Agro-industrial group of companies Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, in January-September 2022 received $2.39 million in net profit, down 16.1% compared to the same period in 2021.
According to the company report published on the Warsaw Stock Exchange website, Ovostar’s revenues fell 4.3% to $90.29 million in the reporting period, while its gross profit rose 41.1% to $15.46 million and operating profit rose 63.1% to $3.63 million.
At the same time, because of negative exchange differences of $27.55 million, the cumulative loss was $25.16 million, while in the first nine months of last year the exchange differences were positive – $6.74 million, which led to a cumulative profit of $9.59 million.
The report forecasts that egg production in 2022 will decline 14.1% to 1.452 billion eggs.
“Ovostar clarified that its 9-month revenue in the egg segment was down 3.5% to $62.76 million and 6.1% in the egg products segment, to $27.53 million.
At the same time, export revenues increased 31.6% to $37.5 million, including a 40% increase in the egg segment to $21.91 million and a 21.3% increase in the egg products segment to $15.59 million.
The amount of the company’s free cash flow at the end of September was $5.93 million, compared to $2.44 million at the beginning of the year and $0.62 million a year ago, while in Ukraine it has decreased from $1.96 million to $0.90 million since the beginning of the year.
The company’s loan debt stood at $10.8 million, compared to $12.88 million at the beginning of the year and $10.09 million a year ago.
According to the report, by the end of September 2022, Ovostar Union shares were owned by: Prime One Capital Limited (67.93%), controlled by Ovostar CEO Boris Belikov and Chairman Vitaly Veresenko; Generali Otwarty Fundusz Emerytalny (11.93% vs. 10.93% at the beginning of the year), Fairfax Financial Holdings Limited (9.09% vs. 10.39% at the beginning of the year), Aviva Otwarty Fundusz Emerytalny (5.02%).
Ovostar Union Group is a vertically integrated public holding company, one of the leading producers of chicken eggs and egg products in Europe. The producer has been a certified exporter to the EU since 2015.
The group’s holding company, Ovostar Union N.V., held a 25% IPO on the Warsaw Stock Exchange in mid-June 2011 and raised $33.2 million. The majority stake in the company is owned by Prime One Capital Limited, which is controlled by its CEO Boris Belikov and Chairman of the Board Vitaliy Veresenko.
“Ovostar reported a net income of $2.6 million in 2020 compared to a net loss of $20.0 million in 2019. Its revenue last year was down 5% to $98.9 million.
