Business news from Ukraine

Avangard Insurance Company to increase its authorized capital 4 times

The shareholders’ meeting of Avangard Insurance Company (Kyiv) has decided to increase the authorized capital by 4 times, up to UAH 48 million, by holding a share issue worth UAH 36 million, according to the insurer’s official information posted in the information database of the National Securities and Stock Market Commission (NSSMC).

It is noted that during the private issue it is planned to place 36 thousand shares with a par value of UAH 1 thousand.

Avangard Insurance Company was registered in November 2004. It specializes in risk insurance.

The company’s shareholders are LLC “AVT-Boutique” (Kyiv) with 47.51% and six individuals with stakes ranging from 9.5% to 9.8%.

The authorized capital is UAH 12 million.

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Avangard agricultural holding by end of 2021 received net loss of 28.5 million UAH

Avangard Agroholding LLC, parent company of Ukraine’s largest producer of poultry eggs, has reduced its net loss by 18.6 times in 2021 compared to 2020 to UAH 28.5 million.
According to the company’s report in the information disclosure system of the National Commission on Securities and Stock Market (NSCSM) on Monday, the company’s assets decreased last year by 19% to 20.71 billion UAH, while the unallocated loss decreased by 0.2% to 10.5 billion UAH.
According to the NKTSBFR, the net loss per common registered share of Avangard last year amounted to 0.00056 UAH.
According to the statement, on December 29, the annual shareholders’ meeting will be held on December 29, where shareholders are going to decide on offsetting the net loss incurred in 2021 at the expense of future profits.
As reported, Avangard said in March 2022 that it has incurred a loss of 1.5 billion hryvnias since the beginning of the Russian military invasion of Ukraine. Russian aggression led to the shutdown of a number of key poultry farms of the group, and chickens were left without food and died at the Chornobaivska poultry farm (Belozerska village, Kherson Region).
“Ukrlandfarming is one of the largest agricultural holdings in Eurasia. It grows crops, raises cattle, and distributes equipment, fertilizers and seeds. Its member Avangard is Ukraine’s largest producer of eggs and egg products.

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AVANGARD AGRICULTURAL HOLDING HALVES EGG PRODUCTION

Avangard agricultural holding, the largest egg producer in Ukraine, cut monthly production by 50% over the past year due to pressure from law enforcement officers, largely due to the impossibility of organizing the export of its products in such conditions, owner of the agricultural holding Oleh Bakhmatiuk has said. “We now produce 170 million eggs a month, and we produced about 300 million, and in May – 350 million! Of which 170 million were exported in May, and this month we will send for export, maybe 20 million,” he said is in an interview with the Interfax-Ukraine agency.
Bakhmatiuk explained that the company used credit lines for $ 60-70 million for export, since delivery, for example, to Singapore takes 45 days and the supplier needs to be granted a delay.
“But thanks to the valiant actions of the NABU (the National Anti-corruption Bureau of Ukraine), all credit lines were closed to us, we were forced to almost completely close the export direction,” the Avangard owner said, adding that the coronavirus pandemic complicated logistics by making it longer and 30% more expensive.
According to him, out of seven trading houses – in Hong Kong, Singapore, Malaysia, Iraq, Liberia, Saudi Arabia and Dubai, the opening of which took six years and about $ 25-30 million, Avangard retained only one – in Dubai.
Talking about other reasons for the reduction in production, Bakhmatiuk named a painful rise in the price of raw materials, in particular, fat and oil, bagasse and cereals, common for the entire sector.
“This reputational war has been added to the general problems of the sector. In fact, 12 poultry farms have been closed, now the 13th will be closed,” he said, adding that there are 13 operating factories left.
As the businessman noted, such a reduction in production, taking into account fixed costs, led to an increase in the cost of an egg by about 20 kopecks.
Commenting on the rise in egg prices in Ukraine, he called it forced.
“We go to zero profitability and even with a small minus. Because feed prices are growing faster than the demand and the price of eggs are growing,” the businessman explained.

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LARGEST EGG PRODUCER IN UKRAINE AVANGARD CUTS PRODUCTION BY 50%

Avangard agricultural holding, the largest egg producer in Ukraine, cut monthly production by 50% over the past year due to pressure from law enforcement officers, largely due to the impossibility of organizing the export of its products in such conditions, owner of the agricultural holding Oleh Bakhmatiuk has said.
“We now produce 170 million eggs a month, and we produced about 300 million, and in May – 350 million! Of which 170 million were exported in May, and this month we will send for export, maybe 20 million,” he said is in an interview with the Interfax-Ukraine agency.
Bakhmatiuk explained that the company used credit lines for $ 60-70 million for export, since delivery, for example, to Singapore takes 45 days and the supplier needs to be granted a delay.
“But thanks to the valiant actions of the NABU (the National Anti-corruption Bureau of Ukraine), all credit lines were closed to us, we were forced to almost completely close the export direction,” the Avangard owner said, adding that the coronavirus pandemic complicated logistics by making it longer and 30% more expensive.
According to him, out of seven trading houses – in Hong Kong, Singapore, Malaysia, Iraq, Liberia, Saudi Arabia and Dubai, the opening of which took six years and about $ 25-30 million, Avangard retained only one – in Dubai.
Talking about other reasons for the reduction in production, Bakhmatiuk named a painful rise in the price of raw materials, in particular, fat and oil, bagasse and cereals, common for the entire sector.
“This reputational war has been added to the general problems of the sector. In fact, 12 poultry farms have been closed, now the 13th will be closed,” he said, adding that there are 13 operating factories left.
As the businessman noted, such a reduction in production, taking into account fixed costs, led to an increase in the cost of an egg by about 20 kopecks.
Commenting on the rise in egg prices in Ukraine, he called it forced.
“We go to zero profitability and even with a small minus. Because feed prices are growing faster than the demand and the price of eggs are growing,” the businessman explained.

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AVANGARD AGROHOLDING SEES $110.89 MLN IN NET LOSS

Avangard agricultural holding, the largest egg producer in Ukraine, in January-June 2019 saw $110.89 million in net loss, which is 3.1 times more than a year ago.
According to a company report posted on the London Stock Exchange (LSE) on Friday, consolidated revenue grew by 24.6%, to $84.78 million, and gross loss – 14 times, to $65.1 million.
Export revenue for the reporting period increased 1.6 time, to $44.8 million, and its share amounted to 53% of the company’s consolidated revenue.
In the first half of the year, egg production amounted to 1.78 billion pieces, which is 44% more than in the same period in 2018, their sales grew 1.9 times, to 1.59 billion pieces, exports – 2.6 times, to 785 million pieces.
The average selling price of eggs was UAH 1.23 per piece, excluding VAT, which is 24% lower than the level of the first half of last year, in U.S. dollars – $0.046 per piece, excluding VAT (25% less).
The production of dry egg products during the reporting period amounted to 2,380 tonnes (34% less), their sales also decreased 34%, to 2,280 tonnes. Export of dry egg products amounted to 1,590 tonnes and decreased by 46%.
The average selling price of dried egg products was $3.84 per kg, an increase of 4% from January-June 2018.
As of June 30, the total number of birds was 16 million, which is 15% more compared to the same date last year. The number of laying hens amounted to 11.2 million (35% more).
According to the report, negotiations with creditors on restructuring are ongoing.
Net cash used in investing activities increased to $14.2 million from $1.2 million in the first half of 2018 as a result of an increase in investment. In general, the net cash outflow in the reporting period amounted to $20.9 million compared to a net cash inflow of $4.1 million as of June 30, 2018.
As of June 30, 2019, the total debt of the company increased slightly compared to December 31, 2018 and amounted to $391.5 million. Net debt increased 6.5%, to $390.9 million. Issue of the company’s eurobonds maturing on October 29, 2018 amounted to 60% of total debt.

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AVANGARD AGROHOLDING SEES 2.1-FOLD RISE IN LOSS IN Q1 2018

Avangard agroholding, the largest eggs producer in Ukraine, in January-March 2018 saw $11.404 million of net loss, which is 2.1 times more than a year ago ($5.342 million).
According to a company report posted on the London Stock Exchange’s website, consolidated revenue grew by 21%, to $41.099 million and earnings before interest, taxes, depreciation and amortization (EBITDA) were negative being $9.058 compared with $0.1 million in 2017. “Our gross profit was negatively affected by two main factors: an increase in domestic prices for key feed components (grain and oil crops), accounting for c.68% of the company’s cost of sales of shell eggs, along with weak prices for dry egg products in both Ukraine and globally,” the company said, citing Avangard CEO Nataliya Vasylyuk.
She said that the growth of consolidated revenue in Q1 2018 is linked to large exports volumes of shell eggs and dry egg products.
Gross loss in Q1 2018 more than doubled, to $3.6 million. Operating loss grew 3.5-fold, to $12.8 million.
As at March 31, 2018, the total poultry flock amounted to 13.3 million heads, up by 40% compared to 9.5 million heads at December 31, 2017 (March 31, 2017: 14.0 million heads); whilst the number of laying hens remained flat at 9.3 million heads compared to year end (March 31, 2017: 10.6 million laying hens).
In Q1 2018, the production volume of shell eggs rose by 39% year-over-year to 644 million units (Q1 2017: 462 million units) due to the replenishment of the laying flock during 2017, which resulted in the flock’s greater productivity. Sales grew six-fold, to 200 million units.
In the reporting period, the share of export sales reached 41% (Q1 2017: 8%), with the Company exporting shell eggs to 15 countries in the Middle East and North Africa (MENA), Sub-Saharan Africa, Asia and the CIS region.
In Q1 2018, the company increased the output of dry egg products by 68% year-over-year to 1,839 tonnes. In Q1 2018, sales of dry egg products increased by39% year-over-year to 1,651 tonnes. The export of dry egg products rose by 27% year-over-year to 1,413 tonnes.