November 18, 2013

 
Ovostar announces Jan-Sep financial results

For the first nine months of 2013, Ovostar Union N.V., one of the leading egg and egg products producers in Ukraine, announces publication of the Group's report for the nine months of 2013.

Over the nine months of 2013 total revenue of the group increased by 34% to US$54,037,000 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 US$19,231,000 while gross margin amounted to 36% compared to 42% in nine months of 2012.

During January-September 2013 earnings before interests, taxes, depreciation and amortisation (EBITDA) increased by 11% to US$17,741,000 while EBITDA margin reached 33% compared to 40% in the nine months of 2012. Over the same period, operating profit of the group increased by 10% to US$15,080,000. Selling expenses increased by 36% to US$3,344,000 in line with growth in volumes sold and administrative expenses increased by 52% to US$2,056,000 mainly as a result of administrative building reconstruction.

Over the reporting period the group's operating cash flow increased to US$12,932,000 from US$9,482,000 in nine months of 2012. Over the nine months of 2013 net profit increased by 5% over the same period last year to US$14,912,000.

During the nine months of 2013, Ovostar Union continued implementation of the investment programme in accordance with original schedule. Management of the group acknowledges possibility of a delay in putting the last poultry house of 300,000 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 programme will be realised in 2014, yielding egg production volumes of 1.1-1.2 billion.