Ukrproduct reports stable revenue amidst challenges

Published 30/05/2025, 09:06
Ukrproduct reports stable revenue amidst challenges

LONDON - Ukrproduct Group Ltd (AIM:UKR), a prominent Ukrainian producer of dairy products and beverages, disclosed its audited financial results for the year ending December 31, 2024. Despite the ongoing conflict in Ukraine, the company managed to maintain a stable revenue of £37.1 million, consistent with the previous year’s performance.

The company experienced a decline in EBITDA by 29% to £1.7 million, attributed to strategic decisions aimed at preserving business capacity and employment while maintaining critical production amidst the war. The financial year also saw a net loss of £2.0 million, primarily due to increased finance costs and decreased operating profit.

Ukrproduct’s revenue in local currency terms grew by 13%, but currency translation effects kept reported GBP revenue steady. The processed cheese segment saw a 15% drop in revenue to £21.2 million, while the butter segment’s revenue grew by 70% to £5.2 million. Kvass and other beverages experienced a 31% increase in sales, amounting to £2.3 million.

Administrative and selling expenses rose by 4%, reaching £4.2 million, mainly due to higher payroll costs and an increase in insurance and consulting services. Other operating expenses also increased to £1.8 million, with the company recognizing £1.1 million in net impairment losses on financial assets.

Ukrproduct continues to negotiate with the European Bank for Reconstruction and Development (EBRD) regarding the restructuring of its loan and accrued interest, which has accumulated to over €9.7 million (£8.1 million). Despite the financial pressures, the company has not received any demands from the EBRD for accelerated repayment.

As of December 31, 2024, Ukrproduct reported net assets of £2.0 million, with cash balances of £0.1 million. The company remains in breach of several provisions of its loan agreement with the EBRD, including missed payments on principal and interest since March 1, 2022.

Looking ahead, the company anticipates a fragile business environment in 2025, with continued focus on liquidity, resilience, and performance. Ukrproduct aims to strengthen its digital systems, automate operations, and maintain hygiene standards to preserve its export potential.

This article is based on a press release statement from Ukrproduct Group Ltd.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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