Negative currency effects resulting from the conflict in eastern Ukraine have seen local egg producer Avangardco report a loss for the first nine months of the year.
For the period ended 30 September, UK-listed Avangardco posted a loss of US$5.7m compared with a profit of US$162m year-on-year.
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Operating profit fell 64% to $67.6m. This included a $25.8m impairment charge from the closure of production operations in Crimea, its Chervonyi Prapor poultry farm, rearing farm and poultry farm Interbusiness and its Vyhlehirskyi feed mill.
Sales plummeted 24% to $354.7m.
“The demand for shell eggs in Ukraine was negatively impacted by the decline in the financial solvency of the population and the loss of markets in the zone of the conflict. As a result we have reduced the capacity utilisation at our poultry farms across Ukraine to reflect the existing demand,” said CEO Irina Marchenko.
“We continue to implement our strategy of growing export sales, entering new export markets and seeking the increase in the sales of shell eggs to the supermarket chains in the domestic market.”
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