Ukrainian poultry producer and grain trader MHP has posted a 48% fall in annual profits despite higher sales after seeing prices for its grain drop last year.

The London-listed firm posted net income of US$162m compared with $311m a year earlier. Operating profit also fell by 29% to US$272m.

The group attributed the losses to lower grain prices during the year and an increase in depreciation and finance costs.

Revenues for the year were up 6% to US$1.5bn, which MHP said was "primarily due to increased production of poultry".

Its fourth quarter followed a similar pattern with revenues up 15% to US$418m.

Operating profit fell 36% to US$35m and net income fell by 60% to US$12m, again lower grain prices were noted as the cause.

However the group expressed optimism for 2014 since lower grain costs would result in lower poultry production costs.

CEO Yuriy Kosyuk said: "Although 2013 was a challenging year for MHP, we made an important progress on a number of fronts. During the year, and in line with all Ukrainian grain growers, we faced lower market prices for our output year on year. Our robust and broadly-based operation served us well, and our vertically integrated model means that those low grain prices are now working in our favour in the form of lower poultry production costs in 2014."

Click here for the full results statement.