Ovostar Union, one of the leading producers of eggs in Ukraine, will invest EUR85 million in egg production in Latvia until 2026, Arnis Veinbergs, the chairman of the board of Gallusman LLC from Ovostar Group, has said. According to him, Gallusman ordered equipment from Big Dutchman for EUR 26 million. This equipment will provide the company with opportunities for exports, as the demand for eggs laid by hens not in cages is growing.
The construction of the enterprise is scheduled for the second half of 2019, the likely location is Tukums or Ogre. It is planned to keep up to 8 million hens at the Gallusman enterprise, a feed production workshop and a biogas station are also envisaged.
Gallusman’s largest owner is Ovostar Union N.V. PLLC, a company registered in the Netherlands. Its beneficiaries are citizens of Ukraine Borys Belikov and Vitaliy Veresenko. The agro-industrial group of companies Ovostar Union is one of the leading manufacturers of eggs and egg products in Ukraine.
Ovostar Union, one of the leading producers of eggs and egg goods in Ukraine, received $7.3 million of net profit in January-March 2018, which is 1.7 times more than in the same period in 2017. According to the company’s report on the Warsaw Stock Exchange’s website, Ovostar’s revenue increased 1.7-fold, to $33.9 million, due to an increase in sales and prices. Export sales for the reporting period doubled and reached $14.4 million compared to the same period in 2017, while the share of exports in total revenue was 43%.
The gross profit of the company for January-March 2017 increased by 1.9 times, to $11.2 million, while gross margin was 33%. Operating profit doubled to $8.8 million, EBITDA rose by 1.9 times, to $9.5 million, and EBITDA margin stood at 28%. Net operating cash flow for the period amounted to $14.9 million.
“Adhering to the strategy of export markets development, in the first quarter of 2018 the group continued raising its export share, paying special attention to the EU market, which led to a significant increase in revenues from foreign customers,” company director general Borys Belikov said.
Ovostar Union, a leading shell egg and egg products producer in Ukraine, saw a 2% rise in net profit in 2017, to $22.9 million.
According to a report of Ovostar published on Friday, revenue last year grew by 27%, to $98.7 million, and gross profit – by 18%, to $30.8 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 10%, to $26.5 million.
Assets rose by 19%, to $131 million, noncurrent liabilities narrowed by 20%, to $9.8 million and current grew by 52%, to $14.3 million.
Total debt fell by 11%, to $13.6 million, and cash and cash equivalents – by 23%, to $15 million.
The shell egg segment generated 69% of total revenue, the egg products segment – 30% and oil segment – 1%. Export revenue doubled, to $47.7 million. The share of products sold in Ukraine was 52%, that in the Middle East – 30%, the EU – 15% and other countries – 3%.
In 2018, Ovostar’s export sales are expected to generate around 50% of its total revenue, provided that no external factors negatively influence the egg industry.
“In terms of operating results, we expect the share of export in total sales volume of shell eggs to remain over 40%, of dry egg products – over 70% and of liquid egg products – over 40%,” the company said.
During 2017 the company decided to put the construction of new poultry houses on hold due to the recorded cases of avian influenza in the south of Ukraine, which led to restrictions in export of shell eggs from Ukraine.
“In 2018 we aim to continue expanding the production facilities and are intended to construct two poultry houses for laying hens, two rearing houses and a fodder mill,” the company said in the report.