Ovostar Union N.V. (WSE: OVO) (hereinafter, the “Company”), a vertically integrated holding company, one of the leading producers of eggs and egg products in Ukraine, announces its operational results for the first quarter of 2013.
As at 31 March 2013 the total flock of the Company increased by 28% to 4.32 mln birds from 3.37 mln birds as at 31 March 2012. Laying hens flock increased by 33% to 3.34 mln birds (3M2012: 2.50 mln birds).
In the 1st quarter 2013 egg production increased by 23% year-on-year to 214 mln eggs (3M2012: 174 mln eggs). The volume of eggs sold increased to 127 mln from 124 mln in the first quarter 2012 while volumes of eggs exported increased 2.4 times to 12 mln eggs. In the 1st quarter 2013 egg selling price decreased slightly by 2% to 0.706 UAH/piece* compared to 0.718 UAH/piece in the first quarter 2012.
Egg products segment
In the 1st quarter 2013 the Company processed 49% more eggs than in the 1st quarter 2012 reaching 70 mln eggs (3M2012: 47 mln eggs). As a result, selling volumes of dry and liquid egg products increased considerably. In the first three months of 2013 the sales volume of dry egg products increased by 92% to 346 tons and sales volume of liquid egg products increased by 61% to 1 639 tons (3М2012: 180 and 1 020 tons, respectively). Average selling price of dry egg products increased by 8% reaching 46.18 UAH/kg while average selling price of liquid egg products decreased slightly by 2% to 15.54 UAH/ kg as a result of product mix restructuring (3M2012: dry egg products: 42.79 UAH/kg, liquid egg products: 15.83 UAH/kg).
The Company’s 2012-2013 investment program is being implemented in accordance with schedule. Equipment installation is being finalized in the second laying hens house of 309 ths hen places. This laying hens house will be launched in May 2013. All necessary equipment required for expansion of grain storage facility by 10 ths tons has been delivered and in March 2013 the Company has started installation of the grain elevator. Expanded capacities of grain storage are expected to be launched in August 2013.
Packaged shell eggs with modernized Yasensvit logo are available in the retail chains starting February 2013.
Among other key developments, in the 1st quarter 2013 the Company has started production of private label eggs for METRO under Fine Food trademark and also signed a contract with Zhytomirsky meat processing plant to supply egg products.
*All prices stated in this press-release are indicated net of VAT (20%)
UAH/USD exchange rate as at 31.03.2013 = 7.9930
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