MHP Announced Financial Results for 1Q 2011
OREANDA-NEWS. May 13, 2011. MHP S.A. (“MHP” or the “Company”, LSE ticker: “MHPC”), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, today announces its financial results for the first quarter 2011 ended 31 March 2011.
Poultry
o During the quarter, consumer demand for chicken remained high; all MHP's poultry production units continued to operate at 100% of capacity and the Company was able to sell close to 100% of the chicken produced.
o The average chicken meat sales price to third parties in Q1 2011 increased by almost 4% to UAH 12.83 per kg of adjusted weight compared to Q1 2010 (UAH 12.38 per kg), in line with global meat market trends.
o The average sales price of sunflower oil in Q1 2011 increased by 54% to USD 1,306 per tonne (Q1 2010: USD 850 per tonne).
Grain Growing
o The Company's winter crops in cultivation on approximately
o MHP's spring sowing campaign is almost complete.
o In total, the Company expects to harvest in 2011 from 60% more land in its grain growing segment compared with 2010.
Other Agricultural
o Sales volumes of processed meat products, the main driver in this business segment, increased by 27% to 7,900 tonnes in Q1 2011 compared to Q1 2010 (6,200 tonnes).
Vinnytsia - new green field expansion project
o Construction work on the Vinnytsia project, which commenced as announced previously in May 2010, is running to schedule and on budget.
Key financial highlights Q1 2011
o Revenue increased by 23% to USD 247 million (Q1 2010: USD 200 million). o EBITDA increased by 15% to USD 57 million (Q1 2010: USD 49 million). o Net income from continuing operations decreased by 46% to USD 19 million (Q1 2010: USD 36 million) due to effect of non-cash foreign exchange losses/gains driven by increase in Euro to Dollar exchange-value correlation .
Commenting on the results, Yuriy Kosiuk, Chief Executive Officer of MHP, said:
"We are pleased with the performance of the business over the first quarter of the year. We have once again achieved strong revenue and EBITDA growth, whilst at the same time generating sector-leading margins. Our vertically integrated business model, where we combine poultry production with grain growing, ensures that we are in control of all aspects of our operations thereby protecting us from rising grain prices.
Currently the Company produces over 60% of chicken meat at its recently launched Myronivka poultry farm, and enjoys the benefits of this green field project with a high level of energy efficiency, labor productivity and cost control. This clearly differentiates us from our competitors.
I am also pleased to provide you today with a detailed update on the progress that is being made at our new poultry production complex at Vinnytsia. Construction work commenced in May 2010 and is running to schedule and on budget. When complete, Vinnytsia Complex will be the largest poultry production facility in
Looking ahead, demand for our products is high and the overall market environment in
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