Agro-industrial group of companies “Ovostar Union”, one of the leading producers of eggs and egg products in Ukraine, decided to direct all net profit for 2022 in the amount of $6.087 million to the reserve of retained earnings and not to pay dividends.
According to the company’s announcement on the Warsaw Stock Exchange before the opening of trading on Monday, the relevant decision was made by the shareholders’ meeting on July 14.
At the same time, it approved the payment of an interim dividend for 2022 for EUR3.9m, which had already been made in January this year.
Other decisions of the meeting include fixing the ceiling of total remuneration to the board of directors this year at EUR0.5m and authorizing the board of directors to select an independent auditor in a tender.
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., IPOed 25% of its shares on the Warsaw Stock Exchange in mid-June 2011 at PLN62 per share and raised $33.05 million.
On Monday, the company’s shares are listed at PLN58.5, down 1.68% since the beginning of the day. A total of 6 million shares were issued.
“Ovostar earned $8.98 million in net profit in the first quarter of 2023, while it ended the same period last year with a net loss of $16.44 million. Its revenue for the period increased by 70.7% to $47.30 million.”
Ovostar ended 2022 with a $6.09 million net profit, a 3.7 times increase from 2021. Its revenue for the past year increased 1.7% to $135.63 million.
According to the report, by the end of March 2023, Ovostar’s majority shareholder was Prime One Capital Limited – 67.93% controlled by Ovostar CEO Boris Belikov and Chairman Vitaliy Veresenko; Generali Otwarty Fundusz Emerytalny – 10.93%, Fairfax Financial Holdings Limited – 9.09% and Aviva Otwarty Fundusz Emerytalny – 5.02%.
Agro-industrial group Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, in the first quarter of 2023 received a net profit of $8.98 million, while the same period last year it ended with a net loss of $16.44 million.
According to the company’s report on the Warsaw Stock Exchange, its revenue for the period rose 70.7% to $47.30 million.
Gross profit in the first quarter of this year was $11.78 million versus a gross loss of $13.38 million last year, and operating profit was $8.58 million versus a $15.69 million loss, respectively.
The group also noted that its total debt in January-March this year decreased by 27.4% – to $7.94 million, and free cash flow increased 2.4 times – to $29.33 million, including 2.5 times to $19.58 million in Ukraine.
According to the report, export revenues in the first quarter of this year increased 4.2 times to $24.16 million, and as a result, its share in total revenues reached 51.1% against 20.6% a year earlier.
Eggs revenues increased 64.8% to $34.39 million and egg products increased 88.9% to $12.91 million, with pretax earnings from those segments increasing $2.39 million and $6.62 million, respectively.
Previously, Ovostar pointed out that in the first quarter of 2023 it reduced egg production by 2% – to 362 million eggs, but managed to significantly increase exports of products with a significant increase in prices compared to the previous year. In particular, the average price of eggs in the reporting period increased by 56% to $0.139/egg.
Compared with a year ago, in Q1 2023 the number of laying hens decreased by 2%, including laying hens by 6.2% – to 7.12 million and 6.38 million, respectively.
The volume of processed eggs in the 1st quarter of 2023 remained at the level of the previous year – 92 million eggs: 406 tons of dry and 3.073 thousand tons of liquid egg products were produced, compared to 561 tons and 2.131 thousand tons in the first quarter of last year, respectively. As with eggs, the average price of egg products rose substantially over the year: dry products rose 32% to $8.79/kg, while liquid products rose 44% to $2.66/kg (all prices are excluding VAT).
The holding company of the group – Ovostar Union N.V. – in mid-June 2011, it floated 25% of its shares on the WSE and raised $33.2 mln. Its majority stake is owned by Prime One Capital Limited, which is controlled by its CEO B. Belikov and Chairman of the Board of Directors Vitaliy Veresenko.
In 2022, Ovostar reportedly reduced egg production by 9% to 1.55 bln eggs and sales by 6% to 1.08 bln eggs.
At the same time, sales of dry egg products decreased by a third to 2.13 thousand tons, liquid – by 26% to 10.62 thousand tons.
“Ovostar made $6.09 million in net profit in 2022, which is 3.7 times more than in 2021. Its revenue for the past year increased by 1.7% – to $135.63 million.
Agro-industrial group Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, has earned a net profit of $6.09 million in 2022, which is 3.7 times higher than in 2021.
According to the company’s report on the Warsaw Stock Exchange, its revenue for the year0 increased by 1.7% to $135.63 million and gross profit by 67.2% to $22.77 million.
EBITDA was up 96% to $11.1 million and operating income 5.9 times, to $7.29 million, it said.
“Steadily rising egg and egg product prices in the second half of 2022 provided better margins than in previous years,” the report notes.
“Ovostar added that its cost of sales fell 22 percent to $86.6 million as a result of lower production volumes and a sharp drop in local prices for poultry feed components such as wheat and corn, caused by limited grain exports due to fighting in the country.
The group also noted that its total debt for 2022 was down 15% to $10.9 million, net debt became negative – “minus” $1.4 million – from $10.4 million, and free cash flow quintupled to $12.2 million.
The holding company of the group – Ovostar Union N.V. – in mid-June 2011, it floated 25% of its shares on the WSE and raised $33.2 mln. Its majority shareholding is owned by Prime One Capital Limited, controlled by its chief executive B. Belikov and chairman of the board Vitaliy Veresenko.
In 2022, Ovostar reportedly reduced egg production by 9% to 1.55 bln eggs and sales by 6% to 1.08 bln eggs.
At the same time, sales of dry egg products decreased by one-third to 2.13 thousand tons, liquid – by 26%, to 10.62 thousand tons.
Ovostar Union Agro Group, one of Ukraine’s leading egg and egg products producers, cut egg production by 2% to 362 million eggs in the first quarter of 2023, but was able to significantly boost exports of products with a significant increase in prices compared to last year, according to an operational report on the Warsaw Stock Exchange on Thursday.
“Management has taken all steps to minimize the adverse effects on the current production situation, which made it possible to maintain production and sales at the prewar level,” Boris Belikov, the company’s CEO, said in the report.
According to him, the range of products and distribution channels have been reviewed and brought in line with current market needs, and in general, taking into account the circumstances, the results of the group in the first quarter of 2023 can be considered satisfactory.
It is pointed out that the number of laying hens decreased by 2% in the first quarter of 2023 compared to one year ago, including a 6.2% decrease to 7.12 million and 6.38 million laying hens, respectively.
Sales in the egg segment rose 4% to 241 million, including export sales jumped 3.9 times to 105 million, and their share rose from 11% to 44%.
The average price of eggs rose 56% to $0.139/egg during the reporting period, according to the report.
According to the report, the volume of processed eggs in Q1 2023 remained at the level of the previous year – 92 million eggs: 406 tons of dry and 3,073 thousand tons of liquid egg products were produced, compared to respectively 561 tons and 2,131 tons in the first quarter of last year.
Sales of dry egg products increased to 531 tons from 429 tons in the first quarter of 2022. Exports increased to 354 tons, or 67%, from 238 tons, or 55%.
Sales of liquid egg products rose to 3,063,000 tons from 2,182,000 tons, including exports of 1,291,000 tons versus 728 tons, increasing its share to 42% from 33%.
As with eggs, the average price of egg products for the year increased significantly: dry – by 32%, to $ 8.79 / kg, liquid – by 44%, to $ 2.66 / kg (all prices are excluding VAT).
Taking into account these sales figures and prices, the total revenues of the three product categories in the first quarter of this year can be estimated at $46.3 million, up 68.1% as compared to $27.6 million in the first quarter of last year.
The group’s holding company, Ovostar Union N.V. – in mid-June 2011, it floated 25% of its shares on the WSE and raised $33.2 mln. Its majority stake is owned by Prime One Capital Limited, which is controlled by its chief executive B. Belikov and chairman of the board Vitaliy Veresenko.
In 2022, Ovostar reportedly reduced egg production by 9% to 1.55 billion eggs and sales by 6% to 1.08 billion eggs.
Sales of dry egg products over the past year decreased by one-third to 2.13 thousand tons, liquid – by 26%, to 10.62 thousand tons.
Agro-industrial group of companies Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, in 2022 reduced the production of shell eggs by 9% compared with 2021 – to 1.55 billion units, and sales – by 6%, to 1.08 billion units.
According to a group report posted on the Warsaw Stock Exchange website on Tuesday, Ovostar increased its egg exports by 27% to 290 million eggs last year, which pushed the share of foreign shipments in its sales up 4 p.p. – The company’s share of foreign sales rose four percentage points to 27%, up from 23%.
“Supply chain issues, additional export and import regulations, internal and external migration, temporary occupation of some territories in the first half of the year, and power outages in the second half of the year forced the company to cut investments in new stock and streamline other processes. Although by the end of 2022 the total flock was down 14%, the group was able to mitigate the impact of negative factors, resulting in a decline in production of only 9%,” the holding quotes its general director Boris Belikov in a report.
According to him, last year egg sales dropped only 6% down, which was partly due to a decrease in egg processing. In addition, the holding benefited from the dynamics of world prices of eggs and egg products in the shell.
Ovostar also processed 427 million eggs in 2022, which is 15% less than in 2021. At the same time, at the end of the first nine months of last year the lag was 10% against the nine months of 2021.
Ovostar Union’s bird population as of December 31, 2022 was 7.2 million birds (down 14.3% from the same date a year earlier), including 6 million laying hens (-14.3%).
Last year, Ovostar’s sales of dry egg products decreased by one-third compared to 2021, to 2,13 thousand tons, and their export share in total sales was 68%, while in 2021 it was 64%.
In turn, sales of liquid egg products during this period decreased by 26% to 10.62 thousand tons, their share of exports was 40% compared to 28% in 2021.
According to the report, 2.54 thousand tons of dry egg products were produced in 2022 (-6% compared to 2021), and liquid egg products – 10.79 thousand tons (-24%).
The average selling price of shell eggs last year increased by 34% in UAH terms against 2021 and reached 2.9 UAH/ piece, while in USD the increase was 13% – to $0.09/ piece. The average selling price for dry egg products doubled in UAH equivalent to 277.94 UAH/kg, and rose 71% in USD – to $8.59/kg, liquid egg products – 42% in UAH, to 66.79 UAH/kg, and 20% in USD – to $2.06/kg.
Ovostar Union is a vertically integrated public holding company, one of the leading producers of shell 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 $1.65 million in net income for 2021, down 38 percent from 2020. Its EBITDA was down 29% to $5.7 million, while revenue increased 35% to $133.3 million.
Agro-industrial group of companies Ovostar Union, one of the leading egg and egg products producers in Ukraine, will pay EUR3.6 mln of interim dividends for 2022 based on EUR0.65/share, the company announced on the Warsaw Stock Exchange.
It is specified that the date for determining the right for the interim dividend will be January 13, 2023, and its payment will take place no later than January 27, 2023.
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 $1.65 million in net income for 2021, down 38 percent from 2020. Its EBITDA was down 29% to $5.7 million, while revenue increased 35% to $133.3 million.
