Ovostar increases egg output 16% yoy in 2014

Ovostar increases egg output 16% yoy in 2014



23 січня 2015 года
Конкорд Капитал

Ovostar Union (OVO)


Ukrainian egg producer Ovostar Union (OVO PW) boosted its egg production 16% yoy to 1.04 bln units, according to a Jan. 21 company filing. The growth was mainly the result of a 15% laying hens flock increase over the year to 4.4 mln as of end-2014. The company boosted shell egg sales by 25% yoy to 733 mln units, as local sales grew 16% yoy and exports nearly tripled yoy to 89 mln units. The average price of a shell egg increased 15% yoy to UAH 0.82. Ovostar also boosted egg processing 20% yoy, thereby advancing sales of dry egg products 14% yoy and liquid egg products 4% yoy in 2014.



The annual data implies that in 4Q14 alone, Ovostar increased egg output by 22% yoy to 298 mln units, shell egg sales by 37% yoy to 240 mln units, and the selling price of its shell eggs by 10% yoy to UAH 0.95.



Alexander Paraschiy: The company’s 2014 production data is broadly in line with our forecast of 1.0 bln eggs and is slightly below Ovostar’s initial estimate of 1.1-1.2 bln. We are glad to see that Ovostar’s average price of an egg increased faster than Ukrainian official nationwide statistics (+13% yoy in 2014 on average in Ukraine, vs. +15% for Ovostar), while we are slightly concerned about the company’s low increase in egg prices in the last quarter of the year. Overall, we continue to expect that Ovostar will show the best increase in USD-denominated operating and net profit in 2014 in the Ukrainian investment universe.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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