Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, increased sales of its main products in dollar terms by approximately 42.4% in 9M2023 due to higher prices for eggs and liquid egg products and increased sales of liquid egg products.
According to the operational report on the Warsaw Stock Exchange on Thursday, compared to 9 months of last year, the number of eggs produced was 3.5% less – 1,148 million, of which 734 million eggs were sold in shells (-10.9%). At the same time, exports in the egg segment increased to 280 million from 223 million, and its share in egg sales rose to 38% from 27%.
At the same time, the average selling price of shell eggs in dollar terms increased to $0.114/egg from $0.076/egg a year earlier.
According to the report, during the reporting period, Ovostar increased egg processing by 4.4% to 354 million eggs. The output of dry and liquid egg products amounted to 1906 tons and 9374 tons, respectively, while a year earlier this figure was 2239 tons and 7609 tons.
Sales of dry egg products amounted to 1822 tons, up 13.1% year-on-year, of which 1300 tons, or 71%, were exported, compared to 1083 tons and 67%, respectively, a year earlier.
Sales of liquid egg products increased by 20.4% to 9,053 tons, of which 44% or 3,986 tons were exported, while in the first nine months of 2022 Ovostar exported 41% of its liquid egg products, or 3,117 tons.
It is specified that the average selling price of dry egg products decreased slightly to $8.59/kg from $8.63/kg in January-September 2022, while the average selling price of liquid egg products increased by 31% to $2.40/kg.
These figures bring the sales volume of main products in January-September this year to $168.3 million, which is 42.4% higher than in January-September 2022. Sales growth was 56.1% in the first half of the year and 68.1% in the first quarter.
The company also reported an increase in the number of poultry by 8.5% to 7.42 million, including laying hens by 9.2% to 6.28 million.
“Despite the ongoing war in Ukraine, the Group managed to increase its livestock by 8% year-on-year in the first 9 months of 2023. The management is working to bring the production and sales structure in line with the market situation, which has led to good operating results,” commented Boris Belikov, CEO of the company.
As reported, in 2022, Ovostar reduced its egg production by 9% to 1.55 billion eggs, and sales by 6% to 1.08 billion eggs. At the same time, sales of dry egg products decreased by one third to 2.13 thousand tons, and liquid egg products by 26% to 10.62 thousand tons.
In 2022, the company earned $6.09 million in net profit, which is 3.7 times more than in 2021. Its revenue increased by 1.7% to $135.63 million last year.
In the first half of 2023, Ovostar earned $20.63 million in net profit, while the same period in 2022 ended with a net loss of $19.78 million. Its revenue for the first six months of this year increased by 56.8% to $88.69 million, mainly due to higher prices for its products.
