The company Avangard, which is the largest egg producer in Ukraine, incurred $ 11.4 million of net loss in the first quarter of 2018, which is double for the same period last year, Interfax-Ukraine reports.

Although the proceeds of the agricultural holding for the period increased by 21% to $ 41.1 million, EBITDA was $ 9.1 million compared to $ 0.1 million in 2017.

As commented by Natalya Vasilyuk, Avangard’s CEO, the gross profit of the company (or, to be more exact, a loss of $ 3.6 million) was affected by two main factors: a rise in price of the main feed components (grains and oilseeds) by 68%, as well as low prices for dry egg products both in Ukraine and in the foreign market.

At the same time, revenue was increased due to increased export sales of eggs and dried egg products. During the reporting period, the share of exports increased to 42%.

The company specifies that the total number of birds as of March 31, 2018, slightly decreased and amounted to 13.3 million birds, including 9.3 million of laying hens.

The production of eggs for the reporting period increased by 39% and amounted to 664 million units, sales increased by 37% – up to 493 million units, which is due to the growth of export sales by 6 times compared to the same period last year – up to 200 million units. In the reporting period, Avangard exported eggs to 15 countries in the Middle East and North Africa, sub-Saharan Africa, Asia and the CIS.

The production of dry egg products increased 1.7 times. This allowed them to increase both domestic sales and exports.

We recall that earlier Avangard announced the plans to increase the production of eggs in 2018. To this end, the company at the end of last year updated the herd, as well as the bird breed.