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 operating results for the first quarter ended 31 March 2016.

As at 31 March 2016 the total flock increased by 22% to 6.8 mln hens. The laying hens flock reached 5.6 mln hens, up by 26% year-on-year.

Over the reporting period egg production increased by 15% year-on-year to 317 mln eggs. Sales volume of shell eggs remained the same and amounted to 201 mln eggs, while the volume of shell eggs exported increased by 57%, from 44 to 69 mln eggs. Average selling price of shell eggs increased by 28% to 1.518 UAH/egg compared to 1.185 UAH/egg in the first quarter of 2015.

During the 1st quarter of 2016 the volume of shell eggs processed increased by 19% year-on-year to 94 mln eggs. As a result of development of the EU as the export destination and increased demand of liquid egg products, sales volume of liquid egg products increased by 65% to 2 257 tons. Sales volume of dry egg products amounted to 406 tons, out of which 183 tons were exported. Average selling price of liquid egg products increased by 30% to 30.96 UAH/kg; average selling price of dry egg products increased by 35% year-on-year to 132.76 UAH/kg.

Investment program update

As at the middle of April of 2016 the Company has completed the stage 1 of current investment program at Stavysche production site and started the stage 2.

The Company CEO Mr. Borys Bielikov has commented:

“The Company’s management is satisfied with the pace of investment program implementation and the operating results for the first quarter of 2016. We continue developing the export markets and implementing the innovative solutions for industrial poultry farming.”

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