Risk of Milkiland splitting apart remains high — Concorde Capital

The situation in Milkiland is worsening as the only source of its cash flow generation in 1H19 was increased payables, which now exceed EUR 80 mln, Alexander Paraschiy, Head of Research at Concorde Capital, comments on the company's operations report.

"On top of that, it is gradually losing its Russian assets, which generate most of its profit, while its Polish assets continue to eat away cash," he says.

So far, the analyst sees no initiatives that could bring about a turnaround. Therefore, the risk of the company splitting apart remains high, Alexander Paraschiy adds.

In 6M 2019, Milkiland's net loss increased to €7.28 mln (2.9x) as compared to a net loss of €2.52 mln in the comparative period of 2019.