The purpose of the planned lease of the Arctica warehouse complex in the village of Sofiyivska Borschahivka near Kyiv by PJSC Myronivsky Hliboproduct (MHP) from the Dragon Capital group of companies is to store MHP products, the press service of the company has told Interfax-Ukraine.
“MHP does not buy the Arctica warehouse complex owned by Dragon Capital, but leases it. Ukrainian legislation requires permission from the Antimonopoly Committee of Ukraine to be obtained for lease as well,” MHP said, commenting on the consideration of the concentration case started on January 11 by the committee.
MHP is the largest chicken producer in Ukraine.
At the end of 2020, the supervisory board of MHP made a decision to establish MHP Logistics.
The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk
PrJSC Myronivsky Hliboproduct (MHP) intends to lease the logistics center Arctic (Arktyka) in the village Sofiyevska Borschahivka near Kyiv from Dragon Capital.
As follows from the agenda of the Antimonopoly Committee of Ukraine, the issue of granting permission for the lease is planned to be considered on January 11.
MHP is the largest poultry producer in Ukraine. It is also engaged in production of grain, sunflower oil, meat. MHP supplies the European market with chilled half-carcasses of chickens, which are processed, in particular at its factories in the Netherlands and Slovakia. In February 2019, MHP completed the acquisition of the Slovenian company Perutnina Ptuj.
In addition, at the end of 2020, the MHP supervisory board made a decision to establish a branch named MHP Logistics.
The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk.
The agricultural holding Myronivsky Hliboproduct (MHP) saw a net loss of $47 million in July-September 2020 versus a net profit of $104 million for the same period in 2019.
According to the quarterly financial statements of the holding, published on the London Stock Exchange on Wednesday, its revenue in the third quarter decreased 2%, to $547 million, and EBITDA fell by 3%, to $106 million.
MHP’s gross profit grew by 10%, to $103 million, operating profit – by 40%, to $56 million.
MHP said that over the specified period, export revenue decreased 2.5%, to $309 million, which is 56% of total revenue (in the third quarter of 2019 it was 57% of total revenue).
The agricultural holding explained its net loss indicator for the third quarter of 2020 by a non-cash foreign exchange loss of $61 million compared to a profit of $109 million for the same period in 2019. Thus, net profit before foreign exchange differences in the reporting period of 2020 amounted to $82 million, which is 11% lower compared to $92 million in the third quarter of 2019.
In general, in January-September 2020, MHP’s revenue decreased 6%, to $1.41 billion. MHP saw $109 million in net loss versus $276 million in net profit in the first nine months of 2019, which is associated with a non-cash foreign exchange loss of $191 million in January- September 2020 compared to 9M 2019 profit of $182 million.
EBITDA for the specified period fell by 7%, to $332 million, gross profit – by 7%, to $322 million, and operating profit – by 11%, to $194 million.
MHP CFO Viktoria Kapeliushna told Interfax-Ukraine on Wednesday that the second wave of the coronavirus crisis in Ukraine and Europe did not affect the logistics chains, but the company sees a decrease in demand in HoReCa, which in turn is offset by an increase in demand in other sales channels.
“Because of the coronavirus crisis, we did not revise our plans, but we revised our forecasts. Lockdown affected global prices for chicken, we can feel it,” she said.
Kapeliushna said that the company revised its EBITDA forecast at the end of the year downward. It is expected to be 5-10% below the 2019 level.
“The first nine months of 2020 have been extremely challenging, with the disruptive effects of the COVID19 pandemic, avian influenza in Ukraine which resulted in the temporary closure of some export markets in the first quarter, over-supply and resulting high stock levels in European markets, lower poultry prices globally, crop yields adversely affected by the worst weather conditions in central Ukraine for at least 30 years, and volatile exchange rates,” the MHP said in the press release.
The company said that although the outlook for the fourth quarter is as yet unclear, we expect increasing grain prices and the continuing rebalancing of poultry sales to more profitable export markets to largely offset the effects of lower poultry prices in Europe.
“Longer term, we expect poultry prices in our major markets to adjust gradually in response to increased production costs driven by higher grain prices. The company also expects to derive increasing benefit from its shift towards a more value-added strategy and the development of antibiotic-free products to be sold initially under its Nasha Ryaba brand,” MHP said.
MHP is the largest chicken producer in Ukraine. It is also engaged in the production of cereals, sunflower oil, meat products. MHP supplies the European market with chilled half-carcasses of chickens, which are processed, including at its factories in the Netherlands and Slovakia.
Myronivsky Hliboproduct (MHP) last week opened three new stores of the Miasomarket stores franchise chain in Oleksandriya and Novomyrhorod (Kirovohrad region) and Sumy.
According to the company’s press release on Monday, October 5, some 12 stores of a new format are already operating in Ukraine, namely, in Sumy, Kovel, Mykolaiv, Dubno, Cherkasy, Kropyvnytsky, Kyiv, Odesa, Novomyrhorod, Oleksandriya.
As reported, Myronivsky Hliboproduct intends to open about 50 retail outlets in different cities of the country by the end of 2020. The company opened the first Miasomarket store in Kyiv on September 18, 2020.
MHP is developing franchising formats such as Miasomarket stores, traditional Nasha Ryaba shops, Secrets of the Chief gastrostudio and shawarma points of sale. At the same time, MHP develops independently its sandwich shops “Kho bite? (the Baschynsky trademark).
MHP is the largest chicken producer in Ukraine. It also produces grains, sunflower oil and meat processing products. MHP supplies chicken carcass halves to the European market, which are also processed at its facilities in the Netherlands and Slovakia.
MHP’s net profit in 2019 increased by 1.7 times compared to 2018, to $215 million, while revenues increased by 32%, to $2.06 billion.
Myronivsky Hliboproduct (MHP) plans to open 10-20 gastro studios Chef’s Secrets (Sekrety Shefa) in Ukraine next year, which it develops through franchising.
“This model is not as scaled as Myasomarket stores, therefore, we will try to open about 10-20 outlets within the next year,” Serhiy Ivanov, the deputy head of the board of MHP for commerce, said during the official opening of the first outlet in Kyiv.
According to him, it is planned to open such gastro studios not only in Kyiv, but also in other cities.
MHP opened its first gastronomic studio Chef’s Secrets at 22/20 Petra Hryhorenka Street in Kyiv on September 24.
MHP is the largest chicken producer in Ukraine. It is also engaged in production of grain, sunflower oil, meat products. MHP supplies the European market with chilled half-carcasses of chickens, which are processed, in particular at its factories in the Netherlands and Slovakia.
The agricultural holding Myronivsky Hliboproduct (MHP) plans to open 350 stores of the Miasomarket format in Kyiv city and the region in five years.
“In the next five years, 350 Miasomarket outlets should open in Kyiv city and the region. We also have a clear understanding of how many stores we want to open in five years in the regions – the number of outlets varies from 40, depending on the concentration of the population,” the head of the department for work with franchisees of the agricultural holding MHP Dmytro Morozov told Interfax-Ukraine.
According to him, in addition to the Miasomarket and Nasha Ryaba conventional stores, the company is now developing franchising formats such as the Chef’s Secrets gastronomic studio and shawarma points of sale, as well as sandwich shops “Kho perekusit?” (TM Bashchinskiy), which is the format that MHP develops independently.
“Investments of partners in the Myasomarkets project start at $25,000, for other formats, in particular Döner Market, we are now finalizing the size of investments,” Morozov said.
He also announced the official opening of the first point for the sale of shawarma in Kyiv, in the Osokorky residential area, on September 23.
The head of the department for work with franchisees of MHP said that the points will have different formats, both street food and with the possibility of seating inside the facility.
“As the project develops, we will add other formats of street food. We see for ourselves at least two more formats that will sell shawarma,” he said.
The official opening of the first point of the Chef’s Secrets gastro studio is scheduled for September 24. However, as Morozov specified, it has been operating in test mode since June.
Asked whether MHP plans to implement such projects abroad, Morozov said that now this initiative is at the stage of preliminary assessment of the need.
“The holding has divisions in other countries with which this issue has been discussed, but there are no concrete plans yet. We have shown how we launch Miasomarket stores in Ukraine, what is the essence of the concept, the value for the end consumer and business in general. Now it is a discovery stage, the stage of preliminary assessment of the need for such a project,” he said.
