Consumer goods

Ukrros [UROS UZ, 36U1 GR], Ukraine’s number two sugar producer, announced its plans to process 30 thsd mt of sugar cane at Palmir Sugar Plant in Cherkassy region.

Boryspil Airport published strong financial results for the second quarter of 2009. The airport’s net sales increased to UAH 238 mln, showing growth of 42% YoY, net income totalled UAH 85 mln (81% YoY growth). As a result, the net margin in 2Q09 was up to 35.4%. Net Debt comprises UAH 86 mln.

Myronivsky Khliboprodukt [MHPC LI, BUY], one of Ukraine’s biggest land owners by land under lease rights, is going to increase its land bank by 40% to 250 thsd ha before 2011. The company operates 180 thsd ha at the moment. MHP’s CEO, Mr. Kosyuk, stated that the MHP is going to expand its positions on the domestic oil market and expects to control 10% of the domestic sunflower seed supply over the next 5-7 years.

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.