Just as good investor diversifies his or her portfolio in order to minimize risks we have decided to “diversify” UAIndex for better reflection of the current investment climate of Ukraine. Three new companies Agroliga, Ovostar and Ukrproduct were included in the UAIndex. Let’s take a closer look at the brief portfolios of these companies.

Agroliga Group

Аgroliga Group combines a number of dynamically developing medium-sized companies, which operate in the agricultural sector of Ukraine. This Group of Companies cultivates 5.5 thousand hectare of land in the East of Ukraine, in Dvurechansky District of Kharkov Region. The main products of the Group of Companies: sunflower, wheat and barley grain, corn, rape, buckwheat, and milk.

Company went public in December 2010 on WSE, alternative platform New Connect. The company has sold 16.67% of shares for 1M EUR. During the first trading day, shares went up 28.1%, which allowed the company to rank second on New Connect.

Agroliga Group PLC had an EUR 5,54 million of revenues in 2010. Last year was very successful for Agroliga group, when the company reached 5.54 million in revenues, as compared to 2009 represents an increase by up to 130 percent. During 2010 the company generated 2.91M EUR net profit, 59% of it were formed as goodwill from the consolidation of the group, which occurred late June 2010, and cannot be compared with previous financial data.

Ovostar Union

Group of Companies “Ovostar Union” is one of Ukrainian leading agroindustrial companies, entering TOP 3 Ukrainian egg producers. Main advantage of the company is vertically integrated business organization structure, providing accurate product quality control at any production stage.

Company is present in 4 main business areas:

• Poultry (parental flock, hatching, replacement chickens);
• Egg production;
• National distribution (Ukrainian sales networks, self-brand retail network);
• Dry and liquid egg products;
• Additional activity (producing feed, sunflower oil, cake and fuel briquettes).

In 2002 “Ovostar Union” was company the first in Ukraine that started operating automatic lines for egg collecting, sorting and packing. Company was also the first to offer Ukrainian customers packed eggs in fragmented packaging, being as well innovators delivering products with additional qualities – eggs fortified with iodine, enriched vitamins contain and special products for baby food.

Ovostar Union has issued 1.5 mn shares, which represent 25% of the company’s share capital during its IPO on WSE. Given the share issue price of PLN 62 the IPO value amounts to PLN 93 mn (USD 33.4 mn), and the company’s total capitalization aggregated to PLN 372 mn (USD 133.8 mn). This illustrates the positive Polish investors’ sentiment for Ukrainian agro companies with a clear development strategy, and the demand for further offerings from Ukraine which is far from saturation.

Ukrproduct

Ukrproduct Group (the “Group”) is a leading producer and distributor of high quality branded dairy products in Ukraine and abroad. The backbone of our business comprises four ISO-certified manufacturing plants with a total annual integrated capacity of approximately 70,000 tons of dairy products. The Group is engaged in the production and supply of branded dairy products (butter and cheese) to retailers and wholesalers in Ukraine. Ukrproduct also produces and exports intermediate-stage milk products, including skimmed milk powder (SMP), to Denmark, the Netherlands, Bulgaria, Japan and Turkey. Furthermore, the Group provides logistics and distribution services to third parties operating in Ukraine.

The Group comprises of:

• Butter and cheese plant in Zhytomyr;
• Dairy Plant in Starokonstantyniv that produces butter, spreads, skimmed milk powder and hard cheese;
• Dairy Plants in Krasyliv and Letychiv;
• Pan-Ukrainian distribution network;
• International trading company.

Ukrproduct Group became the first Ukrainian company to list on the London Stock Exchange's AIM in February 2005. The offering raised £6 million Pounds Sterling, the market capitalization of the Group at the time of the IPO was £22 million pounds. Post-IPO, Ukrproduct Group continues to develop dynamically and to strengthen its market-leading positions. Currentlytheirnumberofsharesplacedreached 42.82M

UkrAgroConsult