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, publishes annual report for the year ended 31 December 2011.
Key financial indicators for 2011:
The Group’s revenues increased by 37%, amounting to USD 50,626 ths due to the increase in volumes sold as well as increase in egg and egg product prices. Gross profit increased by 133% to USD 23,405 ths. Gross margin increased to 46% comparing to 27% in 2010. Increase in gross profit is attributable to increase in production volumes as well as average eggs prices and transition to a more efficient laying hen cross Hy-Line.
Operating profit increased by 119% reaching USD 20,778 ths. EBITDA increased by 93% to USD 22,267 ths due to improved underlying performance of the egg and egg products business segments. Net profit reached USD 20,132 ths.
Key operational indicators for 2011:
The volume of eggs sold increased by 25% to 439 mln pcs due to growing demand for eggs due to increased demand by the largest retail chains.
The volume of liquid egg products sold increased by 24% to 4,072 tons as many clients are switching from shell eggs to liquid egg products. The volume of dry egg products sold increased by 21% to 1,338 tons as a result of increased production volumes of the companies in Ukrainian food industry.
The Group’s CEO Borys Bielikov has noted:
“2011 marks a year of Ovostar Union strong growth in all key business segments. The Group’s outstanding operating and financial performance confirmed appropriateness of the chosen strategy.
We are implementing a growth strategy aimed at more than doubling egg production and processing capacity using modern world-class equipment”.
