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 period ending 30 June 2011.
Shell Egg Segment
During the first half of 2011 Avangard’s shell egg production volume increased by 51% to 2,875 million pieces (1H2010 – 1,910 million pieces) mostly as a result of the increase in poultry stock during the first six months of 2011. As of June 30, 2011 the Company’s total flock was 24.4 million heads (1H2010 – 18.6 million heads).
The average sale price though the first six months of 2011 increased by 2% year-on-year to UAH 0.53 per piece (excluding VAT) (1H2010 – UAH 0.52 per piece (excluding VAT). The Company expects this shell egg price growth to continue in the second half of 2011. During the period shell egg sales to external consumers increased by 31% to 2,139 million pieces (1H2010 – 1,631 million pieces).
During the first half of 2011 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 to 30% of the Company’s total shell eggs sales volumes (1H2010 – 7%).
During the first half of 2011 the Company has continued exporting its shell eggs to the Middle East and the CIS.
Egg Products Segment
During the first six months of 2011 the Company processed 534 million eggs (1H2010 – 287 million eggs). The average sale price of dried egg product during the reporting period was US$ 6.91 per kg (excluding VAT) (1H2010 – US$ 6.78 per kg (excluding VAT).
During the period the Company exported its dried egg products to Asia, the Middle East and North Africa.
Investment Projects “Avis” and “Chornobaivske”
The construction of the “Avis” and "Chornobaivske" egg production complexes is progressing well and on schedule.
On July 7, 2011 the official opening ceremony of the first stage of facilities for laying hens at the “Avis” egg production complex took place. Among the guests at the ceremony were representatives of governmental entities of Khmelnitsky oblast, as well as representatives of investors and investment funds. Information regarding construction progress at the “Avis” egg production complex is available at.
Production Capacity Increase
During the first half of 2011 the Company’s management made a decision to increase the production capacities at the “Avis" egg production complex. In particular the capacities of the site for rearing young laying hens and the site for housing laying hens will be increased from 1.5 to 2.5 million heads and from 3 to 5 million heads respectively. The capacity of the biogas unit will be expanded from 9.74 mW to 20.4 mW of electric power per hour and from 11 mW to 22 mW of heating power per hour.
Exports to the EU and Russia
At the moment the Company is awaiting the decision by the EU to allow export of dried egg products to its member states from Ukraine. LLC "Imperovo Foods", the Company’s egg processing plant, has passed the required audit and will be able to export its production immediately after Ukraine obtains permission from the EU.
The Company is also in the process of gaining permission to export eggs and dried egg products to Russia. Avangard expects to obtain such permission in Q32011.
Egg processing plant LLC “Imperovo Foods”
On June 8, 2011 LLC “Imperovo Foods” received permission from the Antimonopoly Committee of Ukraine (“AMCU”) to acquire corporate rights of LLC “Imperovo Ltd” from “Stanislavska Torgova Kompaniya” LLC.
On June 16, 2011 LLC “Imperovo Ltd” completed the process of registration of ownership of LLC “Imperovo Foods” production capacities. On July 8, 2011 the lease agreement between LLC “Imperovo Foods” and “Stanislavska Torgova Kompaniya” LLC was changed, namely to show that LLC “Imperovo Ltd” is now the lessor.
Avangard’s management is pleased with the operating results for the first six months of 2011 and expects to report strong financial results for the half year. The financial results for the first six months of 2011 will be published on August 30, 2011 and management will host a conference call for investors and analysts on the same day. Conference call details will be published in due course.
For further information please contact:
Victoria Korolchuk
Agrarian Holding Avangard
Head of Investor Relations
phone.: +38 044 593 28 60
mob.: +38 067 214 84 23
e-mail: v.korolchuk@avangard.co.ua
Financial Dynamics London
Marc Cohen
Hazel Stevenson
+44 20 7831 7103
Financial Dynamics Moscow
Oleg Leonov
+7 495 795 06 23