Ukraine-based producer of shell eggs and egg products Avangard has reported that its net earnings for the first quarter of 2013 decreased 16% to $60.7m, compared with $72.2m for the same period in 2012.
The decline in net earnings was attributed to decline in average sales price of shell eggs due to the late arrival of Easter this year in the second quarter of 2013.
For the quarter ended 31 March 2013, net revenues increased 6.3% to $155.8m, compared with $146.6m for the same period in the previous year driven by as a result of the two times increase in the dry egg products sales.
Avangard stated that production of shell eggs increased 6.6% to 1.654 billion, compared with 1.55 billlion, the average selling price or shell eggs declined by 8.1%. The production of dry egg products slightly increased by 0.3% to 271 million eggs, compared with 270million eggs in 2012.
Export revenues increased 80% and accounted for 23.1% of total revenues, mainly due to the increase in export sales of dry egg products. The company has continued to expand its sales channels and grow sales of Kvochka-branded eggs.
Avangard chief executive officer Irina Marchenko said that during 2013 the company will continue to expand production volumes through increasing poultry flock and launch of new capacities of the production facilities at "Avis" and "Chornobaivske".
"In addition, we will seek to maintain our market leading position in Ukraine as well as continuing to increase our international presence and export sales."
"We believe all these factors combined will have a positive impact on the Company's financial results in 2013," Marchenko added.
Avangard specializes in the production of eggs and egg products and holds a 33% share in the egg market and a 88% share in egg products market in Ukraine.
