Ukraine egg supplier Avangardco saw profits drop 51% in the first half of 2014, hit by the devaluation of the hryvnia.

Avangardco booked net profit of US$52m for the six months to the end of June, down from $105.6m a year earlier.

The company pointed to the drop in the value of the hyrvnia against the US dollar, its reporting currency.

Avangardco’s operating profit was down 44% at $67.9m, with higher marketing costs also having an impact.

The London-listed firm also saw sales fall 14% to $262.9m. Again, the currency devaluation was the key factor but the business also reported lower sales of shell eggs to third parties and a fall in dry egg prices.

“We cannot fully counterbalance the negative effect of the national currency devaluation against the US dollar and now expect softer financial results in the US dollar terms, our reporting currency, for the full year compared to 2013,” CEO Irina Marchenko said.

“In the current environment, the company leverages all available resources to effectively support the operations and reduce the impact of the negative factors affecting our business”.