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 operational results for the nine months ended 30 September 2016.
As at 30 September 2016 the Company’s total flock increased by 19% y-o-y to 7.2 million hens. The laying hens flock increased by 22% y-o-y to 6.0 million hens.
During the 9 months of 2016 the egg production increased by 21% y-o-y to 1 078 million eggs. Correspondingly, sales volume of shell eggs increased by 17% to 766 million eggs. With continuing focus on export markets development, the volume of eggs exported increased by 38% y-o-y, from 172 to 237 million eggs, representing a 31% share of export in total volume of shell eggs sold. Over the reporting period the average egg selling price remained the same y-o-y and amounted to 1.23 UAH/egg.
In the nine-month period of 2016 the volume of eggs processed increased by 23% y-o-y to 307 million eggs. The volume of liquid egg products sold increased by 53% to 6 550 tons. As a result of growing demand from the EU countries, the export share in sales volume of liquid egg products amounted to 28%. The volume of dry egg products sold increased by 12% to 1 522 tons, while its export share amounted to 63%. The average selling price of liquid egg products increased by 13% y-o-y to 28.35 UAH/kg; the average selling price of dry egg products increased by 19% y-o-y to 123.22 UAH/kg.
Investment program update
The reconstruction of laying hens facilities on the premises of Stavysche production complex is continuing. The investment program is proceeding as planned.
The Company CEO Mr. Borys Bielikov has commented:
“The management of the Company is satisfied with the growth rates of production volumes and export sales despite still rather complicated economic situation in Ukraine. In addition to stable demand on our products, positive dynamics of prices on the local market support our confidence in obtaining sustainable results for year 2016”.
Note: All prices in this press-release are indicated net of VAT (20%)