: https://mlkfoods.tonic-adv.com/upload/iblock/a82/Board-Report-MLK-H1-2017-Final-for-publication.pdf
About Milkiland
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 “Ostankinskoye 1955” 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:
Sergey Trifonov
Investor Relations Officer, Milkiland N.V.
tel. + 380 67 327 9838 mob.
e-mail: ir@milkiland.com