Кyiv, Ukraine - AVANGARDCO INVESTMENTS PUBLIC LIMITED (LSE: AVGR) (the В«CompanyВ» or В«AVANGARDCO IPLВ»), the largest producer of shell eggs and egg products in Ukraine and number one producer in Eurasia, today issues its trading update for October 2012.
Total Flock
During October 2012 the total poultry flock grew by 13% year on year to 27.8 million (October 2011: 24.6 million), with the number of laying hens increasing by 7% year on year to 21.6 million (October 2011: 20.2 million).
Shell Egg Segment
Production: The Company increased its production volume of shell eggs by 3% year on year to 549 million units (October 2011: 534 million units) as a result of the growth in the population of laying hens.
Sales: During the reporting period, sales to external customers increased by 12% year on year to 509 million units (October 2011: 454 million units). The Company continued to develop its sales channels and grow its presence in national retail chains. During October 2012 the Company exported shell eggs to the markets of MENA region, Central and West Africa and the CIS.
The brand "Kvochka": In October 2012, the Company celebrated World Egg Day in Ukraine by promoting the brand "Kvochka" in five regional centers of Ukraine through a series of family-oriented events and BTL-campaigns in key retail chains. The Company also launched a nationwide charity campaign to support young sportsmen: AVANGARDCO IPL will donate UAH 0.05 from the sale of each package of TM "Kvochka".
Pricing trends: There is still seasonality in the Ukrainian egg market but to a much lesser extent in comparison to previous years due to increased levels of market consolidation, improvement of facilities for egg storage among major producers, as well as increased production of egg products. Traditionally, egg prices start growing in September and peak in December, thus reflecting a lower supply from private households during the second half of the year, changes in consumers' diet due to cold weather and the upcoming holidays. According to Pro-Consulting estimates, the average egg price increased by 25% in October 2012, compared to average price in August 2012, less than the increase in 2011 over the same period of around 33%, which indicates the reduction in seasonal fluctuations. In October 2012 the average price increased by 3% year on year.
Positive annual dynamics in the growth of egg prices reflect the increase in production costs of eggs, improved purchasing power of population, as well as increased demand for eggs from overseas markets. According to analysts' estimates, the average wholesale price for eggs is expected to increase by 12.7% year on year by the end of 2012.
Egg Products Segment
Production: During October 2012 the volume of processed shell eggs increased by 1% year on year to 86 million units (October 2011: 85 million units). During October 2012 the Company exported egg products to the markets of MENA region and Asia.
Grain Purchases
As at November 1, 2012 the Company received 73% of its forward grain contracts.
Investment Projects
The construction of two poultry complexes for egg production "Avis" and "Chornobaivske" in Khmelnytsky and Kherson regions is going according to the schedule. To view the progress in the construction of operational facilities at "Avis" and "Chornobaivske" egg production complexes please visit.
Other Information
The data presented in the press release may differ from the audited results as it was sourced from management accounting.
Announcement of Financial Results for 9 months of 2012
AVANGARDCO INVESTMENTS PUBLIC LIMITED will announce its operating and unaudited financial results for the nine months ended September 30, 2012 on November 22, 2012 and host a conference call on the day of publication of the results. You will find the dial-in details in the press release on the day of publication.
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For investor's inquiries:
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
Fergus Brady
+44 20 7269 7216
FTI Consulting Moscow
Oleg Leonov
Olga Terebova
+7 495 795 06 23
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AVANGARDCO IPL is one of the largest agro-industrial companies in Ukraine, specializing in the production of eggs and egg products. Based on figures for the first half of 2012, the Company holds a 32% share of the Ukrainian egg market (53% of the industrial egg market) and a 93% share of the Ukrainian egg products market. As of 30 June 2012, the total poultry stock of the Company was 25.9 million heads. The Company's production facilities are located in 14 regions of Ukraine and the Autonomous Republic of Crimea. As of 30 June 2012, the Company exported its products to 34 countries of the world, mostly to the Middle East, Asia and the CIS countries. As of 30 June 2012, revenues amounted to US$283.562 million (1H2011: US$223.940 million) and EBITDA was $122.127 million (1H2011: US$91.194 million).
The Company's shares, in the form of Global Depositary Receipts, have been traded on the London Stock Exchange since May 2010. The Eurobond issue for approximately $200 million with a maturity on 29 October 2015 was included in the official list of the UK Listing Authority (UKLA) and admitted to trading on a regulated market of the London Stock Exchange on November 1, 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.