Agro-industrial group of companies Ovostar Union, one of the leading producers of eggs and egg products in Ukraine, in January-September 2022 received $2.39 million in net profit, down 16.1% compared to the same period in 2021.
According to the company report published on the Warsaw Stock Exchange website, Ovostar’s revenues fell 4.3% to $90.29 million in the reporting period, while its gross profit rose 41.1% to $15.46 million and operating profit rose 63.1% to $3.63 million.
At the same time, because of negative exchange differences of $27.55 million, the cumulative loss was $25.16 million, while in the first nine months of last year the exchange differences were positive – $6.74 million, which led to a cumulative profit of $9.59 million.
The report forecasts that egg production in 2022 will decline 14.1% to 1.452 billion eggs.
“Ovostar clarified that its 9-month revenue in the egg segment was down 3.5% to $62.76 million and 6.1% in the egg products segment, to $27.53 million.
At the same time, export revenues increased 31.6% to $37.5 million, including a 40% increase in the egg segment to $21.91 million and a 21.3% increase in the egg products segment to $15.59 million.
The amount of the company’s free cash flow at the end of September was $5.93 million, compared to $2.44 million at the beginning of the year and $0.62 million a year ago, while in Ukraine it has decreased from $1.96 million to $0.90 million since the beginning of the year.
The company’s loan debt stood at $10.8 million, compared to $12.88 million at the beginning of the year and $10.09 million a year ago.
According to the report, by the end of September 2022, Ovostar Union shares were owned by: Prime One Capital Limited (67.93%), controlled by Ovostar CEO Boris Belikov and Chairman Vitaly Veresenko; Generali Otwarty Fundusz Emerytalny (11.93% vs. 10.93% at the beginning of the year), Fairfax Financial Holdings Limited (9.09% vs. 10.39% at the beginning of the year), Aviva Otwarty Fundusz Emerytalny (5.02%).
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 a net income of $2.6 million in 2020 compared to a net loss of $20.0 million in 2019. Its revenue last year was down 5% to $98.9 million.
Ovostar Union, a vertically integrated holding company, one of the leading egg and egg products producer in Ukraine, in January-September 2020 cut shell egg sales by 10.5% year-over-year, to 795 million. Lower sales volume is accounted for by reduction of trading activities in the reporting period.
According to a company report on the Warsaw Stock Exchange (WSE) last week, egg production grew by 3.8%, to 1.236 billion. Export of eggs fell by 41.2%, to 266 million eggs. The share of export of total sales was 34% versus 50% a year ago. Average price of eggs fell by 8%, to $0.056 per egg.
The group said that in January-September 2020, 433 million eggs were processed. The output of dry and liquid egg products was 2,597 tonnes (a rise of 19%) and 9,983 tonnes (a fall of 5%).
Sales volume of dry egg products grew by 39%, to 2,417 tonnes, including 71% was exported. Liquid egg products sales fell by 7%, to 9,692 tonnes, including 36% exported.
Average selling price of dry egg products fell by 8% to $4.05 per kg, and average selling price of liquid egg products decreased 16%, to $1.19 per kg.
As of 30 September 2020 total flock of the company was 8.1 million heads demonstrating 3% increase year-over-year. The laying flock grew by 3% year-over-year and reached 6.9 million heads.
“It is worth saying that during the nine months of the year the company has been quite successful in responding to the challenges related the COVID-19 pandemic and unfavorable macroeconomic environment. We have managed to minimize negative effects on the group’s operations and to increase production volumes. In general, the management finds the operational results for the reporting period satisfactory,” CEO Borys Bielikov said.
Ovostar Union, one of the leading producers of eggs in Ukraine, saw its net profit fall by 81.1% in January-September 2019 compared to the same period in 2018, to $2.6 million.
According to the company’s report on the Warsaw Stock Exchange’s website, its revenue decreased by 18%, to $77.63 million, which was due to lower egg sales and negative price dynamics in the reporting period.
Gross profit of Ovostar in January-September 2019 decreased by 2.6 times, to $9.18 million, operating by 4.7 times, to $3.22 million. EBITDA in the reporting period showed a decrease of 3 times, to $5.9 million, EBITDA margin from 18% to 8%.
As of September 30, 2019, total debt amounted to $12 million, net debt to $6.1 million.
As reported, Ovostar in Ukraine in January-September 2019 reduced egg sales by 15.9% compared to the same period in 2018, to 888 million pieces. Egg production during this period decreased by 0.9%, to 1.191 billion pieces.
Ovostar Union is a vertically integrated public holding company, one of the leading producers of eggs in Europe. The manufacturer is a certified exporter to the EU since 2015.
Ovostar Union, one of the leading egg and egg products producer in Ukraine, in January-March 2019 cut shell eggs sales by 2% year-over-year, to 335 million.
According to a company report on the Warsaw Stock Exchange (WSE) last week, export sales of shell eggs grew by 35% year-over-year and reached 186 million, which represents 56% of total number of eggs sold in Q1 2019 (40% in Q1 2018).
Average price of eggs in Q1 2019 decreased 8% year-over-year in U.S. dollar terms, to $0.069 per egg.
The volume of eggs produced in Q1 2019 was 384 million, a slight decline year-over-year. The volume of eggs processed in Q1 2019 grew by 3% year-over-year and reached 142 million.
The volume of dry egg products sold amounted to 532 tonnes, out of which 373 tonnes, or 70%, were exported.
The volume of liquid egg products sold was 3,498 tonnes, out of which export sales equaled 1,636 tonnes or 47%.
Average price of dry egg products decreased year-over-year by 8% to $4.63 per kg; average price of liquid egg products fell by 2%, to $1.46 per kg.
As of March 31, 2019 the company’s total flock equaled 7.86 million hens, including 6.67 laying hens.
“In the first quarter of 2019 unfavorable price dynamics was observed on the local market. However, the company managed to balance the situation by increasing its exports. In general, we are satisfied with the results achieved in the reporting period,” Ovostar CEO Borys Bielikov said.
