MHP Announced Financial Results for 1Q 2012
OREANDA-NEWS. May 22, 2012. MHP S.A., 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 2012 ended 31 March 2012.
Key operational highlights
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 Sales volumes of chicken meat to third parties increased by 1% and reached 85,040 tonnes compared to 84,300 tonnes in Q1 2011.
o The average chicken meat sales price to third parties in Q1 2012 increased by 31% to UAH 16.75 per kg of adjusted weight compared to Q1 2011 (UAH 12.83 per kg) and remained at the level of Q4 2011.
o Export sales of chicken in the first quarter of 2012 increased by almost 70% compared to Q1 2011 and constituted around 12% of total sales volumes. The Company continued development of new export sales markets.
Grain Growing
o The Company's winter crops are on approximately
o MHP's spring sowing campaign is complete.
o In 2012 the Company expects to harvest around
Other Agricultural
o Sales volumes of processed meat products decreased by 5% to 7,500 tonnes in Q1 2012 compared to Q1 2011 (7,900 tonnes) due to the product mix optimization.
o The average price for sausages and cooked meat in Q1 2012 increased substantially by 18% to UAH 21.53 per kg (excluding VAT) compared to UAH
Vinnytsia - new green field expansion project
o Construction work on the Vinnytsia project is running to schedule and on budget. o MHP is planning to launch the project in a "test mode" in June 2012.
Key financial highlights Q1 2012
o Revenue increased by 21% to USD 298 million (Q1 2011: USD 247 million). o EBITDA increased by 48% to USD 84 million (Q1 2011: USD 57 million). o Net income from continuing operations increased by 143% to USD 48 million (Q1 2011: USD 20 million).
Commenting on the results, Yuriy Kosiuk, Chief Executive Officer of MHP, said:
"It was a strong start of 2012. We have once again achieved strong revenue and EBITDA growth, whilst at the same time generating sector-leading margins.
Our vertically integrated business model and intensive CAPEX into green field projects clearly differentiates us from our competitors domestically and worldwide, where we control all aspects of our operations: high level of energy efficiency, labor productivity and cost control.
I am also pleased to provide you today with a detailed update on the progress that is being made by now at our new poultry production complex at Vinnytsia. Construction work commenced in May 2010 and is running to schedule and on budget. We are going to launch the Vinnytsia complex in June this year to start trial production.
Looking ahead, demand for our products is high and the overall market environment in
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