Consumers switching to cheaper dairy products have hit annual profits at London-listed, Ukraine dairy group Ukrproduct.

The company today (21 April) reported that its pre-tax profits fell 54.3% in 2009 to just over GBP1m. EBITDA dropped 27.5% to GBP3.2m. Sales fell 16.9% to GBP43.2m.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The percentage falls were less steep when measure in Ukrainian hryvnia, which fell against sterling by almost 24% when compared to 2008.

Nevertheless, when measured in Ukraine’s local currency, pre-tax profits fell 42%, EBITDA was down 8.3% – even if sales were up 5.2%.

Ukrproduct said sales of branded products, which account for over 60% of turnover, fell by 21% in 2009.

“The Ukrainian dairy market was impacted by the decline in consumers’ purchasing power and the subsequent switch of consumer demand to cheaper dairy products,” said Ukrproduct CEO Sergey Evlanchik.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We recognised changing market conditions and optimised our product portfolio in response, focusing on growth in more affordable market segments. Ukrproduct adjusted its output and production facilities to take advantage of growth in these segments, while also focusing on reducing costs and keeping bad debts at a low level.”

He added: “We expect the situation is likely to remain challenging in 2010. We will therefore continue to pursue our adopted strategy and seek to reduce costs and improve profitability.”