Ovostar boosts eggs production by 15.5% y-o-y in 1H11

Ovostar Union (WSE: OVO PW) increased its eggs production by 15.5% y-o-y to 291 mln eggs in 1H11 and sales of eggs by 38% y-o-y to 230 mln eggs in volume terms, the company reported in a statement yesterday. In 1Q11 and 2Q11, the company produced 143 mln and 148 mln eggs, respectively. The company attributed production growth to the lower average age of its flock, improved operational efficiency and an increase in the number of laying hens. The average sale price reached UAH 0.582 per 1 egg (net of VAT), representing a 5.2% y-o-y increase. In line with its sales channel diversification strategy and favorable external demand, the company exported 54 mln eggs in 1H11, up 240% y-o-y. Ovostar said it processed 84 mln eggs in 1H11, up 28% y-o-y. The average price for dry egg products was UAH 37.60 per kg (net of VAT) and for liquid egg products UAH 12.50 per kg (net of VAT). Ovostar Union is an egg and egg product producer; the company placed 25% of its shares on the Warsaw Stock Exchange in June 2011.