Business
Year End Trading Update
Year End Trading Update.
About this update from Ukrproduct Group Ltd
[{"type":"text","content":"\n \n \n RNS Number : 7119G\n Ukrproduct Group Ltd\n 19 March 2020\n \n \n \n \n \n \n \n \n \n \n Ukrproduct Group Ltd\n \n \n (\"Ukrproduct\", the \"Company\" or, together with its subsidiaries, the \n \"\n Group\n \")\n \n \n \n \n \n 19.\n 03.2020\n \n \n \n \n \n Year End Trading Update\n \n \n \n \n \n \n \n \n Ukrproduct, one of the leading Ukrainian producers and distributors of branded dairy foods and beverages (kvass), is pleased to announce its trading update for the year ended 31 December 2019 (\"FY 2019\") and outlook for 2020.\n \n \n \n \n \n FY 2019 Financial highlights (unaudited)\n \n \n \n \n \n · \n Revenue increased 35% to £50.0 million (FY 2018: £36.9 million)\n \n \n · \n Gross profit increased 50% to £4.77 million (FY 2018: £3.18 million), with dairy products and beverages showing strong performances in particular \n \n \n · \n Operating profit increased 744% to £1.57 million (FY 2018: 0.19 million)\n \n \n · \n EBITDA margin improved to over 4% (FY 2018: 2%)\n \n \n · \n Net foreign exchange gain of £1.08 million (FY 2018: £0.40 million)\n \n \n · \n Profit after tax of £2.1 million (FY 2018: £0.09 million)\n \n \n \n \n \n 2019 Trading Update\n \n \n \n \n \n The Ukrainian economy performed robustly in 2019, reporting GDP growth of over 2% for the year, which included growth in excess of 4% in Q4. Whilst the strengthening of the hryvnia during 2019 had a noticeable negative impact on Ukrainian exports, it increased the purchasing power of the population. Due to the growth of consumer incomes, retail sales increased significantly, with Q3 and Q4 showing greater than 10% year on year growth. As a result, the Group`s operating performance exceeded expectations. \n \n \n \n \n \n In this more encouraging operating environment, for FY 2019, the Group expects to report improved revenue of approximately £50.0 million, an increase of 35% compared with the 12 months to 31 December 2018 (\"FY 2018\").\n \n \n \n \n \n Operating profit increased 744% to approximately £1.57 million. Overall, for FY 2019, the Company expects to report net profit of approximately £2.1 million, which includes a net foreign exchange gain of £1.08 million, compared to £0.09 million in FY 2018.\n \n \n \n \n \n Gross margins improved as a resu...