REG - MHP SE - Operational Monthly Update - August 2022

MHP SEAnnouncement

23/09/2022 07:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220923:nRSW4315Aa&default-theme=true

RNS Number : 4315A  MHP SE  23 September 2022

23 September 2022, Limassol, Cyprus

 

MHP SE

Monthly Operational Update for the period ended 31 August 2022

MHP SE (LSE: MHPC), the parent company of a leading international food &
agrotech group with headquarters in Ukraine, today announces its monthly
operational update for August 2022.

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 utilization of poultry production. Since April, the Company has
been extensively developing alternative routes to resume and continue exports.
Although MHP continues to face complex challenges and disruptions in
operations, sales and logistics, the Company is planned to restore poultry
production in its Ukrainian facilities to 100% of capacity by the end of 2022.

 Poultry                                                   August  August 2021  % change YoY  July    % change MoM

                                                           2022                               2022
 Production volume, tonnes                                 58,180  65,000       -10%          52,039  12%
 Sales volume, third parties tonnes                        57,281  57,589       -1%           56,543  1%
 ·      Ukraine                                            24,645  26,169       -5%           25,561  -3%
 ·      Export                                             32,637  31,420       4%            30,982  5%
 Share of export sales, %                                  57%     55%          2 pps**       55%     2 pps
 Average price per 1 kg net of VAT, US$*                   2.00    1.79         12%           2.09    -4%

 Sunflower oil
 Sales volume, third parties tonnes                        25,117  6,159        308%          22,555  -2%
 Soybeans oil
 Sales volume, third parties tonnes                        2,461   3,353        -27%          1,167   111%

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

 

2. GRAIN GROWING OPERATIONS UPDATE

In 2022, MHP is planning to harvest around 335,000 ha of land.

Harvesting campaign 2022

Winter crops (wheat, rapeseeds and other) harvesting has been completed on
around 69,700 ha of land. Main crops results are shown in the table below.

 

                   Cropped land, ha  Harvest, tonnes  Yield, t/ha
 Winter wheat      40,711            225,000          5.5
 Winter rapeseeds  27,520            104,900          3.8

Spring crops (corn, sunflower and soyabeans) harvesting campaign is
progressing.

Winter Crops Sowing Campaign 2023

MHP has completed rapeseeds sowing campaign on around 30,000 ha of land. Wheat
sowing is progressing and expected to be finished by the middle of October.

 

3. MEAT PROCESSING AND OTHER AGRI OPERATIONS

 Meat processing products and Convenience Food      August  August  % change YoY  July 2022  % change MoM

                                                    2022    2021
 Sales volume, tonnes                               2,780   4,988   -44%          2,502      11%
 Price per 1 kg net VAT, UAH                        79.06   69.39   14%           76.16      4%

For further information and Investor Relations enquiries please contact:

                                       +38 050 339 29 99

 Anastasiya Sobotyuk                   +357 99 76 71 26

                                       a.sobotyuk@mhp.com.ua (mailto:a.sobotyuk@mhp.com.ua)

 

Notes to Editors:

 

About MHP

MHP SE is the parent company of a leading international food & agrotech
group with headquarters in Ukraine, and production facilities 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGLGDCLBDDGDX