Business news from Ukraine

MHP SEEKS TO INVEST OVER $250 MLN IN DEVELOPMENT IN 2018

Myronivsky Hliboproduct (MHP) plans to invest over $250 million in 2018 in the launch of the second line at Vinnytsia poultry farm, a biogas complex in Vinnytsia and modernization of existing production facilitiles.
“Total investment this year would be over $250 million. Some $160-170 million will be sent to launch the second line of Vinnytsia poultry farm in a month and a half, near $20 million – to build the second biogas complex in Vinnytsia. The rest of the investment will be sent to modernize existing production facilities,” MHP CFO Viktoria Kapeliushna told Interfax-Ukraine.
According to her, now MHP is considering proposals for the purchase of new assets in several countries.
“The other day the Commercial Court of Rennes (France) decided to satisfy the proposal to buy French Doux – not ours, but of a consortium represented by the French manufacturer LDC and the company from Saudi Arabia Al-Munajem .It is not a matter of selling the company, but selling assets. We were in the process and we saw how things were going. We are still monitoring the European market, the Middle East market, but we are not yet ready to make statements. We are considering proposals in several countries,” the CFO said.
The board’s plans for appointment Roberto Banfi, who previously was in charge of the Middle East region in a large Brazilian company BRF, to the position of director in the middle of June are related to the interest of MHP in the markets of this region.
“The Middle East is interesting. We see growth potential in the markets of this region both for small carcasses, quarters and for processed products. The trade and distribution company has been operating in the UAE for over a year,” Kapeliushna said.
She said that in 2018, as for EBITDA the agroholding intends to reach the level of 2017, possibly 5% higher. As MHP expects, the driver will be the increase in production volume associated with the launch of the second line of the Vinnytsia poultry farm.
MHP is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.
The company supplies cooled halved carcasses of hens to the European market. They are processed there, including at its enterprises in the Netherlands and Slovakia.

, ,

MHP SEES NET PROFIT RISE BY 1.6 TIMES IN Q1, 2018

Myronivsky Hliboproduct (MHP) in the first quarter of 2018 received $90 million of net profit, which is 1.6 times more than for the same period in 2017.
According to the holding report on the website of the London Stock Exchange (LSE), its revenue increased by 10%, to $306 million, export revenue was $162 million (53% of the total revenue).
Operating profit decreased by 16%, to $62 million, EBITDA by 4%, to $89 million, gross profit by 6%, to $81 million compared to January-March 2017.
As reported, MHP sold 135,307 tonnes of poultry in January-March 2018, which is 9% more than in the same period of 2017. Export sales of the agricultural holding increased by 28% in the first quarter, to 63,140 tonnes, while the volume of sales in the domestic market fell by 4%, to 72,160 tonnes.
Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of grain, sunflower oil, and meat.
The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk.

,

AGRICULTURAL HOLDING MHP INCREASES POULTRY SALES IN Q1 2018

Agricultural holding Myronivsky Hliboproduct (MHP) sold 135,307 tonnes of chicken meat in January-March 2018, which is 9% more than in the same period of 2017. The average selling price of the produce in Q1 increased by 23% year-over-year the year, to UAH 38.78 (excluding VAT) per kg, MHP said in a report on the website of the London Stock Exchange on Wednesday.
MHP’s poultry prices on the domestic market remained almost at the same level as in Q4 2017, but 23% higher year-on-year due to low comparative basis in Q1 2017. The export price increased by 17% year-over-year as a result of MHP’s export product mix change and increased sales to more profitable markets (market targeting strategy).
In Q1 2018, MHP’s exports of chicken meat constituted 63,144 tonnes, which is 28% higher than in the same period last year (Q1 2017: 49,151 tonnes), having exported its poultry to 53 countries worldwide. Export sales represented around 47% of total poultry sales volumes in Q1 2018. “During the reporting period, following its export strategy, the company has been developing its exports mainly in the countries of the MENA [Middle East, North Africa] and the EU,” the report said.

, ,

MHP DECIDES TO PAY $80 MLN DIVIDENDS

The Board of Directors of Myronivsky Hliboproduct (MHP), the largest poultry producer in Ukraine, has approved the payment of interim dividends in the amount of $0.7492 per share, which is equal to $80 million. According to a company report on the London Stock Exchange (LSE) on Thursday, the decision was made after having carefully considered the performance of the company during the financial year 2017 and two months period ended February 28, 2018.
MHP said that the interim dividend will be paid on April 26, 2018 to the company’s shareholders whose name is entered in its register of members as of April 20, 2018. The Board of Directors approved that no dividend will be paid on the company’s shares held in treasury.
The Board of Directors of MHP SE also acknowledged the consent of WTI Trading Limited (the Company’s major shareholder) to be paid later than the dividend payment date (but not later than November 01, 2018) with no interest accrued on the amount of dividend paid later.
As reported, MHP increased its net profit 3.3-fold in 2017 compared to 2016, to $230 million with revenue growth of 13.4% to $1.288 billion.

,

MHP RECEIVES APPLICATIONS TO BUY 84% OF 2020 EUROBONDS

Myronivsky Hliboproduct (MHP) agroholding after a tender offer to buy notes due on April 2, 2020 received applications for the securities worth $416.183 million, the company reported on the London Stock Exchange (LSE) on Monday.
According to the report, currently the company has outstanding 2020 notes in aggregate principal amount of $495.6 million.
MHP said that following the early tender deadline the notes in aggregate principal amount of $409.783 million were tendered. On or before the expiration deadline the notes in aggregate principal amount of $6.4 million were tendered.
On or about 10 April 2018, on the terms and subject to the conditions in the tender offer memorandum, noteholders who validly tendered following the early tender deadline and on or before the expiration deadline will be paid the tender offer consideration of $1,065 per U.S.$1,000 principal amount plus the accrued interest amount.
The aggregate principal amount of Notes outstanding following completion of the tender offer is $79.417 million.

, ,

UKRAINIAN MHP READY TO INVEST EUR76 MLN IN RESTORATION OF FRENCH DOUX GROUP

Myronivsky Hliboproduct (MHP) is ready to invest EUR 76 million in the partial restoration of Doux Group suffering economic difficulties, the press service of the agricultural holding has told Interfax-Ukraine.
According to the press service, at present the French chicken producer LDC and the Ukrainian agroholding MHP are simultaneously negotiating the purchase of the French food processing company Doux.
MHP said it had submitted a “mandatory offer for the partial restoration” of Doux. In particular, the holding proposes to invest EUR76 million in the construction of a new plant in Chateaulin (France) within two years and modernize other facilities.
In addition, MHP is ready to change the strategy, in particular, to abandon production of frozen products for exports, replacing them with fresh ones for the French market.
As reported, MHP on March 9, 2018 filed documents to the industry restructuring committee of France (Comité Interministériel de Restructuration Industrielle) for the restoration of Doux Group suffering economic difficulties. MHP estimates the amount of required investments to restore the group at EUR 150 million, while requiring that at least EUR70 million be compensated at the expense of state subsidies.

, ,