Business news from Ukraine

MHP, largest chicken producer in Ukraine, reduced production and sales in first half of year

Agroholding MHP, the largest producer of chicken meat in Ukraine, in January-June 2022 reduced chicken production by 3% compared to the first half of 2021 – to 346.04 thousand tons, while its sales – by 12%, to 338.6 thousand tons, the holding company reported on the London Stock Exchange on Wednesday.
It is noted that in the second quarter of 2022, the agricultural holding, in the context of the Russian military invasion, reduced chicken production by 11% compared to March-June last year – to 170.4 thousand tons, and by 3% compared to the first quarter of 2022. At the same time, the volume of chicken meat sales in the second quarter of 2022 amounted to 140.6 thousand tons, which is 23% lower than the same period last year, but 1.6% higher than sales in the first quarter of this year.
According to the exchange message, in January-June 2022, chicken sales on the domestic market decreased by 6% compared to the first half of 2021 – to 134.7 thousand tons, while supplies to foreign markets – by 17%, to 157.9 thousand tons. At the same time, in the second quarter of 2022, chicken sales in Ukraine amounted to 67.9 thousand tons, decreasing by 6% compared to the second quarter of 2021, but increasing by 1.6% compared to the first quarter of 2022. In turn, chicken meat exports in the second quarter of 2022 fell by 37% by the second quarter of 2021, and by 23% by the first quarter of 2022, to 68.55 thousand tons.
Thus, the share of chicken exports in January-June of this year decreased by 4 percentage points (p.p.) against January-June 2021 to 52% from 56%, while in March-June 2022 this figure decreased to the same period last year by 11 percentage points – up to 48% from 59%.
In addition, MHP poultry farms in the EU in January-June 2022 produced 37.4 thousand tons of poultry meat, which is 5% more than in the first half of 2021, and in the second half of 2022 – 19.6 thousand tons (+ 1% compared to the same period in 2021).
The average price of chicken meat in January-June 2022 increased by 24% year-on-year, to $1.93/kg, while in March-June it increased by 22% compared to the same period last year, to $2.03/kg.
According to MHP, in the first half of this year, the agricultural holding increased sales of culinary products by 76% compared to the first half of last year – up to 6.97 thousand tons, including in the second quarter of 2022 it sold 4.1 thousand tons of these products ( +54% compared to the second quarter of 2021).
According to the report, the sale of processed meat products (including sausages) by the agricultural holding in January-June 2022 decreased by 48% compared to January-June 2021 – to 8.3 thousand tons, and in March-June 2022 – by 73 % compared to March-June last year, up to 2.3 thousand tons.
According to the results of the first half of the period, the sale of semi-finished meat products decreased by 14% – to 7.4 thousand tons, while according to the results of the second quarter – by 24%, to 3.42 thousand tons.
MHP specified that in January-June 2022, sales of sunflower oil decreased by 11% compared to January-June last year, while in March-June 2022 they increased by 38% compared to March-June 2021, to 48.5 thousand tons. tons. At the same time, sales of soybean oil in the first half of 2022 decreased by 15%, and in the second quarter increased by 23% compared to the same periods in 2021, to 19.5 thousand tons and 9.2 thousand tons, respectively.
“In 2022, the company should sow about 335 thousand hectares of land in the grain crops segment. The harvesting campaign for winter rapeseed and wheat is on schedule, of which 70% and 25% are harvested, respectively. The yield of all winter crops is expected to be good and in line with the company’s expectations with taking into account the weather conditions. Spring crops (corn, soybean and sunflower) are in good condition,” the agricultural holding stated in an exchange message. MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat processing products. On the European market, MHP supplies chilled half-carcasses of chickens, which are processed, including at its enterprises in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.
MHP generated $393 million in net profit in 2021 against a net loss of $133 million in 2020, while its revenue grew by 25% to $2.37 billion.
The founder, majority shareholder and head of the board of MHP is Ukrainian businessman Yuriy Kosyuk.

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MHP reduced chicken production in Ukraine

Agroholding MHP, the largest producer of chicken meat in Ukraine, in June 2022 slightly changed its economic activity compared to May of this year, reducing chicken production by 2% to 56.8 thousand tons, but increasing its sales by 4 % – up to 55.7 thousand tons, the holding reported on the London Stock Exchange on Friday.
It is noted that the agrarian group’s operating activity is still below last year’s figures due to the full-scale Russian invasion of Ukraine: in June 2022, chicken production was 89% of June 2021, and its sales were 82%, respectively.
It is specified that in the domestic market in June 2022, chicken sales remained at the level of June 2021 – 25.59 thousand tons, which is 12% less than the volumes sold in Ukraine in May 2022. In June of this year, chicken exports decreased by 29% compared to June 2021 – to 30.1 thousand tons, but exceeded the figures of the previous month by 24%.
Thus, the share of chicken exports in June of this year decreased by 9 percentage points (pp) compared to June 2021, to 54% from 63%, but increased by 9 percentage points. compared to last month.
The average selling price of poultry meat in June increased by 19% year-on-year to $2.0/kg.
During the specified period, MHP also reduced the production of meat products and semi-finished products by 46% compared to June 2021 – to 2.42 thousand tons, but increased by a third compared to May 2022.
According to him, in June 2022, sales of sunflower oil increased by 2.2 times compared to June last year and 2.6 times compared to May of the current year – up to 22.5 thousand tons. At the same time, sales of soybean oil increased by 15% by June 2021 and 3.6 times by May 2022 – up to 4.04 thousand tons.
“Harvesting of winter crops (wheat, barley and rapeseed) has already begun and is on schedule. Spring crops are in good condition. The weather conditions are also good,” the agricultural holding states in an exchange message.
MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat processing products. On the European market, MHP supplies chilled half-carcasses of chickens, which are processed, including at its enterprises in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.
MHP generated $393 million in net profit in 2021 against a net loss of $133 million in 2020, while its revenue grew by 25% to $2.37 billion.
The founder, majority shareholder and head of the board of MHP is Ukrainian businessman Yuriy Kosyuk.

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LARGEST CHICKEN PRODUCER IN UKRAINE MHP RECEIVED A $122 MILLION NET LOSS IN FIRST QUARTER

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.).

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MHP CHARITABLE FOUNDATION WILL ALLOCATE MORE THAN UAH 3 MLN FOR GRANTS TO SMALL ENTREPRENEURS

Charitable Foundation (CF) “MHP-Gromade” launched a program to help small businesses in 11 regions of the country, as a result of the competitive selection of business plans, entrepreneurs will be able to receive 50-100 thousand UAH for the implementation of their start-ups.
Representatives of the MHP-Gromade charitable foundation, which is part of the MHP agricultural holding, announced the launch of the corresponding competition during a press conference at the Interfax-Ukraine agency on Monday.
It is specified that this project is being implemented annually, however, in the context of a full-scale Russian invasion of Ukraine, the fund plans to focus on grants for internally displaced persons, military personnel and their relatives, as well as people who have lost their homes due to the Russian invasion.
“For the first time, MHP launched this competition in 2016. During this time, 250 business ideas worth over UAH 11 million were supported. In 2021, this project was implemented by MHP-Gromade in partnership with the United Nations Development Program in the country and with the support of the Government of Sweden “, – said the director of the BF Tatyana Volochay.
According to her, in 2022 the competition is held in 11 regions of the country – Vinnitsa, Dnipropetrovsk, Kyiv, Lviv, Cherkasy, Ivano-Frankivsk, Ternopil, Khmelnytsky, Chernihiv, Sumy and Volyn regions.
Representatives of the fund will rob the most viable startups twice a month and issue grants to their authors for the implementation of the project.
The implementation of this project will contribute to the development of the Ukrainian economy, replenish the state budget and help the Ukrainian army, form a business asset in small towns and villages, and motivate the growth of entrepreneurship.
MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat processing products. On the European market, MHP supplies chilled half-carcasses of chickens, which are processed, including at its enterprises in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.
MHP generated $393 million in net profit in 2021 against a net loss of $133 million in 2020, while its revenue grew by 25% to $2.37 billion.
The founder, majority shareholder and head of the board of MHP is Ukrainian businessman Yuriy Kosyuk.

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MHP CUT PRODUCTION IN APRIL, CHICKEN SALES FELL BY 40%

Agroholding MHP, the largest producer of chicken in Ukraine, and in April 2022 due to the Russian military invasion of Ukraine reduced its production by 12% compared to April 2021 – up to 55.5 thousand. tons, and its sales – by 40%, up to 35 thousand. tons.

At the same time, foreign sales of chicken fell by 55% to 14.3 thousand. tons, while the Ukrainian market decreased by 20% to 20.7 thousand. tons, the company said on the London Stock Exchange on Tuesday.

Thus, the share of chicken exports in April 2022 decreased by 14 percentage points compared to April 2021 – from 55% to 41%. The average selling price of poultry meat increased by 18% to $ 1.8 / kg.

MHP also reduced the production of meat products and semi-finished products by 67% – from 4.44 thousand. tons in April 2021 to 1.45 thousand tons in April 2022.

“In March, due to the closure of ports, MHP recorded a significant decline in exports of poultry and vegetable oils. Since April, the company has been actively developing alternative routes to resume exports. In addition, the company’s local team has focused on improving poultry sales in Ukraine by optimizing logistics and sales channels, “the agricultural holding said in a statement.

In turn, in April, the agricultural holding doubled sales of sunflower oil compared to the same period last year, to 17.3 thousand. tons, and 30 times compared to March 2022, when export logistics from Ukraine were disrupted due to the Russian military invasion and blockade of its seaports by Russian ships.

MHP in April sold 2% less soybean oil than in April 2021 – 4.3 thousand. tons. However, this figure is 19% higher than soybean oil exports in March 2022.

“Spring sowing is completed on time and within the budget. Winter crops – wheat, barley, rapeseed – are in good condition. The company has access to all necessary PPE, pesticides and fertilizers, which are expected to be applied in a timely manner and in full,” the agricultural holding concluded. work in April.

MHP is the largest producer of chicken in Ukraine. Also engaged in the production of cereals, sunflower oil, meat products. MHP supplies the European market with chilled chicken carcasses, which are processed, including at its plants in the Netherlands and Slovakia. In February 2019, the agricultural holding completed the acquisition of the Slovenian company Perutnina Ptuj.

MHP in 2021 received $ 393 million in net profit against $ 133 million in net loss in 2020, and its revenue grew by 25% to $ 2.37 billion.

The founder, majority shareholder and head of the board of MHP is a Ukrainian businessman Yuri Kosyuk.

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AGRICULTURAL HOLDING MHP REDUCES SALES OF CHICKEN MEAT IN UKRAINE IN JAN-MARCH BY 6%

MHP Agroholding sold 159.02 thousand tons of chicken meat in January-March 2022, which is 3% more than in January-March 2021, while its sales in Ukraine decreased by 6% to 66.8 thousand tons , and exports increased by 9% – up to 89.34 thousand tons, the agricultural holding said on the London Stock Exchange on Friday.
According to its production report, the agrarian group produced 175.64 thousand tons of chicken meat during the reporting period (+5% compared to the first quarter of 2021). Thus, the agricultural holding managed to sell 90.5% of its products.
“From the start of the war, the company faced serious logistical and infrastructural problems in Ukraine. While MHP continued commercial sales in Ukraine from the start of the war, export sales stopped due to the closure of seaports, and export deliveries by road remained almost impossible,” clarified the chicken producer of the consequences of Russian aggression.
MHP also noted that it was forced to reduce the capacity utilization of poultry farming to 80-85% of the nominal in March due to reduced demand for chicken meat in Ukraine and logistical difficulties in exporting its products, due to which the agricultural holding is forced to look for alternative export routes.
In January-March 2022, the share of chicken exports reached 56% against 53% in the same period in 2021.
MHP in the report noted an increase in the price of chicken for the reporting period by an average of 28% compared to the first quarter of 2021 – up to $1.84/kg (excluding VAT), including in Ukraine up to $1.6/kg (+8%) , in export markets – up to $2.01/kg (+45%). The increase in prices was mainly due to a significant increase in prices for energy resources (mainly natural gas) and utilities.

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