Ukrproduct Announces Trading Update for the Yea...

About this update from Ukrproduct Group Ltd

[{"type":"text","content":"\n \n \n Ukrproduct Announces Trading Update for the Year Ending 31 December \n 2009\n \n \n \n \n \n \n\n \n Ukrproduct Group\n \n \n\n \n \n \n Kiev, Ukraine – 8 December, 2009 – Ukrproduct Group \n Ltd (“Ukrproduct” or the “Group”) (AIM:UKR), one of the leading \n producers and distributors of branded dairy products in Ukraine, today \n provided the following pre-close trading update for the year ending 31 \n December, 2009 ahead of announcing its full year results in April 2010.\n \n \n The Group continued to witness a significant slowdown of the Ukrainian \n economy in the second half of 2009. The Group’s sales during the second \n half are expected to be not less than in the first half of the year. \n Full year sales are anticipated to be below the previous year, impacted \n by a devaluation of the local currency against GBP.\n \n \n Ukrproduct benefitted from strong demand for butter, the largest product \n group in terms of sales, as a result of the continued pressure on supply \n volumes in the market, and was also able to increase prices in November \n and December. As such, the Group anticipates generating growth in sales \n for 2009.\n \n \n The Group also gained from consumer preferences switching back to \n processed cheese from hard cheese, due to seasonality factors, as well \n as the growth in prices of hard cheese in November, although these \n remain at a level below that seen at the start of the year. As a result, \n the Group’s sales of processed cheese are expected to have increased in \n the second half, compared to the first half of 2009. However, full year \n sales are likely to be below the previous year.\n \n \n Ukrproduct’s sales of hard cheese in the second half were expected to be \n below the first half of 2009, due to lower production volumes in \n response to price dumping by competitors in the local market in the \n first half. The full year sales are expected to be below 2008.\n \n \n The Group is likely to deliver double digit growth in Skimmed Milk \n Powder (“SMP”) sales in the second half of the year, compared to the \n first half, following a recovery in the market and, starting from \n October, a significant price increase. Sales for the full year in the \n SMP segment are expected to be up year on year.\n \n \n Ukrproduct has continued to realign its product mix to ...

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