MHP agricultural holding, the largest chicken producer in Ukraine in October 2022 increased production of chicken by 1% compared to the previous month – to 59.61 thousand tons, while its sales reduced by 2% – to 62.36 thousand tons, according to the statement of agricultural group on the London Stock Exchange on Friday.
It is noted that the volume of chicken production in October 2022 is still 12% behind the same month of the “pre-war” 2021, but its sales exceeded last October’s figures by 11%.
It is specified that the share of chicken export shipments in October this year increased by 4 percentage points (p.p.) over September 2022, and by 3 p.p. over October 2021, to 60%.
A total of 37,69,000 tons of poultry were exported this October, up 6% from September 2022 and 18% from October 2021.
The domestic market sold 24,67 thousand tons of chicken meat in October 2022, 11% less than the previous month but 2% more than last October.
The average price of poultry meat sold in October 2022 was similar to the level of September this year – $1.93/kg, while in October a year earlier it was $1.70/kg (down 14%).
During the reporting period, MHP has reduced the sales of processed meat products and semi-finished products by 9% compared to September – up to 2.97 thousand tons, and this figure is still 40% lower than in October 2021.
According to agroholding, in October 2022 the sunflower oil sales fell by 71% against September this year, and by 51% against October 2021, to 12,800 tons, while soybean oil sales increased by 81% against September this year and by 86% against October last year, to 7,38 thousand tons.
MHP also pointed out that this season the holding is harvesting 335 ths. ha, with sunflower harvesting fully completed, the soybean harvesting is almost finished and corn is harvested on 75% of the area.
The winter crops sowing campaign is completed on about 74 thsd. ha (winter wheat – about 55%, winter rape – about 45%).
MHP is the largest producer of poultry in Ukraine. It is also engaged in the production of grain, sunflower oil, and meat processing products. To the European market, MHP supplies chilled half-carcass chickens, which are processed, including at its facilities in the Netherlands and Slovakia. In February 2019, the agroholding completed its acquisition of Slovenian company Perutnina Ptuj.
MHP posted a net profit of $393 million in 2021, compared with a net loss of $133 million in 2020, while its revenue rose 25 percent to $2.37 billion.
Ukrainian businessman Yuriy Kosyuk is the founder, majority shareholder and board chairman of MHP.
Agroholding MHP in the second quarter of 2022 received $20 million in net profit compared to $232 million in the second quarter of 2021, including excluding exchange rate differences, net profit decreased to $17 million from $201 million.
According to the company’s report on the London Stock Exchange on Wednesday, its revenue amounted to $595 million, an increase of 10% compared to last year.
According to the document, exports accounted for $333 million in revenue, or 56%, while in the second quarter of 2021, $285 million, or 53%.
Operating profit fell 72% to $67 million and adjusted EBITDA (excluding IFRS 16) to $111 million from $277 million in the second quarter last year.
“Despite the fact that MHP continues to face difficult challenges and disruptions in operations, sales and logistics, the company has now been able to restore poultry production at its Ukrainian facilities to almost 100% capacity. In recent months, new, albeit more complex and expensive logistics routes, and export volumes are growing. We expect to complete the grain harvest on almost all of our lands in the second half of the year,” the report says.
According to him, before the end of the year, MHP plans to take advantage of the opportunities of the Cherenomor Grain Initiative for the export of agricultural products.
“The Group incurred significant war-related expenses following the Russian invasion on February 24. For the period ended June 30, 2022, they amounted to nearly $50 million, including donations to support the community, write-offs of stockpiles and biological assets, and other war-related expenses.” , is specified in the document.
At the same time, the company had no material damage to facilities, infrastructure and products in Ukraine, with the exception of the destruction of the leased storage facility (with a loss of about $6 million in production) in March and the suspension of the production of “Ukrainian Bacon” in the Donetsk region, which has now been moved to other locations. in Ukraine.
Agroholding MHP, the largest producer of chicken meat in Ukraine, in July 2022 reduced chicken production by 8% – to 52.04 thousand tons, but increased its sales by 4% – to 56.54 thousand tons, the agricultural group on the London Stock Exchange on Friday.
It is noted that the operating activity of the holding is still below last year’s figures due to the full-scale Russian invasion of Ukraine: in July 2022, chicken production amounted to 81% of July 2021, and its sales – 88%, respectively.
It is specified that in the domestic market in July 2022, chicken sales remained at the level of July 2021 and June 2022 – 25.56 thousand tons. Chicken export in July this year amounted to 30.98 thousand tons, which is still 20% less than in July last year, but 3% more than last month.
Thus, the share of chicken exports in July of this year decreased by 5 percentage points (p.p.) against July 2021, to 55% from 60%, but increased by 3 p.p. compared to June 2022.
The average selling price of poultry meat in July increased by 21% year on year – up to $2.1/kg, and by 2% compared to the previous month.
During the reporting period, MHP also reduced sales of meat products and semi-finished products by 49% compared to July 2021, to 2.5 thousand tons, but this figure was 1% higher than in June 2022.
According to the agricultural holding, in July 2022, sales of sunflower oil increased by 1.9 times compared to July last year and by 13% compared to June of this year, to 22.55 thousand tons. At the same time, sales of soybean oil decreased by 5.8 times by July 2021 and by 3.5 times by June 2022 to 1.16 thousand tons.
“Harvesting of winter crops (wheat, rapeseed, etc.) is being carried out on an area of about 69.7 thousand hectares. Rapeseed harvesting has been completed on about 27.5 thousand hectares with a yield of about 3.8 t/ha. Wheat harvesting continues on an area of about 40.7 thousand hectares, 85% completed, with a current yield of 5.5 t / ha,” the agricultural holding states in a stock exchange message.
According to him, spring crops are in good condition. In general, the weather conditions are also relatively favorable for a good harvest, apart from a number of regions with extremely hot and dry weather conditions.
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.
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.
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.
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.).
