Ukrproduct 1H Performance Up, New Plant Launched

Ukrproduct’s (UKR LN) financial advisor  told  us yesterday that he estimates yoy growth in Ukrproduct’s 1H07 sales at 35% (in USD terms, 25% in GBP) to USD 42-43 mln with an EBITDA margin of 10-11%, compared to 8% posted in 2006. Skimmed milk powder (SMP) has been the major growth driver due to the doubling global prices for this product. SMP posted higher gross margins, compared to 2006, and estimatedly made up 40% of Ukrproduct’s sales in 1H07, compared to 20% of sales in 2006. Additionally the company announced yesterday that they had opened a new hard cheese plant with a total operating capacity of 3,600 mt of cheese per year. The company plans to grab 3% of the domestic hard cheese market in 2008. Ukrproduct’s audited financial results for 1H07 are expected at the end of August.