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In H1 2010 Agro-industrial company “Avangard” increased its net profit by 86 percent

“Avangard”, one of the leading agro-industrial company focusing on the production of egg products in Ukraine, in January-June 2010 increased its net profit by 85,6 percent compared to the same period in 2009 (up to USD 61.9 million).

According to the parent company holding Avangardco Investments Public Limited, the company reported on the London Stock Exchange on August 25, 2010 about the increase in profits in H1 2010 by 68.3 percent (up to USD 165.9 million).

The report reads as follows:

- Gross profit for the reported period increased by 37.3 percent (up to USD 55.4 million,
- Operating profit - by 55.2 percent (up to USD 57.2),
- EBITDA - on 48.5 percent (up to USD 63.9 million).

Avangard notes that boost of sales was due to both an increase in egg production and rise in prices for eggs, as well as the consolidation of the egg product production enterprise “Imperovo Foods” in H2 2010).

The company reports that the decrease in EBITDA margin from 44 percent in H1 2009 to 38 percent in H1 2010 was driven by the increase in production costs due to high market prices for grain harvested in 2009, compared to record low market prices for grain harvested in 2008/2009, as well as due to the reduction in state subsidies (H1 2009: USD 6.8 million, H1 2010: USD 0.5 million).

Agro-industrial company Avangard is a number one producer of shell eggs and dry egg products in Ukraine with a market share of approximately 23 percent(including 39 percent of industrially produced shell eggs) and 52 percent respectively in 2009. As of June 30, 2010 Avangard’s flock consisted of approximately 18.6 million birds. Avangard’s production facilities are located in 14 regions of Ukraine and in the Autonomous Republic of Crimea. The company also exports products to 16 countries, mainly to the Middle East and Asia.

In January-June 2010 Avangard’s egg production increased by 29 percent up to 1,910 million eggs (H1 2010: 1,481 million), mostly as a result of the increase in poultry stock during 2009. As of June 30, 2010 the company’s total flock was 18.6 million birds (June 30, 2009: 16.1 million).

In 2009 the company generated revenue of USD 319.86 million (an increase of 5.8 percent), EBITDA – of 152.09 million (an increase of 33.7 percent).

In the spring 2010 “Avangard” implemented an initial public offering on the London Stock Exchange by selling 21.7 percent of shares for USD 208 million

Source: apk-inform.com; feedinfo.com
Translated and edited by: usapeec.kz

Date: 26 August 2010