Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, earned $29.08 million in net profit in 9M2023, up 12.2 times year-on-year (y-o-y).
According to the group’s report on the Warsaw Stock Exchange, its revenue for the first nine months increased by 36.3% to $123.06 million, mainly due to higher prices for its products.
Gross profit for January-September this year increased by almost 2.8 times to $42.64 million, operating profit – by 8.2 times to $29.65 million.
It is noted that such an increase in profitability was also achieved by reducing the cost of sales from $66.16 million to $57.40 million due to good feed prices and the devaluation of the hryvnia.
The stability of national currencies also led to Ovostar’s total profit of $29.08 million in the first 9 months of this year, compared to a total loss of $25.16 million in the same period last year, when the hryvnia exchange rate fell.
The group also reported that its debt on bank loans since the beginning of the year has decreased from $10.93 million to $2.46 million, and is currently represented by a UAH 90 million loan from Credit Agricole Bank under the state program at a rate of 13.05% per annum with maturity at the end of March 2024, while the company has fully repaid its obligations to Ukrsibbank and OTP Bank.
Ovostar’s free cash flow jumped to $58.44 million from $12.17 million at the beginning of the year and $5.92 million a year earlier, including the equivalent of $19.77 million in hryvnia from $0.90 million, and $33.89 million in Latvia from $4.76 million.
According to the report, the share of egg sales in revenue slightly decreased to 69.0% from 69.5% in 9M2017, while the share of egg products increased from 30.5% to 31%. At the same time, the share of egg exports in total revenue increased from 34.9% to 45.5%, and the share of egg products exports increased from 56.6% to 60.3%.
As a result, Ovostar’s total export revenue for January-September this year reached 50% of total revenue, compared to 41.5% a year earlier.
The company, which had previously announced the suspension of its investment program amid the ongoing Russian military invasion of Ukraine and the overall unfavorable situation in the national economy, invested $8.88 million in 9M2017 against $5.42 million in 9M2016, with the lion’s share of all investments again in biological assets.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., conducted an IPO of 25% of its shares on the WSE and raised $33.2 million. The majority stake of 67.93% is owned by Prime One Capital Limited, which is controlled by its CEO Boris Belikov and Chairman of the Board of Directors Vitaliy Veresenko.
In January-September of this year, Fairfax Financial Holdings Limited significantly increased its stake in Ovostar from 9.09% to 27.51% by withdrawing from the shareholders’ list Generali Otwarty Fundusz Emerytalny (10.93%) and AVIVA Otwarty Fundusz Emerytalny (5.02%).
As reported, Ovostar earned $6.09 million in net profit in 2022, which is 3.7 times more than in 2021. At the same time, revenue increased by 1.7% to $135.63 mln.
In the first half of 2023, the company earned $20.63 million in net profit, while the same period in 2022 ended with a net loss of $19.78 million. Its revenue for the six months increased by 56.8% to $88.69 million.
PJSC Interpipe Dnipropetrovs’k Vtormet (Dnipro), a member of Interpipe Pipe and Wheel Company (TKK), posted a consolidated net profit of UAH 43.841 million in January-September this year, compared to a consolidated net loss of UAH 58.818 million in the same period last year.
According to the company’s interim report, its net income for the period increased by 28.3% to UAH 3 billion 211.957 million.
Retained earnings as of the end of September 2023 amounted to UAH 192.715 million.
At the same time, Interpipe Dnipropetrovs’k Vtormet earned a non-consolidated net profit of UAH 44.657 million in 9M2023, while it ended the same period last year with a net loss of UAH 54.081 million. The net income for the period corresponds to the same figure in the consolidated financial statements.
As reported, Interpipe Dnipropetrovs’k Vtormet posted a consolidated net profit of UAH 25.460 million in the first half of the year, while it ended the same period last year with a consolidated net loss of UAH 38.239 million. Net income for the period increased by 38.6% to UAH 2 billion 155.760 million.
In January-June of this year, the company posted a non-consolidated net profit of UAH 25.637 million, while it ended the same period last year with a net loss of UAH 35.344 million. “In the first quarter of 2023, Interpipe Dnipropetrovs’k Vtormet earned UAH 15.480 million in profit, while it ended the same period last year with a net loss of UAH 16.57 million. Net income for the period increased by 32.5% to UAH 1 billion 111.279 million.
“Interpipe Dnipropetrovs’k Vtormet ended 2022 with a net loss of UAH 10.284 million, compared to UAH 14.234 million in net profit in 2021. At the same time, net income decreased by 51.8% to UAH 3 billion 276.74 million.
“Interpipe Dnipropetrovs’k Vtormet specializes in the procurement and processing of ferrous scrap in the Dnipro region and the subsequent sale of this product, including the preparation of metal charge for steelmaking plants.
As of the first quarter of 2023, Interpipe Limited (Cyprus) owns 98.6699% of the shares in Interpipe Dnipropetrovs’k Vtormet.
The company’s authorized capital is UAH 64.876 million.
The net profit of solvent banks in January-October 2023 reached UAH 122.7 billion, while in the same period of 2022 this figure was only UAH 10.9 billion, according to the National Bank of Ukraine (NBU).
According to the NBU, total revenues of financial institutions over 10 months increased by 27.3% compared to the same period last year, in particular, net interest income increased by 36.5% to UAH 164.24 billion, while net commission income increased by 3.8% to UAH 41.4 billion.
In the first 9 months of the year, the growth rate was higher: total income grew by 28.1%, including net interest income by 38.7%, and net fees and commissions by 5.4%, as in October this year, net interest income increased by 20.6% compared to October last year, while net fees and commissions decreased by 7.4%.
The share of interest income in the overall structure of banks continued to grow and added 0.2 pp (percentage points) in October, reaching 68.1%, while in the same period last year it was at 60.1%.
Meanwhile, the share of fees and commissions decreased to 21.7% from 23.7% in 2022, as did income from foreign exchange operations due to the stability of the hryvnia exchange rate – to 7% from 13.3%.
Another factor contributing to the profit growth was a significant reduction in provisioning by 21.8 times to UAH 4.9 billion.
According to the NBU, in October, banks’ net profit decreased to UAH 12.8 billion from UAH 14.8 billion in September, while remaining higher than in August – UAH 11.9 billion. Last October, banks ended with a profit of UAH 3.6 billion.
Dneprovagonmash, Ukraine’s largest railcar manufacturer, controlled by businessman Sergiy Tigipko’s TAS Financial and Industrial Group, ended January-September 2023 with a net profit of UAH 51.09 million, up 8.3 times compared to the same period in 2022.
According to the company’s interim financial statements published on Wednesday in the NSSMC’s information disclosure system, its net sales revenue decreased by 14.7% to UAH 724.62 million.
In January-September, the company increased its gross profit by 18.7% to UAH 96.9 million, earning UAH 53.5 million in operating profit (4.6 times more).
The report does not disclose the number of railcars produced and sold in the reporting period.
As before, the report mentions the risk of rising prices for components, materials and energy (material costs account for 80-90% of the cost of production) and lower prices for railcars as price risks for the company.
“Ongoing military operations, uncertainty of further developments, including the intensity or potential timing of the cessation of these actions, may significantly affect the economic situation in the country and, accordingly, the activities of Dneprovagonmash,” the report says.
As reported, in the first half of this year, DVM received UAH 57.85 million in net profit against almost UAH 25 million in losses for the same period last year, with net income growing by 17.2% to UAH 578 million.
Thus, in the third quarter of 2023, the company received a UAH 6.76 million loss against a UAH 31.14 million net profit in July-September 2022, with net income falling 2.4 times to UAH 146.61 million.
“Dneprovagonmash is one of Ukraine’s leading freight car design and manufacturing companies. Its annual production capacity is 9 thousand units.
As reported, an extraordinary meeting of shareholders of DVM JSC on July 25 decided to transform it into TAS Dneprovagonmash LLC.
In October of this year, in cooperation with Austrian partners, the company shipped the first lightweight modular freight cars (MultiBOX) intended for use on the EU railways as part of the TransANT innovation project.
In 2022, DVM’s net income increased by 77.3% to UAH 1 billion 108.7 million, with net profit of UAH 48.64 million compared to a loss of UAH 111.3 million a year earlier. At the same time, sales of railcars increased by 35% to 623 units, and production by 21% to 577 units.
TAS Group was founded in 1998 by businessman Tigipko. Its business interests include the financial sector (banking and insurance) and pharmacy, as well as industry, real estate, and venture capital projects.
In January-June 2023, PJSC Ukrnafta made a net profit of UAH 14.1 billion, the company’s CEO Sergiy Koretsky posted on Facebook on Tuesday morning.
“Net profit for the first half of 2023 amounted to UAH 14.1 billion. At the moment, net profit has exceeded UAH 20 billion. This is the net profit from business activities, the result after paying all taxes, including income tax. There were no changes in accounting policies,” he said.
According to him, the company’s projected revenue for the current year will be UAH 95 billion, which is twice the average annual revenue over the past decade.
“And the rise in oil prices has nothing to do with it. It’s a transparent market work without intermediaries,” emphasized Koretsky.
The Ukrnafta CEO also clarified that the company paid UAH 12.3 billion in taxes in the first half of the year, including UAH 3.3 billion in income tax. The plan for tax payments for the whole of 2023 is UAH 27 billion, including about UAH 5 billion of income tax.
“For example, over the past 10 years, we have paid UAH 12 billion in income tax. Accordingly, in 2023 alone, the company will transfer five times more money to the state budget than it was on average in 2012-2021,” he wrote.
At the same time, based on the results of its business activities this year, the company is preparing to pay at least UAH 6 billion in dividends if the shareholders’ meeting decides to pay a minimum rate of 30%, which even then will be more than the total result of the last 10 years.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation. The company is implementing a comprehensive program to restore operations and update the format of its filling stations. Since February 2023, Ukrnafta has been issuing its own fuel coupons and NAFTAKarta cards, which are sold to legal entities and individuals through Ukrnafta-Postach LLC.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer to the state a share of corporate rights of the company owned by private owners, which is currently managed by the Ministry of Defense. In November 2022, Serhiy Koretskyi was appointed director of the company.
The net profit of the state-owned Oschadbank (Kyiv) in January-September 2023 amounted to UAH 14.18 billion, which is 6 times higher than the same period in 2022, according to the bank’s interim condensed report for the third quarter.
According to the report, the state-owned bank’s net profit for the third quarter amounted to UAH 7.34 billion, which is UAH 3.04 billion more than in the second quarter of this year and UAH 0.56 billion more than in the third quarter of last year.
According to the report, Oschadbank’s net interest income increased by 32.2% year-on-year to UAH 13.89 billion in January-September 2023, including a 24.4% increase to UAH 4.95 billion in the third quarter, which is UAH 0.75 billion more than in the second quarter of this year.
Net fee and commission income for the first nine months of this year increased by 24.8% to UAH 5.07 billion, including 0.3% to UAH 1.75 billion in Q3. Meanwhile, in April-June this year, this figure was equal to UAH 1.65 billion.
A significant contribution to the improvement of the bank’s financial result was made by the dissolution of provisions for expected credit losses on assets: for the first 9 months of this year, it amounted to UAH 1.4 billion, including UAH 0.16 billion in the third quarter, while for the same period last year, Oschadbank formed additional provisions of UAH 9.61 billion and UAH 4.20 billion, respectively.
The state-owned bank also reports that its total profit for January-September this year reached UAH 14.23 billion, 6.7 times higher than in the comparable period of 2022. In the third quarter of 2023, total profit increased by 9.2% compared to the third quarter of last year and by 69.1% compared to the second quarter of this year.
According to the report, in 9M2023, the bank’s assets increased by 16.9%, reaching UAH 314.78 billion by September 30. This growth is attributed to the increase in cash, correspondent accounts and funds with the NBU from UAH 28.36 billion to UAH 62.56 billion. In addition, according to the report, the volume of investments increased by UAH 10.07 billion to UAH 153.45 billion.
As for loans to customers, they grew by 3.1% to UAH 83.03 billion in the third quarter, but still remain below the figure of UAH 83.22 billion in July-September last year. Of this amount, UAH 62.07 billion was granted to corporate entities, UAH 7.54 billion to government and local authorities, and UAH 4.55 billion in mortgage loans.
Over the first nine months of 2023, Oschadbank’s customer accounts increased from UAH 233.94 billion to UAH 268.89 billion, while banks’ accounts decreased from UAH 0.54 billion to UAH 0.24 billion.
The equity of the financial institution increased by UAH 14.04 billion to UAH 36.2 billion in the first nine months of this year.
According to the National Bank of Ukraine, as of September 1, 2023, Oschadbank ranked second in terms of total assets (UAH 337.99 billion) among 64 operating banks in the country and first in terms of the number of branches – 1182.
