24 October 2016
In the last reporting quarter the company increased both export and domestic sales, along with it average selling prices has been much lower than a year ago, which negatively influence profitability. Starting from October domestic eggs prices in Ukraine significantly increased, so profitability in Q4 is to improve.
In line with previous plans total flock of Ovostar further increased Ц up to 7.2M from 6.5M as of 31.12.15. General eggs production in Q3 made 408M, which was by 32% more than in Q3 2015 and by 15.5% vs. Q2 2016. In total in 9m 2016 Ovostar produced 1 078M eggs (+21.4% y-o-y).
Eggs processing volumes in last reporting quarter made 108M pieces (+21% vs. Q3 2015), in 9m 2016 Ц 307M (+23%, rather stable growth dynamics vs. previous year).
Shell eggs sales in Q3 2016 made 292M, thereof 31.5% - export (record-high quarterly export volume for the company, +24% to Q3 2015). Along with export growth domestic realization was stable vs. previous quarter (200M eggs), but grew y-o-y as well - by 24%. Quarterly shell eggs sales dynamics of Ovostar looked follows:
Shell eggs realization price in last quarter made UAH 1.16/egg vs. USD 1.34/egg in Q3 2015 (in USD terms decline was even more significant). Along with it average price somewhat increased vs. Q2 2016, when it made UAH 1.09/egg. Average quarterly realization prices of Ovostar (and its profitability in corresponding quarters) during last period of time looked as follows:
On should note that starting from October, domestic eggs retail prices in Ukraine increased vs. previous months by more than 40%, so that in Q4 we expect significant growth of Ovostar profitability.