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 six months 30 June 2015.
As at 30 June 2015 the Company’s total flock has increased by 21% y-o-y to 6.0 million hens. Furthermore, the laying hens flock increased by 12% y-o-y to 4.63 million hens.
Over the reporting period, egg production increased by 24% y-o-y to 580 million eggs. Shell eggs sales volume increased by 41% to 421 million eggs. With this, in the 1st half of 2015 volume of eggs exported increased 2.3 times y-o-y, from 42 to 98 million eggs, representing a 23% share of export in total volume of shell eggs sold. Average egg selling price during the six months of 2015 increased by 70% to 1.20* UAH/egg compared to 0.70 UAH/egg in the same period previous year.
In the 1H 2015, the volume of eggs processed increased by 8% y-o-y to 161 million units. Since the Company paid more attention to export sales during the first half of 2015, sales volume of dry egg products increased by 19% y-o-y to 937 tons (the share of export in total sales of dry egg products amounted to 52%), while the sales volume of liquid egg products decreased by 9% y-o-y to 2 689 tons. The average selling price of dry egg products increased 1.9 times y-o-y to 101.26* UAH/kg; the average selling price of liquid egg products increased by 52% y-o-y to 24.85 UAH/kg.
The investment program is being implemented in accordance with the schedule. In the beginning of the year an egg sorting machine Moba Omnia 500 with a capacity of 180 ths eggs per hour has been installed on the basis of our egg sorting facility. In January and April 2015 two laying hens houses (each with a capacity of 320 ths hen places) have been populated with poultry. Apart from that, new liquid egg white ultrafiltration equipment has been installed on the premises of Ovostar egg processing plant in June 2015.
The Company CEO Boris Bielikov has commented:
“I am pleased to note that in June 2015 the Company has started first shipments of our products to the European Union. Successful expansion of our sales geography is an important tool for the implementation of our organic growth program within the chosen concept. Together with a gradual recovery in prices on the domestic market and strengthening of our export positions, we see a high demand for our products. This serves as a solid basis for our confidence in obtaining sustainable results in the future”.
*All prices in this press release are stated net of VAT (20%)