Ovostar Union PLC

Earnings Release • Jul 24, 2023

CURRENT REPORT # 10/2023

24 July 2023

Operations Update for the six months ended 30 June 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 six months ended 30 June 2023.

As of 30 June 2023 the Company's total flock equaled 7.30 mln hens, including 6.54 laying hens (30 June 2022: 6.26 and 6.18 mln hens respectively).

The volume of eggs produced in H1 2023 was 732 mln demonstrating 8% decrease YoY (H1 2022: 794 mln). In the reporting period the sales volume in the egg segment totaled 478 mln (H1 2022: 541 mln) Export sales of shell eggs totaled 208 mln (H1 2022: 128 mln), which represents 43% of total number of eggs sold in H1 2023(H1 2021: 24%). Average price of eggs in H1 2023 increased by 67% YoY in USD terms to 0.127 USD/egg (H1 2022: 0.076 USD/egg).

The volume of eggs processed in H1 2023 fell by 1% YoY and totaled 213 mln (H1 2023: 216 mln). The Company produced 1 050 tons of dry egg products and 6 232 tons of liquid egg products (H1 2022: 1 420 tons and 4 745 tons respectively).

The volume of dry egg products sold amounted to 1 219 tons (H1 2022: 773 tons), out of which 878 tons, or 72%, were exported (H1 2022: 425 tons, 55%). The volume of liquid egg products sold was 6 083 tons (H1 2022: 4 547 tons), out of which export sales equaled 2 801 tons or 46% (H1 2022: 1 857 tons, 41%).

Average price of dry egg products increased by 10% YoY to 8.78 USD/kg (H1 2022: 8.01 USD/kg); average price of liquid egg products grew by 39% YoY to 2.55 USD/kg (H1 2022: 1.84 USD/kg).

The Company's CEO Mr. Borys Bielikov commented:

"In the first half of 2023 the Group kept operating in the business environment affected by the ongoing Russian armed aggression. The management took all possible steps to mitigate the war related risks with the focus on creating safe working conditions for the personnel. The production and sales plans were brought into line with the existing market situation both in Ukraine and abroad, which resulted in a sound balance between local and export revenues. In general, the management is content with the operational performance of the Group for the first six months of the year."

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