KYIV, UKRAINE – AVANGARDCO INVESTMENTS PUBLIC LIMITED (LSE: AVGR) (the “Company” or “Avangard”), the leading producer of shell eggs and egg products in Ukraine, announces that Fitch Ratings affirmed the Company’s Long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘B’. Fitch has also affirmed the Company’s National Long-term Rating at ‘A+(ukr)', foreign currency senior unsecured rating at 'B' and Recovery Rating at ‘RR4’. The Outlooks for the Long-term ratings are Stable.
Avangard's assigned Long-term IDRs reflect its average business risks and concentration on one product line (poultry/eggs). This factor is mitigated by partial vertical integration (mainly into fodder production) and by the opportunities derived from increasing market shares in the Ukrainian industrial eggs market, considering high penetration of egg consumption per capita and from export markets.
Fitch recognizes the increasing domestic market shares, the development of the group’s customer base towards retail clients and exports of eggs and dry egg products to Middle East, North Africa and Asia, among other destinations. Furthermore, given its competitive cost structure and focus on operational efficiency, Avangard’s EBITDA and margin remain high compared to peers.
Fitch also acknowledged the efforts made by management to unwind most related-party transactions, and the appointment of a new independent director to the board.
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
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