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.
In January-March, cardboard and paper mill Papir-Mal (Malyn, Zhytomyr region) produced UAH 105 mln worth of products, which is almost 3.5 times more than in the first quarter of 2022. According to the statistical data of UkrPapir Association, provided to Interfax-Ukraine news agency, the growth of production was caused by the increase of output of packaging board (including corrugated paper) by 3.4 times – up to 16 thousand tons.
As reported, last year the company put into operation the second cardboard machine with a capacity of 800 m / min (twice more than the first).
In addition, in January-March there was a positive dynamics in the production of base paper for sanitary products – by 12.8% (almost 1 million tons) and toilet paper rolls – by 13%, to more than 4 million pieces, whereas in January-February there was a decrease by 21.3% and 26% respectively, compared to the prewar January-February 2022.
According to statistics, which suspended operations with the beginning of a full-scale war in Ukraine, “Papir-Mal” in March 2022 did not produce cardboard and paper, while in March this year they produced 4.54 thousand tons.
The company specializes in the production of paper sanitary products, as well as containerboard (linerboard and fluting).
According to UkrPapir, the company’s output in 2022 decreased by 4.7% against 2021 – to 247 million hryvnias.
Kokhavynka Paper Mill (KBF, Lviv region), which produces sanitary paper products (TM Kokhavynka), increased its production by 39% in January-March this year compared to the same period in 2022, up to UAH 278.8 million, according to statistics from UkrPapir Association.
As reported, in January-February of this year, the growth of this indicator was 47% compared to the same period in 2022.
According to UkrPapir’s statistics provided to Interfax-Ukraine, in physical terms, production of the base paper for sanitary products increased by 6.4% to 10.34 thousand tons in the first quarter.
Including in March, its output increased by 10% by March 2022 (the factory practically did not stop production with the start of Russia’s full-scale aggression in Ukraine).
At the same time, the output of toilet paper in rolls in January-March increased by 9.2% (in January-February, the increase was 21.6%) to 33.48 million units, and KBF confidently retains the second place in terms of its output after Kyiv pulp and paper mill (56.54 million units), which reduced production of this product by 29% in January-February.
Kokhavynske Pulp and Paper Mill, which has been operating since 1939, produces the base paper for sanitary and hygiene products, as well as toilet paper and paper towels.
The paper machine capacity is 19 thousand tons per year, and the processing equipment capacity is 90 million rolls per year.
As reported, last year KBF produced products worth UAH 975.3 million, up 44.8% year-on-year.
Net profit, according to opendatabot, decreased by 12.7% to UAH 52.4 million, while revenue increased by 46.5% to UAH 978.9 million.
Vilis (Rivne), one of the largest pasta producers in Ukraine, launched a new line for the production of instant pasta, the head of Rivne regional state administration Vitaly Koval said.
“For the manufacture of noodles, the company uses only Ukrainian products, many of which are Rivne products. And this is exactly the philosophy of added value, when grain grown in the Rivne region is processed in the Rivne region. And then the finished product is “exported” not only to Ukraine but also to different countries of the world,” Koval wrote on Facebook.
Construction of the enterprise was launched in October 2021. To launch the new line “Vilis” attracted UAH 50 million under the program “Affordable credits 5-7-9″. The enterprise plans to produce 6 thousand tons of instant noodles per year.
Vilis” is one of the largest Ukrainian producers of pasta and jam. The company was founded in 1996 and in 1998 it opened its first pasta production line. The company owns Vilis, Makarella, Italino, Viverelli, and also packs products under Private Label of a number of retail chains, in particular, Premiya, Povna Chasha, Nash Krai, Pervy Ryad, Clever and others. Products are sold within the country and exported to dozens of countries. PE “Willis” has its own logistics department and technology park.
The authorized capital of “Vilis” in the amount of 27,5 million UAH is divided between its head Viktor Zhabchik (60%), Sergiy Zhabchik (20%) and Irina Plesetskoy (20%).
According to opendatabot, earnings of “Vilis” in 2022 increased 2,4 times – up to 232,44 million UAH, net profit – 3,4 times, up to 14,56 million UAH.
Cement production in Ukraine in 2022 decreased by 51% compared to 2021 – to 5.4 million tons, while its consumption was 35% of the indicator of the previous year, according to the association “Ukrcement”.
“Eight enterprises of the Association in 2022 produced cement strategically important for the country, which was primarily used on important construction sites of defense value. The decline in cement consumption led, respectively, to a decrease in production. At the same time, January 2022 was a record for cement production in the last six years”, – said Liudmila Krypka, executive director-head of the scientific and technical information department of the association “Ukrcement”.
According to her, export of products to the European Union helped slow down production decline. For example, cement exports for the year decreased by only 3.7% and amounted to 935 thousand tons, while imports decreased 14.8 times to 39 thousand tons.
In the structure of imports last year, 46.5% were ordinary cements, 41.6% – white cements, 10.9% – other hydraulic cements, 1% – alumina.
“The dynamics of cement exports 2022 indicates that the Ukrainian producers have fully provided the domestic market and continued to support their production with deliveries to other countries, mainly to the EU,” – said the expert.
In turn, Ukrainian companies in 2022 produced 16 types of cement, among which the most popular were cements with slag. At the same time manufacturers continue searching for ways to increase the efficiency of Portland cement while reducing the share of clinker, which is one of the main factors of reducing CO2 emissions, emphasizes Krypka.
The association is also considering using shredded construction waste from demolished buildings (linoleum, carpets, polyethylene, rubber, wood, plastic, roofing felt etc.) to burn in cement kilns as an alternative fuel, which can reduce the need for energy.
Last year “Ukrcement” in cooperation with SE “GosdorNII” published “Album of standard designs of rigid road clothes”, which contains information on variants of road clothes taking into account the category of roads, region, soil, technology.
“Road construction is a material-intensive production with a high proportion of the cost of raw and basic materials. Lack of bitumen forces us to switch to the best practices and domestic construction materials. Detailed characteristics of each construction are collected in the album, as well as technologies of restoration or strengthening of road with cement concrete”, – points out the executive director of the association.
Association “Ukrcement” was created in January 2004 by reorganization of Ukrainian concern of enterprises and organizations of cement and asbestos cement industry “Ukrcement”.
Cherkasy-based Azot, part of Ostchem’s nitrogen holding company, produced 235,000 tons of mineral fertilizers in January-February 2023, up 23% from January-February last year, Group DF press service said Wednesday.
“Production in February 2023 was 123,700 tons of products per month, the highest since the start of the all-out war,” the release specified.
According to it, urea was the key product, due to which the company showed an increase in production volumes in January-February 2023. Its production for two months increased almost three times – up to 67.4 thousand tons.
UAN production also increased by more than 10%, from 50.9 thousand tons to 56.2 thousand tons, while the volume of ammonium nitrate production slightly decreased – by 2%, to 102.2 thousand tons.
“This year, because of military risks, farmers delayed until the last moment the decision to buy mineral fertilizers, there was a significant deferred demand. As a result, in January-February demand for our products increased significantly. It is logical that the company increased its capacity utilization to 70-75%,” Vitaliy Sklyarov, Cherkasy Azot’s chief executive officer, said in a statement.
According to him the enterprise is not reducing loading in March because the agrarians continue to actively buy fertilizers and many have not formed the stocks enough for the spring sowing campaign.
Sklyarov stressed that in March and April the company will continue to work at 70-80% of its capacity, “as long as there will be a high demand from the side of farmers”. He specified that today all basic fertilizer production facilities of ammonia, ammoniac acid, ammonium nitrate, urea and UAN are operating at the plant.
“The catalyst for the sharp increase in demand in 2023 was a decrease in selling prices for mineral fertilizers during the ‘hot’ season, which was possible due to lower prices for gas, the main raw material for the production of fertilizers,” also noted the head of the board.
According to him, the growth of demand is limited by the financial capabilities of fertilizer consumers: on the one hand, the support of farmers by the state has a significant effect, but on the other hand, access to finance for small and medium agrarians is still very limited.
It is reported that since the beginning of 2023 Nitrogen Holding Ostchem reduced the cost of urea by 9 thousand UAH – to 29 thousand UAH/ton, ammonium nitrate – by 8.5 thousand UAH, to 28.5 thousand UAH/ton, UAN – by 4 thousand UAH, to 29 thousand UAH/ton.
Ostchem enterprises produced 1.75 million tons of mineral fertilizers in 2022, of which Cherkassy Azot produced 1.117 million tons.
