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 financial statements for the nine months ended 30 September 2014. Brief summary of key developments over the reporting period is described below.
Financial results
Revenue, cost of sales and gross profit
Despite significant Hryvnia devaluation over the reporting period, in 9M 2014 total revenue of the Group decreased by only 1% year-on-year to USD 53 375 ths as a result of solid operational performance and growth of UAH-based prices for eggs and egg products. Cost of sales decreased by 10% to USD 34 957 ths as a result of a lower fodder cost over the reporting period compared to 9M 2013. Gross profit in 9M 2014 amounted to USD 21 182 ths representing 40% gross profit margin compared to 36% in 9M 2013.
Operating profit and EBITDA
In 9M 2014 operating profit increased by 20% reaching USD 18 149 ths. EBITDA increased by 19% to USD 21 084 ths and selling and administrative expenses decreased by 14% to USD 2 865 ths and USD 1 761 ths, respectively.
Net profit
In 9M 2014 profit before tax and net profit increased by 26% to USD 18 874 ths and USD 18 821 ths, respectively. Net profit margin in 9M 2014 reached 35% compared to 28% in 9M 2013.
The Group’s CEO Borys Bielikov has noted:
“Today we continue following our organic growth strategy. Our solid financial performance and sustained profitability over the nine months of 2014 has been secured by export sales revenue increase of 74% and low leverage coupled with growth in egg production.”
