OREANDA-NEWS. May 4, 2010. Myronivsky Hliboproduct (AIM: MHPC LI) announced this morning in its 1Q10 trading update that it increased chicken meat sales by over 60% yoy during the quarter to 83 ths mt. MHP said it sold close to 100% of chicken meat it produced. MHP’s sunflower oil production also increased, by 63.6% yoy, to 48.6 ths mt during the quarter, following the launch of its new crushing plant at its Katerynopilsky facility in September 2009. In 1Q10, MHP’s production volumes of sausage and cooked meat rose 25.3% yoy to 6.2 ths mt. MHP added that it now has ~190 ths ha of land under control.

Concorde Capital: As the 1Q10 increase in the company’s poultry output mainly occurred due to the launch of the second phase of Myronivka factory in June 2009, which implies a deceleration in yoy poultry output growth in 2H10 as MHP operates at full load. As a result, FY2010 chicken meat should comprise 330 ths mt (+21% yoy), while we forecast its average chicken meat price to grow c.5% yoy to UAH 13.4/kg as a result of recovering grain prices. Therefore, the company’s FY2010 third-party poultry sales should grow 26% yoy to USD 560 mln. In the meantime, we estimate MHP’s 1Q10 sunflower oil sales grew 114% yoy to USD 41.3 mln, and project c. USD 130 mln for 2010E. We reiterate our FY2010 sales forecast of 18% yoy growth to USD 835 mln for MHP.