Last checked at 24 May 2022 07:44
24 May 2022, Limassol, Cyprus
MHP SEMonthly Operational Update for the period ended 30 April 2022
MHP SE (LSE: MHPC), the parent company of a leading international agro-industrial group with headquarters in Ukraine, today announces its monthly operational update for April 2022. Hereinafter, MHP SE and its subsidiaries are referred to as "MHP", "the Company" or "the Group".
1. POULTRY AND RELATED OPERATIONS (w/o PP)
Since the beginning of the Russian war in Ukraine, the Company has been facing complex challenges and disruptions, which, primarily, resulted in a decrease in capacity utilisation of poultry production to 80-85%. Specifically in March, due to port closures, MHP recorded substantially lower exports of poultry and vegetable oils. Since April, the Company has been extensively developing alternative routes to resume exports. Moreover, the Company's domestic team has also been focusing their efforts on improving poultry sales in Ukraine through logistics and sales channel optimization.
Poultry | April 2022 | April 2021 | % change YoY | March 2022 | % change MoM | |
Production volume, tonnes | 55,501 | 63,348 | -12% | 52,746 | 5% | |
Sales volume, third parties tonnes | 35,010 | 57 908 | -40% | 41,932 | -17% | |
· Ukraine |
| 20,738 | 26,017 | -20% | 28,816 | -28% |
· Export |
| 14,273 | 31,891 | -55% | 13,116 | 9% |
Share of export sales, % | 41% | 55% | -14 pps | 31% | 10 pps | |
Average price per 1 kg net of VAT, US$* | 1.88 | 1.60 | 18% | 1.62 | 16% | |
Sunflower oil | ||||||
Sales volume, third parties tonnes | 17,225 | 8,266 | 108% | 575 | 2,894% | |
Soybeans oil | ||||||
Sales volume, third parties tonnes | 4,265 | 4,360 | -2% | 3,595 | 19% | |
* - including culinary products
2. GRAIN GROWING OPERATIONS UPDATE
Spring sowing campaign is complete ono schedule and on budget. Winter crops - wheat, barley, rapeseed - are in good condition. The Company has access to all necessary plant protection materials, pesticides and fertilizers, which are expected to be applied on time and in full.
3. MEAT PROCESSING AND OTHER AGRI OPERATIONS
Meat processing products and Convenience Food |
| April 2022 | April 2021 | % change YoY | March 2022 | % change MoM | |
Sales volume, tonnes | 1,453 | 4,444 | -67% | 3,001 | -52% | ||
Price per 1 kg net VAT, UAH | 69.16 | 68.03 | 2% | 66.79 | 4% | ||
For further information and Investor Relations enquiries please contact:
Anastasiya Sobotyuk (Kyiv) |
+386 41 30 72 65 +38 050 339 29 99 a.sobotyuk@mhp.com.ua
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Notes to Editors:
About MHP
MHP is the leading producer of poultry products not only in Ukraine, but also in the Balkans (Perutnina Ptuj Group).
Ukraine: MHP has the greatest market share (over 30% of poultry consumption) and highest brand recognition for its products. MHP owns and operates 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). Complete vertical integration practically eliminates MHP's exposure to raw material price fluctuations since its grain production exceeds internal consumption requirements, allowing the Company to be an important participant in the international commodity trade. In addition to cost efficiency, vertical integration also enables MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products all the way to the point of sale. To support its sales, MHP maintains a distribution network consisting of nine distribution and logistical centers within major Ukrainian cities. MHP uses its own truck fleet to distribute its products, reducing overall transportation costs and delivery times.
MHP also has a leading grain cultivation business growing corn, soya and sunflower to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.
The Balkans: Perutnina Ptuj (PP) is a leading poultry and meat-processing producer in the Balkans, with production sites in four Balkan countries: Slovenia, Croatia, Serbia, Bosnia and Herzegovina. PP owns distribution companies in Austria, Macedonia and Romania and supplies products to fifteen countries in Europe. PP is vertically integrated across all states of chicken meat production - feed, hatching eggs production and hatching, breeding, slaughtering, sausage production and further poultry processing.
MHP trades on the London Stock Exchange under the ticker symbol MHPC.
Forward-Looking Statements
This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHP SE. Such statements do not guarantee that these are actions to be taken by MHP SE in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. MHP SE. does not intend to change these statements to reflect actual results.