Ukraine's Ovostar increases sales revenues in Jan-Sept due to increased product prices

MOSCOW. Oct 26 (Interfax) - The Ovostar Union agro-industrial group, one of the leading producers of eggs and egg products in Ukraine, significantly increased its sales revenues in January-September 2023 due to increased exports and higher product prices.

Ukrainian media, citing the holding's report on the Warsaw Stock Exchange, said that egg production reached 1.148 billion pieces, which is 3.5% less than a year earlier. Sales volume totaled 734 million pieces (a 10.9% decrease).

Meanwhile, exports increased to 280 million eggs from 223 million, and the share of export in overall sales volume increased to 38% from 27%. At the same time, the average selling price of shell eggs increased 1.5 times, to $0.114 per piece from $0.076 a year earlier.

According to the report, during the reporting period, Ovostar increased egg processing 4.4% to 354 million units. Production of dry egg products reached 1,906 tonnes compared to 2,239 tonnes in January-September 2022, while liquid products totaled 9,374 tonnes versus 7,609 tonnes in the same period last year.

Sales volumes of dry egg products totaled 1,822 tonnes (an increase of 13.1%), of which 1,300 tonnes, or 71%, were exported (67% a year earlier). Sales of liquid egg products increased 20.4% to 9,053 tonnes, including 3,986 tonnes exported (an increase of 28%), or 44% of sales volume (versus 41% a year earlier).

The average selling price of dry egg products decreased slightly, to $8.59/kg from $8.63/kg in January-September 2022, while that of liquid egg products increased by a third, to $2.4/kg.

These indicators bring the volume of sales of main products for January-September this year to $168.3 million, which is 42.4% higher than the figure for the same period in 2022.

The company also reported an increase in the number of poultry of 8.5% to 7.42 million, including 9.2% more laying hens (6.28 million).

"Over the first nine months of 2023, the group managed to increase its livestock. Management is working to bring the structure of production and sales in line with the market situation, which is leading to good operating performance," the company's CEO Boris Belikov said in the materials.

As reported, in 2022, Ovostar reduced egg production 9% to 1.55 billion pieces, while sales decreased 6% to 1.08 billion pieces. Meanwhile, sales of dry egg products decreased by a third to 2,130 tonnes, and liquid products were down 26% to 10,620 tonnes. The company earned $6.09 million in net profit, 3.7 times more than in 2021. Revenue increased 1.7% to $135.63 million.

Ovostar is a vertically integrated group, one of the leading producers of chicken eggs and egg products in Ukraine. The majority shareholder is Prime One Capital Limited, which is controlled by the General Director of the agricultural holding Boris Belikov and Chairman of the Board of Directors Vitaly Veresenko.