Ukrproduct suspends operations at one Ukraine facility

1st Mar 2022 15:00

(Sharecast News) - Ukrainian dairy foods and beverages producer Ukrproduct said on Tuesday that it expects to take a financial hit from the impact of the Russian invasion, and that it has temporarily suspended operations at its Zhytomyr plant in light of nearby Russian military activity.

The AIM-listed firm produces processed cheese and Kvass at this site. It said operations continue at its Starokostiantyniv and Letychiv plants, although they have been affected by the Russian invasion.

The Starokostiantyniv plant, where Ukrproduct produces the bulk of its products and in particular packaged butter, spreads, hard cheese and skimmed milk powder, is currently operating at around half of its normal volumes for this time of year.

"Deliveries have been affected due to military activity on the roads and nightly curfews," it said. "As will be appreciated, the financial impact of the invasion will be negative on the company but it is too early at this stage to estimate the extent of that impact.

"The company is taking all measures available to protect and safeguard its personnel and business. The safety and wellbeing of its personnel is paramount and the company will continue to take all possible steps to ensure their safety."

At 1500 GMT, the shares were down 14% at 3p.