Ovostar Union PLC

Earnings Release • Apr 27, 2023

CURRENT REPORT #3/2023

27 April 2023 Operations Update for the three months ended 31 March 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 three months ended 31 March 2023.

As of 31 March 2023 the Company's total flock equaled 7.12 mln hens, including 6.38 laying hens (31 March 2022: 7.26 and 6.80 mln hens respectively).

The volume of eggs produced in Q1 2023 was 362 mln demonstrating 2% decrease YoY (Q1 2022: 371 mln). In the reporting period the sales volume in the egg segment totaled 241 mln (Q1 2022: 232 mln).

Export sales of shell eggs totaled 105 mln (Q1 2022: 27 mln), which represents 44% of total number of eggs sold in Q1 2023 (Q1 2022: 11%).

Average price of eggs in Q1 2023 increased by 56% YoY in USD terms to 0.139 USD/egg (Q1 2022: 0.089 USD/egg).

The volume of eggs processed in Q1 2023 remained at the level of the previous year - 92 mln (Q1 2022: 92 mln).

The Company produced 406 tons of dry egg products and 3 073 tons of liquid egg products (Q1 2022: 561 tons and 2 131 tons respectively).

The volume of dry egg products sold totaled to 531 tons (Q1 2022: 429 tons), out of which 354 tons, or 67%, were exported (Q1 2022: 238 tons, 55%).

The volume of liquid egg products sold was 3 063 tons (Q1 2022: 2 182 tons), out of which export sales equaled 1 291 tons or 42% (Q1 2022: 728 tons, 33%).

Average price of dry egg products increased by 32% YoY to 8.79 USD/kg (Q1 2022: 6.64 USD/kg); average price of liquid egg products grew by 44% YoY to 2.66 USD/kg (Q1 2022: 1.86 USD/kg).

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

The Company's CEO Mr. Borys Bielikov commented:

"At the start of the second year of the full-scale war of Russia against Ukraine the Group is working in the highly turbulent business environment. The management have taken all steps to minimize the adverse effects of the current situation on the operations, which allowed to keep production and sales at the pre-war level. The product portfolio and distribution channels have been reconsidered and aligned with the existing market needs. Under the circumstances we find the Group's performance in the first quarter of 2023 satisfactory."