The company said in its half year results statement that the increase in its revenues had been affected “by significant increases in the prices of shelf eggs”. However, it stressed that volume sales were also up.
The company, which complies with EU rules banning battery hen cages, said the construction of two poultry complexes for egg production in the Khmelnystky and Kherson regions of Ukraine is on schedule.
Avangardco expects further growth in the second half of 2012. It also said that it continues to make advances in the liquid egg market, with its product range made at its Imperovo Foods factory, and aims to increase production and exports of these.
Substantial price growth
“Despite the presence of substantial price growth of eggs and egg products, demand for our products continued to increase,” said chief executive Nataliya Vasylyuk. “Due to this the company was able to significantly increase its exports to the Middle East, North Africa and Asia, as well as to increase sales of its products in the domestic market.
“I would like to note that despite fluctuations in world grain prices, the achieved result proves the effectiveness of the strategy of hedging the cost of grain in the forward contracts.”
Avangardco revenue increased 26.6% year-on-year, from $223.9m in the first half of 2011 to $283.6m in six months to June 30 2012. Pre-tax profit rose 33.9% in the same comparative periods, from $91.2m to $122.1m.
In volume terms, production of shell eggs rose by 8% and production of dry egg products increased by 22.4%.