Milkiland reported 6% y-o-y revenue growth to EUR 201.3 mln in 9M11, according to yesterday’s release. EBITDA declined 24% y-o-y to EUR 25.4
mln and net income declined 20% y-o-y to USD 13.9 mln. The company attributed the EBITDA decline to ruble devaluation and the de-facto
cancellation of raw milk subsidies in Ukraine. Profitability from cheese exports to Russia were hindered by ruble depreciation (2% vs. the hryvnya on
average in 3Q11 vs. 1H11). This led EBITDA margin for the company’s cheese segment to decline to 19% from 22% in 1H11, which was a key
driver of the overall drop in EBITDA. 4Q11 financial results are expected to be even weaker as most of the effect of ruble devaluation should be felt
then.
 

UAIndex