MHP SE, the parent company of an international agro-industrial group with headquarters in Ukraine, focusing primarily on the production of poultry and cultivation of grain, has revealed sales growth of 21% in the 12 months ending 31 December 2018.
The firm has gained attention of UK poultry firms in the past year due to its strategy of increasing imports of poultry meat into the EU. The accounts show MHP’s chicken meat exports increased 30% in 2018, mainly into the EU and the Middle East and north Africa.
Poultry production reached 617,943 tonnes, up 9%, while the average price of chicken meat increased by 12% year-on-year to UAH 39.86 per kg.
MHP’s revenue for the year reached US$ 1,556 million, up by 21% year-on-year. Export revenue constituted 59% of total revenue. Net profit for the period is US$ 128 million, compared to profit US$ 230 million for 12M 2017
FINANCIAL OVERVIEW
| (in mln. US$, unless indicated otherwise) | Q4 2018 | Q4 2017 | % change* | 12M 2018 | 12M 2017 | % change* | ||||
| Revenue | 386 | 318 | 21% | 1,556 | 1,288 | 21% | ||||
| IAS 41 standard gains/(losses) | (23) | (24) | -4% | 32 | 21 | 53% | ||||
| Gross profit | 66 | 65 | 2% | 420 | 396 | 6% | ||||
| Gross profit margin | 17% | 20% | -3 pps | 27% | 31% | -4 pps | ||||
| Adjusted operating profit** | 32 | 47 | -32% | 315 | 365 | -14% | ||||
| Adjusted operating profit margin | 8% | 15% | -7 pps | 20% | 28% | -8 pps | ||||
| Adjusted EBITDA | 88 | 88 | 0% | 450 | 459 | -2% | ||||
| Adjusted EBITDA margin | 23% | 28% | -5 pps | 29% | 36% | -7 pps | ||||
| Net profit before foreign exchange differences | (42) | 35 | -220% | 116 | 266 | -56% | ||||
| Net profit margin before forex loss | -11% | 11% | -22 pps | 7% | 21% | -14 pps | ||||
| Foreign exchange gain/(loss) | 28 | (62) | -145% | 12 | (36) | -133% | ||||
| Net profit (loss) | (14) | (27) | 48% | 128 | 230 | -44% | ||||
| Net profit margin | -4% | -8% | 4 pps | 8% | 18% | -10 pps |
* pps – percentage points
** Adjusted operating profit from continuing operations before loss on impairment of property, plant and equipment
Average official FX rate for Q4: UAH/US$ 27.9502 in 2018 and UAH/US$ 26.9617 in 2017
Average official FX rate for 12 months: UAH/US$ 27.2016 in 2018 and UAH/US$ 26.5947 in 2017
Chief Executive Officer, Yuriy Kosyuk, said: “During 2018 we enjoyed another year of firm progress in terms of capacity and sales growth, at the same time as continuing to focus on putting in place the foundations for further development. In particular: there was a solid start to the construction of Phase 2 of the Vinnytsia poultry complex, with additional volumes produced and exported; our second biogas complex was launched; and a new Centre of Innovation was established.
“Our stakeholders will be aware that, particularly in recent years, geopolitical and macroeconomic conditions in Ukraine have been improving. In particular, Ukraine is experiencing annual GDP growth of around 3.0% as well as enjoying relative stability of its currency and the continued development of and investment in a number of industries, especially agriculture.
“During the year, MHP consolidated its position as the leading industrial producer of chicken meat in Ukraine. Total poultry sales increased by 11% year-on-year to around 593,000 tonnes. Sales in Ukraine remained stable while, in line with our strategy of diversifying sales, poultry exports increased by 30% and the number of countries to which we export our poultry increased from around 60 to over 80. Growing our international reach remains a strategic imperative for MHP; in 2018, we exported 286,846 tonnes of poultry meat, mainly to the EU, MENA and Africa. Poultry exports constituted 48% of total poultry sales (2017: 41%).”