Avangardco, the largest producer of shell eggs and dry egg products in the Ukraine, reported a net loss of US$4 million for the first quarter of fiscal year 2016. While it is still a loss, the results reflect a year-over-year improvement, as Avangardco experienced a net loss of US$52.2 million during the first quarter of fiscal year 2015.

“Taking into consideration the challenging economic and market conditions, we managed to achieve good financial results for the first quarter of 2016,” said Nataliya Vasylyuk, CEO of Avangardco. “The company’s EBITDA amounted to US$9.6 million with EBITDA margin of 24 percent. However, we ended with the first quarter with a net loss of US$4 million. This was largely due to changes in the special [value-added tax] regime and the [foreign exchange] differences.”

Shell egg production and sales

Avangardco reported that its shell egg production declined 40 percent, its shell egg sales dropped 55 percent, and exports of shell eggs declined 31 percent, all on a year-over-year basis. However, the average sales price of shell eggs per unit was up 43 percent, which allowed the company to offset its losses in terms of volume.

Dry egg products business

Production of dry egg products was up 37 percent when compared to the first quarter of fiscal year 2015, although the sales of dry egg products dropped 50 percent. Exports of dry egg products dropped 35 percent year-over-year, and the average sales price for dry egg products was up 8 percent.

According to the WATTAgNet Top Poultry Companies Database, export markets accounted for 37 percent of the Avangardco's revenues in 2014.