The war in Ukraine led to about US$26 million worth of losses for Ukrainian agrifood company MHP.
The company disclosed certain details of the war-related losses as it announced the financial results for first half and second quarter of fiscal year 2024.
“Irregular and frequent drone and rocket attacks against civilian, energy and other infrastructure targets have resulted in a challenging and disruptive operational environment, leading to unforeseen war-related costs,” the company stated.
One of the more notable examples of war-related losses occurred on May 17 in the Odesa region. There, a warehouse partly leased by MHP to store frozen chicken meat products was destroyed, resulting in the loss of approximately US$7 million worth of products.
On a more positive note for the company, all of its production facilities continue to operate at “close to full capacity,” and none of its directly owned assets have suffered significant physical damage “from the recent Russian bombing terror.”
Investment in alternative energy
MHP, in its report, stated that it continues to invest in alternative energy sources, largely to help mitigate operational disruptions caused by attacks on Ukraine’s national grid and energy sector.
In doing so, the company hopes to still produce at partial capacity should energy disruptions lead to a complete blackout in Ukraine.
Employees in the military
As of September 6, more than 3,000 MHP employees have been mobilized to the Armed Forces of Ukraine.
“Supporting our mobilized colleagues and re-integrating our veterans back into civilian life remains a key part of our strategy and a key part of our strategy, and a focus of specific company programs. The safety of our employees remains our primary concern as MHP seeks to maintain continuity in its business operations, overcoming disruptions and solving problems caused by the war,” MHP stated.
Net profits for latest reporting periods
Despite the losses and challenges brought on by the war in the first half of 2024, the company saw year-over-year profit increases for both the first half and the second quarter.
Net profit for the quarter increased 4% to US$29 million, while net profit for the half increased 3% to US$45 million.
