6 October 2016
In the end of September MHP participated in a number of investment conferences, where it provided its updated presentation, including plans for the future development (link). According to latest plans, in Y2017 will start construction on its Vinnitsa Project 2nd stage (poultry production). Its total capacity will be 260k tons, half of which (line 1) is to be launched during FYs2018-20. As a result total production plan for future years looks as follows:
In addition MHP will increase capacities of existing complexes by 30k tons in Y2017 (current capacities – 600k tons). The company confirmed that new facilities production will be mainly export. Development of export operations remains main priority for the company. Also MHP confirmed plans to increase its land bank up to 550k ha.
We see that at the moment the company has some window of opportunities, as main part of its debt (total debt burden is non-minor with Debt/Sales at more than 100% and Net Debt/EBITDA at 3.0x) – Eurobonds in amount of USD 730M - expires in Y2020.