MHP releases Q3 operating report

According to report, owing to the increased production volumes at the Vinnytsia poultry farm (100% utilization since the beginning of 2015), in the third quarter of 2015 poultry sales volume made 155.3k tons, which was 4% higher vs. Q3 2015. In 9m2015 poultry realization amounted to 407.7k tons, +3% to 9M 2014.

On negative side has been the fact that because of decline in CIS sales, total export of the company in Q3 decreased vs. corresponding period of previous year by 22%, which was compensated by growing sales on domestic market. Total poultry export in Q3 made 34.6k tons (22% of total realization), thereof close to 8k tons export to EU countries. The company continues its effort on diversification of export destinations, focusing on Asia, MENA and EU markets. Average realization price in UAH terms grew in Q3 2015 by 25% vs. Q3 2014 and made UAH 27.6 per kg.

Also it is stated in report that in Q3 MHP sold 71.9k tons of sunoil, which was 4% lower than in Q3 2014 with average price per ton at USD 801 (-5% to Q3 2014, in line with world market trends). On positive side is launching in October of new soybeans crushing plant, which already operates under 50% capacity. Since Q2 2015 MHP has started exporting soybeans oil produced from last year harvest using one of the Ukrainian soybeans oil extraction plants (reportedly Astarta assets). In total in 9M 2015 MHP exported around 10.2k tons of soybeans oil at US$729 per ton.

As for agricultural operations, because of unfavorable weather conditions in Ukraine in July and August late crops harvest of MHP is expected to be below expectations (forecast yields are 7.3 tons per 1 ha for corn (vs. 9.3 tons in previous year), 3.2 tons for sunflower seeds (3.4), 1.7 tons for soybeans (2.1)). Along with it early crops yield has been good with wheat yield reaching 6.0 tons per 1 ha.

Financial results of the company for Q3 and 9M 2015 will be released on November 19.

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