Ovostar increases revenue 37%, EBITDA 2.6x in 1Q21

18 May 2021

Ukraine’s egg producer Ovostar Union (OVO PW) reported a 37% yoy growth in net revenue to USD 32.17 mln, according to its May 14 filling. The company’s EBITDA surged 2.55x yoy to USD 5.42 mln, with the EBITDA margin jumping 8pp to 16.8%. Ovostar’s bottom line increased 4.0x yoy to USD 4.73 mln in 1Q21.

 

The company’s operating cash flow before working capital changes grew 2.5x yoy to USD 6.07 mln, while net cash flow from operations increased 10% yoy to USD 4.43 mln. Ovostar’s CapEx declined 94% yoy to USD 0.07 mln. Its net debt increased 41% yoy to USD 8.81 mln, while its cash balance fell 76% to USD 1.49 mln as of end-1Q21.

 

Andriy Perederey: The company’s 1Q21 fundamentals were driven by a strong shell egg price increase. The average shell egg price jumped 99% yoy to UAH 0.26/unit in Ukraine. We expect that egg prices will correct in the second and third quarters, but will remain stronger on a year-on-year basis, which will slow the company’s revenue and EBITDA growth. We are keeping our neutral view on Ovostar stock.