Ovostar Union PLC

Business and Financial Review • Jan 26, 2021

CURRENT REPORT # 2/2021

26 January 2021 Operations Update for 2020

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 2020.

As of 31 December 2020 the Company's total flock was 8.0 mln heads, including 6.6 mln laying hens (31 December 2019: 8.1 mln and 6.7 mln respectively).

The volume of eggs produced in 2020 totaled 1 672 mln, demonstrating 5% increase Y-o-Y (2019: 1 587 mln eggs). In the reporting period the sales volume in shell eggs segment fell by 4% Y-o-Y to 1 104 mln eggs (2019: 1 147 mln). The volume of eggs exported was 349 mln that makes up 32% of the total sales in the segment (2019: 525 mln or 46%).

Average price of eggs in UAH terms increased by 2% Y-o-Y and reached 1.634 UAH/egg, while in USD terms there was a 2% decrease down to 0.061 USD/egg (2019: 1.606 UAH/egg or 0.062 USD/egg respectively).

In 2020 the volume of eggs processed was 552 mln, which is by 4% below the level of the previous year (2019: 577 mln eggs).

The volume of dry egg products output grew by 6% Y-o-Y and reached 3 161 tons (2019: 2 969 tons). The output of liquid egg products fell by 3% Y-o-Y to 13 504 tons (2019: 13 904 tons). The volume of dry egg products sold grew by 17% and equaled to 3 270 tons (2019: 2 786 tons), out of which 2 268 tons, or 69%, were exported (2019: 2 064 tons or 74%). The volume of liquid egg products sales decreased by 3% Y-o-Y and totaled 13 281 tons (2019: 13 762 tons), 4 647 tons, or 35%, of which were exported (2019: 6 516 tons or 47%).

Average sales price of dry egg products grew by 3% Y-o-Y in UAH terms – to 110.84 UAH/kg and fell by 1% in USD terms – to 4.11 USD/kg (2019: 107.16 UAH/kg or 4.15 USD/kg). Average price of liquid egg products fell by 11% in UAH terms and was 32.93 UAH/kg, while in USD terms it decreased by 15% and equaled 1.22 USD/kg (2019: 37.15 UAH/kg и 1.44 USD/kg).

The Company's CEO Mr. Borys Bielikov commented:

«In 2020 we have managed to smooth the negative effects of COVID-19 pandemic on the operations and to maintain production volume on the pre-crisis level. Given the above, the management believes that in the reporting period the Company has achieved decent results.»

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