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 2016.

As at 30 June 2016 the Company’s total flock has increased by 21% y-o-y to 7.2 million hens, while the laying hens flock increased by 27% y-o-y to 5.9 million hens.

Over the reporting period, egg production increased by 16% y-o-y to 670 million eggs. Shell eggs sales volume increased by 12% to 474 million eggs. With this, in the 1st half of 2016 volume of eggs exported increased 48% y-o-y, from 98 to 145 million eggs, representing a 31% share of export in total volume of shell eggs sold. Average egg selling price during the six months of 2016 increased by 6% to 1.27 UAH/egg compared to 1.20 UAH/egg in the same period previous year.

In the 1H 2016, the volume of eggs processed increased by 23% y-o-y to 199 million units. With increasing demand on liquid egg products from the EU market during the first half of 2016, sales volume of liquid egg products increased by 64% y-o-y to 4 398 tons (the share of export in total volume of liquid egg products sold amounted to 30%). The sales volume of dry egg products remained the same y-o-y and amounted to 925 tons, while the export share in total volume of dry egg products sold equaled to 58%. The average selling price of liquid egg products increased by 17% y-o-y to 28.99 UAH/kg; the average selling price of dry egg products increased by 24% y-o-y to 125.90 UAH/kg.

Investment program

The investment program is being implemented in accordance with the schedule. As at the end of June two out of four poultry houses are completed, while the third poultry house is awaiting the installation of cage equipment.

The Company CEO Borys Bielikov has commented:

“The Management of the Company is satisfied with the operating results for the first half of 2016. We are pleased to observe that the volumes of liquid and dry egg products exported to the EU countries are increasing. We will continue developing our export sales further.”

Note: All prices in this press release are stated net of VAT