The CEO of Ukrainian egg producer Ovostar Union says he considers the company’s financial performance for the first nine months of the year to be “satisfactory,” in spite of the challenges brought on by the war in the country.
The company released financial results for the first nine months of the year on October 25.
In response to the impacts of Russian military invasion, Ovostar Union earlier announced that it made steps to adjust its operation to the challenging business environment, including reducing the size of its laying flock to better fit the current domestic demand for eggs demand.
As of September 30, the company’s total flock was 6.84 million birds, down from the 7.98 million birds it had on that same date in 2021, while its laying flock on September 30 was 5.75 million, down from year-ago levels of 6.63 million.
Over the first nine months of the year, Ovostar Union produced 1.19 billion eggs, down from the 1.25 billion eggs produced by that point in 2021.
The company’s sales volume of shell eggs dropped from 844 million eggs to 824 million, while the average selling price remained consistent year-over-year.
The output of liquid egg products was down from 10,122 tons to 7,609 tons, while the output of dry egg products rose from 2,134 tons to 2,239 tons. The sales volumes for both dry and liquid egg products dropped, but the average selling pric for dry egg products rose 80% and the average selling price for liquid egg products rose 10%.
"During the third quarter of 2022 the companies of the group kept operating under pressure of risks and uncertainties caused by the ongoing Russian military invasion in Ukraine. Previously reported reduction of the flock resulted in the 5% decrease of the volume of eggs produced as compared to the 9 months of 2021," said Ovostar Union CEO Borys Bielikov. The sales volume in the egg segment, however, decreased by just 2% year-over-year due to the lower volumes of processed eggs. Within the egg products segment the focus was placed on production of dry products that have longer shelf life. Taking into account the specifics of the current operational environment in Ukraine, the management finds the operational performance of the group for the nine months of the year satisfactory."