The stagnation of the national economies of Russia and Ukraine, the Group’s 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’s operations in H1 2016.
The continuing restrictions of the Russian authorities against Ukrainian dairy export, as well as food export from the EU, was the another important factor, which significantly influenced the market situation in H1 2016.
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 Ukrainian hryvnia was on average c.19% weaker than EUR in H1 2016 in comparison with the same period of the last year, while Russian rouble was on average weaker than the European currency by c. 22%.
These trends led to contraction of the Group’s revenues in EUR terms on y-o-y basis. The Group’s revenue decreased c. 24% y-o-y to c. EUR 74 million. Mainly under the pressure of this revenue decline, the Group’s EBITDA in H1 2016 fell by c. 47% to EUR 3.4 million.
In order to catch the opportunities in line with the implementation of FTZ with the EU, in H1 2016 Milkiland started an export to Ukraine of the high value-added dairy goods, produced by Ostrowia cheese plant, the Polish subsidiary of the Group.
In line with the strategy of searching the opportunities of entering to the new markets, Milkiland in the reporting 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 the developing dairy market of this country.
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 “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:
Investor Relations Officer, Milkiland N.V.,
tel. + 380 67 327 9838 mob., e-mail: firstname.lastname@example.org