Ukrproduct reports strong 2012 results

Ukrproduct (UKR LN), Ukraine’s leading producer of packaged butter and processed cheese, reported a 19% yoy increase in its 2012 revenue to GBP 60.2 mln, according to its annual report released on April 17. Each of its three traditional segments (branded products, non-branded products and distribution services) contributed to the growth, with the largest change being in distribution segment (+60% yoy), whose share in total revenue increased to 22% from 14% a year before. The company’s new beverages segment (which includes the production of kvas, a traditional, fermented soft beverage that had been earlier classified as a part of its distribution segment) brought GBP 2.4 mln in revenue in 2012.

Despite the company citing a challenging market environment in 2012, it increased profitability in all of its segments to post 33% yoy growth in gross profit (to GBP 9.0 mln) and 68% yoy growth in EBITDA (to GBP 3.2 mln). Ukrproduct’s net profit grew 2.1x yoy to GBP 2.1 mln.

The company did not specify its plans for 2013, listing general promises to strengthen its packaged butter and processed cheese segments, expand its kvas sales, and support its margins via cost optimization and capital investment.