MHP releases Q1 2017 operating report

19 April 2017

Poultry export of the company grew y-o-y by 60% up to 49k tons, the share of export in total poultry sales in reporting period made almost 40%.

Q1 2017 Q1 2016 Change, %
Poultry sales, tons 123 931 107 329 15%
thereof export, tons 49 151 30 812 60%
Price per 1 kg, UAH 31.52 27.50 15%
Vegetable oil sales, tons 89 931 90 895 -2%
*-starting from Q1 2017 MHP is to report its poultry production and sales basing on real physical weight of meat (before 2017 the company used adjusted weight when reporting on chicken meat sale/ production a whole chicken equivalent weight, incl. both meat and offal).

In the first quarter of Y2017 volumes of MHP poultry realization showed good dynamics, increasing y-o-y by 15% up to 124k tons. Export sales grew y-o-y by 60% (up to 49.2k tons, MHP accounted for more than 75% of total Ukrainian poultry export in Q1 2017), while domestic realization decreased by 2% to 74.8k tons (as the company remains focused on export operations).

The company continues to implement its strategy of targeting products to specific markets and export sales diversification. The Dutch processing plant and sales/distribution office in the UAE have been performing in accordance with expectations and their business plans. Recently MHP announced launching of new poultry processing enterprise in Slovakia (operations are to be similar to existing facilities in Netherlands). As for poultry export destinations, Middle East countries accounted for 24% of total export, EU about 21%, Northern Africa about 14%.

In latest reporting quarter average realization price in UAH terms grew by 15% y-o-y up to UAH 31.5/kg (growth vs. Q4 2016 made about 4%). Positive for the company and its financial performance is the fact that in USD term average price grew y-o-y by 8%.

In Q1 2017 MHP slightly decreased volume of its vegetable oils realization (from 91k tons a year ago to 90k tons). As a reminder, 100% of vegetable oils realized are export sales.

In its report MHP also notes that current condition of winter crops (about 26% of total sown area for new season crops) is good, which is positive for the company.

MHP is to issue its financial report in May-June 2017 (date is to be additionally indicated).

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