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.
The National Bank of Ukraine (NBU) sold $8.7 million in the interbank foreign exchange market from October 5 to October 9, which is 83.1% less than a week earlier ($51.1).
According to the data on the website of the central bank posted on Friday, October 9, during the specified period, the NBU only sold currency and conducted all interventions at a single rate.
According to the central bank, $500,000 was purchased at the best purchase and sale price, and $8.2 million at a single rate.
In general, since the beginning of the year, the regulator bought $4.509 billion into the reserves, sold $3.363 billion, including in March it spent $2.2 billion on supporting the hryvnia, $368.7 million in July, while the central bank’s net purchase in April was $678.80 million, in May it was $660.6 million, in June – $1.155 billion and in August – $460.5 million and in September – $34 million.
Jysk Ukraine LLC (Kyiv), which develops a chain of stores of furniture and household goods (Denmark) in Ukraine, increased sales in Ukraine in the 2020 financial year (September 1, 2019-August 31, 2020) by 23.8% compared to the previous fiscal year, to UAH 2.319 billion.
“The fiscal year of 2020 has ended. Dramatic, unpredictable, but the best in Jysk history: despite the coronavirus, Jysk achieved a record turnover of EUR 4.1 billion, up 7.6% from FY 2019,” Executive Director of Jysk in Ukraine Yevhen Ivanytsia said on LinkedIn.
This is the result of strong pre-coronavirus sales in Europe and Asia and a significant increase in sales compared to the previous period in customer numbers after the company was allowed to reopen stores, he noted.
In particular, following the results of Jysk’s work in 2020 fiscal year in Ukraine, it posted a turnover of UAH 2.319 billion (23.8% more), 13 new stores were opened. Thus, currently there are 67 stores and an online store in Ukraine. The staff is 637 people.
As reported, Jysk Ukraine LLC plans to open 12 new objects annually, and in four financial years to increase the network to 100 stores.
The Jysk network began to develop in Ukraine in 2004 according to the franchising model. In 2012, the parent company bought out all the franchise stores and started developing independently.
The manufacturer of electric systems, Plank Electrotechnic LLC, in the Bila Tserkva industrial park (the project of UFuture Group of businessman Vasyl Khmelnytsky) has noted growth in production and sales by 20-30% a month amid problems with supplies of similar products from China and Turkey due to lockdown, Khmelnytsky has said on its Facebook page.
He recalled that the Plank Electrotechnic launched in the spring of 2019 with reaching the planned self-sufficiency by the end of this year was initially created as a small manufacturer (for 50 people) of products not previously produced in Ukraine (sockets, switches, buttons) for sale in the Epicenter K and Nova Linia networks at prices below the prices set for the Chinese and Turkish similar products.
“But what happened? Now we see the logistic collapse in China, Turkey has closed. The time and cost of sea deliveries have increased significantly, as well as their minimum volume. Now, national operators who need these products must make an advance payment and freeze a significant part of the cash turnover for the products, which will arrive in Ukraine in only three months. Thus, our products have become very popular. And, probably, we will even get ahead of our plan for this year. The concept worked, and in a closed world – even more effectively,” the entrepreneur wrote.
He said that today, the partners of the company understand that this is not the last crisis related to their commercial risks, and decide to focus on the national manufacturer.
“Distributors record the share of 20-30% in the product portfolio for local manufacturers,” Khmelnytsky said.
In addition, he said that, according to the existing demand, it is clear that construction is ongoing, home improvements are being actively done, including in improvements hospitals and schools. “And for us it is an opportunity to gain a certain market share, taking advantage of the global crisis, shifting imports. And the same can be done in other sectors. You ask how to find a niche, where to invest? Here is an idea for you: what we usually supply from China and Turkey should be produced here in Ukraine,” Khmelnytsky said.
“For Ukraine, there is only one prospect: to produce products for ourselves in order to replace imports, and even better, to enter the global market,” he said.
Sales of business and premium class apartments on the Kyiv’s primary market fell by 65-75% amid lockdown in March 2020 year-over-year, reaching 116 apartments, and in April the sales almost stopped, Kiev Standart has said in a survey.
“The situation with the pandemic and the introduction of lockdown directly affected sales, reducing the figure by 65-75%. According to our estimates, only 116 apartments were sold in March 2020, and this was largely due to the achievements of previous periods, and sales in April almost stopped,” the company said in the survey.
The company explained the decline in sales by lockdown restrictions, customer reactions and a shift in the demand vector towards finished facilities or facilities in the final stages of construction, with more than half of the projects at an early stage.
“We should not forget that some of the customers in the high price segment were foreign citizens. For such an investor, the main barrier is the closure of borders, which also makes it impossible to complete the transaction,” the company said.
At the same time, in January-February 2020, the company recorded a doubled sales rate compared to the same period in 2019, totaling 624 apartments.
The total supply on the market of elite new buildings as of April 1, 2020 was 515,000 square meters or 6,100 business class apartments, 72,000 square meters or 504 premium class apartments. In the first quarter of 2020, sales were opened at IFC Intergal City, phases two of UNIT.Home and Greenville Park, Delrey residential complexes.
The average minimum cost in U.S. dollars in the business segment in April decreased 5% compared with the beginning of the year, to $1,700 per sq. m., while in the premium segment, the price increased 4% and amounted to $3,100 per sq. m.
Kiev Standart experts believe that pent-up demand will positively influence the sales after lockdown, but the demand structure will change as the popularity of suburban formats increases.
PrJSC Volodymyr-Volynsky poultry factory (Volyn region), one of the largest poultry producers in Ukraine, has reached a 40% increase in sales of its Epikur brand due to the growth in demand for products since the beginning of quarantine measures in Ukraine, Head of the company’s supervisory board Alina Sych has said.
“In the conditions of market boom, the demand for poultry, as well as for many other food products, has grown by more than 50% and continues being high. Packaged products in the tray became more important, as these products are more biosafe,” she told Interfax-Ukraine.
According to Sych, this is not only because people are loading up on supplies in advance, but also most consumers mostly cook at home during quarantine.
The head of the company’s supervisory said that the sales growth of the Epikur brand increased monthly by 20%, and since the beginning of quarantine measures in Ukraine, the products had reached a 40% growth.
Sych said that in order to meet the growing demand, the poultry factory is operating at full capacity. “We try to keep prices at the same level, but due to a sharp increase in the exchange rate and an increase in the cost of goods and services as well, we are forced to respond to market fluctuations. For example, we buy chickens for rearing in the EU and the level of the euro affects the cost of production, which directly affects the price for consumers,” the head of the supervisory board said, adding that the price of Epikur products has increased from the beginning of quarantine by an average of 10%.
In connection with the coronavirus disease (COVID-19) spread in Ukraine, the poultry factory, as far as possible, transferred office workers to remote work, and for other employees, it strengthened preventive and control measures in line with the recommendations of the Health Ministry.
“We provided workers with masks and respirators, antiseptics are easy available. We regularly disinfect office premises, vehicles, and also follow other preventive measures. Now, it is impossible to enter the territory of the factory without a mask and temperature screening,” Sych said.
PrJSC Volodymyr-Volynsky poultry factory is a Ukrainian-Dutch enterprise. It is one of the five largest producers of chicken in Ukraine, occupying about 6% of the market. The infrastructure of the poultry farm includes 100 poultry houses located at 11 poultry breeding grounds, a slaughterhouse and a feed mill, as well as land for growing forage.