Ovostar Union : CR #13 opearations update for 9m ended 30 September 2022

CURRENT REPORT # 13/2022

25 October 2022

Operations Update for the nine months ended 30 September 2022

Ovostar Union Public Company Limited (WSE: OVO) (further referred to as "Company"), a vertically integrated holding company, one of the leading egg and egg products producer in Ukraine, announces its operational results for the nine months ended 30 September 2022.

As of 30 September 2022 total flock of the Company was 6.84 mln (2021: 7.98 mln heads). The laying

flock was 5.75 mln heads (2021: 6.63 mln heads).

Over the nine months of 2022 1 190 mln eggs were produced (2021: 1 254 mln eggs). Sales volume of

shell eggs totaled to 824 mln (2021: 844 mln eggs). Export sales in egg segment equaled 223 mln eggs

or 27% of the total sales volume (2021: 209 mln eggs and 25% respectively).

Average selling price of shell eggs in USD terms equaled 0.076 USD/egg (2021: 0.076 USD/egg).

In the reporting period 339 mln eggs were processed (2021: 376 mln eggs). The output of dry and

liquid egg products was 2 239 tons and 7 609 tons respectively (2021: 2 134 tons and 10 122 tons).

Sales volume of dry egg products equaled 1 611 tons (2021: 2 512 tons), out of which 1 083 tons, or

67%, were exported (2021: 1 704 tons and 68% respectively).

Sales volume of liquid egg products equaled 7 529 tons (2021: 10 233 tons), out of which 3 117 tons,

or 41%, were exported (2021: 2 876 tons and 28% respectively).

Average selling price of dry egg products increased by 80% Y-o-Y to 8.63 USD/kg (2021: 4.80 USD/kg);

average selling price of liquid egg products rose by 10% Y-o-Y to 1.83 USD/kg (2021: 1.67 USD/kg).

The Company's CEO Mr. Borys Bielikov commented:

"During the third quarter of 2022 the companies of the Group kept operating under pressure of risks and uncertainties caused by the ongoing Russian military invasion in Ukraine. Previously reported reduction of the flock resulted in the 5% decrease of the volume of eggs produced as compared to the 9 months of 2021. The sales volume in the egg segment, however, decreased by just 2%Y-o-Ydue to the lower volumes of processed eggs(-10%Y-o-Y).Within the egg products segment the focus was placed on production of dry products that have longer shelf life (+5%Y-o-Y).Taking into account the specifics of the current operational environment in Ukraine, the management finds the operational performance of the Group for the nine months of the year satisfactory."

Note: All prices in this press release are indicated net of VAT