November 16, 2012

Ovostar's Jan-Sep 2012 revenue increases 16% to US$40 million

Press release

Ovostar Union N.V. announces its financial and operational results for the nine months ended September 30, 2012 with an increase of 16% in revenue over the same period in 2011 to US$40 million.

In the first nine months of 2012, Ovostar's revenue increased by 16% on-year to US$40 million. Increase in revenue was attributed to the growth in volumes sold and selling prices of eggs and egg products as well as revenue from sunflower processing segment. Gross profit increased by 15% to US$17 million.  Gross margin decreased to 42% from 43% in January-September 2011 as a result of higher realised feed cost in the third quarter of 2012.

Its operating profit increased by 5% on-year to US$14 million while EBITDA increased by 10% on-year reaching US$16 million. Net cash flows from operating activities reached US$9 million compared to US$3 million in the same period of 2011. Its net profit increased by 27% over the same period last year to US$14 million.

The volume of eggs sold reached 326 million remaining at the level of 2011 while the average egg price in 2012 increased by 9% on-year to US$0.079 per 1 egg. Egg segment contributed USD 27.4 million to total revenue.

Ovostar Union has been implementing the 2011-12 expansion programme thereby improving quality of production equipment and infrastructure. As initially declared, this investment programme has been successfully completed in third quarter 2012 with the launch of two laying-hen houses of 309,000 hen places each in July and September 2012.