Page 67 - UKRRptJun20

Net revenue at dairy firm​ M​ ilkiland​ fell 23% y/y to €22.79mn in 1Q20, according to its May 15 filing. The decline was caused by plummeting dairy product sales volume, which the company attributed to reduced demand in its core markets due to lockdown measures related to the COVID-19 pandemic. As a result of the reduced revenue, the company’s gross profit declined 37% y/y to €2.29mn and its EBITDA turned to negative €1.14mn in 1Q20 (from positive €0.13mn a year before), while net losses doubled y/y to €7.62mn. Milkiland’s total debt decreased 2% YTD to €77.6mn as of end-1Q20, still remaining too high for the company’s size. On top of that, at one of its Russian subsidiaries, Kursk Milk, an insolvency complaint has been filed by local authorities and an external arbitrage administrator has been appointed. The company’s ability to control the asset “is dependent on upcoming negotiations during the bankruptcy procedures,” it wrote.
EBITDA at Ukraine’s largest sunflower oil producer and grain trader Kernel​ surged 12.3% y/y to $320mn in 9MFY20​, according to its earnings report released on May 29. The increase was driven by its infrastructure & trading segment, in, which EBITDA surged 66.0% y/y to $161mn, while its farming segment EBITDA dropped 22.7% y/y to $102mn in 9MFY20. The company’s oilseed processing segment EBITDA rose 2.3% y/y to $88mn in 9MFY20, while EBITDA margins improved in oilseed processing by 14.9% y/y to $85/t and in infrastructure & trading by 28.6% y/y to $27/t in 9MFY20. Kernel’s 9MFY20 revenue slid 4.9% y/y to $2,909mn, operating cash flow before working capital changes decreased 8.4% y/y to $256mn, while working capital investments more than tripled to $355mn. The company’s net profit dropped 60% y/y to $76mn in 9MFY20.​ ​In 3QFY20, Kernel’s EBITDA jumped 89.1% y/y to $104mn (or a 4.6% qoq decrease). The company’s oilseed crushing segment EBITDA slid 16.1% y/y to $26mn (a 33.3% qoq drop) and its crushing margin declined 13.9% y/y to $68/t (and 39.8% qoq fell) in 3QFY20. The company’s infrastructure & trading EBITDA tripled y/y to $65mn (and 6.6% qoq increase) in 3QFY20.
9.2.7​ TMT corporate news
The Kyivstar mobile communications operator in January-March 2020 increased total operating revenue by 16.1% year-over-year​, to UAH5.95bn, according to a report of the shareholder in the company, Veon international group, posted on its official website. "The increase was primarily driven by mobile data, voice and fixed line revenue growth owing to continuous 4G roll out, increase traffic and pricing. In addition, the local currency also observed an improvement against the $when compared with the same period last year," Veon said. According to Veon, in the first quarter, Kyivstar increased its EBITDA by 25.35% compared to the same period last year, to UAH4.04bn. EBITDA margin increased 5 percentage points (pp), to 67.9%. Revenue from mobile services increased by 16.1%, to UAH5.53bn. Veon reported that Kyivstar's mobile Internet coverage reached 77%, while 4G mobile penetration in the operator's network reached 30%. ARPU of mobile communications grew to UAH70.30, or 17.43%, the consumption of voice services (MoU) – by 3%, to 603 minutes. Overall, Kyivstar's mobile customer base decreased slightly by 1.2% to 26.0mn.
Swamped by demand, IKEA, the Swedish-Dutch home furnishings retailer, is suspending its Ukraine website – 10 days after launch. ​“To meet the demand and continue to meet IKEA’s high standards and customer
67​ UKRAINE Country Report​ June 2020 ​ ​www.intellinews.com