Following disappointing performance in its second quarter, Ukraine’s agri-food giant, Myronivsky Hliboproduct (MHP), has reported an improvement in its results for the third quarter.
In a pre-close trading update, the company reported increases of 5 percent and 8 percent in poultry production for the third quarter and for the first 9 months of its fiscal year, respectively, compared to the corresponding periods last year. Output reached 149,760 metric tons (mt) and 455,425 mt, respectively. Driven by strong export sales, production was up at the company’s farms at Myronivka and Oril Leader. The latter unit is still building up to full capacity.
MHP diversifying, exploring new regions
In the report, MHP confirms its commitment to a strategy of diversification and geographical expansion, focusing its attention on exploring new business opportunities in the Middle East, the EU, Asia and Africa. In areas with the greatest potential, the company aims to set up sales offices to build local distribution networks.
From the reported growth in exports to these regions, this policy seems to be effective. Compared to the first 9 months of 2015, sales over the same period this year were up 47 percent to the Middle East, 35 percent to the EU, and they were up four-fold to Africa.
MHP also records strong growth in its “Other Agro Operations,” which cover the production of sausages and cooked meats. Third-quarter output was up 21 percent to 10,800mt, which helped the production volume so far this year up to 28,780mt, which is 37 percent above last year’s figure.
Also a significant grower of grain and oilseeds, the company is set to harvest around 355,000 hectares in Ukraine this season. Sunflower, corn and soy harvests are on track, and winter sowing is also on schedule, MHP reports. Much of its arable production is destined for the company’s own oilseed crushing facilities, which produce soybean and sunflower meals for broiler feed for its own and third-party poultry feeds.
According to the company’s second quarter results, published in August, its net profit was down compared with the same period of the previous year. Despite higher poultry production volume and exports, the business had been hit by lower export prices and adverse currency fluctuations.
A week ago, MHP announced its intention to increase production at its poultry processing facility in the Netherlands.
