KYIV, UKRAINE – AVANGARDCO INVESTMENTS PUBLIC LIMITED (LSE: AVGR) (the “Company” or “Avangard”), the leading producer of shell eggs and egg products in Ukraine, announces its pre-close trading update for the first six months of the year ending 30 June 2010.
Shell Egg Segment
During the first half of 2010 Avangard’s shell egg production volume increased by 29% to 1,910 million pieces (1H2009: 1,481 million pieces) mostly as a result of the increase in poultry stock during 2009. As of June 30, 2010 the Company’s total flock was 18.6 million heads (June 30, 2009: 16.1 million heads).
The average sale price though the first six month of 2010 increased by 44% year-on-year to UAH 0.52 (excluding VAT) per piece (1H2009: UAH 0.36 (excluding VAT) per piece). In the second half of 2010 the Company expects further growth in the price of shell eggs. During the first six month of 2010 shell egg sales to external consumers increased by 12% to 1,631 million pieces (1H2009: 1,451 million pieces).
During the first half of 2010 the Company continued to execute its strategy, focusing on the development of its customer base and market diversification. As a result, the share of the Company’s sales volumes through modern retailers increased from 2% of the Company’s total shell eggs sales volumes in H1 2009 to 7% in H1 2010.
During the first half of 2010 the Company has been exporting its shell eggs to Georgia, Iraq, Kazakhstan, Syria, Turkey, as well as has expanded its customer base in terms of export sales of shell eggs by tapping into the Moldovan market.
Egg Products Segment
As the LLC ‘‘Imperovo Foods’’ plant was acquired in July 2009, there is no comparative year on year figure for this segment.
During the first six months of 2010 the Company processed 287 million eggs. The average sale price of dry egg products during the reporting period was US $6.78 per kg. (excluding VAT).
During the period the Company exported dry egg products to Jordan, Turkey, Saudi Arabia, Kuwait, UAE, Indonesia, Thailand, South Korea, Oman, Azerbaijan, Armenia and Moldova, as well as in the first half of 2010 dry egg powder was exported for the first time to Pakistan.
Avangard’s management is pleased with the operating results for the first six months of 2010 and expects to report strong financial results for the half year. The financial results for the first six month of 2010 will be published on August 25, 2010 and management will host a conference call for investors and analysts on the day. Conference call details will be published in a due course.