"Unfortunately, since the last price growth on Feb. 18, 2015, there has been a gradual deterioration of the economic situation in the country, with inflation and rise in the price of all components being in constant progress. As a result, Kyivkhlib PJSC found itself in a critical situation when production costs could no longer be covered at the expense of internal resources," the statement reads.
The company noted that the recent years have seen a tendency for the increase in the cost of flour making up to 40 percent of bread's prime cost, as well as of other components, namely, gas, electricity, and other raw materials (sugar, oil, yeast, salt), with the minimum wage having increased as well. In addition, the company has insufficient working capital to support its current activities: "Given the current working conditions, keeping the prices as they are threatens an entire business interruption."
"In order for the company to operate in a stable manner and fulfill its obligations on the provision of population with the socially-important product, it has been decided to increase the prices for basic (mass) breads and bring them to economically justified level," the company says.