20 March 2017
In its latest presentation to investors MHP disclosed main details of Vinnitsa complex stage 2, construction of which is to be launched in Y2017.
As was noted before, total poultry production capacity of the first line of the stage 2 is to make 130k tons per year (to be constructed in FYs2017-18). To produce mentioned volume of chickens the MHP is to construct new hatchery for 80M eggs per year, 5 new broiler growing premises new slaughtering and cutting facilities. To support operations with own fodder production, the company is to increase its volumes of oilseeds crush, which will allow the company to produce additional 50k tons of sunflower and 12k tons of soybean oil. In addition new biogas plant will be constructed on the site.
MHP will have no need to expand its land bank to support poultry operations (current corn production will be sufficient to meet increased needs, on the other side, current self-sufficiency of MHP in own sunflower seeds stands at 20-25%, the company largely relies on sunflower seeds origination from 3rd parties). Along with it, land bank extension up to 550k ha is one of strategic objectives of MHP in general, so we can expect further actions in this direction.
Several days ago MHP reported its financials for Y2016 with USD 1 135M of revenues, USD 415M of EBITDA and USD 350M of net operating cash flow.