Avangard sees $52.2 mln in net loss in Q1 2015
Avangard agroholding, Ukraine's largest egg producer, saw $52.2 million in net loss in January-March 2015 compared to net profit o$46.8 million a year ago, the agroholding said in a report posted on the London Stock Exchange.
The company said that its consolidated revenue fell by 52%, to $72.4 million, and exports revenue (33% of total revenue) amounted to $24 million.
Avangard's gross profit came to $14.6 million, which is 76% down year-over-year. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell from $61.2 million in Q1 2014 to $6.4 million in Q1 2015.
Production of shell eggs totaled 1.05 billion, a decline of 44% year-over-year due to the 37% reduction in the number of laying hens due to the closure of poultry farms in the Crimea and Eastern Ukraine. The total poultry flock was 20 million hens as of March 31, 2015, including 16.6 million laying hens.
In Q1 2015 Avangard sold 1.06 billion eggs to third parties, a decline of 16% year-over-year. In the first quarter of 2015, exports of shell eggs decreased by 33% year-over –year, to 108 million units (Q1 2014: 162 million units) due to the decrease in production volumes. The decline in exports was also due to the increased competition between egg producers for export markets.
The average sales price of shell eggs increased by 60% year-over-year, to UAH 1.07 per unit, excluding VAT (Q1 2014: 0.67 UAH per unit, excluding VAT).
Dry eggs products production fell by 83%, to 1,150 tonnes as sufficient inventory of finished products was available as well as due to the changes in the company's sales strategy. Sales of eggs products fell by 55%, to 3,250 tonnes, including 2,120 tonnes was exported. The average price fell by 26%, to $5.24 per kilogram (excluding VAT).
In Q1 2015 Avangard opened new export markets: Bangladesh and Britain.
Avangard is a vertically integrated holding company, specializing in the production of eggs and egg goods. It is the largest player in the Ukrainian egg market.