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UKR Ukrproduct Group Limited

3.00
0.00 (0.00%)
Last Updated: 01:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Ukrproduct Group Limited LSE:UKR London Ordinary Share GB00B03HK741 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 3.00 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
2.00 4.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Dry,condensd,evap Dairy Pds 39.11M -804k -0.0203 -1.48 1.19M
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 3.00 GBX

Ukrproduct (UKR) Latest News

Ukrproduct (UKR) Discussions and Chat

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Ukrproduct (UKR) Top Chat Posts

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Posted at 19/4/2024 09:20 by Ukrproduct Daily Update
Ukrproduct Group Limited is listed in the Dry,condensd,evap Dairy Pds sector of the London Stock Exchange with ticker UKR. The last closing price for Ukrproduct was 3p.
Ukrproduct currently has 39,673,049 shares in issue. The market capitalisation of Ukrproduct is £1,190,191.
Ukrproduct has a price to earnings ratio (PE ratio) of -1.48.
This morning UKR shares opened at -
Posted at 30/6/2020 07:55 by mirako
Encouraging results and a better outlook than might have been expected. Clearly the business has been so cash-starved for so long that it's going to take a while to repair the balance sheet.

The economy is still going in roughly the right direction. The land sales law should be good for UKR but the crucial bit doesn't take effect until 2024. The new IMF swap line is also good and there's political stability at least for now.

Book value is around 7-8p a share. That seems like the best metric until there's some prospect of generating free cash flow.
Posted at 30/10/2014 20:44 by mirako
Price trends for SMP don't look too encouraging: hxxps://www.globaldairytrade.info/en/product-results/skim-milk-powder/
Posted at 24/9/2014 17:51 by mirako
This is an excellent set of results given what Ukraine has been through. Russia's export ban appears to have helped at the operating level by collapsing the price of raw milk.

The question is whether this is the bottom. It looks like Ukraine will stay in recession for a while, the Russian market will stay closed and it will be a challenge to meet EU standards. Skimmed milk powder to emerging markets is going to be the main opportunity.

My guess is it will bump along at the current price level for a while but looks more appealing than it has done for quite a while.
Posted at 30/4/2014 23:31 by aleman
Most exports are skimmed milk powder. Just imagine if they could get up to 20% of sales exported again. With costs down 30% or so, what a fabulous profit margin they would have. Then add in a reduced price of milk in Ukraine and the increase in global SMP prices in the last year and export margins would be fabulously fabulous. Just got to get through a few little local problems and reschedule some debts first! :-)
Posted at 30/4/2014 17:41 by aleman
Results about what I expected, maybe a touch worse. Moderate loss. Cashflow not quite as bad but need to improve things to continue to meet interest and debt payments. Looks like they may seek a debt reschedule. Things were expected to get better but the change of government and Russian interventions messed up the plan. So what is the outlook? Actually, it doesn't sound too bad but is it just positive spin on a sticky situation?

Outlook

The unstable political and economic situation, as to be expected, has had an adverse effect on businesses throughout Ukraine including Ukrproduct Group.

In the early year the Company revenues in hryvna were below expectations as consumer confidence fell, a range of open markets servicing mass and mid-market closed and a number of agents in other sales channels withdrew from the market not least for the reason of bad debt risk. Sales were also adversely affected as higher unit costs due to a currency devaluation of the hryvna and sustained high raw milk prices has necessitated the consumer price increases.

Trading has now improved. Sales are recovering across all product categories. At the same time hryvna devaluation is having a positive influence on the export revenues thus Ukrproduct will aim to grow its export oriented sales. More positively margins are increasing with the declining milk prices. This follows on an increase in milk availability given the constraints on exports to Russia.

Plans internal to the Company are little affected as Ukrproduct has been engaged in restructuring - simplify and modernize - its operations to improve cost, quality and speed of its supply chain. This embraces site consolidation, outsourcing of distribution, boosting sales force efficiency and overheads elimination. This program is fundamental to the Company turnaround plans. Progress has been made and the benefits will be are expected to be evident throughout the year ahead.

In summary Ukraine has been facing political and economical challenges. Within the context of such headwinds, Ukrproduct has adjusted its business model to allow viable progress through the current turbulent environment so far as it can be assessed successfully.
Posted at 10/3/2014 07:06 by skinny
TRADING UPDATE
Kyiv, Ukraine - March 10, 2014 - Ukrproduct Group Limited ("Ukrproduct" or the "Group") (AIM: UKR), one of the leading Ukrainian producers and distributors of branded dairy foods and beverages (kvass), today announces the following trading update.

The unstable political and economic situation, as to be expected, is having an adverse effect on businesses throughout Ukraine including Ukrproduct Group.

The Company revenues in hryvna year-to-date have been below expectations as consumer confidence has fallen, a range of open markets servicing mass and mid-market have closed and a number of agents in other sales channels have withdrawn from the market not least for the reason of bad debt risk.

Overall, sales have also been adversely affected as higher unit costs due to a currency devaluation of the hryvna and sustained high raw milk prices has necessitated the consumer price increases.

As a result, key categories have experienced lower sales levels. The sales volumes of processed cheese in January-February decreased year-on-year but showed a slight increase in hryvna terms. Sales of packaged butter dropped but in hryvna terms the decrease was less significant than in tonnage.

At the same time hryvna devaluation is having a positive influence on the export revenues thus Ukrproduct will aim to grow its export oriented sales.
On the other hand the sizable increase in US Dollar exchange rate will significantly decrease the consolidated results of the Company after the translation into the presentation currency of GBP Sterling.

The banking confidence in Ukraine has also fallen and this is limiting credit facilities. Ukrproduct Group is managing the situation and currently has sufficient support of its banks. Ukrproduct also continues its cooperation with the European Bank for Reconstruction and Development in addressing the current challenges.
In summary, the current environment in Ukraine has led to performance below expectations year-to-date. In the context of the general political and economic environment Ukrproduct Group has adjusted its business model. The financial outcomes of such model are planned to allow Ukrproduct to carry through the current environment as far as it can be assessed successfully.
Posted at 06/3/2014 12:25 by aleman
UKR market cap now down to £3.1m versus net current assets of £5.1m and NAV ex-intangibles of £18m. That's a big discount which seems to assume the company only has a small chance of surviving Ukraine's troubles. The 5 manufacturing assets (plus one under construction) are in Western Ukraine. There are 5 of the 9 distribution assets in the East but none in Crimea. They are held through subsidiaries which could perhaps be sold off piecemeal if necessary.
Posted at 22/1/2014 22:59 by mirako
It seems like the stock is finally showing some sensitivity to the political news from Ukraine.

Assuming there is no political change then most likely the currency stays broadly stable, at least until next year's elections, but it's hard to see the economy doing much.

If there were political change then it probably means a big currency devaluation. That would hit the UKR balance sheet in sterling terms, most likely trigger a recession in Ukraine, but leave the potential for better export performance and domestic growth if UKR got through it. The EBRD loan in euros is a nasty liability in this scenario.

Either way, I continue to watch with interest, but don't like the risk/reward for now.
Posted at 20/1/2014 07:25 by skinny
Kyiv, Ukraine - 20 January 2014 - Ukrproduct Group Limited ("Ukrproduct" or the "Group") (AIM: UKR), one of the leading Ukrainian producers and distributors of branded dairy foods and beverages, today announces that pursuant to the resolution of the National Commission on Securities and Stock Market dated January 14th, 2014 the Company's shares have been approved to be admitted to trading on the Ukrainian stock market.

It is expected that 581,400 ordinary shares of 10 pence each will be admitted to trading on the Ukrainian Stock Market and the dealings are expected to commence shortly. No new ordinary shares have been issued and accordingly the total number of shares in issue remains unchanged.

The Directors believe that Ukrproduct Group Ltd is the first Company listed outside of Ukraine to be admitted to trading on the Ukrainian Stock Market since the adoption of new Regulations allowing the dealings in foreign securities in the territory of Ukraine in January 2013. The relevant official announcement of the National Commission on Securities and Stock Market (in Ukrainian language) can be found here -

Sergey Evlanchik, CEO of Ukrproduct Group commented: "We are pleased with the prospect of having the Company's shares admtted to trading on the Ukrainian Stock Exchange. We expect that the listing on the Ukrainian Stock Exchange will allow us to improve the liquidity of our shares."
Posted at 04/1/2014 00:12 by aleman
As Aleman notes, the shares are very cheap, but there is no obvious reason to own them until Ukraine's economic and political situation is sorted out.

I would say that's an excellent reason to buy/hold shares. I made lots of money from buying shares in the depths of the financial crisis when others wanted to wait to see the situation resolved, but that left them to buy at higher prices when they looked safer. You can't get them all right but the best money is made buying when everyone else is panic-selling, not that there seems to have been much of that here with the shares closing up today.

With such wild gyrations in margins, there needs to be some economic stability to enable a proper assessment of the company's prospects.

That's a bit of a cop-out. Shareholders here have to assess value now without waiting for political relations between Russia and Ukraine to settle. We can't just pretend we're not here. The shares are trading so how do we assess value and compare that to the price in the market? If you bought shares at today's price and the company liquidated tomorrow, you would likely make a profit since it trades at a 78% discount to NAV and a 76% discount to NAV ex-intangibles. I could see this company getting into difficulties that threatened its existence but I could also see it recovering margins and growing turnover to take the shares over £1 in a relatively short period if they get it right. I think a 90% discount to the potential upside, which I also consider more likely, is probably sufficient to account for the political risk. (In my experience, shares exposed to political risk tend to have it overplayed and risks are often underplayed at companies where you thought there weren't any! There are unknowns we know but then there are unknowns we don't know!) I accept I could lose everything but I think the shares are still undervalued at such a big discount - to both NAV and potential earnings - and might even consider buying more at this price, despite a likely (small?) reported loss this year.

I think they're enticingly cheap but your perception of political risk will be different from mine. The question for me is how much of my portfolio am I prepared to risk. I think they're cheap but I'm not sure I want to buy more until I see if results are in line with my expectations and how politics, trading and weather go between now and then.

I think the weather will have lifted Ukrainian milk prices last year. The grass growing season must have been poor in 2013. Last winter was long and cold (the unusually cold Feb-April period was when the price rose) ; summer was hot, dry and short I think as this winter started early in Eastern Europe. It will have done milk cows no favours. Average weather next year could see lower milk prices, if political effects were to turn out neutral.

I don't wish to sound arrogant or ungrateful, though. Thanks for your views on political risk and the link to trade data. More of the same will be welcome.

Here's one I found interesting:

hxxp://apps.fas.usda.gov/psdonline/circulars/Dairy.pdf
Ukrproduct share price data is direct from the London Stock Exchange

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