Milkiland initiates cheese production in Poland

Обзоры по компаниям и отраслям 21.05.2013 Milkiland announced on May 20 it started production of hard cheese at its newly acquired Polish facility Ostrowia. The first cheese is expected to be delivered to the Polish market on July 1, according to the company. The plant’s annual production capacity is 15 kt of hard cheese (roughly 25% of Milkiland’s total) and 7 kt of processed cheese. The plant will sell its products in Poland, other EU countries, as well as in Milkiland’s core markets, the Russian Federation and Ukraine (after it receives the necessary permits). Alexander Paraschiy: The announcement is consistent with Milkiland’s1Q13 update, in which it promised a “full launch” of Ostrowia in May 2013. We see the plant will need 2-4 months to reach its full capacity and start delivering products to Milkiland’s core market. Recall, the company reported Ostrowia's EBITDA at EUR -0.26 mln (EUR 2.02 mln in revenue) in 1Q13, citing EUR 0.9 mln in start-up costs. Such figures suggest the Polish plant has a strong chance to break even already in 2Q13.