21 November 2022

In Q3 one of the biggest Ukrainian eggs producers shows acceptable operating and financial performance.

In reporting quarter Ovostart decreased eggs output both q-o-q and y-o-y by 6%. Volumes of sales in natural terms decreased by approximately the same percentage, but due to prices growth revenues of the company increased by 2% y-o-y (up to $33.7M).

Net cost of eggs production in USD terms decreased which positively influenced profitability.

Operating cash flow of Ovostar in reporting period was positive as well and made $5M.

Since the beginning of the current year and till the end of September Ovostar revenues made $90.3M, by 4% lower y-o-y. Operating profit made $3.6M, operating cash flow $10.8M, so as a result the company slightly decreased its debt (as of September 30 total Ovostar debt made $10M while cash on hand was at the level of $6M).

In general financial standing of the company remains acceptable. We expect improvement of performance in Q4 – mainly in a view of significant growth of domestic eggs prices in Ukraine during September-October.