Ovostar Union net profit down a quarter
In the year 2018, Ovostar Union reduced its net profit by USD 5.4 million (24 pct) to USD 17.5 million (2017: USD 22.9 mln), the WSE reports.
The company's gross profit totalled USD 30.7 for 2018. EBITDA equalled to USD 21.9 mln demonstrating a 17 pct decrease YoY (2017: USD 26.5 mln).
Total revenues in 2018 went up by 27 pct as compared to the previous year and reached USD 125.0 mln (2017: USD 98.7 mln). The main
factors accounting for the increase being larger sales volumes and higher prices of shell eggs and egg products as compared to 2017. The contribution of shell egg segment to the total revenues in 2018 was USD 91.0 mln, or 73 pct (2017: USD 67.7 mln, or 69 pct). Egg products segment contributed USD 34.0 mln, or 27 pct (2017: USD 30.1, or 31%).
In 2018, Ovostar's export revenues grew by 17 pct as compared to 2017 and totalled USD 55.7 million, the export cash flows were received mostly in USD and EUR. The Middle East remains its key export market as the region is rather close in distance via sea transportation and can offer an attractive price for eggs and egg products. Its share in the export sales is 58 pct (2017: 62 pct). Revenues from European clients in 2018 made up 37pct of total export revenues (2017: 31 pct). 3 pct of total revenues were generated by clients in Africa, the remaining 3 pct — by clients from other countries.
"Our goal has been to produce ecologically clean and healthy food for our clients in Ukraine and abroad. We are growing organically by gradually increasing the volume of eggs produced and expanding the range of egg products offered. With focus on developing the export markets, we are expanding our sales geography supplying shell eggs and egg products of consistently high quality around the countries of Europe, Middle East, Africa and Asia," the company says in the statement.
Previously it was reported that Ovostar Union was one of the key exporters of eggs from Ukraine in 2018.
