Half-yearly Report

About this update from Ukrproduct Group Ltd

[{"type":"text","content":"\n \n \n Half-yearly Report\n \n \n \n \n\n \n Ukrproduct Group\n \n \n\n \n \n \n UKRPRODUCT ANNOUNCES UNAUDITED INTERIM FINANCIAL RESULTS FOR THE SIX \n MONTHS ENDED JUNE 30, 2010\n \n \n Kyiv, Ukraine – 8 September, 2010 – Ukrproduct \n Group Limited (“Ukrproduct”, the “Company” or, together with its \n subsidiaries, the “Group”) (AIM: UKR), one of the leading producers and \n distributors of branded dairy products in Ukraine, today announces its \n unaudited interim consolidated IFRS financial results for the six months \n ended June 30, 2010.\n \n \n KEY FIGURES\n \n \n (Figures in brackets are for the six months ended or as at 30 June, 2009)\n \n \n \n Total revenue declined by 5.3% year on year to GBP 20.7 million (GBP \n 21.8 million), however revenues remained stable year on year in local \n currency\n \n \n Decline of gross margin to 15.4% (18.0%) led to a decrease in gross \n profit to GBP 3.2 million (GBP 3.9 million)\n \n \n Revenue in skimmed milk powder (“SMP”) segment increased by 11% \n year on year to GBP 5.9 million (GBP 5.3 million)\n \n \n Gross profit for SMP increased to GBP 0.8 million with gross margin \n of 13.1%, compared to GBP 0.02 million loss in prior period\n \n \n Revenue in branded products segment declined by 12.8% year on year \n to GBP 13.7 million (GBP 15.7 million)\n \n \n Gross profit for branded products decreased by 41.8% year on year \n to GBP 2.2 million (GBP 3.9 million) with gross margin of 16.4% \n (24.6%) as a result of margin pressure from consumer preferences shift \n to the mass market segment\n \n \n Earnings per share of 1.0 pence (1.5 pence)\n \n \n Positive cash flow with cash balance standing at GBP 1.6 million \n (GBP 2.2 million)\n \n \n \n Sergey Evlanchik, CEO of Ukrproduct, commented: “Consumer preferences \n shifted further to the price sensitive mass market away from \n Ukrproduct’s strong position in the premium middle market segment, \n impacting our profitability. Ukrproduct continued to adapt its product \n mix to suit changing consumer preferences, with the intention of \n improving profitability. Implementation of these plans will be assisted \n by the recently announced strengthening of the senior management team.”\n \n \n CEO’S REPORT\n \n \n During the first half of 2010 Ukrproduct has witnessed a further \n decrease in the purcha...

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