15 November 2018
Financial Results for The Nine Months Ended 30 September 2018
Ovostar Union N.V. (WSE: OVO) (hereinafter “the Group”), a vertically integrated holding company, one of the leading egg and egg products producers in Ukraine, announces its financial results for the nine months ended 30 September 2018.
Revenue, gross profit and gross margin
In 9M 2018 the Group’s revenue increased by 57% year-on-year to mUSD 94.7 from mUSD 60.2. The gross profit amounted to mUSD 23.7 representing 25% gross margin (9M 2017: mUSD 15.2 and 25% respectively). The export sales contributed mUSD 42.6 of revenues, showing a 55% growth y-o-y. The share of export sales amounted to 45% of total revenue over the reporting period.
Operating profit, EBITDA and cash flow from the operating activities
During the 9M 2018 operating profit increased by 51% to mUSD 15.2 from mUSD 10.1. At the same time EBITDA amounted to mUSD 17.3 resulting in the EBITDA margin of 18% (9M 2017: mUSD 12.2 and 20% respectively). Over the reporting period cash flows from the Group’s operating activities equaled to mUSD 23.4 (9M 2017: mUSD 11.8).
Over the 9M 2018 the Company’s net profit reached mUSD 13.8 which by 74% exceeds the result for the previous year (9M 2017: mUSD 8.0).
The Group’s CEO Borys Bielikov noted:
“Management of the Company is in general satisfied with the financial results of the Company for the nine months of 2018. The dynamics of prices for shell eggs and egg products, as well as for the feed ingredients, give grounds to expect sound results by the end of the year.”