OREANDA-NEWS. March 5, 2010. Ukrros Sugar Union <UROSUK U/R> announced its plans to increase beet sugar output by 30% to 171kt in 2010. The Company is planning to manufacture 1.4mnt of sugar beets, while the share of sugar beets grown in-house is not to exceed 41% (vs. 47% in 2009). Note that previously Ukrros made a public announcement of its plans to increase cane sugar output by three times to 50kt.

Millennium Capital sees the news to be positive for Ukrros. According to Millennium Capital’s estimation, this increase, along with the growth in cane sugar output, will enable UROS to increase its net sales by more than 50%, y/y in 2010. At the same time, Millennium Capital expects the Company’s EBITDA to improve in 2010 in connection with a 23% share of cane sugar in the planned 2010 sugar output and the reduction of costs for the in-house sugar beet growing.