Ukraine’s Manufacturers in 2023 – Heavy Industry Leaders Mostly Report Losses, Others Remain Profitable

Ukraine’s top ten manufacturing leaders earned a total Hr.317.53 billion ($8.3 billion) in profits in 2023, according to Opendatabot. For four companies, 2023 still did not bring net revenues, especially for companies in SKM Holding owned by Ukraine’s richest man Rinat Akhmetov.

Source: Opendatabot

Zaporizhstal remains the leader with the highest profits among manufacturers – Hr.56.4 billion ($1.5 billion).

Akhmetov-owned enterprise earned almost Hr.10 billion more than in 2022 in profits, but that didn’t help – Opendatabot reports a net loss of Hr.3,7 billion ($95.6 million) for 2023.

The company also reported net losses in 2022, the year of Russia’s full-scale invasion of Ukraine.

Another enterprise is Kamet Steel, an Akhmetov holding, belonging to Metinvest and located in Kamianske, Dnirpo region.

Kamet Steel also reported a net loss of less than Hr.1 billion ($26.2 million). Though the company’s profits have also increased by more than Hr. 5 million ($137 million), to Hr.43,2 billion ($1.1 billion) in 2023.

ArcelorMittal Kryvyi Rih, owned by German ArcelorMittal Duisburg GmbH, reported an even bigger net loss of Hr.12.2 billion ($319.3 million), despite profits of Hr.41.84 billion ($1.1 billion). “The company managed to reduce its losses fourfold [compared to the previous year],” Opendatabot estimated.

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All enterprises in the top three are located very close to the front line, suffering from Russian strikes daily.

Other heavy industry leaders in top-10 showed net revenues – that includes oligarch Victor Pinchuk’s family-owned Interpipe Limited and Metinvest-owned Zaporizhzhia Coke Plant.

Interpipe, located in heavily shelled Nikopol, earned 25 percent more in 2023 than two years before – Hr.20.5 billion in profits ($538 million). Net revenue also doubled compared to 2022 – almost Hr.5 billion ($130 million).

Zaporizhzhia Coke Plant ranked 9th with a profit of Hr.15.87 billion ($415.5 million) and a net revenue of Hr.397 million ($10.4 million). “This is the only profitable business in SCM Group,” Opendatabot wrote.

Defense industry is represented by Ukrainian Armor, the major manufacturer of Ukraine-made military vehicles. “Ukrainian Armor managed to increase its revenue by 2.5 times to Hr.32.42 billion (a bit more than $1 billion). Net profit also grew significantly, quadrupling to Hr.708 million ($18.6 million),” Opendatabot wrote.

Among the top 10 most profitable enterprises, the food industry in Ukraine is represented by Vinnytsia Poultry Farm, Roshen Confectionery Corporation and Coca-Cola.

Roshen, owned by Oleksii Poroshenko, son of Ukraine’s fifth president Petro Poroshenko, was not hurt by the war, with profits higher than prior to Russia’s invasion in 2022. In 2023, the candy giant earned Hr.32.9 billion ($834 million) in profits and Hr.5.7 billion ($148 million) in net revenues.

Coca-cola in Ukraine showed tremendous financial results, growing its net revenue 37 times compared to 2022 – from Hr.43.5 million to Hr.1.6 billion in 2023 (from $1.1 million to $43 million).

In the agricultural sector, Yuriy Kosyuk-owned MPH enterprises – Vinnytsia Poultry Farm and Katerynopil Elevator – took fourth and seventh places respectively. They form 19 percent of total revenue in the ranking, according to Opendatabot estimates.

Profits of Vinnytsia Poultry Farm increased by almost a third to Hr.39.25 billion ($1.1 billion), but net revenue decreased 11 percent to a net revenue of Hr.1.05 billion ($27.6 million).

Katerynopil Elevator earned Hr.22.32 billion ($584.5 million) in revenue, but the company’s losses are estimated at Hr.156 million ($4.1 million).

On May 17, Russian attacks destroyed a warehouse of MHP frozen chicken meat products partly leased by the company in the Odesa region.

This resulted in the loss of poultry products worth $8 million (book value – around $ 7 million). However. no employees were declared injured in the attack and all the company’s production facilities in Ukraine continue to operate at close to full capacity.