Consumer goods

The EBRD will consider an injection of EUR 30 mln into Milkiland at its Board of directors meeting on July 28, 2009. The EBRD would do so through the purchase of a stake in the company. Milkiland will use the funds for further modernization and for restructuring the company’s liabilities.

Ukrproduct [UKR LN, N/R],a London AIM-listed Ukrainian dairy producer, is expecting a sharp decrease of its revenues and slipping net income in 1H09 based on decreased consumer interest in branded products. Moreover, domestic consumer demand is shifting from processed to hard cheese together with a diminishing difference in price. Ukrproduct reported an adverse impact on sales volumes and operational margins.

President Viktor Yushchenko shot down a bill targeting a 94% increase of beer excise duty that had been previously adopted by the Parliament. The main reason for the disapproval, the President stated, was the inappropriate allocation of the additional income from the tax increase.

Retail group [RTGR, N/R], the parent holding of Ukraine’s well-known domestic retailer Velyka Kyshenya, is considering the private placement a 10-25% of its stake in the next 2 months.

Rosspotrebnadzor has temporally banned dairy products exported from Belarus. The official reason is the non-compliance of Belorussian dairy products with the standards implemented in Russia.

EU inspectors representing the European Commission’s SANCO have begun their work in Ukraine. Five Ukrainian poultry plants, including facilities owned by MHP [MHPC LI, BUY], specifically, Druzhby Narodiv and Lehko Myronivsky Meat Processing Plant, some of assets belonging to Agromars Complex ( processing plant Ukraine) and Ovostar.

Myronovsky Khliboproduk [MHPC LI, BUY], has released its 1Q09 financial and operational results. Key operational results: chicken production facilities are operating at full capacity, meat production is unchanged from the 2008 level; the poultry selling price denominated in UAH increased by 18% YoY, the cost production of 1 kg slightly decreased YoY.

Lvivska Brovarnia, a Ukrainian beer producer affiliated with Carlsberg Group Ukraine (Slavutych), increased its beer output by 43.9% YoY to 4.6 mln dal in January-April, 2009. In 2008, the company increased its beer output by 9% to 16.1 mln dal.

The government of Ukraine endorsed the draft of a bill that will increase the beer excise by 74.2% to UAH 0.54 (USD 0.07) per liter. Moreover, the government proposed to increase the wine excise by 2.8 times to UAH 1.4 (USD 0.18) per liter. The draft will be forwarded to the Parliament for further consideration and adoption.

Vinnifruit [VINIP UZ, N/R], a Ukrainian juice producer, released its financial results for 2008. Key highlights: net revenues decreased by 4.2% YoY to UAH 174.6 mln (USD 22.68 mln), EBIT shrank by 2.6 times to UAH 9.7 mln (USD 1.26 mln) and net losses amounted to UAH 104.3 mln (USD 13.55 mln).