MHP Announced 2Q and 1H Unaudited Financial Results
OREANDA-NEWS. August 23, 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 unaudited results for the second quarter and the six months ended 30 June 2011.
Poultry and related operations
o During the first half of the year all the Company's chicken production facilities continued to operate at full capacity.
o Consumer demand for chicken remained high and the Company was able to sell close to 100% of the chicken meat produced.
o The Company's share of industrially produced chicken in
o The volume of chicken meat sales to external customers in H1 2011 increased by 8% year-on-year to 182,100 tonnes due to more effective use of existing capacity.
o The average chicken meat price for Q2 2011 was 9% higher compared to Q1 2011, and increased slightly by 1% to UAH 13.97 compared to Q2
o The average price of sunflower oil in H1 2011 increased by 57% to USD 1,303 per tonne (H1 2010: USD 830 per tonne).
Grain growing
o In total, in 2011 the Company expects to harvest crops from 60% more land in its grain growing segment compared with 2010.
o MHP's current yields of wheat (5.0 tonnes per hectare) and rape (2.8 tonnes per hectare) are close to twice
Other agriculture
o Sausage and cooked meat production volumes increased from 14,200 tonnes in H1 2010 to 17,300 tonnes in H1 2011. The substantial volume growth was driven
by increased production at Ukrainian Bacon in accordance with the Company's strategy of growing its meat processing operations. o The Company's market share of
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. o Production of Phase 1 is expected to be launched in the beginning of 2013 and reach its full capacity of 220,000 tonnes of poultry per annum in 2015.
Q2 2011 highlights
o Revenue increased by 26% to USD 281 million (Q2 2010: USD 223 million). o EBITDA increased by 21% to USD 101 million (Q2 2010: USD 84 million). o Consolidated EBITDA margin increased quarter-by-quarter from 23% in Q1 2011 to
36% in Q2 2011, but remained quite stable year-on-year (Q2 2010: 37%). o Net income remained stable at USD 67 million despite the operating profit growth due to effect of non-cash foreign exchange losses/gains driven by increase in Euro to Dollar exchange-value correlation.
H1 2011 highlights
o Revenue increased by 25% to USD 527 million (H1 2010: USD 423 million). o EBITDA increased by 19% to USD 158 million (H1 2010: USD 133 million) o Consolidated EBITDA margin remained high at 30%, at approximately same level
compared to the same period last year (H1 2010: 31%). o Net income decreased by 16% to USD 86 million (H1 2010: USD 102 million) despite the operating profit growth 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:
"I am very happy to be able to say that the Company has continued to perform strongly in the first half of 2011, with robust revenue and EBITDA growth and the maintenance of our sector-leading margins. Once again, we have reaped the benefits of our vertically integrated business model, where we combine poultry production with grain growing, as we have remained protected against grain price inflation.
Poultry prices growth in H1 2011 was rather modest, nevertheless, in line with world poultry price dynamics. Now our prices for chicken meat are steadily increasing again. Our expectations regarding grain segment results are favorable due to the significant land expansion in 2010 and strong grain prices.
I am also pleased to provide you today with an update on this year's harvests. The harvest of early crops, such as rape and wheat proceeded well and resulted in good yields, which, as usual, are much higher than the Ukrainian average. Meanwhile, initial observations indicate that our sunflower and corn harvests will also produce good yields.
I am also delighted that during the period Yuriy Logush joined the business as Vice President of our Consumer Products Division. Yuriy Logush has a wealth of relevant experience, having been on Kraft's Board of Management for Central and Eastern Europe,
Africa for nine years, and he will focus on optimising our marketing strategy both in
Looking ahead, the quality of our products continues to attract consumers and demand remains high. We are therefore confident of that we will continue to expand in line with our strategy and produce strong results."
Комментарии