REG - MHP SE - MHP Monthly Update - May 2022

MHP SEAnnouncement

24/06/2022 07:30

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RNS Number : 0966Q  MHP SE  24 June 2022

24 June 2022, Limassol, Cyprus

 

MHP SE

Monthly Operational Update for the period ended 31 May 2022

MHP SE (LSE: MHPC), the parent company of a leading international
agro-industrial group with headquarters in Ukraine, today announces its
monthly operational update for May 2022. Hereinafter, MHP SE and its
subsidiaries are referred to as "MHP", "the Company" or "the Group".

1. POULTRY AND RELATED OPERATIONS (w/o PP)

Since the beginning of the Russian war in Ukraine, the Company has been facing
complex challenges and disruptions, which, primarily, resulted in a decrease
in capacity utilisation of poultry production to around 85%. Since April, the
Company has been extensively developing alternative routes to resume and
continue exports. As of today, export of all proteins from Ukraine continues
to be extremely challenging and requires 24/7 attention and management. The
Company's also continues to undertake efforts on improving poultry sales in
Ukraine through logistics and sales channel optimization.

 Poultry                                                   May 2022  May 2021  % change YoY  April  2022   % change MoM
 Production volume, tonnes                                 58,086    62,462    -7%           55,501        5%
 Sales volume, third parties tonnes                        53,370    58,076    -8%           35,010        52%
 ·      Ukraine                                            29,179    23,186    26%           20,738        41%
 ·      Export                                             24,191    34,891    -31%          14,273        69%
 Share of export sales, %                                  45%       60%       -15 pps**     41%           5 pps
 Average price per 1 kg net of VAT, US$*                   2.01      1.68      18%           1.88          16%

 Sunflower oil
 Sales volume, third parties tonnes                        8,726     16,697    -48%          17,225        -49%
 Soybeans oil
 Sales volume, third parties tonnes                        881       3,992     -78%          4,265         -79%

* - including culinary products; ** - pps - percentage points

 

2. GRAIN GROWING OPERATIONS UPDATE

Spring sowing campaign is complete on schedule (in the middle of May) and on
budget; currently crops are in good conditions. The weather conditions are
relatively good.

Winter crops (wheat, barley, rapeseed) harvesting is planned to start in 2-3
weeks.

3. MEAT PROCESSING AND OTHER AGRI OPERATIONS

 Meat processing products and Convenience Food      May    May 2021  % change YoY  April 2022  % change MoM

                                                    2022
 Sales volume, tonnes                               1,835  4,001     -54%          1,453       26%
 Price per 1 kg net VAT, UAH                        68.48  71.41     -4%           69.16       -1%

For further information and Investor Relations enquiries please contact:

                                              +38 050 339 29 99

 Anastasiya Sobotyuk (Kyiv)                   a (mailto:a.sobotyuk@mhp.com.ua) . (mailto:a.sobotyuk@mhp.com.ua) sobotyuk
                                              (mailto:a.sobotyuk@mhp.com.ua) @ (mailto:a.sobotyuk@mhp.com.ua) mhp
                                              (mailto:a.sobotyuk@mhp.com.ua) . (mailto:a.sobotyuk@mhp.com.ua) com
                                              (mailto:a.sobotyuk@mhp.com.ua) . (mailto:a.sobotyuk@mhp.com.ua) ua
                                              (mailto:a.sobotyuk@mhp.com.ua)

 

Notes to Editors:

 

About MHP

MHP is the leading producer of poultry products not only in Ukraine, but also
in the Balkans (Perutnina Ptuj Group).

 

Ukraine: MHP has the greatest market share and highest brand recognition for
its products. MHP owns and operates each of the key stages of chicken
production processes, from feed grains and fodder production to egg hatching
and grow out to processing, marketing, distribution and sales (including
through MHP's franchise outlets). Complete vertical integration practically
eliminates MHP's exposure to raw material price fluctuations since its grain
production exceeds internal consumption requirements, allowing the Company to
be an important participant in the international commodity trade.  In
addition to cost efficiency, vertical integration also enables MHP to maintain
strict biosecurity and to control the quality of its inputs and the resulting
quality and consistency of its products all the way to the point of sale. To
support its sales, MHP maintains a distribution network consisting of nine
distribution and logistical centers within major Ukrainian cities. MHP uses
its own truck fleet to distribute its products, reducing overall
transportation costs and delivery times.

 

MHP also has a leading grain cultivation business growing corn, soya and
sunflower to support the vertical integration of its chicken production and
increasingly other grains, such as wheat and rape, for sale to third parties.
MHP leases agricultural land located primarily in the highly fertile black
soil regions of Ukraine.

 

The Balkans: Perutnina Ptuj (PP) is a leading poultry and meat-processing
producer in the Balkans, with production sites in four Balkan countries:
Slovenia, Croatia, Serbia, Bosnia and Herzegovina. PP owns distribution
companies in Austria, Macedonia and Romania and supplies products to fifteen
countries in Europe. PP is vertically integrated across all states of chicken
meat production - feed, hatching eggs production and hatching, breeding,
slaughtering, sausage production and further poultry processing.

 

MHP trades on the London Stock Exchange under the ticker symbol MHPC.

 

Forward-Looking Statements

 

This press release might contain forward-looking statements that refer to
future events or forecast financial indicators for MHP SE. Such statements do
not guarantee that these are actions to be taken by MHP SE in the future, and
estimates can be inaccurate and uncertain. Actual final indicators and results
can considerably differ from those declared in any forward-looking statements.
MHP SE. does not intend to change these statements to reflect actual results.

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