Ovostar Union N.V. (WSE: OVO) (hereinafter “the Company”), a vertically integrated holding, one of the leading egg and egg products producers in Ukraine, is announcing operational results of Ovostar Union Group of Companies (Ukraine) for the first half of 2011.
As of June 30, 2011, the total flock size was 2.46 mln birds, including 1.92 mln laying hens (comparing to 1.91 mln in 2010).
In the first half of 2011 production of eggs increased 15.5% to 291 million compared to the same period of 2010. In the Q1 and Q2 2011 the Company produced 143 million and 148 million eggs respectively. The increase was mainly due to lower average age of the flock, improved operational efficiency and marginally higher number of laying hens.
In the first half of 2011 sales of eggs increased by 38% in volume terms to 230 million comparing to the first half of 2010.
In the first half of 2011 the Company realized average egg price of UAH 0.582 per 1 egg (net of VAT), representing 5.2% increase YoY.
In line with sales channel diversification strategy and favorable external demand, the Company sold 54 million eggs on export in the first half of 2011, which represents 240% increase YoY.
In the first half of 2011 the egg products plant Ovostar has processed 84 million eggs, representing a 28% increase YoY.
In the first half of 2011 the Company sold 658 tons of dry and 1 668 tons of liquid egg products. The average selling price for dry egg products was UAH 37.60 per kg (net of VAT) and for liquid egg products UAH 12.50 per kg (net of VAT) compared to UAH 38.44 per kg (net of VAT) and UAH 10.88 (net of VAT) for the same period of 2010, respectively.
The Company has exported 80 tons of dry egg products in the first half of 2011 (in 2010 75 tons of dry egg products were exported).
The investment program implementation is going in-line with the schedule. The reconstruction of poultry house #17 located on Vasylkiv production site is currently 85% completed. Around 80% of the cage equipment purchased from Salmet for poultry house #17 has been already installed .
Other recent developments
During the first half of 2011, the Company has continued expansion of domestic customer base as well as packaged eggs portfolio (a new product, "Bio eggs," has been introduced). The Company has strengthened the commercial relationships with major Ukrainian retail chains by launching four new products in the private label segment – for leading local chains “Furshet”, “Velyka Kyshenia”, Eko” and “Karavan”- the latter two being the Company’ new retail customers.
In April 2011 the Company has been granted an award of the Agrarian Elite of Ukraine for contribution to the development of poultry business in Ukraine and premium product quality.
For investor relations inquiries please contact:
GC «Ovostar Union»
Senior Expert of Investment Department
Cell +38 050 411 33 37