Ukraine-based poultry processor MHP today (28 August) claimed a “strong” first-half performance, with higher operating profit, but foreign exchange losses hit its bottom line.
MHP posted a 55% jump in operating profit to US$227m on the back of increased sales volumes and lower production costs.
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The improved volumes did not translate to rising revenues, which fell 3% to $637m, thanks to the devaluation of the Ukrainian hryvnia against the US dollar.
MHP booked a net loss of $270m for the six months to the end of June due to $454m of non-cash foreign exchange losses amid the revaluation of debt denominated in foreign currency.
Nevertheless, recently-appointed CEO Yuriy Melnyk said: “I am pleased to report a strong performance by MHP in the first half of 2014. The company continued to increase its overall production volumes, which resulted in significantly increased sales of poultry – both in Ukraine and for export – and sunflower oil.
“Despite the introduction of an import ban by the Customs Union in February, and following our strategy of export diversification, MHP increased poultry sales across all regions, so that export chicken sales volumes during H1 2014 slightly increased by 4% year-on-year.”
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By GlobalData
