MHP releases Q2 2017 operating report

19 July 2017

Poultry export of the company grew y-o-y by 31% up to 71k tons, the share of export in total poultry sales in reporting period made more than 45%.

Q2 2017 Q2 2016 Change, % H1 2017 H1 2016 Change, %
Poultry sales, tons 157 245 141 097 11% 283 972 248 426 14%
thereof export, tons 71 332 54 451 31% 123 042 85 263 44%
Price per 1 kg, UAH 32.9 27.4 20% 32.3 27.4 18%
Vegetable oil sales, tons 91 400 87 330 5% 181 315 178 460 2%
*-starting from Q1 2017 MHP reports 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 Q2 2017 poultry sales of MHP made 157k tons, which has been by 24% more than in previous quarter and by 11% more than in Q2 2016. As a result in H1 2017 poultry sales of the company made 284k tons (+14% y-o-y). We specially note that growth of realization volumes took place despite relatively stable production (at account of the fact that in H1 2017 inventory stocks of finished production in poultry segment decreased by 11k tons, while during the same period of Y2016 increased by 20k tons).

In line with general MHP strategy export became main driver of sales growth of the company in H1 2017 poultry export of the company increased by 44% y-o-y up to 123k tons (83% of total Ukrainian poultry export for reporting period of time). The share of export in total MHP poultry sales in H1 2017 made 43% (vs. 34% a year ago).

Volumes of MHP poultry realization on domestic market have been almost unchanged vs. last year in Q2 2017 they made 86k tons, in H1 2017 as a whole 161k tons.

In latest reporting quarter average poultry realization of MHP in Ukrainian national currency increased y-o-y by 20% up to UAH 32.9/kg (we also note growth of prices vs. previous quarter in UAH by 4.4%, in USD growth has been even higher because of certain UAH revaluation).

On average in H1 2017 average MHP poultry price increase y-o-y in USD terms by 13%, in UAH terms by 18%.

In Q2 and H1 2017 MHP slightly increase realization of vegetable oils. In Q2 sales of sunflower oil grew y-o-y by 4% up to 85k tons, soybean oil by 16% up to 6.5k tons. For the whole H1 2017 vegetable oils sales made 181.3k tons, which has been by 2% higher than in previous year.

As for Grains growing segment, in its report the company noted good current condition of its spring crops, along with it harvesting of early crops has been already started at the moment MHP harvested about 14% of early crops.

Financial report of the company for H1 2017 is to be issued on 17 August 2017.

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