Ovostar Union agro-industrial group of companies, one of the leading producers of eggs and egg products in Ukraine, in January-March 2022 received $ 16.44 million in net loss against the Russian military invasion against $ 4.72 million in net profit in the first quarter of 2021, according to the message of the agrarian group on the Warsaw Stock Exchange on Tuesday.
“The egg processing plant in Makarov (Bucha district, Kyiv region) was temporarily shut down until the city was deoccupied by Ukrainian troops in late March. A subsequent inspection of the plant revealed signs of uncritical damage to administrative and industrial buildings … Management expects to resume the operation of the plant after the completion of repair work in the premises, “the company said in a report on the consequences of the Russian invasion.
Ovostar’s revenue in the first quarter of 2022 decreased by 13.7% compared to January-March 2021 – to $ 27.71 million. The gross loss of the group of companies in the first quarter of this year amounted to $ 13.38 million against $ 6.91 million gross profit in January-March 2021, also for this period it received $ 15.67 million in operating loss against $ 4.37 in operating profit last year.
In the structure of Ovostar’s revenue, 75% was accounted for by egg sales ($ 20.8 million), of which 87% ($ 18.1 million) accounted for sales in Ukraine. The egg products segment generated 25% of the agroholding’s revenue ($ 6.8 million), with 58% of its sales ($ 3.93 million) in the domestic market.
“The main sales channel of the egg segment is large national retail chains. Geographically, sales are concentrated in the central part of the country, and the share of sales in the most affected regions does not exceed 10%. Market losses in the east and south where a large number of internally displaced persons temporarily reside, “the Ovostar report said.
The document states that the assets of the agricultural holding as of March 31, 2022 decreased compared to December 31, 2012 by 18.3% to $ 115.3 million, its long-term debt decreased by 1.8 times to $ 5.8 million, and current growth – by 1% to $ 14.5 million
“Since the beginning of the Russian military campaign, the group has faced significant obstacles to export activities due to serious logistics disruptions. In particular, the blockade of the port of Odessa blocked access to Middle Eastern markets, where goods were shipped by sea. after the company was issued a special license, “the egg producer said in a statement.
Ovostar also noted its dependence on imports of certain feed additives, vaccines and spare parts for equipment, which are included in the list of critical imports and are imported into Ukraine without restrictions. The management is also looking for adequate substitutes for imported supplies on the Ukrainian market.
According to the report, as of March 31, 2022, Ovostar Union shares were owned by: Prime One Capital Limited (67.93%), controlled by Ovostar CEO Boris Belikov and Chairman of the Board Vitaly Veresenko; Generali Open Funds Emergency Fund (10.39%), Fairfax Financial Holdings Limited (10.39%), Aviva Open Funds Emergency Fund (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 manufacturer is a certified exporter to EU countries since 2015.
The group’s holding company is Ovostar Union N.V. in mid-June 2011 held an IPO of 25% of the shares on the Warsaw Stock Exchange 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 Vitaly Veresenko.
Agroholding MHP, the largest producer of chicken in Ukraine, and in April 2022 due to the Russian military invasion of Ukraine reduced its production by 12% compared to April 2021 – up to 55.5 thousand. tons, and its sales – by 40%, up to 35 thousand. tons.
At the same time, foreign sales of chicken fell by 55% to 14.3 thousand. tons, while the Ukrainian market decreased by 20% to 20.7 thousand. tons, the company said on the London Stock Exchange on Tuesday.
Thus, the share of chicken exports in April 2022 decreased by 14 percentage points compared to April 2021 – from 55% to 41%. The average selling price of poultry meat increased by 18% to $ 1.8 / kg.
MHP also reduced the production of meat products and semi-finished products by 67% – from 4.44 thousand. tons in April 2021 to 1.45 thousand tons in April 2022.
“In March, due to the closure of ports, MHP recorded a significant decline in exports of poultry and vegetable oils. Since April, the company has been actively developing alternative routes to resume exports. In addition, the company’s local team has focused on improving poultry sales in Ukraine by optimizing logistics and sales channels, “the agricultural holding said in a statement.
In turn, in April, the agricultural holding doubled sales of sunflower oil compared to the same period last year, to 17.3 thousand. tons, and 30 times compared to March 2022, when export logistics from Ukraine were disrupted due to the Russian military invasion and blockade of its seaports by Russian ships.
MHP in April sold 2% less soybean oil than in April 2021 – 4.3 thousand. tons. However, this figure is 19% higher than soybean oil exports in March 2022.
“Spring sowing is completed on time and within the budget. Winter crops – wheat, barley, rapeseed – are in good condition. The company has access to all necessary PPE, pesticides and fertilizers, which are expected to be applied in a timely manner and in full,” the agricultural holding concluded. work in April.
MHP is the largest producer of chicken in Ukraine. Also engaged in the production of cereals, sunflower oil, meat products. MHP supplies the European market with chilled chicken carcasses, which are processed, including at its plants in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.
MHP in 2021 received $ 393 million in net profit against $ 133 million in net loss in 2020, and its revenue grew by 25% to $ 2.37 billion.
The founder, majority shareholder and head of the board of MHP is a Ukrainian businessman Yuri Kosyuk.
Germany plans to stop importing Russian coal by autumn, this will be possible at the expense of other suppliers, including South Africa.
“This is something that is quite real,” German Chancellor Olaf Scholz told reporters on Tuesday in Pretoria, where he is visiting. He is quoted by the German media.
Earlier in April, during a visit to Latvia, German Foreign Minister Annalena Berbock said that Germany would gradually stop buying Russian energy resources, in particular, by the end of the year it would completely stop importing Russian oil. From coal imports, Burbock said, it is planned to stop before the end of the summer.
Ukrainian Foreign Minister Dmytro Kuleba will visit Switzerland and Liechtenstein from May 24 to 26, where he will take part in the World Economic Forum in Davos and hold a number of bilateral meetings, the Ministry of Foreign Affairs of Ukraine has said.
In particular, Kuleba will meet with President of Switzerland Ignazio Cassis and Crown Prince of the Principality of Liechtenstein Alois. In addition, meetings are scheduled with the Prime Ministers of Greece and Ireland, as well as the Foreign Ministers of Peru, Costa Rica, Austria and Liechtenstein.
On Wednesday, May 25, the minister will also communicate with representatives of foreign media.
Dniprospetsstal electrometallurgical plant (Zaporizhia) has begun a gradual launch of production, including for the purpose of supplying stainless steel to PrJSC Centravis Production Ukraine, which is part of holding Centravis Ltd.
Chief Sales Officer (CSO) Artem Atanasov said in a letter to Centravis customers that the company is experiencing a positive trend in the supply of pipe billets for production.
“Dniprospetsstal, our main billet supplier, is gradually launching production, and in the near future we expect stable supply volumes,” Atanasov stated.
According to him, Centravis is operating normally, both in hot and cold shops. At the same time, in the hot production, all actual performance indicators are higher than planned, in the cold shop, several lines operate at the level of stable operation before the war.
The sales director recalled that the plant began to offer products and take orders.
“Your continued support (from customers) is extremely important to us at this stage. Buying pipes from Centravis means that you support the restart of the Ukrainian economy, which is now more important than ever. Our logistics team is actively working and constantly looking for better and safer ways for delivery of finished products,” Atanasov emphasized, adding that the company is actively preparing for participation in the Tube&Wire exhibition, which will be held in Dusseldorf on June 20-24.
Centravis is one of the world’s largest manufacturers of seamless stainless steel pipes, founded in 2000. Its production facilities are located in Nikopol (Dnipropetrovsk region). It is included in the top 10 world players. Before the Russian aggression, more than 1,400 people worked at the enterprise.
PJSC “Insurance company “ARKS” (ARX, Kyiv) in 2021 collected insurance premiums in the amount of UAH 3.405 billion, which is 27.06% more than a year earlier, according to the website of RA “Standard-Rating” about updating the company’s credit rating / rating of financial stability (reliability) of the insurer at the level of “uaAAA” on the national scale based on the results of work for the past year.
It is noted that receipts from individuals increased by 31.57% – up to UAH 2.108 billion, from reinsurers – by 57.56%, up to UAH 2.272 million. Thus, the share of individuals in the gross premiums of the insurer increased by 2.12 p.p. – up to 61.91%, and the share of reinsurers – up to 0.07%.
Insurance payments sent to reinsurers for 2021 compared to 2020 increased by 9.99% to UAH 163.795 million. Taking into account the high growth rate of gross premiums over payments sent to reinsurers, the coefficient of participation of reinsurers in insurance premiums decreased by 0.75 percentage points. – up to 4.81%.
According to the report, the insurer’s net premiums increased by 28.07% to UAH 3.242 billion, while earned insurance premiums increased by 23.01% to UAH 2.886 billion.
In 2021, the company paid out UAH 1.341 billion to customers, which is 30.53% higher than the volume of insurance payments and indemnities for 2020. Thus, the level of payments increased from 38.35% to 39.39%, or by 1.04 percentage points.
At the end of 2021, the insurer’s profit from operating activities amounted to UAH 202.657 million, net profit – UAH 197.436 million.
As of December 31, 2021, the company’s assets increased by 20.95% – up to UAH 3.698 billion, equity – by 20.62%, up to UAH 1.155 billion, liabilities – by 21.10%, up to UAH 2.544 billion, cash and cash equivalents decreased by 30.13% – up to UAH 328.445 mln.
It is noted that as of the beginning of 2022, the insurer made financial investments in the amount of UAH 1.8 billion, consisting of government bonds (81.81% of the investment portfolio) and deposits in banks with an investment grade credit rating (18.19% of the portfolio) This is positive affected its provision with liquid assets, which covered 83.68% of the company’s liabilities.
IC “ARKS” has a high level of external support from the main shareholder headquartered in. Toronto, Canada – Fairfax Financial Holdings Limited – a holding company that, through its subsidiaries, is primarily engaged in casualty insurance, property insurance and investment management
As of the beginning of 2022, the holding’s consolidated assets amounted to $86.645 billion. Fairfax’s consolidated gross business (premiums) for 2021 amounted to $23.910 billion, profit before tax for the year increased to $4.393 billion.
