Ovostar Union and Milkiland released their 6 months 2014 reports, Fitch downgraded credit ratings of Ukrainian companies
2014-09-02 16:31:35
According to the official report, released by Ovostar Union, company ended first half of 2014 with total sales revenue of USD 34.9 million, a 5.5% increase compared to the same period of 2013. Company managed to decrease cost of sales figure by -4.5% as its gross profit was 28.6% higher at USD 13.8 million. Company faced USD -47.7 million loss from currency exchange rate differences, leading to net income of USD -36.5 million. Company managed to increase its cash flow from operating activities by 3.5% to USD 7.6 million, while its net cash flow for the period was negative - at USD -1.9 million.
Milkiland finished first 6 months of 2014 with sales revenue of USD 203.3 million, a 1.3% increase, compared to same period of 2013. Company failed to decrease its sales costs, as they rose by 1.7% to USD -159.4 million, leading to decline of gross profit of -3.5% to USD 43.6 million, compared to 2013 levels. Company faced USD -45.3 million loss from currency devaluation, ending first half of 2014 with net loss of USD -37 million. Company presented negative operating cash flow for the period, at USD -5.1 million, 4.4% higher than for the same period of 2013. USD 10.4 million originated from financing activities with total positive cash flow of USD 0.9 million.
Fitch simultaneously lowered credit ratings of largest Ukrainian companies, main of which were agrarian holdings. Ratings of Avangard, Kernel, MHP, Creative Group and Ukrlandfarming were lowered from B- to CCC. While we strongly believe that downgrade of Ukraine’s rating earlier was the main reason for such action, we note that declining financial results of these companies also affected the downgrade.
UkrAgroConsult has completed review and recommendations study on investing in Ukrainian Agrarian Sector. You can follow this link to find out more about the study “How to profit from Ukraine’s agricultural sector?”. In case you are interested in state of agrarian sector within CIS region, please follow the link below to read UkrAgroConsult quarterly report “Agrarian Business in Ukraine”. First issue is free of charge. You can subscribe to the report to receive it on a monthly basis.