The agro-industrial group of companies Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, in January-June 2021 received $1.62 million in net profit, which is 34% less than in the same period in 2020, its EBITDA decreased by 27% – up to $3.5 million.
According to the company’s report, published on the website of the Warsaw Stock Exchange on Friday evening, Ovostar’s revenue in the first half of 2021 increased by 37.6% to $61.42 million, its gross profit decreased by 13.8% to $6.24 million, operating profit doubled to $1.37 million.
“Since the third quarter of 2020, the Ukrainian egg industry has been decreasing in terms of the total number of laying hens and production volumes. A poor harvest last year led to an increase in the prices of the main components of the feed mixture, which subsequently increased the cost of production. This, along with the very unfavorable dynamics of the selling prices for eggs, caused huge losses to the industry. Many egg producers are cutting their herds,” the report says.
The report indicates that the company’s net debt as of June 30, 2021 increased by 20% compared to the same date last year, to $8.9 million, while the total volume of new or refinanced loans amounted to about $4.0 million. Long-term debt of Ovostar’s liabilities as of the indicated date increased by 43.2% – to $7.15 million, and the current ones – by 47.1%, to $23.86 million.
The total amount of the company’s assets as of June 30, 2021 increased by 8% compared to the same date in 2020 – to $141.2 million, mainly due to an increase in the fair value of Ovostar’s biological assets.
“Against the backdrop of the COVID-19 pandemic and the general unfavorable situation in the agro-industrial complex, it was decided to focus on operational efficiency and suspend the investment program until further notice. Thus, in the reporting period, only minor investments were made in production capacity and infrastructure,” the message says.
