Ovostar Union N.V. (WSE: OVO) (hereinafter “the Group”), a vertically integrated holding company, one of the leading egg and egg products producers in Ukraine, announces its financial results for the nine months ended 30 September 2017.
Revenue, gross profit and gross margin
In 9M 2017 the Group’s revenue increased by 12% year-on-year to mUSD 60.2 from mUSD 53.7. The gross profit amounted to mUSD 15.2 representing 25% gross margin (9M 2016: mUSD 16.3 and 30% respectively). The export sales contributed mUSD 27.6, showing a 42% growth y-o-y. The share of export sales amounted to 46% of total revenue over the reporting period.
Operating profit, EBITDA and cash flow from the operating activities
During 9M 2017 operating profit decreased by 19% to mUSD 10.1 from mUSD 12.4. Meanwhile, EBITDA amounted to mUSD 12.2 resulting in the EBITDA margin of 20% (9M 2016: mUSD 14.2 and 26% respectively). Over the reporting period cash flows from the Group’s operating activities equaled to mUSD 11.8.
Due to strengthening EUR against USD, the Group recorded the amount of mUSD 1.8 of foreign currency exchange loss on the long-term EUR-denominated loans. Consequently, net profit over the 9M 2017 amounted to mUSD 8.0.
The Group’s CEO Borys Bielikov noted:
“Despite the challenging market environment for the egg industry over the 9M 2017, the management of the Group is satisfied with the obtained results. Growth in export sales together with current positive price dynamics support our confidence in delivering sound results for the year of 2017.”