MHP Announced Pre-Close Trading Update for 2Q and 1H of 2011
OREANDA-NEWS. July 19, 2011. MHP S.A. (LSE: MHPC) (“MHP” or “The Company”), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, announces its pre-close trading update for the second quarter and first six months of the year ending 30 June 2011.
Poultry and Poultry Related Operations
|
Poultry |
Q2 2011 |
Q2 2010 |
% change |
H1 2011 |
H1 2010 |
% change |
|
Sales volume, third parties |
|
|
|
|
|
|
|
tonnes |
97,800 |
85,500 |
14% |
182,100 |
168,500 |
8% |
|
Price per |
13.97 |
13.86 |
1% |
13.44 |
13.13 |
2% |
During the second quarter of 2011, the volume of chicken meat sales to external consumers increased by 14% to 97,800 tonnes when compared to the second quarter of 2010, and by 8% to 182,100 tonnes during the first six months of 2011 mainly as a result of the production increase due to more effective use of existing capacity. Demand for chicken meat during the first half of 2011 remained high and the Company was able to sell close to 100% of the chicken produced.
The average chicken meat price through the second quarter of 2011 increased slightly by 1% to UAH 13.97 per kg of adjusted weight (excluding VAT) when compared to second quarter of
2010. H1 2011 prices for chicken meat increased slightly by 2% compared to H1 2010, from UAH 13.13 per kg to UAH 13.44 per kg. These trends are in line with global poultry market trends.
In Q2 2011, 38,600 tonnes of sunflower oil were sold mainly for export at an average price of USD 1,301 per tonne, which was an increase of 62% on Q2 2010 (USD 809 per tonne). In H1
2011, 84,500 tonnes of sunflower oil were sold at an average price of USD 1,303 per tonne, which was an increase of 58% on H1 2010 (USD 830 per tonne).
In line with management expectations, MHP's poultry production costs in the second quarter and the first half of 2011 were relatively higher year-on-year due to the increase in the market price for grain harvested in 2010.
Grain Growing Operations
Currently the Company cultivates approximately
The Company recently began harvesting wheat and barley. Despite concerns over weather conditions we expect our yields to be good enough and significantly higher than
The Company forecasts strong harvest and yields for corn and sunflower, taking into account current crop conditions.
The Company has just started to conclude forward export contracts for rapeseed and barley for:
• 17,000 tonnes of rapeseed were contracted at price USD 675 per tonne;
• 12,000 tonnes of barley were contracted at price USD 255 per tonne.
|
Meat processing products |
Q2 2011 |
Q2 2010 |
% change |
H1 2011 |
H1 2010 |
% change |
|
Sales volume, third parties |
|
|
|
|
|
|
|
tonnes |
9,400 |
8,000 |
17% |
17,300 |
14,200 |
22% |
|
Price per |
19.50 |
17.08 |
14% |
18.91 |
17.03 |
11% |
In the second quarter of 2011, sausage and cooked meat production volumes increased by 17% to 9,400 tonnes compared to 8,000 tonnes during the second quarter of 2010. Sausage and cooked meat production volumes increased by 22% to 17,300 tonnes compared to 14,200 tonnes during H1 2010. This volume growth was driven primarily by the increased production at "Ukrainian Bacon" and growing consumer demand.
Average sausage and cooked meat prices during the second quarter of 2011 increased slightly 14% to UAH 19.50 per kg excluding VAT (Q2 2010: UAH 17.08 per kg). In H1 2010 average prices increased by 11% from UAH 17.03 per kg excluding VAT to UAH 18.91 per kg excluding VAT.
MHP is a market leader in meat processing in
MHP's new green field Vinnytsia project is being constructed to schedule and in line with the investment plans. To follow the progress on the site please visit: http://www.mhp.com.ua/en/node/1082/.
The financial results for the second quarter and first six months of 2011 will be published on August 18, 2011. There will be a conference call for investors and analysts on the day that will take place at 4pm Kyiv time (2 pm London/5 pm
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