KYIV. June 1 (Interfax-Ukraine) – MHP S.A., one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and cultivation of grain, posted $57 million in net profit in the first quarter of 2017 against $56 million in net loss in the first quarter of 2016.
MHP’s revenue of $279 million, increased by 27% year-on-year (Q1 2016: 220 million), while export revenue amounted to $164 million, 59% of total revenue (Q1 2016: $115 million, 52% of total revenue), the company said in an update on the London Stock Exchange on May 23.
Operating profit of $74 million, increased by 3%; operating margin was 27% compared with 33% in Q1 2016, gross profit was 8% up to $86 million from January-March 2016.
Adjusted EBITDA margin declined to 33% (Q1 2016: 41%) mainly driven by significant IAS 41 effect in Q1 2016 compared to Q1 2017 related to increased stocks of poultry meat in Q1 2016 and higher sales volumes of grains in Q1 2017
January through March 2017, EBITDA grew by 2%, to $93 million.
MHP’s net debt amounted to $1.063 billion against $1.225 billion in the same period of 2016.
MHP reported that in May 2017 it successfully completed a new eurobond issue of $500 million 7.75% Senior Notes due 2024. $254 million of the proceeds from the new issue were used to repurchase $245 million of the company’s 8.25% Senior Notes due 2020. The balance from $500 million will be used to repay certain other debt, to finance the expansion and diversification of MHP’s poultry and grain business and to improve liquidity.
MHP also shared its outlook for 2017.
“With a strong start of export sales of chicken meat in Q1 2017, in 2017 MHP plans to export around 220,000 tonnes of poultry to the countries of the MENA, the EU, Africa and CIS with a market targeting approach,” it said in the statement.
Several months ago MHP started the construction of Phase 2 of the Vinnytsia complex – Line 1 of 130,000 tonnes total capacity, which is going to be launched in the middle of 2018. Expected production is at around 40,000 tonnes in 2018.
In addition, construction of an alternative energy project at the Vinnytsia complex has already started.
Having completed the company’s spring sowing campaign and taking into account weather conditions in general, MHP’s outlook for the 2017 harvest of crops is positive.
“We are confident that, with our vertically integrated business model, we will continue to deliver strong financial results, supported by a significant and growing share of hard currency revenues from exports of chicken, oils and grain,” the company said in the statement.
As was reported, MHP in January-March 2017 sold 123,931 tonnes of chicken meat, which was 15% up year-over-year.
MHP (Myronivsky Hliboproduct) is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.
MHP’s net profit in 2016 was $69 million against $113 million in net loss in 2015. Its revenue grew by 7%, to $1.135 billion.
KYIV. May 31 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman has said that Ukraine ranks 56th in the Global Innovation Index, but has potential to climb the ratings.
“I have information that we occupy the 56th place in the Global Innovation Index today. I can say for sure that this does not correspond to our real capabilities. Changing of the system, increasing funding will take us to the big leagues,” he said during the meeting with scientists on the occasion of the Day of Science in Kyiv on Friday.
The premier said that upon the condition of changing the system of scientific research on the principles of transparency, the Cabinet is ready to consider the possibility of substantially increasing government spending on science.
KYIV. May 31 (Interfax-Ukraine) – France will consider the possibility of expert and consulting assistance and will contribute to raising funds from the European Union for Ukraine’s obtaining technical assistance for implementing the project to change the width of railway track.
According to the press service of the Ministry of Infrastructure of Ukraine, this was discussed in Kyiv on May 19, 2017 during the sixth meeting of the Ukrainian-French working group on transport. The Ukrainian delegation was headed by Deputy Minister of Infrastructure for European Integration Viktor Dovhan, the French delegation was headed by the director for international cooperation at the French Ministry of Environment, Energy and the Sea.
The Ukrainian side, in particular, expressed interest in drawing on the experience of specialists of the railway industry in France regarding the further development of railway infrastructure, building new rolling stock, including the use of a system for changing the track width for rolling stock.
In addition, Ukraine reported on the active work on the development of combined/multimodal transportation in the direction of Europe-Asia using the transport infrastructure of Ukraine, in particular within the existing transport corridors defined by the TEN-T network.
KYIV. May 31 (Interfax-Ukraine) – Prime Minister of Ukraine Volodymyr Groysman has stated the need to create competitive conditions for the companies that wish to implement solar energy projects in the exclusion zone.
According to the press service of the Cabinet of Ministers of Ukraine, the government is considering the possibility of implementing solar energy projects in the exclusion zone and the zone of unconditional (mandatory) resettlement, which will help attract new investments and strengthen the country’s energy security.
“We believe it is necessary to create absolutely competitive conditions for those companies that want to take part in these large-scale projects (for the development of solar energy) so that they do this openly, publicly, through understandable procedures and mechanisms so that we could receive the best investments, minimize any interference and do everything very competitively, transparently,” Groysman said.
He noted “clean energy” will allow Ukraine to reduce dependence on conventional power sources.
“We have the opportunity to place powerful equipment to generate electricity. We see that we can accept the equipment and distribute it across the country,” Groysman stressed.
KYIV. May 30 (Interfax-Ukraine) – Sanatra Holdings Ltd. (Cyprus) intends to purchase 121.705 million common registered shares of PJSC House Building Plant No. 4 (DSK-4), one of the largest developers in Kyiv, which is part of Kyivmiskbud holding.
According to the buyer’s statement in the press, the company and its affiliates are not currently the shareholders of DSK-4.
According to the information disclosure system of the National Commission on Securities and the Stock Market, the share capital of DSK-4 as of the end of 2016 was 608.524 million common registered shares with a nominal value of UAH 0.05 per share.
Thus, Sanatra Holdings Ltd. intends to acquire a 20% stake in the construction company.
DSK-4 was founded in 1995 and is part of Kyivmiskbud holding. The structure of the enterprise includes three construction and assembly departments, the department of production and technological equipment and a plant of reinforced concrete products.
KYIV. May 30 (Interfax-Ukraine) – The new official dealer centers of Peugeot, fully compliant with the brand standards, since the beginning of this year have opened in Ukraine in Dnipro, Odesa and Rivne, the press service of Peugeot Ukraine has reported.
According to the announcement, the new auto center of Peugeot in Dnipro, AIS Autocenter Dnipro, opened in March. The center with an area of 3,200 square meters has a showroom (400 sq m), designed for 12 cars, a service center and a spares warehouse.
At the same time, the authorized service center is one of the largest in Ukraine: the area of the repair zone exceeds 1,300 square meters, and 14 posts allow serving up to 50 cars per day.
As reported, AIS Group, having become a dealer of Peugeot, invested more than EUR200,000 in the reconstruction and launch of its commercial and office complex in Dnipro to create a new Peugeot auto center on its basis.
According to a press release, in April the company opened a new Peugeot auto center in Odesa, Adis Motor, built in the new Blue Box format, offering a full service cycle (or 3S: sales, service, spare parts).
The autocenter in Rivne, which opened on May 11, is the only official dealer of Peugeot in Rivne region. It includes a showroom for up to nine cars.
