Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, posted a net profit of $13.3 million in the first half of 2024, down 35.4% year-on-year, due to higher feed costs and falling prices for finished products.
According to the group’s report on the Warsaw Stock Exchange, its revenue for the first six months of this year fell by 26% year-on-year to $64.2 million, due to a 30% drop in the cost of eggs (year-on-year), dry and liquid egg products by 8% and 25%, respectively.
In particular, revenues from eggs fell to $39.86 million from $62.11 million, and pre-tax profit in this segment fell to $4.39 million from $8.66 million, while revenues from egg products decreased slightly to $24.35 million from $26.58 million, although the decline in pre-tax profit was greater – to $9.08 million from $12.22 million.
Also, sales in Ukraine decreased to $31.18 million from $40.76 million, and exports to $33.03 million from $47.93 million.
In January-June this year, Ovostar’s gross profit decreased by 29.3% to $19.1 million, operating profit by 43.8% to $11.3 million, and EBITDA by 41.0% to $12.8 million.
The weakening of the hryvnia also led to the fact that in the first half of this year, Ovostar’s total profit amounted to $6.46 million against $20.59 million in the same period last year.
It is noted that during the year, the total number of livestock increased from 7.3 million to 7.6 million, although the number of laying hens decreased from 6.5 million to 6.2 million, resulting in a 4% decrease in egg production to 706 million.
Against the backdrop of Russia’s full-scale military invasion of Ukraine and the overall unfavorable situation in the country’s economy, the management decided to suspend the investment program, but the company’s investments increased to $6.8 million in the reporting period from $5.2 million in the first half of last year.
“In the first half of 2024, the group started construction of two poultry houses for young poultry with a total budget of about $3.8 million, of which $1.8 million has already been spent as of the reporting date. The planned completion date is April 2025,” the report said.
The group also reported that its net debt jumped from $47.9 million to $72.4 million, but free cash flow increased by about the same amount – from $50.3 million to $74.4 million. In particular, over 12 months in Ukraine, they decreased to $22.7 million from $24.7 million, including the equivalent of $0.4 million in hryvnia from $7.6 million, in Latvia – to $10 million from $21.2 million, while in the UK, an increase to $40.31 million from $0.12 million was recorded.
As reported, Ovostar Union’s net profit for the first quarter of 2024 fell by 22.4% to $6.97 million, while revenue decreased by 24.6% to $35.67 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., held an IPO of 25% of its shares on the WSE and raised $33.2 million. However, this year, the majority owners of the agricultural holding, CEO Boris Belikov and member of the Board of Directors Vitaliy Veresenko, together with Fairfax Financial Holding, accumulated 95.45% of the shares and bought out the remaining 4.55%, or 277,066 thousand shares, in a squeeze-out at a price of PLN70 per share (about $17.3 at the then exchange rate).
The main owners of Ovostar agricultural holding have completed a squeeze-out, i.e. the forced purchase of 217,039 thousand or 3.617% of the remaining shares held by minority shareholders, and have concentrated 100% of the shares, and announced their intention to apply for delisting of the company’s shares from the Warsaw Stock Exchange.
According to Ovostar’s stock exchange announcement, Prime One Capital of the majority shareholders of the agricultural holding, CEO Boris Belikov and member of the Board of Directors Vitaliy Veresenko, became the owner of 66.16% of the shares following the squeeze-out, while the rest is owned by seven companies from Fairfax Financial Holding.
Ovostar Union is one of the leading producers of eggs and egg products in Ukraine. “In 2023, Ovostar increased its net profit by 7.4 times to $45 million, EBITDA by 4.5 times to $50.4 million, and revenue by 20% to $162.5 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., conducted an IPO of 25% of its shares on the WSE at PLN62 per share ($22.78 at the then exchange rate) and raised $33.2 million.
The squeeze-out price was PLN70 per share (about $18.2).
At the end of May this year, Prime One Capital, which owned 65.93% of the shares at that time, announced that together with Fairfax Financial Holding it had accumulated 95.45% of the agricultural holding’s shares and was ready to buy out all 4.55% of the remaining minority shares. During the announced voluntary buyout at a price of PLN70 per share (about $17.5), they acquired another 56,027 shares, or 0.934%, and now own 96.383%.
Before the trading was halted on August 21, Ovostar shares were listed at PLN68.4 per share, and after the announcement of the Cypriot regulator’s approval of the squeeze-out in early August, the price dropped by 1.44%.
Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, has postponed the publication of its financial report for the six months to September 6, 2024, the company said in a statement on the Warsaw Stock Exchange.
The reasons for the postponement of the publication of the report are not specified in the statement. The agricultural holding referred to Article 56.1 of the Polish law of July 29, 2005 on public offer, conditions governing the introduction of financial instruments into organized trade and public companies.
Ovostar Union, a vertically integrated holding company, is one of the leading producers of eggs and egg products in Ukraine. “In 2023, Ovostar increased its net profit by 7.4 times to $45 million, EBITDA by 4.5 times to $50.4 million, and revenue by 20% to $162.5 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., conducted an IPO of 25% of its shares on the WSE at PLN62 per share ($22.78 at the then exchange rate) and raised $33.2 million.
At the end of May this year, the majority shareholders of the agricultural holding, CEO Boris Belikov and board member Vitaliy Veresenko, who own 65.93% of the shares, announced that they, together with Fairfax Financial Holding, had accumulated 95.45% of the shares in the agricultural holding and were ready to buy out the remaining 4.55% of the shares held by minority shareholders. During the announced voluntary buyout at a price of PLN70 (about $17.5) per share, they acquired another 56,027 shares, or 0.934%, and now own 96.383%.
“The offerors intend to exercise the squeeze-out right … in order to acquire 100% of the company’s shares at a price of PLN70 per share,” Ovostar said in early July, recalling its delisting plans.
The shareholders of Ovostar agricultural holding have approved the proposal of the Board of Directors to abandon the payment of dividends based on the results of 2023 and allocate the entire net profit of $44.975 million to the retained earnings reserve.
According to the company’s announcement on the Warsaw Stock Exchange, the decision was made at the annual shareholders’ meeting on Wednesday, with 95.05% of the shareholders participating.
The general meeting decided to approve and accept the financial statements and the independent auditors’ report thereon.
In addition, it approved the reappointment of Markiyan Markevych as a non-executive director of the company.
The total remuneration paid to the directors of the agricultural holding during the year ending December 31, 2024, was set by the shareholders at an amount not exceeding EUR 500 thousand.
All directors of Ovostar from all management actions and any liability in relation thereto during the financial year ended December 31, 2023.
The shareholders also authorized the Board of Directors of Ovostar to hold a tender for the selection and appointment of the independent auditors of the agricultural holding for the financial year 2024 and to determine their remuneration.
Ovostar Union is one of the leading producers of eggs and egg products in Ukraine. “In 2023, Ovostar increased its net profit by 7.4 times to $45 million, EBITDA by 4.5 times to $50.4 million, and revenue by 20% to $162.5 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., conducted an IPO of 25% of its shares on the WSE at PLN62 per share ($22.78 at the then exchange rate) and raised $33.2 million.
At the end of May this year, the owners of 65.93% of the shares announced that together with Fairfax Financial Holding they had accumulated 95.45% of the agricultural holding and were ready to buy out the remaining 4.55% of the shares held by minority shareholders. During the announced voluntary buyout at a price of PLN70 per share (about $17.5), they acquired another 56,027 shares, or 0.934%, and now own 96.383%.
“The offerors intend to exercise the squeeze-out right … in order to acquire 100% of the company’s shares at a price of PLN70 per share,” Ovostar said in early July, recalling its delisting plans.
Before the trading was suspended, Ovostar shares were listed at PLN68.4 per share, and after the announcement of the Cypriot regulator’s approval of the squeeze-out in early August, the price dropped by 1.44%.
Ovostar Agro Holding proposes that its shareholders waive the payment of dividends for the year 2023 and allocate the entire net profit of $44.975 million to the retained earnings reserve.
According to the company’s announcement on the Warsaw Stock Exchange, the relevant issue is on the agenda of the annual shareholders’ meeting scheduled for August 21.
Other issues include the re-election of one of Ovostar’s three non-executive directors, Markiyan Markevich.
As reported, the company last paid interim dividends for 2022 of EUR3.6 million at the rate of EUR0.65 per share, but then refused to pay the final dividend.
Ovostar Union is a vertically integrated holding company, one of the leading producers of eggs and egg products in Ukraine. “In 2023, Ovostar increased its net profit by 7.4 times to $45 million, EBITDA by 4.5 times to $50.4 million, and revenue by 20% to $162.5 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., conducted an IPO of 25% of its shares on the WSE at PLN62 per share ($22.78 at the then exchange rate) and raised $33.2 million.
At the end of May this year, the majority shareholders of the agricultural holding, CEO Boris Belikov and board member Vitaliy Veresenko, who own 65.93% of the shares, announced that they, together with Fairfax Financial Holding, had accumulated 95.45% of the shares in the agricultural holding and were ready to buy out the remaining 4.55% of the shares held by minority shareholders. During the announced voluntary buyout at a price of PLN70 (about $17.5) per share, they acquired another 56,027 shares, or 0.934%, and now own 96.383%.
“The offerors intend to exercise the squeeze-out right … in order to acquire 100% of the company’s shares at a price of PLN70 per share,” Ovostar said in early July, recalling its delisting plans.
Currently, Ovostar shares are listed on the stock exchange at PLN68.6 per share.
Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, increased its total number of chickens by 4.1% to 7.6 million in January-June 2024, while the number of laying hens decreased by 4.6% to 6.2 million compared to the same period in 2023.
According to a report on the Warsaw Stock Exchange, the group reduced the volume of eggs produced by 4% to 706 million in the first half of 2024, while sales decreased by 9.4% to 433 million compared to the same period last year.
Export sales of eggs decreased by 18.3% to 170 mln, accounting for 39% of the total number of eggs sold in the first half of 2024, while a year earlier this figure was 43%.
“Ovostar Union increased egg processing by 28% to 274 million in the first half of 2024. The company produced 1,170 tons of dry egg products and 7,040 tons of liquid egg products. A year earlier, the figures were 1,050 tons and 6,232 tons, respectively.
Sales of dry egg products amounted to 1,116 tons, down 8.4% year-on-year, of which 833 tons, or 75%, were exported. A year earlier, the figures were 878 tons and 72%, respectively. Sales volume of liquid egg products increased by 14.5% to 6,967 tons, of which export sales amounted to 2,506 tons or 36%. A year earlier, these figures amounted to 2,801 tons and 46%, respectively.
“In the first half of 2024, the Group’s companies continued to be under constant pressure from the ongoing hostilities in Ukraine. Despite numerous unfavorable factors that affected the group’s operations in the reporting period, such as destabilization of production processes due to prolonged power outages, complications in domestic and international logistics, volatility in both purchase prices for the main components of feed and sales prices for manufactured products, the group managed to maintain production and sales of eggs and egg products at the level of the previous year, which we consider a satisfactory operating result,” the press service emphasized.
