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.
Myronivsky Hliboproduct (MHP), one of the largest agricultural holdings in Ukraine, is working on a carbon dioxide plant project, deputy chairman of the board Oleksandr Dombrovsky has said when signing a memorandum of partnership between the agricultural holding and Organic Ukraine.
“This is an innovative project, I can’t tell you much. We are now doing a very professional feasibility study, considering various options. Today it is too early to say that we are ready for this project. We are working on it,” he said.
Dombrovsky clarified that the plant is being designed both for the needs of MHP itself, and for the domestic market and export. According to him, today about 70% of carbonic acid in the domestic market is imported, mainly from Poland and Hungary.
He also said that MHP, which has already built two of the world’s largest biogas complexes for processing poultry manure, has another ready-made similar project and a permit for its construction.
“But we are thinking to start or not to start. And if to start, then when, given that the “green” industry in Ukraine has not been paid money at all for six months,” Dombrovsky explained.
He stressed that investments in biogas are significantly higher than in solar energy, and range from EUR3 million to EUR3.5 million per 1 MWh of capacity.
The expert noted that the agricultural holding is also working on other innovative projects, in particular, on “green” hydrogen.
BIOGAS, CARBONIC ACID, GREEN POWER, INDUSTRY, INVESTMENT, MHP
Myronivsky Hliboproduct (MHP) has appointed Ernst & Young Cyprus Limited as new auditors for 2020 instead of Deloitte Limited.
The corresponding decision was made at an annual meeting of shareholders, the holding reports on the London Stock Exchange’s website.
The shareholders also approved MHP SE’s annual report for 2019 and re-elected all the holding’s directors for the term until the next annual meeting in 2021.
MHP is the largest producer of chicken in Ukraine. It is also engaged in production of cereals, sunflower oil, meat. MHP supplies chilled carcasses of chickens to the European market, which are processed, in particular, at its enterprises in the Netherlands and Slovakia.
In February 2019, MHP completed the acquisition of the Slovenian company Perutnina Ptuj.
The founder and majority shareholder of MHP is Ukrainian businessman Yuriy Kosiuk.
Myronivsky Hliboproduct (MHP) in the first quarter of 2020 received $174 million in net loss compared to $33 million in net profit for the same period in 2019.
According to the holding’s report on the London Stock Exchange’s website, its revenue increased by 2%, to $443 million, export revenue decreased by 11.6%, to $237 million (54% of total revenue compared to 61% in January-March 2019).
MHP’s operating profit decreased by 6%, to $47 million, gross profit grew by 14%, to $92 million. The company’s EBITDA in the reporting period grew by 16%, to $96 million, EBITDA margin to 22% from 19% in the first quarter of 2019.
“The net loss of $174 million compared with a profit of $33 million for the first quarter of 2019 is associated with $182 million of losses from foreign currency cashless transfers (foreign exchange differences) in the first quarter of 2020,” MHP explained.
Net profit before exchange rate differences in January-March 2020 amounted to $8 million, which is 33% lower than in the same period a year earlier.
MHP’s net debt as of March 31, 2020 amounted to $1.22 million compared to $1.14 million as of December 31, 2019.
In the first quarter of 2020, total capital investment amounted to $21 million and were mainly related to the maintenance and production of Perutnina Ptuj.
Due to the COVID-19 coronavirus pandemic, the export of agricultural products of the Myronovsky Hliboproduct (MHP) globally has not changed; the geography has slightly shifted from Europe towards Asia, the owner of the MHP, Yuriy Kosiuk, has said. “Globally, nothing has changed. Europe has slightly fallen due to lower consumption, although all of our enterprises are located there. The Arab markets, Africa have grown. Japan is a little closed, but in the near future, I think, everything will reopen. In general, the picture is unchanged. The only thing is that the geography has shifted slightly from Europe to Asia,” he said in an interview with the Novoye Vremia publication.
According to Kosiuk, the countries of the Arabian Peninsula have already made a request to support and secure them in the supply of meat.
“This issue became especially acute after the opening of markets. Many companies in these countries closed due to COVID-19 cases at production facilities. A similar situation in the United States: closures of production facilities due to outbreaks of COVID-19, shortage in the domestic market, half-empty shelves in stores. In Ukraine, thank God, this did not happen,” the owner of the company said.
At the same time, Kosiuk does not believe that, amid the coronavirus crisis, Ukrainian producers got the opportunity to gain more in the export of food products.
The Board of Directors of Myronivsky Hliboproduct agricultural holding on April 13, 2020 approved the distribution of interim dividend for 2019 in the amount of $0.2803 per share with total amount of the interim dividend being $30 million.
According to a company report on the London Stock Exchange (LSE), the dividend will be paid to the company’s shareholders on April 28, 2020.
As reported, in 2019, MHP paid $80 million of the dividend to its shareholders ($0.7474 per share).
MHP is the largest producer of poultry in Ukraine. It is also engaged in production of cereals, sunflower oil and meat.
