Business news from Ukraine

AVANGARD AGROHOLDING SEES $7.5 MLN NET LOSS IN 2017

Net loss of Avangard agroholding, the largest egg producer in Ukraine, was 86.7% less in 2017, reaching $7.5 million, the holding reported on the London Stock Exchange on Thursday. Consolidated revenue fell by 335, to $127.9 million, including revenue from exports of shell eggs and dry egg products fell by 45%, to $36.7 million. Operating loss fell by 74.4%, to $3.8 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) grew almost 7.9-fold, to $11.8 million.
The agroholding said that in October-December 2017, the company saw $13.1 million of net profit compared with $17.8 million of net loss a year ago. Consolidated revenue fell by 45%, to $43.7 million, while operating profit grew 1.77-fold, to $20.8 million and EBITDA – 1.08-fold, to $23.6 million.
Shell egg production fell by 4% in 2017, to 2.399 million, while sales grew by 23%, to 1.869 million. As at December 31, 2017, the total poultry flock amounted to 9.5 million hens, down by 30% year-over-year. Average price of eggs fell by 13% in 2017, to UAH 1.17 per egg (excluding VAT).
The production of dry egg products amounted to 6,368 tonnes, a decline of 48% year-over-year. Sales of dry egg products totaled 3,264 tonnes, down by 64% year-over-year. Exports of dry egg products amounted to 2,561 tonnes, a decline of 69% year-over-year. The average sales price of dry egg products was $4.3 per kg, 23% down year-over-year.
As reported, Ukrlandfarming agricultural holding in 2017 reduced the land bank by 5.8%. Ukraine’s largest producer of eggs Avangard agricultural holding, controlled by Ukrlandfarming, whose shares are traded on the London Stock Exchange, in October 2015 completed the restructuring of eurobonds for $200 million. Previously American Cargill has withdrawn from among the shareholders of Ukrainian-based UkrLandFarming (ULF) agrarian holding, according to a ULF financial report for 2016. Cargill’s subsidiary, Cargill Financial Services International Inc. by the end of 2015, had held 1,668,749 ULF shares, or 5% of the total number. By the end of 2016, the number of shares owned by Avonex Limited had not changed, whereas the package held by Cargill was transferred to Cyprus-based Quickcom Limited’s ownership. The report says that the sole owner of Avonex Limited and Quickcom Limited is Oleh Bakhmatiuk. Cargill acquired a 5% stake in ULF early in 2014 for $200 million. Based on the sum of the deal, the total value of the holding was assessed at $4 billion.

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