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tripled y/y to $110.9mn in 1H19. Its cash outflow from operating activities was $6.0mn (from inflow of $5.3mn a year ago). Avangardco’s net debt increased 6% year-to-date to $390.9mn as of end-1H19. The company reported that it’s still in talks with creditors on a potential restructuring deal.
Ovostar EBITDA plunges 57% y/y in 1H19 Revenue at Ukraine’s egg producer Ovostar Union (OVO PW) fell 15% y/y to $54.0mn in 1H19, according to the company’s interim report released on August 30. Its EBITDA plunged 57% y/y to $5.9mn and net profit plummeted 65% y/y to $3.7mn. Its operating cash flow before working capital changes were halved y/y to $8.4mn, while net cash generated from operations increased 5% y/y to $11.0mn. The company boosted its investments into fixed assets and biological assets 61% y/y to $12.6mn, thus having slightly reduced its amount of net cash to $3.2mn and of end-1H19 (from $5.0mn as of end-2018). The fire that erupted at a Kyiv regional factory in early June resulted in the loss of 270K laying hens and financial damages of $0.4mn, which were reported as other operating expenses. The company accounted for some insurance compensation for that accident. Among other important events of 2Q19, Ovostar received a $2.95mn of state subsidy for a partial refund of its construction of hen facilities (accounted for as other operating income).
9.2.7 TMT corporate news
Blanketing Ukraine, Nova Poshta, the delivery company, opened 1,200 new branches during the first half of this year, increasing its network by 43%, to 4,000. By June, one-third of its 8mn customers had used the company’s new mobile app. With international shopping increasingly popular, the privately-owned company registered these increases in deliveries: from the US up 20%; from Britain up to 86% and from Poland 200%. During the first half of the year, the Kyiv sorting centre handled 46mn parcels, up 34% over the same period last year.
Oschadbank, Ukraine’s largest state-owned bank, announced on Aug. 19 that it secured the arrest of a 93% stake in Ukrtelecom (UTLM UK), the state landline telephone monopoly controlled by ESU LLC. The basis for the arrest was a UAH 1.8 bln debt owed to the bank by the company, which is controlled by SCM Holdings of Ukraine’s biggest businessman, Rinat Akhmetov. Oschadbank said it will sell this stake at auction in order to recover its debt., ESU had to redeem its debt (secured by the Ukrtelecom shares) to Oschadbank in 2017, but instead asked for an extension that was rejected by the bank. Later, ESU tried to force the bank to extend the debt’s maturity with lawsuits, but failed.
9.2.8 Tourism corporate news
Ukraine’s largest online store, Rozetka.ua is launching a ‘virtual’ travel agency - Rozetka.Travel. Without visiting a travel agency, clients can buy tickets for charter tours to Egypt, Greece, Turkey, and other popular no-visa destinations. Positioning itself as a potential rival for JoinUp!, the nation’s largest travel operator, Rozetka has already created links with major tour operators: Anex Tour, TUI, Tez Tour, Pegas Touristik and Mouzenidis Travel.
77 UKRAINE Country Report September 2019 www.intellinews.com