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 six months ended 30 June 2015.
Revenue, gross profit and gross margin
In the 1H 2015 the Group’s revenue in USD terms decreased by 2% year-on-year to mUSD 33.5 (1H 2014: mUSD 34.2). Gross profit increased by 14% to mUSD 14.2 from mUSD 12.4 while gross margin amounted to 42%. Share of export sales increased by 10% and amounted to 26% of total revenue over the reporting period.
Operating profit, EBITDA and cash flow from operating activities
Over the 6 months of 2015 operating profit increased by 30% to mUSD 14.9 from mUSD 11.4. Selling and administrative expenses compressed by 36% year-on-year to mUSD 1.4. EBITDA amounted to mUSD 15.9 (1H 2014: mUSD 13.4) while EBITDA margin increased from 39% to 47% year-on-year. Cash flow from operating activities increased to mUSD 12.0 in the 1H 2015 from mUSD 7.6 in the same period last year.
Net profit and exchange differences on translation to presentation currency
Over the 6 months of 2015 net profit increased by 42% to mUSD 15.9 (1H 2014: mUSD 11.2). Due to Ukrainian hryvnia devaluation during the 1H 2015, the Group has recorded negative exchange differences on translation to presentation currency in the amount of mUSD 24.5 that have been reflected in the income statement.
The Group’s CEO Borys Bielikov noted:
“The management team of Ovostar Union Group is content with results that have been achieved in the first six months of 2015. During the reporting period, we succeeded to maintain revenue in key operational segments in USD terms comparable to 1H 2014 results despite adverse macroeconomic performance. At the same time, higher margins have been ensured by gradually recovering egg and egg products prices on the domestic market and strengthening of our export positions together with lower year-on-year cost of corn and wheat in U.S. dollar terms.”