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 first quarter ended 31 March 2014.

As at 31 March 2014 the Company’s total flock increased by 11% year-on-year to 4.8 mln hens from 4.3 mln hens as at 31 March 2013. Furthermore, the laying hens flock increased by 18% year-on-year to 3.9 mln hens.

Over the reporting period, egg production increased by 7% year-on-year to 230 mln eggs. Growth of egg production volumes at a slower rate than year-on-year flock growth was mainly attributed to a decrease in average age of the laying hens flock in the beginning of 2014. Shell egg sales volume increased by 13% to 144 mln eggs driven by demand in key sales channels. Our average egg selling price in the 1st quarter of 2014 increased by 3% to 0.730 UAH/piece* compared to 0.706 UAH/piece in the 1st quarter of 2013.

In the 1st quarter 2014 the Company processed 68 mln eggs (1Q 2013: 70 mln eggs). Sales volume of liquid egg products decreased by 9% year-on year to 1,492 tons on the back of decreased demand from the side of our key B2B clients after the Russian Federation has limited Ukrainian confectionary imports. Sales volumes of dry egg products increased by 22% year-on-year to 423 tons as a result of growth in sales volumes to export destinations. Average selling price of liquid egg products increased by 2% to 15.90* UAH/kg while average selling price of dry egg products increased by 5% yoy to 48.56* UAH/kg.

The Company CEO Borys Bielikov has noted:

“Despite current politically charged environment, the Management looks forward to stabilization of the situation in the upcoming months. Following our chosen concept of organic growth, in 2014 we have started implementation of a new investment program on the premises of our production facility in Stavysche. This year, together with an increase in housing capacity for young laying hens and breeder flock, we plan to put into operation three new laying hens houses of 320 ths hen places each.”

*All prices stated in this press-release are indicated net of VAT (20%)

Average exchange rate for the period UAH/USD (NBU) = 8.83