Avangardco Inv: Comment on temporary ban on import from Ukraine

Avangardco Investments Public

17/03/2017 10:25

RNS Number : 8034Z

AvangardCo Investments Public Ltd

17 March 2017

17 March 2017

Comment on the temporary ban on import of poultry and poultry products from Ukraine due to avian influenza

yiv, Ukraine - AVANGARDCO INVESTMENTS PUBLIC LIMITED (LSE: AVGR) (the "Company" or "AVANGARDCO IPL"), the largest producer of shell eggs and dry egg products in Ukraine and number one producer in Europe, informs that on 16 March 2017, Ukraine's State Service for Food Safety and Consumer Protection published a list of countries that imposed temporary restrictions on poultry and poultry product exports from Ukraine due to avian influenza in some parts of the Kherson, Odesa and Chernivtsi regions. Some of these countries are key export markets for AvangardCo, including Iraq, Jordan, the UAE and the EU.

Iraq (76% of AvangardCo's proceeds from egg sales*) and Jordan (5% of AvangardCo's proceeds from sales of egg products*) introduced a temporary import ban on poultry products from across Ukraine; whilst the UAE (17% of AvangardCo's proceeds from egg sales*) and the EU (57% of AvangardCo's proceeds from sales of egg products*) have banned imports only from three aforementioned regions where avian influenza was detected. However, avian influenza was not detected at any of AvangardCo's production facilities, which are located at a significant distance from the outbreaks. As such, AvangardCo can continue to export its products to the UAE and EU, and to its other export regions which have not banned imports from Ukraine.

AvangardCo continues to monitor this situation and has rigorous safety procedures in place in all its production facilities as Ukrainian authorities seek to lift this temporary import ban. At the same time the Company is working closely with its customers in Iraq and Jordan in order to find alternative solutions whilst looking for new export opportunities where it can grow its market share.

*As at 30 September 2016

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For investor inquiries:
Valeriya Nikitina
AVANGARDCO IPL
Investor Relations Manager
phone: +38 044 393 40 50
mob.: +38 067 223 46 88
e-mail: ir@avangardco.ua
FTI Consulting London
Elena Kalinskaya / Nicola Krafft
phone: +44 (0) 20 3727 1000
e-mail:avangard@fticonsulting.com

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Information for editors

AVANGARDCO IPL is one of the largest agro-industrial companies in Ukraine, specialising in the production of shell eggs and dry egg products. As at 30 September 2016, the Company holds a 31% share of the industrial shell egg market and a 84% share of the dry egg product market in Ukraine. The Company's laying hens flock is one of the largest globally.

AVANGARDCO IPL has a vertically integrated production cycle. The Company's facilities are located in 14 regions of Ukraine and the Autonomous Republic of Crimea. The Company has 19 laying farms, 3 hatcheries, 10 rearing farms, 6 feed mills, 3 long-term storage facilities and the Imperovo Foods egg processing plant, which is one of the most technologically-advanced facilities for processing eggs in Europe.

The Company exports its products to the Middle East, Africa, Asia, the CIS and EU.

The Company's shares, in the form of Global Depositary Receipts, have been trading on the London Stock Exchange since May 2010. The Eurobond issue for approximately US$200 mln with a maturity on 29 October 2018 was included in the official list of the UK Listing Authority (UKLA) and admitted to trading on a regulated market of the London Stock Exchange on 1 November 2010.

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of AVANGARDCO IPL. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might", the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in the Company's geographical locations, rapid technological and market changes in our industry, as well as many other risks specifically related to AVANGARDCO IPL and its operations.

This information is provided by RNS

The company news service from the London Stock Exchange

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