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17.4% higher than Ukrainian average).
● Other
Milkiland further worsens P&L in 1H20, ​Dairy firm Milkland (MLK PW) reported a 44% y/y decrease in its top line to €37.0mn in 1H20, according to its August 31 filing. The decline was the result of a 52% y/y fall in sales in Russia (to €17.5mn), a 23% y/y fall in Ukraine (to €19.1mn) and the discontinued consolidation of its Polish subsidiary (whose revenue was €4.1mn in 1H19). As the result of a new strategic investor appearing at the Poland-based Ostrowia plant, Milkiland’s share in the facility decreased to 20%. The deal allowed Milkland to decrease its consolidated debt by €1.9mn. The company’s EBITDA decreased 79% y/y to €0.1mn in 1H20 as the improvement of the result in Ukraine (up 6.6x y/y to €1.0mn) was offset by weakness in Russia (where EBITDA fell to negative €0.8mn from positive €0.8mn a year ago). Due to increased ForEx losses (to €13.0mn), the company’s net loss surged to €22.8mn in 1H20, from €7.3mn a year ago. Milkland’s total debt decreased 9% y/y to €75.1mn as of end-1H20, still remaining solid as compared to the company’s size. Its cash position decreased 77% y/y to €0.7mn as of end-1H20. The company is planning to continue negotiations on debt restructuring and will search for the settlement of debt related to its Russian Kursk Milk facility, which is undergoing a bankruptcy procedure now.
Two years after Saudi investors bought Ukraine’s troubled Mriya Agro Holding, a shipment of 60,000 tons of Ukrainian wheat is on its way to Saudi Arabia. ​In the first such shipment to Saudi Arabia in 12 years, a Panamax carrying Ukrainian grain from Chornomorsk arrives Sept. 17. In 2018, Saudi Agricultural Investment and Livestock Company, or Salic, bought Mriya and merged it with its existing Ukraine farms under an umbrella company, Ukrainian Continental Farmers Group. Georg von Nolcken, general director of Continental, says: “This is certainly a good indicator and a clear signal of serious investment intentions of Saudi Arabia in Ukraine.”
9.2.7​ TMT corporate news
The launch of the Ukrainian operations of Russia's largest online retailer Wildberries on September 21 has stirred tensions due to sales of items prohibited in Ukraine. ​“The opening of a Ukrainian online store was our next step in the implementation of our international strategy,” Vyacheslav Ivaschenko, Wildberries' development director, said in the company’s press release. “We see high potential for development in this country, as its residents are increasingly making purchases in online stores and e-commerce continues to grow.” Ukrainian postal companies Meest and Nova Poshta will deliver Wildberries goods to Ukrainian customers with a delivery time around 10 to 12 days. Meanwhile since the launch, social media users noticed that the Ukrainian version of the store sells goods with Russian and Soviet symbols which are prohibited in Ukraine, as well as images of Russian President Vladimir Putin. Although Wildberries quickly removed most of these items from its Ukrainian offerings, social media users have heavily criticised the online retailer. Wildberries' headquarters is in Moscow, but Ukrainian customers will be served by the company's Poland-registered subsidiary, WILDBERRIES Sp.z.o.o.
Ukrposhta to sign an agreement next month for a €100mn loan to build
77​ UKRAINE Country Report​ October 2020 ​ ​www.intellinews.com