Ukrproduct Approves Interim Dividend, Releases Consolidated 1H07 Financials

Ukrproduct (UKR LN: N/R) released its 1H results in a press release yesterday and announced that its board had approved a mid-year dividend of 0.60 pence per share (17% dividend payout, yield of 0.007%). The dividend record date is October 5. Dividends will be payable on October 26. The branded dairy producer reported consolidated 6M07 results: net revenues of USD 44.2 mln (GBP 21.9 mln, up 26% yoy), gross profit of USD 7.0 mln (GBP 3.5 mln, up 36% yoy), EBITDA of USD 5.0 mln (GBP 2.5 mln, up 82% yoy), net income of USD 2.8 mln (GBP 1.4 mln). Olha Pankiv: The favorable situation on world markets for skimmed milk powder (SMP) was the main trigger for the increase in the company’s sales and profits in 1H07. Average SMP price growth of 83% on world markets in 1H07 outpaced a 40% increase in the purchasing price for milk in Ukraine (accounts for over 65% of SMP costs). A further increase in profitability margins is likely due to Ukrproduct entering the hard cheese segment. It launched a hard cheese workshop in July 2007, and full-scale sales of cheese are planned to start by the end of the year.