Ovostar Union reports profit despite market turbulence

06-03-2015 | | |
Ovostar Union reports profit despite market turbulence
Ovostar Union reports profit despite market turbulence

Ukraine egg producer, Ovostar Union ended 2014 with a net profit of US$ 23.1 million despite the fall of the exchange rate of the country’s currency hryvnia against dollar and the general problems of the Ukraine economy last year.

In 2013, the company’s profit totaled US$ 31.2 million, which was 34% higher than in 2012. In 2014, the company reduced its revenue compared with 2013 by 6.72% or US$ 5.4 million to US$ 74.9 million, according to the company’s official figures.

Devaluation of the hryvnia

It is noted that the results in dollar terms reduced compared with the previous year because of the continuing devaluation of the hryvnia. From January 2014 to January 2015 the exchange rate of the Ukraine’s currency dropped four times against dollar.

The company stated that its activities last year had not been affected by the armed conflict in the east of Ukraine. This conflict in particular brought losses for other Ukrainian poultry producer, agricultural holding MHP, which had to temporary close its farm Shahtersky Nova in the Donetsk Oblast.

Strong export growth

The company’s operational results among other have been supported by strong indicators of export growth, which according to official data tripled last year and amounted to 89 million pieces.

Vladislav Vorotnikov Eastern European correspondent