Business news from Ukraine


Ovostar Union, a leading egg producer in Ukraine, cut egg sales by 17% in 2019, to 1.147 billion eggs.
According to a company report on its website, egg production last year fell by 2.35, to 1.587 billion. The share of exported eggs of total sales grew by 4 percentage points in 2019, to 46%, and exports totaled 525 million eggs compared with 587 million in 2018.
“The decrease of shell eggs sales is accounted for by the significant reduction of trading operations in 2019. Average price of eggs in UAH terms fell by 12% y-o-y and reached UAH 1.606/egg, while in U.S. dollar terms the decrease was 7% y-o-y and the price for the year was $0.062/egg (2018: UAH 1.819/egg or $0.067/egg respectively),” the company said.
In 2019 the volume of eggs processed was 577 million, which by 9% exceeds the level of the previous year.
The volume of dry egg products output grew slightly y-o-y and reached 2,969 tonnes. The output of liquid egg products increased by 12% y-o-y up to 13,904 tonnes.

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Ovostar Union agricultural group of companies, one of the leading producers of eggs in Ukraine, in January-September 2019 reduced egg sales by 15.9% compared to the same period in 2018, to 888 million pieces, due to a decrease in trading activity.
According to the group’s report on the Warsaw Stock Exchange, egg production during this period declined by 0.9%, to 1.191 billion pieces.
Egg exports for the nine months of this year were down by 0.7%, to 440 million eggs. The share of exports in the total volume of egg sales was 50% compared to 42% for the same period in 2018.

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Ovostar Union, one of the leading egg and egg products producer in Ukraine, in January-March 2019 saw $4.5 million in net profit, which was 38.7% more than a year ago.
According to a company report on the Warsaw Stock Exchange (WSE), revenue fell by 8%, to $31.14 million. This is linked to the decrease in the egg and egg products prices.
Gross profit in January-March fell by 30%, to $7.82 million, and operating profit – by 47.4%, to $4.57 million.
Export sales over the period grew by 24.8%, reaching $18.02 million. The share of export grew from 43% to 58%.
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell to $5.4 million ($9.5 million in January-March 2018).
“The first quarter of 2019 proved to be challenging for the egg industry due to the reduction of selling prices both on local and export markets. With regard to the unfavorable market situation, the management believes that the results achieved by the company in the reporting period are quite satisfying,” CEO Borys Bielikov said.



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.

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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.

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