26 January 2017
In latest reporting quarter and Y2016 as a whole one of the largest Ukrainian agri-holdings demonstrated generally good operating results with growth of main performance figures.
Q4 2016
Q4 2015
Change, %
Y2016
Y2015
Change, %
Poultry sales, tons
142 580
129 610
10%
575 740
537 290
7%
thereof export, tons
48 390
31 480
54%
193 640
132 080
47%
Price per 1 kg, UAH
33.0
29.7
11%
30.5
27.8
10%
Vegetable oil sales, tons
98 010
72 745
35%
376 390
300 695
25%
In last reporting quarter volumes of MHP poultry realization showed good dynamics, increasing y-o-y by 10% up to 142.6k tons. As a result, for the whole Y2016 period poultry sales in tons made 575.7k tons (+7.2% y-o-y). In line with plans of the company export of poultry is booming – in last quarter it grew by 54% (vs. Q4 2015), in Y2016 – by 47% vs. previous year up to almost 194k tons. As a result the share of export sales in total poultry realization volume of MHP in last year made 33.6% vs. less than 25% in Y2015. MENA and EU markets remain target ones for the company (in the beginning of December EU imposed import ban for Ukrainian poultry due to registered in Ukraine cases of bird flu, now MHP works on its partial removal/regionalization).
Average poultry price in Q4 2016 made USD 1.27/ton, which is just slightly lower (in UAH terms – higher because of UAH devaluation) than in Q4 2015, but higher vs. both Q3 2016 (USD 1.19/ton) and average for Y2016 (USD 1.2/ton, -6% vs. Y2015) figures. Average export price of MHP in Y2016 declined y-o-y by 16%, domestic – just by 2-3%. Basing on our opinion, being clear market leader among Ukrainian poultry producers (58% of industrial poultry production in Y2016), current strategy of the company is to increase prices and, therefore, marginality of its domestic sales (despite domestic realization in tons declined by around 6%, as was noted, MHP is concentrating its efforts on export sales growth, so decline of domestic realization is not a point of concern for us).
The share of MHP in Ukrainian poultry export in Y2016 made more than 80%.
Additional positive factor mentioned in report is increase of vegetable oils production and sales. Sunflower oil realization in Y2016 grew by 19% y-o-y (up to 342.2k tons, 100% is export, the share of MHP in Ukrainian sunflower oil export in Y2016 made 7%), soybean oil – by almost 2.5 times (34.1k tons). At the moment MHP soybeans crushing capacities (launched in H2 2015) are loaded by 80% vs. 50% in the beginning of Y2016.
Good results were demonstrated by farming segment of the company with yields of main of crops much higher y-o-y:
Season
2016/2017
2015/2016
2014/2015
Corn
Sown area, ha
123 350 126 138 126 840
Yield, t/ha
8.6 6.8 9.3
Wheat
Sown area, ha
58 815 53 752 43 020
Yield, t/ha
6.5 6.0 6.1
Sunflower seeds
Sown area, ha
67 400 57 451 49 550
Yield, t/ha
3.2 3.1 3.4
Rapeseeds
Sown area, ha
20 070 22 653 10 495
Yield, t/ha
3.4 3.4 3.8
Soybeans
Sown area, ha
41 165 35 831 25 460
Yield, t/ha
2.4 1.6 2.1
Total sown area, ha
355 000 340 000 290 000
Basing on presented figures increase of segment’s profitability in Y2016-H1 2017 is expected.
Financial report of MHP for Y2016 is to be published on March 15.
Popular on site:
Ukrainian Y2016 agri-commodities export digest
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