Ovostar to start investment program in Stavysche complex
According to the presentation published at the official site of Ovostar Uninion for the 5th WSE International Companies Conference, the company plans $11-12 mln investments in modernization and expansion of production and output expansion of its facilities in Stavysche financed with own funds.
In 2014, Ovostar Union plans to complete reconstruction of 2 laying hens houses, 1 young laying hens house and 1 parent flock house; additionally, it is planned to construct an egg sorting facility (equipment to be purchased in 2015).
According to other financial overview in Q1 2014, the company received revenue growth by 11 % driven mainly by increase in volume of eggs sold. Lower year-on-year cost of poultry fodder and increased volumes of production secured gross profit of mUSD 9.8, which is 38% higher than in 1Q 2013. Net profit increased by 54% to USD 7.9 mln. Since the major part of the Group’s debt is denominated in EUR and is allocated on the holding company level, no additional financial expenses have been recorded over the reporting period.
In the presentation it was also stated that currently only a small number of leading companies on the eggs market continue expansion of production capacities and are competitive on the global market. Ukrainian egg market further consolidates as smaller, less efficient and less vertically integrated players are leaving the market. The share of Ovostar company in production of eggs in industrial format in Ukraine in 2013 totaled 8%.
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