Business news from Ukraine

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.