You're reading: Milkiland reduces net losses by 11.6 percent

Milkiland, a dairy group with assets in Ukraine, Russia and Poland, in January-June 2015 reduced its net losses by 11.6 percent year-on-year to 24.096 million euro.

According to the group’s report on the Warsaw Stock Exchange, revenue for H1 fell 35 percent to 97.657 million euro, amid forex fluctuations and restrictions on exports to Russia.

Whole milk products accounted for 57 percent of total revenue, or 56.035 million euro (down 23 percent year-on-year), cheese and butter – about 32 percent or 30.84 million euro (down 44 percent), powdered milk and other products – 10.78 million euro (down 51 pecent).

The group’s gross profit fell by 50 percent to 16 million euro. Operating profit fell to 0.37 million euro against 7.011 million euro a year earlier. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 6.37 million euro from 13.452 million euro.

Cost of sales fell 30 percent to 82 million euro due to the devaluation of the Ukrainian hryvnia and the Russian ruble, despite the growth in prices for milk by 6 percent in Russia and by 18 percent in Ukraine in annual terms.

Milkiland Group of Companies is one of the largest dairy producers in Ukraine and Russia. In Ukraine the group has 10 plants, which produce a wide assortment of dairy products including cheese, fresh dairy products and butter. In Russia Milkiland produces dairy products at the Moscow-based OJSC Ostankino Dairy Plant. In the summer of 2012 Milkiland bought Masovia Province’s Ostrowia cheese-making plant in Poland, at the start of 2013 – OJSC Syrodel in Russia.