Ovostar Union PLC

Earnings Release • Apr 23, 2021

CURRENT REPORT # 3/2021

23 April 2021 Operations Update for the three months ended 31 March 2021

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 2021.

As of 31 March 2021 the Company's total flock equaled 8.08 mln hens, including 6.67 laying hens (31 March 2020: 7.96 and 6.50 mln hens respectively).

The volume of eggs produced in Q1 2021 was 411 mln demonstarting 5% increase YoY (Q1 2020: 392 mln). In the reporting period the sales volume in the egg segment totaled 276 mln (Q1 2020: 241 mln).

Export sales of shell eggs totaled 64 mln (Q1 2020: 81 mln), which represents 23% of total number of eggs sold in Q1 2021 (Q1 2020: 34%).

Average price of eggs in Q1 2021 increased by 47% YoY in USD terms to 0.087 USD/egg (Q1 2020: 0.059 USD/egg).

The volume of eggs processed in Q1 2021 fell by 26% YoY and was 112 mln (Q1 2020: 152 mln).

The Company produced 653 tons of dry egg products and 2 922 tons of liquid egg products (Q1 2020: 837 tons and 3 783 tons respectively).

The volume of dry egg products sold amounted to 736 tons (Q1 2020: 909 tons), out of which 462 tons, or 63%, were exported (Q1 2020: 729 tons, 80%).

The volume of liquid egg products sold was 2 927 tons (Q1 2020: 3 616 tons), out of which export sales equaled 796 tons or 27% (Q1 2020: 1 656 tons, 46%).

Average price of dry egg products increased by 12% YoY to 4.57 USD/kg (Q1 2020: 4.07 USD/kg); average price of liquid egg products grew by 11% YoY to 1.55 USD/kg (Q1 2020: 1.40 USD/kg).

The Company's CEO Mr. Borys Bielikov commented:

«In the first quarter of 2021 the Company was focused on operational efficiency and increasing margins. The sales structure was adjusted in accord with the market situation in Ukraine and abroad, which explains the shift from export to local sales. We can see the signs of the market recovery after the sharp downturn of the previous two years, which is also reflected in the Company's performance in the reporting period."

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