One of the leading producers of eggs and egg products in Ukraine is to grow further in Y2016, aiming to increase total shell eggs production by 21% up to 1 450 mln eggs.
To reach this figure, taking into account domestic market stagnation (following significant increase of prices as a result of UAH devaluation and decrease of real purchasing power of Ukrainian population), the company is to focus on export. Basing on recent company presentation Ovostar intends to obtain certification for export of consumer shell eggs to the EU by the end of Y2015 (certification for processing eggs was obtained in Y2014), so is to start export of these products to EU in Y2016.
To increase production volumes, the company continues its investment program, constructing new laying hens houses. Stage 1 (8 laying hens houses) is planned to be finished in April’16 (to add additional 520k hen places to current capacities of close to 5M places), then stage 2 is to start. In total for Y2016 the company projects to increase laying hens flock up to 6M heads vs. 5M heads in Y2015. Generally by the end of current investment program (Y2018) egg production is expected to reach 2 bln pieces per year (1.2 bln is estimated figure for Y2015).
Recently the company published its 9m2015 financial report, demonstrating decent financial performance and having good balance sheet structure with low debt. Focusing on export operations, and despite some negative short-term effects from UAH devaluation, the company can be seen as one of potential winners from UAH devaluation in middle- and long-term period of time.