Agroholding MHP, the largest chicken producer in Ukraine, in the first quarter of 2022 received a net loss of $122 million against $1 million of net profit in January-March 2021, and its EBITDA fell by 16% to $53 million, according to the group’s report on the London Stock Exchange on Friday.
“Since February 24, 2022, the group has suffered losses due to the war in Ukraine following the Russian invasion. War-related expenses for the first three months of 2022 amounted to $25 million, of which 53% were donations to support the community, write-offs of reserves and biological assets – 33%, other expenses related to the war – 14%,” the report of the agrarian group says.
According to the agricultural holding, most of the net loss received in the first quarter of this year was due to changes in the exchange rate. The loss from the operating activities of the group of companies in January-March amounted to $27 million, while the loss on the exchange rate was $95 million.
MHP’s revenue for the reporting period increased by 24% compared to January-March 2021 to $553 million, its growth was driven by strong operating and financial performance in the pre-war period in January and February 2022, the document says.
In addition, it is indicated that the board of directors of MHP decided not to pay dividends for 2021 due to the uncertainty in Ukraine and the resulting need to save cash to support its activities.Gross profit of the group of companies in the first quarter of this year amounted to $92 million (+39% compared to January-March 2021), and operating profit – $12 million (-25%). Gross margin for the period was 17% (+2 p.p.), operating margin – 2% (-2 p.p.), and return on sales (EBITDA margin) -53% (-10 p.p.).
