LONDON (ShareCast) - (ShareCast News) - Ukrainian dairy product producer and distributor Ukrproduct Group posted a trading update for the year to 31 December on Friday.
The AIM-traded company said during the year, it continued to face the headwinds induced by the political situation and the Ukrainian economy.

Currency weakness continued with a contracted geographic market place and intense competition, with the board saying consumers were low in spending power and confidence.

"In this challenging context Ukrproduct's response is to focus on cash - ensuring its product offering is competitive, focusing on customers affording acceptable margins and therefore on cash production," the board said in a statement.

"Ukrproduct seeks further to underpin the trading effort with productivity/cost improvements."

It said that while overall volumes fell in 2016, revenues improved.

In difficult markets, the company's gross margins reportedly showed some improvement, subject to skimmed milk powder which returned a shortfall in excess of £0.6m year on year.

"However given significant cost reductions, EBITDA improved by several points into positive territory.

"This was encouraging and although the group expects to report a loss for the year this will be sizably lower than in 2015."

Looking ahead, Ukrproduct said it will continue to work towards profitability whilst delivering positive cash flow.

"Plans as defined above delivered improved performance in 2016 will be further implemented.

"Management agility will be required in the febrile market place but confidence has risen not least as also has the Ukrainian economy."

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