MHP has posted a loss for the first nine months of the year

MHP has posted a loss for the first nine months of the year

MHP's bottom line for the first nine months of the year has been hit by a negative foreign exchange impact. 

For the first nine months ended 30 September, the Ukrainian poultry processor posted a loss of US$302m compared with a  profit of US$150m for the same period last year.

Operating profit increased 61% to US$381m as a result of higher production and lower production costs. Sales however, fell 4% to US$1.03bn year-on-year.

For the third quarter of the year, the group made a loss of US$32m compared with a profit of US$60m. Operating profit rose 71% to US$154m. But again, sales fell 6% to US$397m

Sales were pressured by an import ban by the Customs Union in February and a temporary suspension of the  Shahtarska breeding farm as a result of regional hostilities.

Despite these challenges, CEO Yuriy Melnyk said the company was "confident" it would deliver "strong operational and financial performance  in 2014 and beyond".

Show the press release

MHP S.A.

Unaudited Financial Results for the Third Quarter and Nine Months Ended 30 September 2014

MHP S.A. (LSE:MHPC), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and cultivation of grain, today announces its unaudited results for the third quarter and nine months ended 30 September 2014.

OPERATIONAL HIGHLIGHTS

Q3 2014 highlights

·      Production volumes increased by 9% to 133,700 tonnes (Q3 2013: 122,350 tonnes)

·      The average chicken price increased by 37% year-on-year to UAH 22.08 per kg (excluding VAT) predominantly due to the Ukrainian Hryvnia depreciation

·      Chicken meat export increased by 48% and reached 44,580 tonnes (Q3 2013: 30,000 tonnes)

9M 2014 highlights

·      Production volumes increased by 16% to 403,300 tonnes (9M 2013: 346,940 tonnes)

·      The average chicken price increased by 15% to UAH 18.61 per kg (excluding VAT) compared to UAH 16.21 in 9M 2013

·      Chicken meat export increased by 20% and reached 102,145 tonnes (9M 2013: 84,780 tonnes)

 

FINANCIAL HIGHLIGHTS

Q3 2014 highlights

·      Revenue of US$397 million, a decrease of 6% y-o-y 

·      Operating profit of US$154 million, up 71% y-o-y

·      EBITDA increased 47% to US$ 181 million, with EBITDA margin of 46%, up from 29% last year

·      Net loss for the period is US$32 million, of which US$107 million relates to non-cash foreign exchange translation losses

 

9M 2014 highlights

·      Revenue of US$1,034 million, decrease of 4% y-o-y

·      Operating profit1 of US$381 million, up 61% y-o-y

·      EBITDA increased 43% to US$ 453 million, with EBITDA margin of 44%, up from 29% last year

·      Net loss of US$302 million, including US$561 million of relates to non-cash foreign exchange translation losses

Original source: MHP