Astarta reports shocking losses
2012-05-11 16:28:28
Astarta, one of the major sugar producers in Ukraine reported 58% net income decline to the level of UAH 91.44 M (USD 11.4 M) from the level of 2011, UAH 219.82 M. Net revenues of the company grew 25% to the level of UAH 694.1 M. The main reason for such drastic decline were rising costs of the company.
AgroInvest comment: We have already witnessed several companies reporting net income losses during growth of the sales revenues this year. Constant pressure of the material costs force companies to grow in size in order to achieve certain level of economies of scale. However it is also task of the company’s management to carefully monitor costs and take actions upon necessity.
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