By KYIV. May 10 (Interfax-Ukraine) – JSC Dnipropetrovsk Aggregate Plant (Dnipro) considers the expansion of the portfolio of orders by 1.5 times as one of the key prospects for its development, follows from the materials of the company’s 2022 annual report.
“Preservation and retention of contractual relations with current customers and expansion of the portfolio of orders by 1.5 times,” according to a report published on Wednesday in the information disclosure system of the National Securities and Stock Market Commission.
In addition, the plant intends to increase the production growth rate to 51.6% during this period, which will allow it to achieve an optimal ratio of costs and marginal profit.
According to the statement, at the end of the year, the plant had a portfolio of orders in the form of concluded but not executed contracts (in whole or in part) for UAH 250 million.
In 2022, the plant received UAH 36.72 million in net profit, which is 15.6% more year-over-year, with a slight increase in net income by 1.4% to UAH 175.56 million.
According to the minutes of the general meeting of shareholders on April 25, published on the company’s website, all net profit received is directed to the development of production.
Among the main directions for 2023-2024, the plant in its financial report also notes a decrease in the percentage of components and raw materials in the cost of a finished product due to cost reduction, as well as import substitution, an increase in production efficiency and contractual work with suppliers.
The company said, taking into account the high capital intensity of the development of new products, technical re-equipment and financing of related expenses due to the growth of accounts payable, the company’s capital structure is deformed in the direction of the advantage of involved capital over its own.
“Indicators of the financial condition of the enterprise, given in the statements, testify to its instability, and any radical changes in the current situation are practically impossible without significant changes in business conditions at the national level,” the plant said.
It is noted that key problems are caused by the situation in the domestic economy due to the Russian full-scale military aggression.
“The growth of inflation, the risk of bankruptcy of counterparties, the growth of unemployment, the decline in demand for products significantly impede the further production and technical development of the enterprise,” the plant said.
The plant also intends to continue creating conditions for attracting high-quality investments in the production of competitive products, increasing investment attractiveness through the development of production potential, market positions in Ukraine, the European Union, and the countries of the Middle and Far East.
