Ovostar Union net profit plunges by 25% YoY in 9M 2021

One of the largest egg and egg products producers in Ukraine, the company Ovostar Union, generated USD 2.8 mln of net profit in 9M 2021, 25% lower YoY (9M 2020: USD 3.8 mln).

Ovostar Union total revenue for the nine months of 2021 amounted to USD 94.4 mln, which is by USD 26.5 mln, or by 39%, exceeds the level of the nine months of 2020 (9M 2020: USD 67.8 mln). The company explains the increase by the following factors:

• larger sales volume of shell eggs as compared to the previous year (+10% YoY)
• increase of prices of shell eggs (+38% YoY) and eggs products (+19% YoY for dry eggs products, +34% YoY for liquid egg products)

As per the report, in 9M 2021 shell eggs segment contributed USD 65.0 mln, or 69%, to the total revenue. The contribution of the egg products segment made up USD 29.3 mln, or 31%. The share of revenues from export sales in 9M 2021 was 30% (9M 2020: 43%).

Operating profit in 9M 2021 was 51% lower YoY and totalled USD 2.2 mln (9M 2020: USD 4.5 mln). EBITDA fell by 29% YoY to USD 5.4 mln (9M 2020: USD 7.6 mln).

Ovostar Union's gross profit for 9M 2021 equalled USD 10.96 mln (9M 2020: USD 10.42 mln).

Earnings per share (EPS) in the reporting period stood at USD 0.48 vs. USD 0.65 in 9M 2020.

The market cap of Ovostar Union for the period Nov. 3-10 revised upward by 2.1% to USD 108 mln.