Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, earned $20.63 million in net profit in the first half of 2023, while the same period in 2022 ended with a net loss of $19.78 million.
According to the group’s report on the Warsaw Stock Exchange, its revenue for the six months increased by 56.8% to $88.69 million, mainly due to higher prices for its products.
Gross profit in the first half of this year amounted to $26.99 million against a gross loss of $10.39 million last year, operating profit – $20.12 million against a loss of $17.57 million, and EBITDA – $21.7 million against a negative $15.5 million in the first half of last year.
It is indicated that such an increase in profitability was also achieved by reducing the cost of sales by more than half – from $47.8 million to $23 million – due to good feed prices and the devaluation of the hryvnia.
The group also reported that its total debt for the year decreased from $12.5 million to $2.5 million, while free cash flow increased from $3.7 million to $50.3 million, including $0.5 million to $24.7 million in Ukraine (including the equivalent of $7.6 million in hryvnia), $3.1 million to $21.2 million in Lithuania, and $0.02 million to $4.2 million in the UAE. As a result, the net debt increased from $8.8 million to negative $47.9 million. In particular, Ovostar has fully repaid its loans to Ukrsibbank and OTP Bank for $8.5 million.
According to the report, the share of egg sales in revenue decreased to 70% from 74% in the first half of last year, while the share of egg products increased from 26% to 30%. At the same time, the share of egg exports in total revenue increased from 23% to 36%, and the share of egg products exports increased from 13% to 18%.
“Against the backdrop of the ongoing Russian military invasion of Ukraine and the overall unfavorable situation in the national economy, the management decided to suspend the investment program,” the document also says.
As specified, in the reporting period, only minor investments were made in production facilities and infrastructure, amounting to $5.8 million compared to $4.3 million in the first half of 2022.
In the first half of this year, Ovostar withdrew from the International Food Trade company (British Virgin Islands).
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 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 Vitaliy Veresenko.
“In 2022, Ovostar earned $6.09 million in net profit, which is 3.7 times more than in 2021. At the same time, revenue increased by 1.7% to $135.63 million.
In the first quarter of 2023, the group earned $8.98 million in net profit, while the same period in 2022 ended with a net loss of $16.44 million. Its revenue for the period increased by 70.7% to $47.30 million.
The profit of operating Ukrainian banks in January-July 2023 amounted to UAH 83.2 billion, which is 24.5 times more than in the same period last year (UAH 3.4 billion), Bohdan Danylyshyn, a member of the National Bank of Ukraine Council, said on Facebook on Friday.
This figure is a record high in history: before that, the highest net profit of banks in pre-war 2021 was UAH 39.8 billion, compared to UAH 28.4 billion in 2020 and UAH 36.7 billion in 2019.
In addition, the banks’ profit in July was also a record – UAH 15.5 billion compared to the previous best figures of this year: UAH 14.1 billion in June and UAH 14.7 billion in January.
“Net interest income of banks for 7 months of 2023 amounted to UAH 111.3 billion (+40.7% year-on-year), net fee and commission income – UAH 29.4 billion (+16.3%), and along with the positive result of the revaluation of securities, these were factors in improving the financial results of banks,” Danylyshyn said.
He added that the amount of allocations to provisions for active operations, which in 2022 was the main factor in the deterioration of banks’ financial results (over UAH 120 billion), has remained moderate since the beginning of 2023 at UAH 4.9 billion.
Taking into account the data published by the Council member, in July, net interest income of banks increased to UAH 17.7 billion, net fee and commission income decreased to UAH 3.8 billion, and allocations to provisions increased by only UAH 0.3 billion.
“The return on assets of banks in January-June 2023 amounted to 6.8%, and the return on equity – 67.5%. Positive financial results allow the banking system of Ukraine to demonstrate high capital adequacy ratios, which in July amounted to 24.3% for regulatory capital and 14.8% for the banks’ core capital,” Danylyshyn summarized.
As reported, in 2022, Ukrainian banks reduced their net profit by 3.1 times to UAH 24.716 billion compared to UAH 77.376 billion in 2021.
Trading and production company Agromat LLC has received UAH 52.9 mln of profit (before tax) following the results of January-June 2023 against UAH 10.6 mln of loss for the same period in 2022.
According to IBI Ratings, the company’s net income in the first half of 2023 amounted to UAH 1.3 bln, which is 72% higher than the result of January-June 2022. In addition, Agromat increased retained earnings to UAH 928.3 mln.
In the sales structure for the first half of the year, ceramic tiles accounted for 92% of sales – 2.5 million square meters, while friezes and sanitary ware accounted for 3.5% and 4.2%, respectively.
According to IBI Ratings, the long-term credit rating of Agromat’s series G interest-bearing bonds was affirmed at “uaA” with a “development” outlook.
The decision on placement of bonds of series G in the amount of UAH 100 mln with a public offering was made by the meeting of participants of the company in 2021. Maturity of the bonds is from September 25, 2024 to September 27, 2024. The raised funds are planned to be used to organize the work of new stores and increase inventory.
Argomat Ltd. was registered in 1993. It manufactures and sells ceramic tiles and sanitary ware.
According to Opendatabot, the co-owners of the company with 28.65% shares each are Sergei Voytenko, Oksana Reva and Anatoly Tadai. 10.05% belongs to Olga Bashota and 4% to Nadezhda Rusheliuk.
Agromat has 27 stores and a wide dealer regional network.
The company’s revenue in 2022 decreased by 23.3% to UAH 2.148 bln, while net profit almost doubled to UAH 70.4 mln compared to UAH 132.5 mln in 2021.
The National Bank of Ukraine’s net profit in the second quarter of this year amounted to UAH 17.59 billion, up 22.2% year-on-year, according to the NBU’s report on its website.
According to the report, net interest income almost halved to UAH 10.53 billion from UAH 20.70 billion, but UAH 7.69 billion of profit from transactions with financial instruments at fair value, compared to UAH 4.26 billion of loss in the second quarter of last year, improved the financial result overall.
In the first half of the year, the NBU’s net profit amounted to UAH 43.28 billion, down 37.9% compared to the first half of last year, when this result was largely due to UAH 48.82 billion of profit from operations with financial assets and liabilities in foreign currency and gold, compared to UAH 7.74 billion in the first half of this year.
According to the NBU, its consolidated assets increased by 17.1% to UAH 2.293 trillion in January-June this year. “The change in the volume of assets is primarily the result of a 37% increase in international reserves – to $39.0 billion at the end of the first half of 2023 from $28.5 billion at the end of 2022,” the central bank explained.
He specified that the volume of non-resident securities in its portfolio in the first half of 2023 increased by 23% to UAH 858.5 billion, and the volume of funds and deposits in foreign currency and precious metals almost doubled to UAH 464.4 billion.
At the same time, the lion’s share – almost 98% – of non-resident securities is denominated in US dollars, including 92.8% of US issuers, while at the beginning of the year these figures were 95.3% and 84.0%, respectively.
During the reporting period, the NBU, in particular, got rid of securities denominated in euros, which amounted to 1.5% of the portfolio at the beginning of the year.
At the same time, the NBU notes that the volume of its loan portfolio decreased by 4.7 times to UAH 8.6 billion due to the repayment of long-term debt on operating loans by banks.
As of the end of the first half of 2023, the NBU’s liabilities amounted to UAH 1.921 trillion (83.8% of assets), up 17.8% over the half-year.
In particular, banks’ funds increased by 2.3 times to UAH 203.8 billion, funds of state and other institutions increased almost sixfold to UAH 311 billion, while liabilities on loans received from the IMF decreased by 21.5%, and in August the NBU repaid another SDR98.5 million.
As a result, the NBU’s equity increased by 13% to UAH 371 billion in the first half of 2023, due to the accumulation of this year’s profit.
The NBU indicated that its expenses related to the production of banknotes, coins and other products, administrative expenses, and staff costs in the first half of 2023 remained at the same level as in the corresponding period of 2022 and amounted to UAH 3 billion.
In particular, staff salaries decreased by 7.7% year-on-year to UAH 1.227 billion in the first half of this year, including an 8.9% decrease to UAH 612 million in the second quarter.
At the same time, payments to the management increased by 11.1% to UAH 36.01 million, including 10.5% to UAH 13.54 million for members of the NBU Council.
Ukrainian mobile operator lifecell earned UAH 611.5 million in net profit in April-June 2023, while it ended April-June 2022 with a net loss of UAH 27.4 million.
Parent company Turkcell said in a report on its website on Thursday that lifecell’s revenue rose 36.5 percent to UAH 2 billion 903.1 million in the second quarter.
“Lifecell’s revenue grew by 36.5% year-on-year in local currency, mainly due to ARPU growth, which was supported by price adjustments and increased data consumption,” the company pointed out in a press release.
EBITDA increased by 39.3% to UAH 1 billion 715.1 million, while EBITDA margin increased by 1.2 percentage points to 59.1%. Turkcell attributed this improvement mainly to lower interconnection and electricity costs as a percentage of revenue.
At the same time, the company’s capital expenditures for April-June increased 2.2 times to UAH 1 billion 445.6 million.
According to the report, the base of active lifecell subscribers for this period amounted, as in the previous quarter, to 8.6 million against 8.4 million a year earlier, while the total number of customers increased to 11.1 million from 10.8 million in the previous quarter and 10.2 million a year earlier.
Meanwhile, ARPU (average revenue per user per month) among active users rose 36.1% year over year and 7.7% to 112.7 UAH in the quarter.
“The penetration of lifecell smartphones amounted to 84.6% as of the end of Q2. On average, about 96% of stores were operating daily as of the end of June. On average, about 7.3% of the nearly 9,000 sites were temporarily out of service on a daily basis in Q2,” the report also said.
Turkcell added that lifecell’s current cash reserves are “more than sufficient” to support its operations.
Overall in the first half of the year, lifecell’s revenue grew by 26.1% year-on-year to UAH 5 billion 590.6 million, EBITDA by 31.6% to UAH 3 billion 320.1 million and net profit by 6.2 times to UAH 1 billion 127.2 million. The company also increased capital investments by 52% to UAH 2 billion 83.6 million.
lifecell is the third largest mobile operator in Ukraine. Turkcell is the owner of 100% of lifecell’s shares.
Lifecell’s revenue in the second quarter amounted to 75.3% of Turkcell International’s revenue and 7.6% of the consolidated revenue of Turkcell as a whole.
Agroliga Group (Kharkiv Oblast) has generated EUR1.00m of consolidated net profit in January-June 2023, up 24.6% year-on-year.
According to the company’s report on the Warsaw Stock Exchange, its revenue for the first half of the year decreased by 9.4% to EUR24.61 mln.
Due to a smaller increase in the cost of sales, gross profit fell by only 0.7% to EUR3.30m, but distribution costs, which rose by a third to EUR1.54m, led to a 30.0% drop in operating profit to EUR1.44m.
Agroholding notes that its free cash flow at the end of the first half of the year fell to EUR0.20m from EUR2.54m due to a reduction in debt at the end of 2022, while investments fell fivefold year-on-year to EUR0.22m in the reporting period.
The main shareholders of the group are Alexander Berdnik and Irina Poplavskaya with 41.66% stakes each, while another 16.68% of shares are in free float.
As reported, Agroliga Group reported a EUR2.21m net loss in 2022, down from a EUR8.13m net profit a year earlier, due to Russian full-scale aggression. Its revenue rose 18.9% to EUR47.46m.
In its annual report, the agroholding said it operates about 8,000 hectares of land, pressed oil plants with an annual capacity of 42,000 tons, and an oil extraction plant with an annual processing capacity of 100,000 to 180,000 tons of sunflower seeds, which can also produce soybean and rapeseed oil. In addition, the group has completed the construction of energy facilities that operate on a green tariff and ensure waste-free production.
The company employs 332 people as of August 15.
As reported, Agroliga Group earned EUR0.77m in net profit in January-March 2023, up 70.5% year-on-year in January-March 2022. Its revenue for the first quarter increased by 32.4% to EUR12.91m.
