Page 59 - bne IntelliNews Country Report: Ukraine Dec17

higher prices (a 18% y/y rise in $terms) and higher volumes (a 4% y/y increase). The MHP’s poultry export volumes advanced 23% y/y to 176kt in 9M17.
Ukraine’s dairy producer Milkiland continued to surprise the markets with boosted profitability in 9M17 , according to its November 16 report. EBITDA improved 55% y/y to €8.16mn and EBITDA margin reached 7.7% (up from 4.7% a year before), which the company attributed to cost optimization and higher focus on value-added products. Its revenue decreased 6% y/y to €105.7mn, which was a result of a 22% decline in volume of products sold. At the same time, the company reported doubled supplies of butter, for, which it found good demand. The company’s biggest contributor to growing EBITDA was its ingredients segment, which shifted from a negative result in 9M16 to positive €1.52mn in 9M17.
Ukrainian farmer IMC Ebitda fell by a quarter in the first nine months of this year . The Warsaw-listed integrated agricultural firm IMC generated $81.5mn in net revenue in 9M17 (a 2% y/y rise), the company reported on November 17. As usual, corn remained IMC’s key revenue contributor, accounting for 74% of the company’s total revenue, or $60mn. The company’s cost inflation, which exceeded crop price growth, caused a 9% y/y decrease in gross profit to $51.1bn. Furthermore, inflated SG&A costs (a 52% y/y rise to $13.3mn) caused a 24% y/y decline in EBITDA to $42.8mn. Net income declined 8% y/y to $27.6mn in 9M17. IMC continued to reduce its leverage, repaying net $16.4mn in 9M17. Its total debt decreased 15% YTD and 8% q/q to $70.7mn as of end-September. Its net debt amounted to $63.7mn (-20% YTD), while its net-debt-to LTM EBITDA ratio was 1.4x as of end-September.
WSE-listed Ovostar Union, one of the largest shell egg producers in Ukraine, reported 3Q17 shell egg production of 431mn eggs (+6% y/y), with volume sales up 7% y/y to 311mn eggs. Egg exports increased 78% y/y to 164mn pieces (53% of total egg sales, +21pp y/y). The average sale price rose by 18% y/y to UAH1.38/egg (+16% y/y in $terms). The volume of shell eggs processed increased 32% y/y to 143mn eggs in 3Q17. Sales of dry egg products were up 50% y/y to 0.9 kt, with exports accounting for 68% of volume sales. Sales of liquid egg products declined 46% y/y to 1.2 kt, with 41% of this volume exported. Sale prices of dry and liquid egg products averaged UAH106.6/kg (-11% y/y) and UAH32.0/kg (+18%), respectively.
Net revenue of Ukrainian egg producer Ovostar Union rose 12.1% year-on-year to $60.2mn in January-September , according to the company’s interim report published on November 14. The producer's export sales improved 42% y/y to $27.6mn, while revenue from domestic sales decreased 4.8% y/y to $32.6mn. The company’s key revenue driver was its egg product segment, whose sales increased 19.5% y/y to $18.2mn. The average egg price climbed 8% y/y in local currency terms to UAH1.33 per egg (a 3.9% y/y rise in US dollar terms). Ovostar's Ebitda decreased 14.1% to $12.2mn in January-September due to higher selling and distribution costs, which swelled 26.5% y/y (or by $0.85mn). Government subsidies contributed $0.01mn to Ebitda during this period, falling 91% y/y. The company's net profit dropped 34.9% y/y to $7.9mn.
59 UKRAINE Country Report December 2017 www.intellinews.com