Business news from Ukraine

Agro-industrial group “Ovostar” will not pay dividends

Ovostar Union Agro-Industrial Group, one of the leading producers of eggs and egg products in Ukraine, will not pay dividends for 2021, and will use retained earnings for the year in the amount of $1.65 million to replenish working capital.
The company’s shareholders approved the corresponding decision at the annual meeting on August 3, Ovostar said at the Warsaw Stock Exchange on Thursday.
In addition, the shareholders decided to limit the total remuneration paid to top management in 2022 at the level of EUR500 thousand.
The Ovostar Union group of companies is a vertically integrated public holding company, one of the leading producers of chicken eggs and egg products in Europe. It has been a certified exporter to EU countries since 2015.
The holding company of the group is Ovostar Union N.V. – in mid-June 2011, it conducted 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 of Directors Vitaly Veresenko.
At the end of 2021, Ovostar received $1.65 million in net profit, which is 38% less compared to 2020. EBITDA decreased by 29% to $5.7 million, while revenue increased by 35% to $133.3 million.

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OVOSTAR WILL NOT PAY DIVIDENDS FOR 2021

Agro-industrial group of companies “Ovostar Union”, one of the leading producers of eggs and egg products in Ukraine, intends to refuse accrual and payment of dividends for 2021, and direct retained earnings for this period in the amount of $1.65 million to replenish working capital funds.
The company’s shareholders are invited to approve such a distribution of profits at the annual meeting on August 3, according to Ovostar’s report on the Warsaw Stock Exchange on Wednesday.
In addition, shareholders of the agro-industrial group are invited not to pay remuneration to members of its board of directors for 2021, as well as to call a tender to select an audit company for the preparation of the company’s financial statements for 2022.
The Ovostar Union group of companies is a vertically integrated public holding company, one of the leading producers of chicken eggs and egg products in Europe. The manufacturer has been a certified exporter to EU countries since 2015.
The holding company of the group is Ovostar Union N.V. in mid-June 2011, it 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 of directors Vitaly Veresenko.
At the end of 2021, Ovostar received $1.65 million in net profit, which is 38% less compared to 2020. Its EBITDA fell 29% to $5.7 million, while revenue increased 35% to $133.3 million.

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ONE OF THE LARGEST PRODUCERS OF EGGS “OVOSTAR” RECEIVES LOSSES

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.

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OVOSTAR REDUCES NET PROFIT BY ONE THIRD IN H1

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.

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LEADING PRODUCER OF EGGS FROM UKRAINE REDUCES SALES IN 2020

Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, in 2020 reduced sales of eggs by 4% compared to 2019, to 1.104 billion pieces.
According to the group’s report on the Warsaw Stock Exchange, the volume of exports fell more significantly, by 33.5%, to 349 million units, as a result of which the share of exports fell from 46% to 32%.
The average price of eggs in hryvnias increased by 2%, to UAH 1.634 per egg, while in dollar terms decreased by 2%, to $ 0.061.
The company reported that egg production last year increased by 5%, to 1.672 billion pieces, while egg processing decreased by 4%, to 552 million pieces.
Production of liquid egg products decreased by 3%, to 13,504 tonnes, while dry egg products increased by 6%, to 3,161 tonnes.
The volume of sales of dry egg products increased by 17%, to 3,270 tonnes, in particular exports rose by 9.9%, to 2,268 tonnes, but its share decreased from 74% to 69%.
The volume of sales of liquid egg products decreased by 3%, to 13,281 tonnes, in particular exports by 28.7%, to 4,647 tonnes, and its share from 47% to 35%.
The average price of dry egg products increased by 3% in hryvnia terms, to UAH 110.84/kg and fell by 1% in dollar terms, to $ 4.11 per kg.
The average price of liquid egg products decreased by 11% in hryvnia terms, to UAH 32.93 per kg, in dollar terms by 15%, to $ 1.22 per kg.

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OVOSTAR POSTS 73.7% FALL IN NET PROFIT IN Q1

Ovostar Union, one of the leading producers of eggs in Ukraine, saw its net profit fall by 73.7% in January-March 2020 compared to the same period in 2019, to $1.17 million.
According to the company’s report on the Warsaw Stock Exchange’s website, its revenue decreased by 24.7%, to $23.44 million in Q1, 2020.
Gross profit of Ovostar in January-March 2020 decreased by 54.6%, to $3.6 million, operating profit – by 78.7%, to $1.04 million.
The company earned $10.84 million from export sales ($5.56 million from sales of eggs and $5.28 million from sales of egg products). In Ukraine it sold eggs worth $8.54 million and egg products worth $4.06 million.
In Q 1, 2020, Ovostar Union invested $411,000 in the purchase of equipment for poultry houses and $450,000 in the overhauls and modernization of its facilities.
As reported, the company reduced egg sales by 28% in January-March 2020 compared to the same period in 2019, to 241 million eggs. Egg sales for export decreased by 56.5%, to 81 million eggs, resulting in a share of export sales of 34% during the specified period (compared to 56% in Q1, 2019).

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