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15 Apr 2009 13:52
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PRESS RELEASE
AprilΒ 15, 2009,Β Kyiv,Β UkraineΒ
The third and fourth paragraphs have changed and now read:
"Average chicken meat prices through the first quarter of 2009 increased by 18.3% to 12.43 UAH per kg. of adjusted weight (excluding VAT) when compared to the first quarter of 2008 (Q1 2008: 10.51 UAH).Β
MHP's production costs perΒ 1 kg. of poultry meat during the first quarter of 2009 will be lower than in 2008 due to the use of self produced sunflower protein and corn in chicken fodder."
Β
MHPΒ S.A.Trading update forΒ theΒ first quarterΒ endedΒ 31Β MarchΒ 2009
MHPΒ S.A. (LSE:Β MHPC) ("MHP" or "The Company"),Β oneΒ ofΒ theΒ leadingΒ agro-industrialΒ companiesΒ inΒ Ukraine,Β focusingΒ onΒ theΒ productionΒ ofΒ poultryΒ andΒ theΒ cultivationΒ ofΒ grain,Β isΒ pleasedΒ toΒ announceΒ todayΒ itsΒ tradingΒ updateΒ for the first quarter ended 31Β March 2009.
Poultry and Poultry Related Operations
During the first three monthsΒ ofΒ 2009Β consumer demand for chicken meat remained high and all company's production facilities continued to workΒ atΒ fullΒ capacity.Β Production of chickenΒ during the first quarter 2009 remained stable compared to the first quarter 2008 however chicken sales to third parties decreased by 8% to 50,459 tonnes (Q1 2008: 54,830 tonnes). This decreaseΒ inΒ salesΒ toΒ third partiesΒ resulted from converting greater volumes of chicken meat into productionΒ ofΒ value added productsΒ and increase in intercompany sales accordingly.
Average chicken meat pricesΒ throughΒ theΒ firstΒ quarterΒ of 2009Β increased byΒ 18.3%Β toΒ 12.43Β UAH per kg. of adjusted weight (excluding VAT)Β when comparedΒ toΒ theΒ firstΒ quarterΒ of 2008 (Q1 2008: 10.51 UAH).Β
MHP's production costs perΒ 1 kg. of poultry meat during theΒ firstΒ quarter ofΒ 2009Β will be lower than in 2008 due toΒ theΒ useΒ ofΒ self produced sunflowerΒ proteinΒ and cornΒ in chicken fodder.
GrainΒ GrowingΒ Operations
The Company currently hasΒ approximatelyΒ 180,000 hectares of land underΒ control.Β
At this time of the year the company is not able forecast the yields but based on the winter weather conditions andΒ through continued use of modern farming techniquesΒ we expect it to be higher thanΒ Ukraine's average.
The CompanyΒ has alreadyΒ purchased all required seeds and fertilizersΒ forΒ the 2009 springΒ campaign,Β which is already on the way,Β andΒ is planning toΒ cultivateΒ 178,000Β hectares or almost 100% of its leased agricultural land.Β
Other Agricultural Operations
During the first three month ofΒ 2009,Β sausage and cookedΒ meat production volumes increasedΒ byΒ 103% toΒ 4,945Β tonnesΒ compared toΒ 2,442Β tonnes duringΒ the first quarter ofΒ 2009Β this growth wasΒ due to theΒ acquisition ofΒ theΒ new meat processing facilities of "Ukrainian Bacon" in July 2008.Β Approximately 50% ofΒ allΒ meat used in production of the sausages is chicken.
Average sausage and cooked meat prices duringΒ the first quarter of 2009 decreasedΒ byΒ 4.1% toΒ 17.48Β UAH per kg excluding VAT (Q1Β 2008:Β 18.22Β UAH per kg.).Β The decrease was primarily due toΒ the fact that UkrainianΒ Bacon products are positioned in mass market segment.Β
MHP'sΒ Q1Β 2008Β financial results will be publishedΒ inΒ JuneΒ 2009.Β The exact publication date and dialing instructions for the call will be published in due course.
For further information please contact:
|
Financial Dynamics Ben Foster (London) Marc Cohen (London) Leonid Solovyev (Moscow) |
London: +44 20 7831 3113 Moscow: +7 495 795 06 23 |
For investor relations enquiries:I
|
MHP Elena SolovyovaΒ (Kyiv) ir@mhp.com.ua |
Kiev: +380 44Β 207 99 55Β |
Notes to Editors:
About MHP
MHP was admitted to the Official List of the London Stock Exchange in May 2008. It is the leading producer of poultry products inΒ Ukraine, with a 2008Β market share for industrially produced chicken meat of approximately 39%, according to the State Committee on Statistics of Ukraine. It'sΒ "Nasha Ryaba" brand is the market leader, whilst MHP also has several other national and regional brands for processed meat products.
MHP is fully vertically integratedΒ owning and operating each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict bio-security and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale.
MHP also has an important and expanding grain operation, producing and selling sunflower oil as a by-product of its fodder production. MHP also produces and sells beef, sausages, cooked meats convenience food products, goose meat, foie grasΒ andΒ fruit.
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