MHP reports solid second-quarter results
Total revenue for the business was US$388m, up 21% year-on-year, while its export revenue was up to $223m from $185m in Q2 of 2017.
During the second quarter, its poultry production volumes reached 155,725 tonnes (t), up by 7% (Q2 2017: 145,820t). It also reported that the average chicken meat price increased by 20% year-on-year to UAH39.38 per kg, up from UAH32.92 per kg in the second quarter of 2017.
In the first half of 2018, poultry exports increased by 9% and reached 133,564t, up from 123,042t in 2017, mainly driven by the growth of exports in Q1 2018. During the second quarter, they were down slightly year-on-year. MHP said it continued to follow a strategy of both geographic diversification and product mix optimisation, building-up the export volumes of chicken meat across the Middle East, the EU, Africa and Asia.
Other operational highlights during the second quarter of the year included MHP launching the first production sites of Phase 2 of the Vinnytsia Poultry Complex, with operations at two rearing sites commencing in May and the slaughterhouse up and running in July.
In its outlook for the rest of the year, the business said it expected the launch of Phase 2 of the Vinnytsia Poultry Complex and an additional two brigades by the end of 2018 to result in an increase in poultry production volumes in the second half of the year to meet demand both in domestic and export markets.
It is expecting a good harvest of spring crops (corn, sunflower and soya), which will positively affect the overall financial result of MHP in 2018, and it is confident that it will continue to deliver strong financial results, supported by a significant and growing share of hard currency revenues from exports of chicken, oils and grains.
