REG - MHP SE - Monthly Operational Update for April 2022

MHP SEAnnouncement

24/05/2022 07:45

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RNS Number : 5719M  MHP SE  24 May 2022

24 May 2022, Limassol, Cyprus

 

MHP SE

Monthly Operational Update for the period ended 30 April 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 April 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 80-85%. Specifically in
March, due to port closures, MHP recorded substantially lower exports of
poultry and vegetable oils. Since April, the Company has been extensively
developing alternative routes to resume exports. Moreover, the Company's
domestic team has also been focusing their efforts on improving poultry sales
in Ukraine through logistics and sales channel optimization.

 Poultry                                                   April 2022  April 2021  % change YoY  March  2022   % change MoM
 Production volume, tonnes                                 55,501      63,348      -12%          52,746        5%
 Sales volume, third parties tonnes                        35,010      57 908      -40%          41,932        -17%
 ·    Ukraine                                              20,738      26,017      -20%          28,816        -28%
 ·    Export                                               14,273      31,891      -55%          13,116        9%
 Share of export sales, %                                  41%         55%         -14 pps       31%           10 pps
 Average price per 1 kg net of VAT, US$*                   1.88        1.60        18%           1.62          16%

 Sunflower oil
 Sales volume, third parties tonnes                        17,225      8,266       108%          575           2,894%
 Soybeans oil
 Sales volume, third parties tonnes                        4,265       4,360       -2%           3,595         19%

* - including culinary products

2. GRAIN GROWING OPERATIONS UPDATE

Spring sowing campaign is complete ono schedule and on budget. Winter crops -
wheat, barley, rapeseed - are in good condition. The Company has access to all
necessary plant protection materials, pesticides and fertilizers, which are
expected to be applied on time and in full.

3. MEAT PROCESSING AND OTHER AGRI OPERATIONS

 Meat processing products and Convenience Food      April 2022  April 2021  % change YoY  March 2022  % change MoM
 Sales volume, tonnes                               1,453       4,444       -67%          3,001       -52%
 Price per 1 kg net VAT, UAH                        69.16       68.03       2%            66.79       4%

For further information and Investor Relations enquiries please contact:

                                              +386 41 30 72 65

 Anastasiya Sobotyuk (Kyiv)                   +38 050 339 29 99

                                              a.sobotyuk@mhp.com.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 (over 30% of poultry consumption)
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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