The results of Q1 2017 confirmed the recently published preliminary results of Milkiland Group reflecting the positive dynamic of the Group’s financials in the reporting period. The short essay of the results is as follows:
· Milkiland’s revenue in Q1 2017 remained flat y-o-y despite the decrease of the Group’s output based on the efforts on support of the profitability of the Group’s sales.
· Decrease of the cost of sales by 3.8% to c. EUR 30 million on the back of the controversial trends of the declined processing volumes of raw milk versus the growth of the effective price for this raw material, led to the growth of the Group’s Gross profit by c. 32% to c. EUR 7 million. The Gross margin of Milkiland then improved by 4.8 pp. to 18.9%.
· Higher profitability of the Group’s business resulted the increase of EBITDA by 12.7% to c. EUR 2.3 million. At the same time, EBITDA margin improved by 0.4 pp. to 6.3%.
· Milkiland penciled a net profit of c. EUR 1 million in comparison with the significant net loss of c. EUR 16.4 million in Q1 2016
· PPE in the amount of c. EUR 4.7 million, namely the agri-subsidiaries of the Group, PJSC “Iskra” and LLC “Uspikh-Mena”, were sold to the third-party buyers within the Restructuring agreement with one of the major creditors of Milkiland, PJSC Credit Agricole Bank. The earnings from these deals were one of the sources for the partial repayment of the debt portfolio of the Group. It was amounted c. EUR 103 million as of 1 January 2017. During Q1 2017 c. EUR 4.5 million was repaid by the Group, another c. EUR 0.3 million was refinanced. As the result, the total debt portfolio of the Group declined by c.3% to c. EUR 99 million as of 31 March 2017.
The full version of the Q1 2017 Report of Milkiland Group you could find by the following link:http://www.milkiland.nl/upload/iblock/973/Interim-Statement-Q1-2017-Final-for-publication.pdf