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Feed manufacturer Kormotech increases revenue by 12% in 2022

KYIV. March 16 (Interfax-Ukraine) – Consolidated revenue of Ukraine’s largest pet food manufacturer Kormotech increased by 12% in 2022, to $124 million, 76% of this volume comes from sales in Ukraine, Eduard Babenko, head of the Ukraine-East Asia strategic business area of Kormotech, told Interfax-Ukraine.

“Revenue in 2022 increased from $110 million to $124 million – by 12%. This is a consolidated income, including export sales in 40 countries,” Babenko said on the sidelines of the Business Wisdom Summit.

According to him, the company’s sales grew especially significantly in Ukraine in March, the first month of a full-scale Russian invasion, although the Ukrainian Kormotech plant stopped for two weeks since February 25.

“We expected the market to collapse. We had full warehouses of products with a supply for a month, we stopped the plant for two weeks from February 25. And after a few days we understood: we can deliver to stores, life went on and people, moreover, began to stockpile animal feed – instead of one pack they bought two. In three days, almost all the shelves (with animal feed) were swept away,” Babenko said.

He noted that in the first month of the war, importers of products experienced difficulties with delivery to Ukraine, while demand was booming. “Warehouse stocks, which were for a month, we sold out in two weeks. Sales volumes in March increased three times in quantity terms,” the company’s representative said.

Babenko also said that immediately after the full-scale invasion, the company decided to stop sales on the Belarusian market. “The car (with products) went there, we turned it around,” he said. At the same time, the Belarusian market was compensated by the domestic market and other export markets. The top five strategic markets for the company are the United States, Romania, Moldova, Poland, and Lithuania.

According to its own estimates, Kormotech (trademarks Optimeal, Club 4 paws, Woof! and Meow!) occupies about 30% of the pet food market in Ukraine. It manufactures products at three plants in Ukraine and Lithuania with a capacity of more than 80,000 tonnes per year. It has two distribution centers in Europe.