Ovostar Union N.V. (WSE: OVO) (hereinafter “the Group”), a vertically integrated holding company, one of the leading egg and egg products producers in Ukraine, announces publication of the Group’s report for the nine months of 2013. Brief summary of key developments over the reporting period is described below.
-Revenue increased by 34% yoy to USD 54 mln;
-Gross profit increased by 14% yoy to USD 19 mln;
-EBITDA increased by 11% yoy to USD 18 mln;
-Net profit increased by 5% yoy to USD 15 mln.
Revenues, gross profit and gross margin
Over the nine months of 2013 total revenue of the Group increased by 34% to USD 54,037 ths as a result of increased sales volumes in all three segments and selling prices for eggs and egg products. Gross profit increased by 14% to USD 19,231 ths while gross margin amounted to 36% compared to 42% in 9 months of 2012.
Operating profit, EBITDA and operating cash flow
During 9M 2013 EBITDA increased by 11% to USD 17,741 ths while EBITDA margin reached 33% compared to 40% in 9M 2012. Over the same period, operating profit of the Group increased by 10% to USD 15,080 ths. Selling expenses increased by 36% to USD 3,344 ths in line with growth in volumes sold and administrative expenses increased by 52% to USD 2,056 ths mainly as a result of administrative building reconstruction.
Over the reporting period the Group’s operating cash flow increased to USD 12,932 ths from USD 9,482 ths in 9 months of 2012.
Over the nine months of 2013 net profit increased by 5% over the same period last year to USD 14,912 ths.
Investment program update
During the nine months of 2013 Ovostar Union continued implementation of the investment program in accordance with original schedule. Management of the Group acknowledges possibility of a delay in putting the last poultry house of 300 ths hen places into operation on the Vasylkiv production site due to poor weather conditions in the beginning of October 2013. As a result, the building may be launched in the beginning of January 2014 rather than December 2013.
Full effect of this production capacity expansion program will be realized in 2014, yielding egg production volumes of 1.1-1.2 bln.
UAH/USD exchange rate (9M 2013 average) = 7.9930
Click here to view full report of Ovostar Union N.V. for the nine months of 2013
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