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MHP Reports Increased Poultry Meat Sales Value

27 July 2012, at 8:32am

UKRAINE - Poultry meat producer, MHP S.A., has released a trading update indicating little change in volume for the first quarter and first half of this year compared to the respective periods of 2011 but average prices in the local currency were up 25 and 28 per cent, respectively.

MHP S.A., one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, has announced its pre-close trading update for the second quarter and the first six months of the year ending 30 June 2012.

For its Poultry and Poultry Related Operations, MHP worked at maximising the utilisation of current poultry production capacities in the first half of 2012. Both poultry production volumes and sales in H1 2012 were more or less unchanged from H1 2011.

During the first six months of 2012, third-party sales constituted 181,600 tonnes of poultry. During the second quarter of 2012, the volume of chicken meat sales to external consumers constituted 96,560 tonnes and remained almost at the same level for compared volumes for the same period in 2011. Demand for chicken meat during the first half of 2012 remained high and the Company was able to sell close to 100 per cent of the chicken produced.

Due to the favorable market environment in Ukraine and seasonal trend, the average chicken meat price in Q2 2012 increased by four per cent compared to Q1 2012. At the same time, the average price in the second quarter of 2012 increased by 25 per cent to UAH17.48 per kg of adjusted weight (excluding VAT) when compared to second quarter of 2011 (UAH13.97). As a result of a stable and strong poultry prices during the first two quarters of 2012, the difference between H1 2011 and H1 2012 chicken meat prices constituted 28 per cent, which is an increase from UAH13.44 per kg to UAH17.14 per kilo.

During the second quarter of 2012 the volume of exported chicken meat sales continued the growing dynamics of previous quarters, exploring new business opportunities in the countries of Africa. It resulted in around 30 per cent growth in H1 2012 compared to the same period last year, which is almost 20,000 tonnes of frozen chicken export.

The Company continues to open new business directions for chicken export sales.

MHP’s new green field Vinnytsia project, comprising a poultry farm, processing facility and feed mill, is proceeding on schedule.