Ukrainian egg processor Avangardco saw its losses narrow in the first half of the year as some countries started to lift a ban on imports imposed at the height of the Avian Influenza outbreak.
In a statement today (31 August), the UK-listed firm noted a challenging start to the year, with earnings below expectations due to a reduction in egg prices amid growing costs and weakening consumer demand, along with the import ban that squeezed access to some markets. While Avangardco said some nations are easing restrictions, it will take time for businesses to recover.
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The company reported a first-half net loss of US$11.7m, compared to $32.6m a year earlier, based on consolidated revenues of $54.7m, which were down 16%.
Responding to the harsh operating environment, Avangardco said the company adjusted manufacturing output in shell and dry eggs, and in so doing, managed to prevent a further increase in prices. It had been selling shell eggs below market cost. Revenue was also hit by a drop in first-quarter shell egg exports caused by the trade ban and a decline in dry egg product exports to Denmark.
“We are now in negotiations with our partners to resume supplies on mutually beneficial terms,” the statement noted.
The first-half operating loss shrank to $17.8m from $21m a year earlier. EBITDA came in at a negative $9m, narrowing from $12.6m. The company booked earnings per share on both a basic and diluted basis of $2, down from $5 in the corresponding period of 2016.
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