Ovostar decreases revenue 7%, EBITDA 20% in 2014

Ukraine’s egg producer Ovostar Union (OVO PW) reported its final results for 2014 on April 16, which broadly matched the preliminary results disclosed on March 3. The company’s revenue declined 7% yoy to USD 74.8 mln (in line with preliminary data), mainly due to devaluation of the Ukrainian hryvnia that decreased the dollar-based prices of its products. The company decreased its sales in the Ukrainian market 16% yoy to USD 63.1 mln while expanding its export sales 2.1x yoy. The share of the company’s export sales increased from 6.8% in 2013 to 15.6% in 2014, with almost ¾ of export revenue coming from the Middle East.

The company’s 2014 EBITDA was USD 29.1 mln (down 20% yoy, 1% below the earlier provided estimates) and its operating cash flow before working capital changes decreased 8% yoy to USD 26.2 mln. The company’s bottom line was USD 25.8 mln, down 17% yoy and 12% higher than the company had previously estimated. Ovostar provided no plan to pay dividends from its income.

Ovostar has re-iterated its earlier provided egg output forecast, planning to produce 1.25 bln eggs in 2015 (+20% yoy) and 1.6 bln eggs in 2016 (+28% yoy). It also declared its focus on export destinations in its sales policy and disclosed plans to increase egg processing capacities to meet this plan.