APK-Invest ends 2014 with losses

Ukrainian company APK-Invest ended 2014 with losses amounting to UAH 102.9 million (US$ 4.96 million). The negative results are primarily due to the armed conflict in the east of the country and the devaluation of the hryvnia.

Though full-year data are not available yet, the results in the first nine months of 2014 show losses, despite an increase in pork production. During this period the company slaughtered 370,000 heads of pigs, which is 16% more than during the same period in 2013, producing 25,000 tonnes of pork and 3,500 tonnes of sausages. APK-Invest also tripled its export of pork to 3,500 tonnes and increased its feed production to 121,000 tonnes, a 7% year-on-year increase. This means the company remains the largest producer of pork in Ukraine.

At the same time, the situation APK-Invest is in seems rather unclear, as contradictory statements have been made by its management. Shortly after the start of the armed conflict in the east of Ukraine the head of the company, Boris Kolesnokov, said that all of APK-Invest’s pig farms had to stop their operations. However, recently the company announced all their farms are in full operation.

Also, during the first nine months of 2014 the company posted a net profit of UAH 967 million (US$ 46.6 million) which is an increase of no less than 35% year-on-year. It remains unclear how APK-Invest can suffer considerable losses when net profit shows a sharp increase.