MHP Released 3Q Unaudited Financial Results
OREANDA-NEWS. November 24, 2010. MHP
Key operational highlights
Poultry and related operations
o Volume of chicken meat sales to external customers for the nine months ended 30
September 2010 increased 29% year on year to 249,500 tonnes. o Demand for chicken meat during the first nine months of 2010 remained high as consumers continued to substitute other meats with locally produced chicken. As a result, MHP was able to sell close to 100% of the chicken produced. o The average chicken meat price through the Q3 2010 increased 12% year-on-year to UAH 14.05 per kg of adjusted weight (excluding VAT) primarily as a consequence of the local and global increase in grain prices (majority of the production costs). o The new sunflower crushing plant, launched in September 2009, allowed MHP to increase its sunflower oil production volumes by 64% during the first nine months of 2010 to 149,600 tonnes.
Grain growing
o During the first nine months of 2010 the Company continued to execute its stated strategy of gradually increasing its land bank and at the end of the period it had more than
unfavorable preliminary forecasts across
Other agriculture
o Throughout the first nine months of 2010, sausage and cooked meat production volumes increased by 32% to 24,100 tonnes (9M 2009: 18,250 tonnes).
o MHP continued to invest in marketing of its processed meat brands and as a result market share has exceeded 10%.
Key financial highlights
Q3 2010 highlights
o Revenue in UAH terms increased by 29% to 2,000 million (Q3 2009: UAH 1,548
million), and in US dollar terms by 28% to 253 million (Q3 2009: USD 198 million). o EBITDA in UAH terms increased by 43% year-on-year to 783 million (Q3 2009: UAH 547 million), in US dollar terms EBITDA increased by 42% to 99 million (Q3 2009: USD 70 million).
o Consolidated EBITDA margin increased to 39% (Q3 2009: 35%), while EBITDA
margin in the poultry segment increased to 43% (Q3 2009: 41%). o Net income in UAH terms increased by 330% to 441 million (Q3 2009: UAH 103 million), in US dollar terms net income increased by 325% to 56 million (Q3 2009: USD 13 million).
9M 2010 highlights
o Revenue in UAH terms increased by 38% to 5,364 million (9M 2009: UAH 3,884 million), in US dollar terms revenue increased by 35% to 676 million (9M 2009: USD 502 million).
o EBITDA in UAH terms increased by 21% year-on-year to 1,838 million (9M 2009: UAH 1,522 million), in US dollar terms EBITDA increased by 18% to 232 million (9M 2009: USD 197 million). o Consolidated EBITDA margin decreased to 34% (9M 2009: 39%). o Net income in UAH terms increased by 58% to 1,253 million (9M 2009: UAH 791 million), in US dollar terms net income increased by 54% to 158 million (9M 2009: USD 103 million).
o Consumer demand for poultry meat continues to remain high and the average poultry
price is higher year on year. o The harvest is largely completed and yields are significantly higher than the Ukrainian average (rape yield is 3.0 tonnes per hectare, wheat - 5.7 tonnes per hectare, corn - 7.8 tonnes per hectare, sunflower - 2.6 tonnes per hectare).
Commenting on the results, Yuriy Kosiuk, Chief Executive Officer of MHP, said:
"We are pleased with MHP's third quarter performance, which demonstrates strong year-on-year growth and the continued improvement in our key financial metrics driven by the performance of our poultry business. The current market conditions show how beneficial MHP's business model of vertical integration is, as it ensures stable profitability despite the fluctuations in grain prices.
"We continue to focus on increasing shareholder value by growing our chicken and meat processing production volumes, construction of new modern chicken farms and by expanding our agricultural land bank. High consumer demand for chicken meat, high yields across all crops, our focus on vertical integration and our ability to control costs makes us confident that the strong performance in the nine months will continue into the final quarter of the year and beyond".
Комментарии