Avangardo losses narrow eightfold in 2017

Avangardco, the Ukraine’s leading egg producer, saw its losses narrow during 2017, the company recently reported.

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Ivaylo Georgiev, Freeimages.com
Ivaylo Georgiev, Freeimages.com

Avangardco, the Ukraine’s leading egg producer, saw its losses narrow during 2017, the company recently reported.

The company reported a net loss of US$7.5 million, down eightfold from the net loss of US$56.6 million for 2016.

“Whilst we saw some improvement in Avangardo’s performance towards the end of 2017, the company continued to operate under challenging conditions in both our domestic and export markets. This was particularly the case during the first nine months of the year when we had to sell our shell eggs at below-cost prices as we were suffering from the consequences of the import trade ban on Ukrainian poultry products from several countries, following the avian influenza outbreak in Q1,” Nataliya Vasylyuk, Avandgardco CEO, stated in a press release.

Vasylyuk continued that the company’s sales of dry egg products were further negatively impacted by slower-than-expected return to traditional export markets along with competition from U.S. based companies in its key export markets of the European Union and the Far East.

On the positive side, Vasylyuk reported that Avangardco saw some financial improvements near the end of the year that were driven by domestic seasonal price increase for shell eggs, as well as their growing sales both domestically and abroad.

Avangardco’s outlook for 2018

Vasylyuk said the company will continue to focus on improving its operational profitability while growing both exports and domestic sales as consumer demand is expected to gradually recover.

“2018 is a crucial year for us as we continue to work towards a resolution around restructuring negotiations with our creditors, which we hope will be mutually beneficial,” Vasylyuk said.

The company expects that in 2018:

  • The layer flock will remain near the same levels, but increased productivity from the hens will result in a slight increase in shell egg output.
  • A moderate increase in the sale of shell eggs will be realized, dependent on consumer demand recovery in the Ukraine and further export diversification
  • Sales through retail channels will continue to increase while targeted marketing campaigns will promote value-added products
  • Dry egg products will see a moderate growth in sales, including further sales expansion to the European Union.
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