IDS Ukraine to invest UAH 196 million in refrigeration equipment and alternative energy in 2024

IDS Ukraine, one of the leading producers of bottled water and beverages in Ukraine, increased its net revenue by 25% last year, and its EBITDA exceeded UAH 1.35 billion, according to a company press release.

According to information posted on the company's website, EBITDA increased by 53% compared to 2023 and amounted to UAH 1.35 billion. Net profit reached UAH 708 million, which is twice as much as last year, and total revenue amounted to UAH 6.87 billion – 25.4% more than in 2023.

IDS Ukraine explained that the increase in revenue is due to improved results in key business segments. In the PET segment (bottled water in plastic), net revenue for the year amounted to UAH 5.96 billion, which is 26% more than in 2023. In the HOD segment (home and office delivery), net revenue increased by 21%, amounting to UAH 910 million compared to UAH 752 million a year earlier.

“Economic growth during 2024 allowed IDS Ukraine to achieve a record level of tax deductions at all levels, which amounted to UAH 1.15 billion. Since the beginning of the full-scale Russian invasion, IDS Ukraine's tax deductions have reached UAH 2.6 billion,” the company noted.

It was also indicated that the Morshyn mineral water plant “Oskar” paid UAH 370.4 million in taxes last year, which is 65% more than in 2023 and more than twice as much as in 2021. The Mirgorod mineral water plant transferred UAH 164.6 million in 2024, which is 84% more than in the previous year and more than twice as much as in 2021.

Stable operations and the launch of new products have allowed the company to expand its team, increasing its headcount by 9% last year.

IDS Ukraine's 2024 financial and business report highlights the company's ongoing commitment to the well-being of its employees, including two salary increases during the year.

In addition, the company significantly increased its capital investment program, reaching UAH 196 million, 63% more than in the previous year. This included the modernization of refrigeration equipment and the implementation of a new ERP system based on Microsoft Dynamics 365. IDS Ukraine also began design work on the creation of alternative energy systems (solar power plants) at its facilities with a total capacity of 1.4 MW.

The company also reiterated that since the full-scale invasion began, none of its shareholders have received any income, including dividends, due to government decrees prohibiting such payments. Financial reports confirm that IDS Ukraine has hundreds of millions of hryvnia in free funds in its accounts.

Founded in 1996, IDS Ukraine is the largest producer of bottled water in the country. The holding includes the Morshyn Mineral Water Plant “Oskar”, the Mirgorod Mineral Water Plant, the distribution company IDS and the water delivery operator IDS Aqua Service.

The group owns the brands Morshynska, Mirgorodska, Alaska and Aqua Life.

As previously reported, Cyprus-based International Distribution Systems Limited, the parent company of IDS Ukraine, was subject to Ukrainian sanctions in November 2023. The sanctions include asset freezes, restrictions on capital outflows, and a ban on increasing the authorized capital of Ukrainian companies associated with Russian oligarch Mikhail Fridman and other co-owners of Alfa Group.

Currently, the process of nationalization of IDS Ukraine is underway.