Avangard reports first quarter losses
One of the largest egg producers in Ukraine, Avangard has reported operating losses over the first quarter of 2014 due to the unstable agricultural and marketing situation in the country.
Previously, the country's largest poultry producer MHP already reported a sharp fall of profitability in the beginning of the year.
According to the official report released by the holding, Avangard ended the first quarter of 2014 with 2.3% decline of total sales revenue compared to the same period in 2013. Revenue from revaluation of biological assets of the company decreased by 4.9% to US$ 9.28 million.
Experts in general agree that if the current crisis is not resolved quickly the largest agricultural producers will continue to suffer losses, as political tension and the uncertainty around the situation of the East Ukraine negatively affects the whole agricultural industry.
Loss due to devaluation of the Ukrainian national currency constituted US$ 436.6 million, leaving the company with a net loss of US$ 389.8 million. The net loss for the first quarter of 2014 is higher in value than the net income of the company for the entire 2013 by US$ 151.7 million.
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