A district court in Cyprus has delivered an order sanctioning the merger of MHP SE with Raftan Holding Limited, Hemiak Investments Limited and Eledem Investments Limited.
According to the parent company of the international agro-industrial group with headquarters in Ukraine, MHP SE, the order issued by Limassol District Court sanctioned the merger. This is to be achieved by transferring all assets and liabilities of each of the three transferor companies to MHP.
All four companies are registered in the Mediterranean island state of Cyprus.
Avian flu in Ukraine impacted MHP’s poultry production
In its first-quarter (Q1) results published earlier this month, MHP reports how it adapted its business of producing poultry meat. Shifts in production were needed in response to outbreaks of highly pathogenic avian influenza (HPAI) in Ukraine. As a result, the European Union (EU) suspended imports of Ukrainian poultry products between December of 2020 and March this year. Shifting production to more small birds for export to the Middle East-North Africa (MENA) region, MHP increased its thinning of chickens towards the end of the growing period to 56% from the previous 25%.
As a result of these changes, MENA accounted for 54% of MHP’s exports during Q1 this year (2020: 31%). At 23%, 15%, and 6%, respectively, the proportions of the company’s exports destined for the Commonwealth of Independent States (CIS), Africa, and the EU were lower than in the corresponding period of 2020.
Despite these adjustments, the overall proportion of MHP’s poultry output that was exported hardly changes at 53%.
At US$1.43 per kilo, the average price of chicken meat was 4% higher year-on-year in Q1. In Ukraine, it was 28% more expensive than one year previously, driven by high feed costs. For MHP’s exports, the average price was down 5% at US$1.38 per kilo. Prices are given net of Value Added Tax (VAT).
Diverging trends in MHP’s other business operations
In Q1 of 2021, MHP reports a 3% year-on-year reduction in sales of processed meat products at 7,607mt. In contrast, sales to third parties of convenience foods were 4% higher at 4,180mt.
MHP’s European Operating Segment — Slovenia-based Perutnina Ptuj (PP) — increased its chicken and turkey meat output in Q1 by 3% to 24,662mt, while raising sales to third parties by 6% to 16,042mt. The firm attributes these increases to expansion of its facilities in Croatia and Serbia.
In Q1, PP’s meat processing operations increased output of sausages and convenience foods by as much as 14% year-on-year at 9,313mt. At 9,148mt, sales of these products to third parties were just 1% lower than the corresponding period of 2020.
Average sales prices for the quarter were EUR2.48 and EUR2.71 per kilo for poultry and processed meats, respectively. Compared to Q1 of 2020, these represented price drops of 3% and 1%, respectively.
As well as its poultry business, MHP also has grain growing operations, and produces sunflower and soybean oils.
Corresponding financial results are scheduled to be published by MHP in mid-May.
More on MHP
With annual slaughterings of 478 million birds, MHP (formerly Myronivsky Hlibroproduct) is the second largest company in Europe, according to the Top 10 poultry companies in Europe, according to the WATTPoultry.com Top Companies Database. It is the Ukraine’s leading poultry producer.
In February, MHP announced that Roberto Banfi had retired from its Board of Directors, although he will continue as advisor to the board.
