MHP saw exports account for majority of sales in first nine months of 2016

MHP saw exports account for majority of sales in first nine months of 2016

MHP, the UK-listed, Ukraine-based poultry supplier, has reported a profit for the first nine months of 2016 - after a forex-affected loss a year ago - but saw falling export prices affect operating profit amid flat revenues.

The company posted a net profit of US$86m for the nine months to the end of September, compared to a loss of US$37m a year earlier. MHP still recorded $88m of non-cash foreign exchange losses but that was below the $289m incurred in the first nine months of 2015.

Operating profit, which MHP gave before losses on impairment of property, plant and equipment, stood at $270m, down 14% year-on-year. The depth of the fall was less in the third quarter, when operating profit dipped 1% to $79m. EBITDA dropped 12% to $340m in the first nine months of 2016 and was down 9% in the third quarter.

MHP pointed to a decrease in export prices, lower VAT refunds and a fall in "other government grants income" for the decline in EBITDA over the nine-month period.

Revenue was $899m, versus $898m a year earlier. MHP booked a 6% rise in third-quarter revenue to $369m.

During the first nine months of the year, exports accounted for 51% of MHP's revenue, up from 45% a year earlier. This year, the company has set up a processing plant in the EU and opened a sales and distribution office in UAE in a bid to increase and diversify its exports.