UKRAINE - Ovostar Union’s management reports being content with its financial results for the first quarter of this year in spite of the challenging political and economic situation.
Ovostar Union N.V. is a vertically integrated holding company and one of the leading producers of eggs and egg products in Ukraine.
The company announced its financial results for the three months ended 31 March 2014.
In this period, the Group’s revenue increased by 11 per cent year-on-year to US$19.5 million (1Q 2013: US$17.7 million). Gross profit for the period increased by 38 per cent to US$9.8 million from US$7.1 million, while gross margin reached 50 per cent due to lower cost of feed in 1Q 2014 than in the same period of the previous year.
The Group’s operating profit for the first quarter increased by 57 per cent to US$8.1 million from US$5.2 million, while EBITDA increased by 42 per cent to US$9.2 million (1Q 2013: US$6.5 million). Selling and administrative expenses in the first quarter 2014 have remained very similar to the same period of 2013. Net cash flows from operating activities increased to US$7.2 million during the three months of 2014 (1Q 2013: US$5.0 million).
Due to devaluation of Ukrainian Hryvnia from 7.99 UAH/US$ to 10.96 UAH/US$ in the first quarter 2014, the Company has recorded negative exchange differences on translation to presentation currency that reached US$40.5 million. In the first three months of 2014, net profit increased by 54 per cent to US$7.9 million (1Q 2013: US$5.1 million).
The Group’s CEO Borys Bielikov comemnted: "The Group’s management is overall content with financial results achieved by Ovostar Union in the first quarter of this year despite the complicated political and economic situation.
"The management of Ovostar Union is reasonably assured that good financial results in year 2014 will be stipulated by efficient business model of the Group together with constant fine quality of our products and stable demand for eggs and egg products.”
TheMeatSite News Desk