Ovostar Union EBITDA regressed 2x in Q1 2019

Ovostar Union EBITDA in Q1 2019 fell to USD 5.4 mln, 44 per cent lower from the previous comparative period's indicator (Q1 2018: USD 9.5 mln).

Over the 3 months 2019, net profit reached USD 4.5 mln (1Q 2018: USD 7.3 mln).

"In Q1 2019 The Group’s revenue equalled USD 31.1 mln, demonstrating 8 per cent fall YoY (Q1 2018: USD 33.9 mln). The dynamics is accounted for by the respective decrease of selling prices of eggs and eggs products," the company's report says.

In the reporting period, the share of export sales went up to 58 per cent of total revenues and reached USD 18.0 mln (Q1 2018: 43 per cent and USD 14.4 mln, respectively).

Learn more: TOP 7 Egg Exporters from Ukraine in 2018

The gross profit in Q1 2019 equalled USD 7.8 mln, resulting in 25 per cent gross profit margin (1Q 2018: USD 11.2 mln and 33 per cent). The main factors that negatively influenced marginality are the reduction of selling prices of eggs and egg products alongside the increase of cost of sales.

"The Group’s operating profit for the reporting period was USD 4.6 mln (Q1 2018: USD 8.8 mln). EBITDA fell respectively to USD 5.4 mln (Q1 2018: USD 9.5 mln). Net cash flow from operating activities during the 1Q 2019 was USD 4.4 mln (Q1 2018: USD 9.1 mln)," the company informs.

Ovostar Union increased the volume of eggs processed in Q1 2019 by 3 per cent YoY and reached 142 mln (Q1 2018: 139 mln).