UKRAINE: Low grain prices hit MHP profits
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 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.
- Kellogg uses Kashi to finally join party - comment
- Rabobank's early view on Brexit impact on food
- New food waste standard will help monitor progress
- Tyrrells' growth plans - CEO interview, part two
- How could a TTIP affect the food industry?
- Brexit – Live reaction from food industry
- Kellogg to invest in "next-generation innovation"
- PepsiCo "engaging" with Indofood on child labour
- Campaigners attack UK child obesity plan
- Post, ConAgra 'held talks' over Lamb Weston merger
- Top Trends in Snacks, Confectionery, and Desserts; Exploring consumer and innovation trends in key categories
- Frozen Bakery Products Market by Type, Distribution Channel, & by Region - Global Trends & Forecast to 2020
- Singapore Food and Drink Report Q3 2016
- Fast Food in India
- Country Analysis Report: Saudi Arabia, In-depth PESTLE Insights