Ovostar Union N.V. (WSE: OVO) (hereinafter “the Company”), a vertically integrated holding company, one of the leading egg and egg products producers in Ukraine, announces its unaudited operational results for the year 2011.
The Flock
Within the framework of its current investment program, the Company has increased its laying hens capacities by 28% in 2011 from 2.1 to 2.7 mln hen places. As of December 31, 2011 the total flock size was 3.1 mln birds (2010: 2.4 mln birds), including 2.3 mln laying hens (2010: 1.8 mln laying hens).
Revenue (unaudited)
The Company revenue for 2011 increased 36% to UAH 400 mln compared to the previous year (2010: UAH 295 mln).
Egg sales
During 2011 the Company sold 439 mln eggs, 25% more than the previous year (2010: 351 mln eggs). The Company sold eggs at an average price of UAH 0.62* per 1 egg in 2011 while in 2010 the average price per 0.55* UAH per 1 egg (a 14% increase).
The Company exported 79 mln eggs in 2011, 74% more than the previous year (2010: 45 mln eggs).
Egg products sales
The Company has sold 1 338 tons of dry and 4 072 tons of liquid egg products in 2011 (2010: 1 107 and 3 285 tons, respectively). The average selling price for dry egg products increased 14% to UAH 40.32* per kg while the price for liquid egg products increased 7% to UAH 13.24* per kg.
The Company exported 217 tons of dry egg products in 2011 (2010: 220 tons).
Sunflower oil sales
The Company sold 1 432 tons of sunflower oil at the average selling price of UAH 7 763* per 1 ton in 2011.
Investment program
The investment program is being implemented according to schedule.
The third of six poultry houses on the egg production site has been fully reconstructed and currently is in the process of equipment installation. The reconstruction of the fourth laying hens house is currently 60% completed.
On the young laying hens site, the first poultry house has been launched, the second poultry house has been fully reconstructed and currently is in the process of equipment installation. The reconstruction of the third poultry house is currently 30% completed.
On the egg processing plant the equipment for pasteurization and the egg breaking machine have been already mounted and currently are in the process of commissioning works. The management expects the full cycle of reconstruction to be completed in February 2012.
Overall, the Management assessment of the Company results for 2011 is optimistic. The strategic focus of the Company still lies within the development of the YASENSVIT egg brand as well as strengthening the quality leader position for Ovostar egg products. For the Company, 2011 was marked by its increasing presence on the export markets, strengthening the level of its vertical integration as well as expanding production capacities in line with its investment program.
*All prices indicated net of VAT (20%)
UAH/USD exchange rate (31.12.2011) = 7.9898
For investor relations inquiries please contact:
Ekaterina Pavlovskaya
GC «Ovostar Union»
Senior Expert of Investment Department
Cell +38 050 411 33 37
E-mail: e.pavlovskaya@invest.ovostar.ua
