Page 98 - UKRRptFeb24

9.2.5 Retail corporate news
Auchan hypermarkets closing in Arricano trade centers in Zaporizhia and Kryvy Rih due to termination of lease agreement The leading developer of shopping complexes in Ukraine, Arricano, will replace Auchan Ukraine with a new grocery operator in Zaporizhia and Kryvy Rih in 2024 due to the termination of the lease agreement, the company’s press service told Interfax-Ukraine.
An international hotel chain plans to open several establishments in the capital and western Ukraine. French Louvre Hotels Group is negotiating with a few Ukrainian developers to build hotels in Kyiv, Lviv, and Bukovel, said the company's regional development manager, Philippe Campagno. In the spring of 2024, the chain plans to open its first hotel in Ukraine under the Tulip Hotels & Residences brand (3 stars) in the multi-functional complex Kristal Plaza in Lviv. "We are currently negotiating with one of the Ukrainian developers to construct another Tulip Residence hotel, but we are also discussing the development of the Golden Tulip brand hotel (4 stars). There is keen interest in Kyiv, Lviv, Bukovel, Odesa, and Ivano-Frankivsk," Campagno said. According to him, LHG has presented one of the most competitive offers: negotiations start with 6% of the revenue of the room fund without the turnover from the restaurant and commercial spaces.
9.2.6 Agriculture corporate news
Astarta, Ukraine's largest sugar producer, saw net profit decline by 10% in the first nine months of 2023, despite achieving record processing volumes, Ubn reported on January 25.
The company processed 2.7mn tonnes of sugar beets, sourced both independently and through agricultural partners, resulting in the production of 377,000 tonnes of sugar across its five sugar factories. This performance marked the most successful processing season in the past five years, in terms of both raw material volume and sugar output.
However, the first nine months of 2023 presented a contrasting financial picture for Astarta. The company's net profit experienced a 9.8% decrease, amounting to €55.97mn. This decline occurred despite a 14.8% increase in sales, which totalled €392mn.
While the company's gross profit saw a 3% rise to €151.9mn, its operating income fell by 15.9% to €79.91mn, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 10.8% to €116.63mn.
The primary causes behind these financial setbacks were attributed to extended harvesting periods, influenced by several factors, including poor weather conditions, including heavy and protracted rainfall during October and November 2023. This adverse weather led to the postponement of the harvest and created logistical difficulties in transporting raw materials to the processing facilities. Consequently, there were disruptions in supply to some of Astarta's sugar factories, negatively impacting their productivity and contributing to the company's overall profit decline.
98 UKRAINE Country Report February 2024 www.intellinews.com