Myronivsky Hliboproduct (MHP) sold 153,140 tonnes of chicken meat to third parties in April-June 2018 (Q2), which is 3% less than in April-June 2017. Sales of chicken meat in the first half of the year increased by 2%, to 288,440 tonnes, the company said in a report on the London Stock Exchange on Wednesday.
Poultry production volumes in Q2 2018 increased by 7% to 155,725 tonnes (Q2 2017: 145,820 tonnes) and in H1 2018 increased by 7% to 307,890 tonnes (H1 2017: 287,694 tonnes), due to increased production of heavier chicken and decreased share of thinning, the report said.
Myronivsky Hliboproduct (MHP) early July launched the second line at Vinnytsia poultry farm, the company’s press service has reported.
According to the report, total investment in the second line was $300 million.
The company said that at present, production at the farm is around 280,000 tonnes of poultry a year. By 2020 it is planned to boost it to 560,000 tonnes.
Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.
MHP supplies cooled semi-carcasses, which are processed, including at its enterprises in the Netherlands and Slovakia.
The company’s land bank as of late 2017 was around 370,000 ha.
The founder and majority shareholder in MHP is Ukrainian businessman Yuriy Kosiuk.
The PeopleMeter startup has become the winner of the MHP Accelerator agro-startup development program, organized by Radar Tech, Agrohub and Myronivsky Hliboproduct (MHP).
According to the Facebook page of Agrohub, the winner startup, co-founded by Serhiy Hlyvoi, will receive a prize of UAH 300,000 and commercial launch with MHP.
In addition, the MobiMill startup received a prize from Agrohub and Radar Tech – two jobs for six months at Agrohub Space, while AgroLactBio (the co-founder is Lidiya Babenko) was awarded a trip to the innovative park of Israel. AeroDrone and BIODrum will launch a pilot project with MHP.
AeroDrone will also take part in the international program Startup Haifa from the Israeli Embassy in Ukraine.
Profeed, Sovtes, Meteo Trek, MobiMill will carry out commercial launch with MHP.
The program lasted eight months, training lasted three months, a total of 184 applications were submitted, of which 34 semifinalists were identified, and then 13 startup finalists were selected.
As reported, in 2017 the team of the Radar Tech technological cluster announced the launch of the MHP Accelerator startup development program in the agro-industrial complex with one of the largest agricultural holdings of Ukraine, Myronivsky Hliboproduct.
Agrohub, which promotes innovation in the agricultural sector of Ukraine, in 2018 will conduct a study to identify the innovative priorities of individual agro-companies and the industry as a whole.
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.
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 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.