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Foreign Exchange Rates Hamper MHP's Results

by 5m Editor
19 August 2011, at 8:53am

UKRAINE - MHP has reported an increase of 25 per cent in revenue for the half-year, although the results were impacted by foreign exchange losses.

MHP S.A., the agro-industrial company in Ukraine, focusing on the production of poultry and grain, has announces its results for the six months ended 30 June 2011.

Revenue increased by 25 per cent to US$527 million (H1 2010: $423 million), while EBITDA increased by 19 per cent to $158 million (H1 2010: $133 million). Consolidated EBITDA margin remained high at 30 per cent, at approximately same level compared to the same period last year (H1 2010: 31 per cent).

Net income decreased by 16 per cent to $86 million (H1 2010: $102 million) despite the operating profit growth due to effect of non-cash foreign exchange losses/gains driven by increase in Euro to Dollar exchange-value correlation.

Commenting on the results, Yuriy Kosiuk, Chief Executive Officer of MHP, said: "The Company has continued to perform strongly in the first half of 2011, with robust revenue and EBITDA growth and the maintenance of our sector-leading margins. Once again, we have reaped the benefits of our vertically integrated business model, where we combine poultry production with grain growing, as we have remained protected against grain price inflation.

"Poultry prices growth in H1 2011 was rather modest, nevertheless, in line with world poultry price dynamics. Now our prices for chicken meat are steadily increasing again.

"Our expectations regarding grain segment results are favourable due to the significant land expansion in 2010 and strong grain prices. The harvest of early crops, such as rape and wheat proceeded well and resulted in good yields, which, as usual, are much higher than the Ukrainian average. Meanwhile, initial observations indicate that our sunflower and corn harvests will also produce good yields," said Mr Kosiuk.