20 Dec 2012 07:00
20 December 2012
AVANGARDCO INVESTMENTS PUBLIC LIMITED
TRADING UPDATE FOR NOVEMBER 2012
Кyiv, Ukraine - AVANGARDCO INVESTMENTS PUBLIC LIMITED (LSE: AVGR) (the «Company» or «AVANGARDCO IPL»), the largest producer of shell eggs and egg products in Ukraine and number one producer in Eurasia, today issues its trading update for November 2012.
Total Flock
Unit | As at 30 November 2012 | As at 30 November 2011 | Change, % | As at 30 October 2012 | As at 30 October 2011 | Change, % | |
Total flock | bird (m) | 28.0 | 24.8 | 12.9 | 27.8 | 24.6 | 13.0 |
Laying hens flock | bird (m) | 22.5 | 20.0 | 12.5 | 21.6 | 20.2 | 6.9 |
The total poultry flock grew by 12.9% year-on-year and as at 30 November 2012 amounted to 28.0 million (30 November 2011: 24.8 million), with the number of laying hens increasing by 12.5% year- on-year to 22.5 million (30 November 2011: 20.0 million).
As at 30 November 2012, 30% of the total flock was housed in new facilities of the "Avis" and "Chornobaivske" egg production complexes.
Shell Egg Segment
Unit | November 2012 | November 2011 | Change,% | October 2012 | October 2011 | Change, % | |
Production | egg (m) | 527 | 510 | 3 | 549 | 534 | 3 |
Sales to external buyers | egg (m) | 402 | 451 | -11 | 509 | 454 | 12 |
Production: During November 2012 the Company increased its production volume of shell eggs by 3% year-on-year to 527 million units (November 2011: 510 million units) as a result of the growth in the population of laying hens.
Sales:During the reporting period, sales to external customers decreased by 11% year-on-year to 402 million units (November 2011: 451 million units). The decrease in sales to external buyers in November 2012, compared to November 2011 and October 2012 was due to high sales volumes in previous months and as a result lower inventories in November 2012.
The brand "Kvochka": During November 2012 there was a moderate increase in sales of packaged eggs under the umbrella brand "Kvochka " with 29% increase in sales, compared to October 2012, of TM "Kvochka Domashni", a middle segment brand, due to the increase in the Company's share of sales in the Kiev region, the region with the highest purchasing power of population in Ukraine.
Additionally, the Company's ongoing charity campaign to support young sportsmen was favorably received by its consumers, and as a result 2 sports schools will receive sports equipment for their students.
Pricing trends: The Сompany sees positive dynamics in the growth of egg prices and a lesser seasonality impact in the Ukrainian market due to further market consolidation, reduction in the sales of eggs by private households and the growth of egg products exports from Ukraine. In November 2012, the average price of eggs in Ukraine grew by 5.6%, compared to the previous month.
Taking into consideration the above factors, as well as a significant share of exports in the Company's sales, AVANGARDCO IPL expects to see strong average selling price at the end of 2012.
Egg Products Segment
Unit | November 2012 | November 2011 | Change,% | October 2012 | October 2011 | Change, % | |
Eggs processed | egg (m) | 94 | 92 | 2 | 86 | 85 | 1 |
Production:During November 2012 the volume of processed shell eggs increased by 2% year-on- year to 94 million units (November 2011: 92 million units).
Grain Purchases
As at December 1, 2012 the Company received 98% of its forward grain contracts.
Export to the European Union
On December 4, 2012 the European Commission's Directorate General for Health and Consumers added Ukraine to the list of non-EU countries which are allowed to export poultry products to the EU.
Following the conclusion of final agreements we expect that the Company will be among the first Ukrainian producers to start the supply of its poultry products into the European market. Several facilities of the Company have already been certified and passed all the necessary quality and veterinary checks.
The Company considers the EU market as one of its priority export markets as it aims to diversify its sales channels.
Investment Projects
The construction of two poultry complexes for egg production, "Avis" and "Chornobaivske", in Khmelnytsky and Kherson regions is proceeding according to schedule. To view the construction progress at "Avis" and "Chornobaivske" egg production complexes please visit: http://avangard.co.ua/eng/about/projects/.
Other Information
The data presented in the press release may differ from the audited results as it was sourced from management accounting.
To view the Company's news please visit: http://avangard.co.ua/eng/press-centre/news/ or subscribe to news distribution at: http://avangard.co.ua/eng/press-centre/substribe/
- End -
Alina Korniets
AVANGARDCO IPL
Acting Head of Investor Relations
Phone: +38 044 593 28 60
Mobile: +38 067 664 49 99
e-mail: a.korniets@avangardco.ua
FTI Consulting London Larisa Millings +44 20 7269 7216 |
FTI Consulting Moscow Oleg Leonov Olga Terebova +7 495 795 06 23 |
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Notes to Editors:
Avangardco IPL is one of Ukraine's largest agro-industrial companies, specialising in production of shell eggs and egg products. As at 30 September, 2012, the total poultry flock of the Company was 27.4 million birds. The Company's facilities are located in 14 regions of Ukraine and the Autonomous Republic of Crimea. The Company exported its products to 34 countries, mostly in the Middle East, Asia, and the CIS. As at 30 September 2012, the Company's revenue amounted to USD 445.8 million (9M 2011: USD 334.9 million), and EBITDA reached USD 194.0 million (9M 2011: USD 140.6 million).
The Company's Global Depositary Receipts have been trading on the London Stock Exchange since May 2010. The Company's Eurobonds of around USD 200 million with a maturity on 29 October, 2015 were included in the official list of the UK Listing Authority (UKLA) and admitted to trading on the regulated market of the London Stock Exchange starting 1 November, 2010.
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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Avangardco IPL. You can identify forward-looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could", "may", or "might", the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in the Company's geographical locations, rapid technological and market changes in our industry, as well as many other risks specifically related to Avangardco IPL and its operations.