Ovostar posts 28% yoy EBITDA decline, despite revenue growth

Ovostar (OVO PW) reported a 19% yoy increase in 1H13 revenue to USD 33.1 mln on August 30, supported by growth in all three of its business segments. Revenue in its key egg production segment grew 5.3% yoy to USD 20.6 mln, following a 14% increase in egg sales to 257 mln, though prices fell 8% yoy to USD 0.75 per 10 eggs. The company increased its laying hen flock by 37% over the period to 3.36 mln. Ovostar reported an EBITDA decrease of 28% to USD 9.5 mln, while its EBITDA margin declined to 29% from 47% in 1H12. A decrease in profitability occurred due to growing fodder component costs, as well as due to an increase in selling and administrative expenses, the company said. Net profit slid 44% yoy to USD 6.8 mln in 1H13.