The latest expansions in poultry production and slaughtering capacities have contributed to improved physical performance for the second quarter by Ukraine based agro-industrial company, MHP SE.
To the same period of 2017, second-quarter poultry meat output by MHP increased by 7 percent to 155,725 metric tons (mt). Exports dipped slightly, however, to 70,145mt.
The firm achieved a total revenue of US$388 million for the second quarter, which represents a 21 percent improvement year-on-year. Of this total, 57 percent or US$223 million was generated through exports.
In local currency, Ukrainian hryvnia (UAH), the average chicken meat price pushed up 20 percent from the same period of the previous year to UAH39.38 per kilo (US$0.641 per pound at current exchange rates).
While operating profit was down slightly compared with the previous year’s second quarter, MHP reported a net profit of US$100 million, which compares with US$153 million in 2017.
Turning to the amalgamated results for the first six month of 2018, the firm’s total poultry production increased by 7 percent to 307,890mt. Higher imports to the Middle East and Africa, and to the European Union supported a 9 percent rise in outward trade to 133,564mt.
Compared to the same period of 2017, average chicken prices for the six months were 21 percent higher, at UAH39.17 (US$0.638 per pound).
As a result, MHP achieved a 16 percent increase in total revenue for the first half of the fiscal year to US$694 million. The contribution of exports fell from 58 percent of the total revenue last year to 55 percent but the trade contributed US$385 million to company revenue, up from US$349 in 2017.
As for the quarter reported, operating profit and adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first six months of 2018 were lower year-on-year, and net profit margin declined to 27 percent from 35 percent in 2017.
At US$190 million, net profit was hit by a reduction in government grants income and to one-off transaction costs that relate to a new Eurobond issued in April 2018, according to the company.
MHP completed the second phase of construction at its Vinnytsia poultry complex during May, while a new slaughterhouse began production at the start of July.
The firm — previously known as Mironivsky Hliboproduct — moved its registered office to Limassol, Cyprus, in 2017.
