Agro-industrial group Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, has earned a net profit of $6.09 million in 2022, which is 3.7 times higher than in 2021.
According to the company’s report on the Warsaw Stock Exchange, its revenue for the year0 increased by 1.7% to $135.63 million and gross profit by 67.2% to $22.77 million.
EBITDA was up 96% to $11.1 million and operating income 5.9 times, to $7.29 million, it said.
“Steadily rising egg and egg product prices in the second half of 2022 provided better margins than in previous years,” the report notes.
“Ovostar added that its cost of sales fell 22 percent to $86.6 million as a result of lower production volumes and a sharp drop in local prices for poultry feed components such as wheat and corn, caused by limited grain exports due to fighting in the country.
The group also noted that its total debt for 2022 was down 15% to $10.9 million, net debt became negative – “minus” $1.4 million – from $10.4 million, and free cash flow quintupled to $12.2 million.
The holding company of the group – Ovostar Union N.V. – in mid-June 2011, it floated 25% of its shares on the WSE and raised $33.2 mln. Its majority shareholding is owned by Prime One Capital Limited, controlled by its chief executive B. Belikov and chairman of the board Vitaliy Veresenko.
In 2022, Ovostar reportedly reduced egg production by 9% to 1.55 bln eggs and sales by 6% to 1.08 bln eggs.
At the same time, sales of dry egg products decreased by one-third to 2.13 thousand tons, liquid – by 26%, to 10.62 thousand tons.
