Net loss of Avangardco Investments Public Limited, the holding company of Avangard agroholding, saw a 7% fall in net loss in January-September 2016 year-over-year, totaling $38.77 million.

According to a company report on the London Stock Exchange (LSE), revenue over the period fell by 37%, to $111.1 million, and exports revenue reached $48.1 million or 43% of consolidated revenue.

Gross profit amounted to $3.2 million compared to $12.9 million a year ago. Gross profit margin fell to 3% (7% a year ago).

Negative earnings before interest, taxes, depreciation and amortization (EBITDA) were $10 million ($84.3 million a year ago).

In Q3 2016 Avangard saw $6.1 million in net loss compared to $1.1 million of net profit year-over-year. EBITDA decreased by 80%, to $2.5 million. Revenue fell by 16%, to $46.4 million largely due to the reduction in sales of shell eggs and egg products by 44% year-over-year and 25% year-over-year respectively, and the drop in the average sales price of shell eggs and egg products in U.S. dollars by 26% year-over-year and 3% year-over-year respectively.

The production volume of shell eggs decreased by 31% year-over-year to 1,895 million units in 9M 2016. Sales of shell eggs decreased by 53%, to 1.09 million units. The number of hens fell by 27%, to 13.8 million hens, including 10.6 million of laying hens. Average price of shell eggs over the period grew by 12% year-over-year, to 1.26 per egg (VAT not included).

The production volume of dry egg products increased by 31%, to 8,612 tonnes. In January-September 2016, sales of dry egg products fell by 29%, to 6,169 tonnes, including a 15% fall in their exports, to 5,570 tonnes. Average price grew by 2%, to $5.66 per kg.

In the reporting period, the company expanded its geographic sales outreach to 15 countries in the EU, Asia, the Far East, the Middle East and North Africa. The company continues to increase its sales to Europe which in 9M 2016 amounted to 58% of exports of dry egg products.

"In Q4 2016, we expect a partial recovery in demand for shell eggs and dry egg products and the sales price for shell eggs in the run up to winter holidays," the company said.

"In 9M 2016, the company saw some operational improvements driven by the gradual recovery of the Ukrainian economy amid slowing rates of both inflation and the devaluation of the Ukrainian hryvnia, as well as a slight decrease in tensions in Eastern Ukraine. Notwithstanding this, low purchasing power of local customers continues to be the main negative factor affecting our profitability and hindering the Company's stabilization," Avangardco CEO Natalia Vasyliuk said.

As at September 30, 2016, the company's total debt amounted to $345.3 million (December 31, 2015: $336.4 million). Net debt amounted to US$330.9 million (December 31, 2015: $305.0 million).