The stagnation of the national economies of Russia and Ukraine, the Group\u2019s key markets, together with the declining foreign trade of those countries, further deterioration of the real disposable income of their population, formed the background for Milkiland\u2019s operations in H1 2016.<\/p>\n
The continuing restrictions of the Russian authorities against Ukrainian dairy export, as well as food export from the EU, was the another\u00a0important factor, which significantly influenced the\u00a0market situation in H1 2016.<\/p>\n
Importantly, Russian and Ukrainian currencies still reported significant devaluation against euro in H1 2016 on average in comparison with the same period of 2015. In particular, the\u00a0Ukrainian hryvnia was on average c.19% weaker than EUR in H1 2016 in comparison with\u00a0the same period of the last year, while Russian rouble was on average weaker than\u00a0the\u00a0European currency by\u00a0c. 22%.<\/p>\n
These\u00a0trends led to contraction of the Group\u2019s revenues in EUR terms on y-o-y basis. The Group\u2019s revenue decreased c.\u00a024% y-o-y to c. EUR\u00a074 million. Mainly\u00a0under the pressure of\u00a0this revenue decline, the Group\u2019s EBITDA in H1 2016 fell by c.\u00a047% to EUR 3.4 million.<\/p>\n
In order to catch the opportunities in line with the implementation of FTZ with the EU, in\u00a0H1\u00a02016 Milkiland started an export to Ukraine of the high value-added dairy goods, produced by Ostrowia cheese plant, the Polish subsidiary of the Group.<\/p>\n
In line with the strategy of searching the opportunities of entering to the new markets, Milkiland\u00a0in\u00a0the\u00a0reporting period signed a contract and started supplies of the dry milk products to China. These supplies became a first step to developing a distribution network in\u00a0the developing dairy market of this country.<\/p>\n
About Milkiland Group<\/b><\/p>\n
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.<\/p>\n
In Russia, the Group produces fresh dairy products at Moscow-based OJSC \u201cOstankino Milk Combine\u201d and sells under \u201cOstankinskoye 1955\u201d brand. Also, Ukrainian made cheese under international Dobryana brand is sold in most of Russian regions.<\/p>\n
In Ukraine, the Group operates 10 plants and offers wide range of fresh dairy, cheese and butter under Dobryana and Kolyada brands.<\/p>\n
In Poland Milkiland controls Ostrowia cheese plant in the city of Ostr\u00f3w Mazowiecka and sells its products locally under Ostrowia brand and for export, including to Ukraine, under international Milkiland brand.<\/p>\n
Milkiland exports dairy products from Ukraine to over 30\u00a0countries.<\/p>\n
Shares of Milkiland N.V. \u2013 the Dutch holding company of the Group has been listed on the Warsaw Stock Exchange since December 6, 2010.<\/p>\n
For additional information please contact:<\/p>\n