Two Ukrainian producers of chicken and eggs, MHP and Avangard, topped the list of European producers of chicken and eggs and took 15th place in the global ranking, according to the WattPoultry magazine, which researches the global market for the production, processing and sale of poultry products.
According to the ranking, MHP agricultural holding topped the list of broiler producers in the European Union and took 15th place in the world ranking with a production of 704 thousand tons of chicken meat per year.
Ukrainian agricultural holding Avangard was ranked first among egg producers in the European Union and 15th among world leaders with a production of 13.3 million eggs.
“Demand for chicken meat continues to grow and consumption is expected to increase by 16% between 2024 and 2033, according to the Organization for Economic Cooperation and Development (OECD) and the Food and Agriculture Organization, which is obviously good news for global poultry producers. Nothing is guaranteed, but as demand remains high, companies in our industry at least have plenty of opportunities to capitalize on them,” the publication emphasized.
The compilers of the rating reminded that broiler and egg producers, wherever they are in the world, are forced to deal with disease outbreaks and increasingly stringent regulations. However, they can at least be sure that demand for their products will continue.
MHP is the largest chicken producer in Ukraine. It produces grain, sunflower oil, and processed meat products.
In 2023, the company earned $142 million in net profit compared to a net loss of $231 million a year earlier. Last year, the group’s revenue increased by 14% to $3.021 billion.
As reported, in March 2022, Avangard announced losses of UAH 1.5 billion since the beginning of Russia’s military invasion of Ukraine. Russian aggression has led to the shutdown of a number of the group’s key poultry farms, and chickens at the Chornobaivska poultry farm (Bilozerka, Kherson region) were left without food and died.
“Ukrlandfarming is one of the largest agricultural holdings in Eurasia. It is engaged in growing grain, raising cattle, and distributing machinery, fertilizers, and seeds. “Avangard, a part of it, is Ukraine’s largest producer of eggs and egg products.
The Saudi Arabian Investment Company for Agriculture and Livestock (SALIC) has concentrated 12.6% of all outstanding shares of MHP, Ukraine’s largest chicken producer.
“SALIC, a wholly owned subsidiary of the Public Investment Fund of the Kingdom of Saudi Arabia (KSA), has acquired 13,514,563 GDRs of MHP SE, the parent company of MHP,” the Ukrainian agricultural holding said in a stock exchange announcement.
MHP’s share price on the London Stock Exchange is about $4 per share.
Salic was founded in 2012, in Ukraine the company already controls the agricultural holding Continental Farmers Group with a land bank of about 195 thousand hectares.
MHP is one of the largest agricultural holdings in Ukraine, which has been actively developing outside the country in recent years. Its Ukrainian land bank is about 370 thousand hectares.
In the first half of 2024, the company reduced its net profit by 33% to $45 million, due to foreign exchange losses of $81 million compared to $5 million in the first half of 2023. EBITDA increased by 20% to $280 million on a 4% decrease in revenue to $1.489 billion, thanks to crop production.
MHP’s founder, majority shareholder and Chairman of the Board is Ukrainian businessman Yuriy Kosyuk.
MHP Food and Agricultural Holding, Ukraine’s largest chicken producer, reduced sales of sunflower oil by 7% to 229.27 thousand tons in January-June 2024 compared to the same period last year.
“This is mainly due to a decrease in the production of sunflower cake,” the holding said in a report on the London Stock Exchange on Friday.
“In January-June 2024, MHP also reduced sales of soybean oil by 15%, to 23.82 thousand tons, compared to the same period last year, but they remained stable compared to the previous quarter.
Revenues of the vegetable oils segment in January-June 2024 decreased by 32% to $236 mln, which led to a decrease in adjusted EBITDA (excluding IFRS 16) to $27 mln compared to $48 mln in the same period last year, which the agricultural holding explains by the decline in world oil prices.
“MHP is the largest chicken producer in Ukraine. The company produces grain, sunflower oil, and meat processing products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue increased by 14% to $3.021 billion last year.
“In the second quarter of 2024, MHP earned $29 million in net profit, up 71% compared to the second quarter of 2023. Its EBITDA increased by 40% to $153 million, while revenue decreased by 5% to $770 million. The agroholding attributed the increase in profitability to improved performance in the crop sector.
Overall, net profit decreased by 33% to $45 million for the half-year, due to foreign exchange losses of $81 million against $5 million in the first half of 2023. EBITDA increased by 20% to $280 million on a 4% decrease in revenue to $1.489 billion, driven by crop production.
MHP’s founder, majority shareholder and Chairman of the Board is Ukrainian businessman Yuriy Kosyuk.
MHP Food and Agricultural Holding, Ukraine’s largest chicken producer, reduced meat exports from Ukraine by 12% to 87,799 thousand tons in April-June 2024.
According to the holding’s report on the London Stock Exchange on Friday, MHP increased poultry production in the European operating segment (PP) to 35.46 thousand tons, up 6.5% year-on-year.
The agricultural holding noted that the volume of meat production in Ukraine remained stable in the period under review at 187.414 thousand tons against 181.69 thousand tons in the same period last year.
At the same time, the average price of poultry meat in Ukraine remained stable and was in line with last year’s figure at $1.97 per kg (excluding VAT). The average price for poultry produced in the European segment also remained virtually unchanged at EUR3.54 per kg compared to EUR3.64 per kg in the same period last year.
MHP reduced poultry exports from Ukraine in the second quarter of 2024 by 12% to 87,799 thousand tons compared to the same period last year.
In January-June of this year, the agricultural holding practically did not change the volume of poultry production in Ukraine – 365.901 thousand tons against 359.332 thousand tons in the same period of 2023. The volume of poultry production in the European segment of MHP increased by 7% to 69,418 thsd tonnes. A year earlier in the same period, this figure was 65,087 thousand tons.
The average price of MHP poultry in Ukraine remained almost unchanged at $1.98 per kg excluding VAT, compared to $1.92 a year earlier. The average price for poultry meat produced in the European segment also remained virtually unchanged at EUR3.49 per kg in the first six months of 2024 (EUR3.58 per kg in the first six months of 2023).
In the first half of 2024, MHP reduced poultry exports from Ukraine by 12% to 185.854 thousand tons. A year earlier, this figure was 212.106 tons for the same period.
The total volume of poultry sales to third parties in January-June 2024 decreased by 8% year-on-year to 327.215 thousand tons, mainly due to a significant decrease in export sales, the agricultural holding explained.
At the same time, the total sales of processed poultry meat in the first half of this year increased by 19% to 20.386 thousand tons due to production growth and further transformation into a culinary company. The average price of value-added products increased by 4% to $2.90 per kg as a result of changes in the product mix.
MHP is the largest chicken producer in Ukraine. The company produces cereals, sunflower oil, and processed meat products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue increased by 14% to $3.021 billion last year.
In the second quarter of 2024, MHP earned $29 million in net profit, up 71% compared to the second quarter of 2023. Its EBITDA increased by 40% to $153 million, while revenue decreased by 5% to $770 million. The agroholding attributed the increase in profitability to improved performance in the crop sector.
Overall, net profit decreased by 33% to $45 million for the half-year, due to foreign exchange losses of $81 million against $5 million in the first half of 2023.
EBITDA in crop production increased by 20% to $280 million, while revenue decreased by 4% to $1.489 billion.
On Thursday, the Antimonopoly Committee of Ukraine (AMCU) allowed Slovenian poultry producer Perutnina Ptuj, part of MHP agricultural holding, and Balfin – Balkan Finance Investment Group sh.p.k. (Tirana, Albania) to establish a joint venture in Albania, Perutnina Ptuj Albania sh.p.k., the agency’s website reports.
In addition, it is reported that the AMCU has approved the indirect acquisition of more than 50% in four other companies through Perutnina Ptuj Albania sh.p.k: Driza sh.p.k., Fresh Chicken Albania 2019 sh.p.k., Industria Foragjere (VEAF) sh.a., EURO ALB 2009 SHPK (Fier, Albania).
The newly established joint venture Perutnina Ptuj Albania sh.p.k. also intends to acquire the assets of Kompleksi Patos and Qendra Prinderore, owned by businessman Gikmet Driza.
The Albanian Antimonopoly Authority has already approved the deal at a meeting on March 19.
“The proposed transaction will not increase the market power of any of the parties involved in the transaction and is not expected to create problems for competition in terms of horizontal and vertical effects,” the Albanian regulator said in a statement.
According to it, the partnership agreement on the future transaction was signed between Perutnina Ptuj d.o.o. and Balfin on December 8, 2023. According to the document, Perutnina Ptuj will own 81% and Balfin 19% in the Perutnina Ptuj Albania JV, which will be jointly controlled by both companies.
Then, on December 29, Perutnina Ptuj and Balfin signed an agreement with Hikmet and Sula Driza to purchase 100% of the shares of Driza Sh.p.k., Fresh Chicken Albania 2019 sh.p.k. and Industria Foragjere (VEAF) sh.a.
The transfer of assets will take place on the day of fulfillment of all preliminary conditions of the agreement, including all necessary approvals and permits.
It is indicated that Perutnina Ptuj Albania sh.p.k. specializes in investing in poultry farming. It will be engaged in poultry breeding, production of feed, meat and poultry products, trade and services.
Currently, Perutnina operates in Albania only through Kosmonte Foods Tirana distributor.
Balfin SHPK is one of the leading enterprises in Albania. The company specializes in investing in financial instruments, real estate, tangible and intangible assets, providing consulting services and is owned by Samir Mane. The company operates in the retail, real estate, asset management, banking, and energy sectors and was not previously present in the Albanian poultry market.
Driza Sh.p.k. specializes in the cultivation, breeding and production of poultry meat, poultry products and by-products, as well as the purchase, processing, packaging and storage of agricultural and livestock products. Owned by Albanian citizens Hikmet, Sulo and Besnik Driza.
Fresh Chicken Albania 2019 sh.p.k. specializes in poultry slaughter, procurement, processing, packaging and cold storage of agricultural and livestock products, all types of semi-finished and finished products of plant or animal origin. The company is owned by Sulo Driz.
Industria Foragjere, d.d. (VEAF) is engaged in the construction of feed mills, production and trade (wholesale and retail) of feeds, concentrates, vitamins and raw materials (fish meal, meat meal, cereals, bran and other similar products). It is owned by Hikmet Driza and Driza.
EURO ALB 2009 sh.p.k. is engaged in growing crops, purchasing, processing and cold storage of agricultural and livestock products. In addition, it specializes in the production of poultry meat, products and products of their processing, wholesale and retail in the country and abroad, etc. The company is owned by Besnik Driza.
MHP is the largest chicken producer in Ukraine. It also produces grain, sunflower oil, and processed meat products. Its shares are traded on the main floor of the London Stock Exchange. MHP supplies chilled chicken half-carcasses to the European market, which are processed, in particular, at its facilities in the Netherlands and Slovakia. In February 2019, the holding completed the acquisition of Slovenian company Perutnina Ptuj.
In the first nine months of 2023, MHP posted a net profit of $122 million compared to a loss of $269 million in the same period of 2022, while its revenue increased by 22% to $2 billion 294 million and EBITDA by 20% to $329 million.
In particular, the European segment (Perutnina Ptuj) increased its revenue by 19% to $411 million and its EBITDA by 17% to $68 million.
How has the full-scale war changed the top 10 Ukrainian wholesalers?
According to the Opendatabot Index, almost half of the top 10 most successful Ukrainian wholesalers are businesses that trade in solid, liquid, gaseous fuels and similar products.
The top 10 of the Index in the wholesale trade sector includes Okko, WOG, West Petrol Market (fuel) and DTEK Trading, which trades in energy products. The list also includes businesses that sell tobacco (Tedis Ukraine and Philip Morris Sales and Distribution). Only two companies on the list sell food: MHP (meat) and Kernel Trade (grain). The Index also includes Optima Pharm and Metinvest-SMC. Together, these businesses earned UAH 458.95 billion last year.
For the second year in a row, Kernel Trade, a part of Andriy Verevsky’s Kernel Group, has been the unchanging leader in wholesale trade. In 2022, the company’s revenue amounted to UAH 67.92 billion, down 21% compared to 2021 (UAH 85.79 billion).
OKKO (Vitaliy Antonov, Universal Investment Group – UIG) moved up to the 2nd position in the ranking with revenue of UAH 67.29 billion. The company’s earnings grew 1.6 times year-on-year in 2022.
Tedis Ukraine, a tobacco company owned by Borys Kaufman, rounds out the top 3. Last year, the company increased its revenue by 7% and earned UAH 64.95 billion. It is worth noting that at the same time, the revenue of another company in the Index that specializes in tobacco wholesale, Philip Morris Sales and Distribution (the Ukrainian branch of the international tobacco manufacturer Phillip Morris International), decreased by 15% in 2022.
Yuriy Kosyuk’s MHP ranks fourth in the Index. This company specializes in the wholesale of meat and meat products. Its revenue in 2022 amounted to UAH 46.73 billion and remained almost unchanged compared to 2021 (UAH 46 billion).
Andriy Gubsky’s Optima Farm took fifth place in the list. In 2022, the company’s revenues decreased by 4% to UAH 44.34 billion.
DTEK Trading, owned by Rinat Akhmetov, saw the largest revenue increase – 1.8 times over the year. The company’s revenue of UAH 36.68 billion allowed it to rise from 18th place in the 2021 ranking to 7th in the 2022 ranking.
But another Akhmetov company in the top 10, Metinvest-SMC, saw its revenues decline by 42% (2021 – UAH 51.39 billion, 2022 – UAH 29.86 billion),
Who did the full-scale war push out of the top 10 Ukrainian wholesalers?
It is worth noting that in 2022, the top 10 Ukrainian wholesalers underwent significant changes compared to 2021.
Last year, 2 companies specializing in energy trading dropped out of the list.
We are talking about United Energy, a company associated with Kolomoisky, which was the second largest earner in the country before the outbreak of full-scale war. Last year, United Energy earned 3.6 times less revenue than in 2021 (UAH 17.24 billion) and lost 19 rating points.
Chemical Trade (owned by Dmitry Firtash) also did not make it to the top. Having reduced its revenue by 1.4 times, the company dropped to the 12th position in the ranking.
Also, two businesses specializing in grain wholesale dropped out of the top ten:
– Nibulon (Andriy Vadatursky) and Nibulon (Andriy Vadatursky). The company’s revenues last year decreased 2.7 times by 2021, and a significant share of its facilities and equipment is still under occupation.
– ADM-Ukraine (a subsidiary of the international agro-industrial corporation Archer Daniels Midland Company): their revenue decreased by 1.5 times by 2021.
It is worth noting that the total revenue of the top 10 wholesale companies in 2022 decreased by 10% compared to the top 10 in 2021.
The OpenDataBot Index is an analytical tool for assessing the real situation and geography of Ukrainian business, based on data from state registers, OpenDataBot registers, financial statements of companies, information on relations with Russia, sanctions lists, and other analytical tools of OpenDataBot.
ADM-Ukraine, DTEK Trading, KERNEL-TRADE, Metinvest-SMC, MHP, NIBULON, OPTIMA-PHARM, Philip Morris Sales and Distribution, TEDIS UKRAINE, West Petrol Market, WOG, ОККО
