Milkiland Q1 2019 net loss reached EUR 3.7 million

Milkiland net loss for Q1 2019 reached EUR 3.7 million vs. EUR 2.4 million of net profit in the prior year's comparative period.

The company's revenue in the reporting period reduced 2 per cent to EUR 29.5 million, while EBITDA dropped from EUR 1.7 million in Q1 2018 to EUR 0.1 million in Q1 2019.

The Group’s Gross profit declined by 31 per cent to c. EUR 3.6 million. The Gross margin of Milkiland then declined by 5.3 pp y-o-y to 12.2 per cent in Q1 2019. Lower gross profit mainly led to operating loss of EUR 1.8 million reported by the Group in Q1 2019. This resulted in the drop of EBITDA to c. EUR 0.1 million in comparison with c. EUR 1.7 million in Q1 2018.

"Ukraine contributed 36 per cent to the Group’s revenue in Q1 2019. Segment revenue increased by 46 per cent to c. EUR 10.6 million, again mainly due to increased selling prices for finished goods in line with general markets trends, as well as selling of higher value-added goods. Ukraine was the best performing geographical segment of the Group’s business in Q1 2019 in terms of EBITDA," the report states.

Ukraine generated almost a full amount of the Group’s EBITDA in the reporting period.

Milkiland's net loss for the nine months of 2018 accounted for EUR 13.4 million contrary to net income of EUR 4.6 million in 9M 2017.