Avangardco, the largest producer of shell eggs and egg products in Ukraine and number one producer in Eurasia, has reported a 3% year-on-year profit increase to US$ 266.7 mln, in its 2013 financial results.
"2013 was another successful year for Avangardco," commented Irina Marchenko, chief executive officer. "During the year the company produced more than 7 bln eggs and around 23 thousand tonnes of dry egg products, solidifying its position as the largest producer of shell eggs and dry egg products in Ukraine and Eurasia. At the end of the year, Avangardco increased its revenue by 5% to US$ 661 mln. Net profit grew by 4% to US$ 238 mln and EBITDA margin increased to 45.6%.
"In 2013, the Company successfully completed the construction of two poultry complexes for egg production 'Avis' and 'Chornobaivske' with the capacity of more than 11 mln laying hens. As a result the Company's egg production capacity increased to 8.6 bln pieces. The Company installed at these poultry complexes the most advanced technologies and production equipment from the leading suppliers which is expected to result in improved production efficiencies and decrease the cost of production.
"In the reporting period, Avangardco increased the volume of processed shell eggs by 73% year-on-year to 1.864 bln pieces. The significant growth in production volume was due to the successful completion of the first stage of capacity expansion from 3 mln to 6 mln eggs per day at the egg processing plant 'Imperovo Foods'. We plan to further increase its processing capacities up to
10 mln eggs per day to better satisfy the growing demand for egg products due to the increase in food production globally.
"Since the launch of the company over ten years ago, Avangardco has developed a large client base. We sell our products across Ukraine, as well as export them to 33 countries in the Middle East, Africa, Asia and the CIS. In 2013 the company continued to actively develop its export sales which accounted for 29% of total sales revenue compared to 20% in 2012. During the year we exported almost 1.9 bln eggs and egg products in egg equivalent.
"Our 2013 financial results serve as a proof to the success of the company's development strategy. We have completed the construction of our major investment projects. The company is the largest producer of shell eggs and dry egg products in Ukraine and Eurasia, as well as developed a wide distribution network across its key markets while delivering consistently strong financial performance".
Avangardco continues to closely monitor the political situation in the country, which has worsened since the beginning of 2014 and is reassuring all its stakeholders that all the company's production facilities operate as usual.
In 2014, the company expects stable demand for eggs in Ukraine and a growing demand for eggs and egg products in global markets. The Company expects moderate growth in prices for shell eggs and egg products during the year.