Ovostar Union PLC

Business and Financial Review • Jan 31, 2024

CURRENT REPORT # 2/2024

30 January 2024 Operations Update for 2023

Ovostar Union Public Company Limited (WSE: OVO) (further referred to as "Company"), a vertically integrated holding company, one of the leading egg and egg products producer in Ukraine, announces its operational results for the year 2023.

As of 31 December 2023 the Company's total flock was 7.7 mln heads, including 6.4 mln laying hens (31 December 2022: 7.2 mln and 6.0 mln respectively).

The volume of eggs produced in 2023 totaled 1 531 mln, (2022: 1 546 mln eggs). In the reporting period the sales volume in shell eggs segment decreased by 10% Y-o-Y to 970 mln eggs (2022: 1 082 mln). The volume of eggs exported was 344 mln that makes up 35% of the total sales in the segment (2022: 290 mln or 27%).

In 2023 the volume of eggs processed was 492 mln, which is by 15% exceeds the level of the previous year (2022: 427 mln eggs).

The volume of dry egg products output decreased by 1% Y-o-Y and reached 2 512 tons (2022: 2 542 tons). The output of liquid egg products increased by 20% Y-o-Y to 12 998 tons (2022: 10 797 tons). The volume of dry egg products sold rose by 15% and equaled to 2 468 tons (2022: 2 137 tons), out of which 1 695 tons, or 69%, were exported (2022: 1 446 tons or 68%).

The volume of liquid egg products sales increased by 20% Y-o-Y and totaled 12 828 tons (2022: 10 682 tons), 5 170 tons, or 40%, of which were exported (2022: 4 316 tons or 40%).

The Company's CEO Mr. Borys Bielikov commented:

"In 2023 the Company was focused on gradual flock restoration which resulted in the 7% increase thereof. Efforts were also made to restructure the product portfolio and sales channels to reach greater efficiency. Given that these tasks have been completed quite successfully, the management is content with the Groups operational results."

Note: All prices in this press release are indicated net of VAT