Ovostar reports sustained growth and eyes expansion
Ovostar Union, a vertically integrated holding company of a leading egg and egg products producers in Ukraine, has announced an increase in profit, revenue and production in its financial and operational results for the first half of 2012.
In H1 2012 revenue of the Group increased by 26% compared to the first half of 2011, reaching USD 28 mln. Revenue growth was supported by the increase in egg and egg product prices as well as revenue from sunflower processing segment. During H1 2012 gross profit increased by 57% to USD 14 mln as a result of lower realized fodder cost compared to H1 2011.
As of 30 June 2012 the total flock reached 3.5 mln birds comparing to 2.5 mln birds as of 30 June 2011 (3.1 mln birds as of 31 December 2011).
In H1 2012 the volume of eggs produced increased by 12% YoY to 324 mln eggs. The volume of eggs sold reached 226 mln remaining at the level of H1 2011 but this has been offset by the increase in the average egg price in H1 2012 by 12%.
In H1 2012 the Group sold 2,133 tonnes of liquid and 389 tonnes of dry egg products. The Group sold less dry egg products in H1 2012 due to the Ovostar egg processing plant working below capacity in January and February 2012 caused by the installation and commissioning of new egg breaking, pasteurization and packaging equipment.
In H1 2012, as a part of the declared investment program, three laying hens houses of 309,000 hen places have been launched on laying hens site and two young laying hens houses of 130,000 hen places have been launched on young laying hens site. In February 2012, expanded capacities of egg processing plant have been installed. The 2011-2012 investment program will be completed by 10 September 2012. Laying hens flock settlement of the last building will be finalised by the end of September 2012.
In June 2012 the Group has commenced a new phase of production capacities expansion that will allow by the end of 2013 to install additional 1.5 mln laying hens places furnished with the most up to date equipment. This expansion of capacities is very similar to the 2011-2012 investment program and it will fully complete reconstruction of Poultry Farm Ukraine production site.
“Our operating and financial performance in H1 2012 supports the growth target laid out in the beginning of 2012. We are delighted with the achieved results and look forward to a successful second half of the year,” said CEO Borys Bielikov .
“We shall proceed with the chosen development strategy employing most up to date industrial poultry technologies. Meanwhile, the Group’s 2011-2012 investment program will be successfully completed by 10 September 2012 marking an important strategic milestone that has been achieved by Ovostar Union since the IPO on the WSE”.
Source: Ovostar
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