February 4, 2024

During the last reporting quarters, the Ovostar company reduced the volume of exports of eggs in the shell and increased their processing into egg products.

	Q4 2023	Q4 2022	2023	2022
Eggs output, mln	383	356	1531	1546
Shell eggs sales, mln	236	258	970	1082
Shell eggs export, mln	64	67	344	290
Domestic shell eggs sales, mln	172	191	626	792
Eggs processing, mln	138	88	492	427

Ovostar, one of the largest Ukrainian egg producers, has published its operating report for the fourth quarter and the full year 2023.

According to the report, the total poultry flock continues to increase compared to previous periods and as of the end of December made 7.7 million heads.

As a reminder, the company's total flock reached its maximum value - 8.4 million heads - at the end of 2021 and significantly decreased during the first half of 2022 (to 6.26 million heads). Therefore, the company is currently continuing to restore the flock.

In the reporting quarter, Ovostar produced 383 million eggs, 8% less than in the previous quarter and 7.5% more than in the fourth quarter of 2022.

In total, in 2023, the total eggs output by the company amounted to 1,531 million pieces, flat y-o-y.

Regarding the sale of eggs, several important changes took place in the third quarter of 2023 in comparison with previous quarters, namely, the export of shell eggs decreased and the volume of egg processing increased.

The trend continued in the reporting quarter as well. Exports of shell eggs amounted to only 64 million pieces (the lowest value since the first quarter of 2022 and 38% less than in the second quarter of 2023). Domestic sales of eggs amounted to 172 million pieces (184 million pieces in the previous quarter), processing volumes - 138 million pieces (141 million pieces in the previous quarter).

In such a way, the company tries to adjust the volumes of different product sales in different markets depending on the situation in those markets (for example, in Ukraine, the price of eggs at the end of 2023 was lower compared to the corresponding period of 2022).

In total, in 2023, the Ovostar company exported 344 million pieces of shell eggs (+18% compared to 2022 due to significant volumes of exports in the first half of 2023).

Sales on the domestic market, on the contrary, decreased - from 792 million eggs in 2022 to 626 million eggs.

The volume of egg processing in 2023 was 492 million pieces, in 2022 - 427 million pieces.

We expect strong financial results for the company in 2023, our analysis of results for the nine months of the year is available at the link.