Kyiv, April 30, 2018 - Milkiland publishes the Annual results for 2017
After 2017, Milkiland’s management are now more confident to state that the Group is successfully withstanding challenges put to its business back in 2014, when Ukraine-Russia conflict instantly deprived us the key export market of Russia and depressed our financials, thus generating the significant losses.
Since that, Milkiland, as we believe, have found our ways to respond to crisis, including: opening of new markets, introduction and promotion of new high value added products, as well as catching the opportunities of profitable international trade in the global dairy market.
In particular, in 2017 growing global demand and prices for butter triggered Milkiland to find the new markets for butter in Israel, by selling this product, which passed the kosher treatment, as well as in the Netherlands. The Group also opened the new destinations of sales of different types of cheese, including to several European countries under the framework of FTZ Agreement between Ukraine and European Union. We also continued a development of the distribution network of dry milk products in China.
We did significant steps to stabilize Milkiland financially, having achieved restructuring agreements with several creditors. Our debt during 2017 reduced in EUR by 16%; this, combined with increased EBITDA, substantially improved the Group’s debt servicing ability. All above should clear the way to final settlement of our relations with creditors.
In revenue, in 2017 Milkiland had some minor correction compared to 2016, but its quality improved; our EBITDA was better than in two previous years.
In particular, the Group’s EUR-denominated revenue in 2017 decreased by c. 4% y-o-y to EUR 140 million, while gross profit of Milkiland rose by 12% to EUR 23.7 million, also fueled by the lower costs.
Better profitability of the business in 2017 year in comparison with 2016, was reflected in EBITDA boost by almost 90% to c. EUR 10.3 million.
This also led to diminishing the negative result of the Group in 2017 by almost 5 times in comparison with 2016 to c. EUR 7.3 million.
Comment of Oleksandr Androshchuk, CFO, Milkiland N.V.: “We believe that our team did a lot of efforts in 2017 and this is evidenced by better financial performance of Milkiland. In the current year we are focusing on profitability and sustainability of our Group, aiming to settle all remaining financial issues with our creditors and thus enable our further business development”.
For the full text of the respective Report, please use the following link: [Link]
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.