REG - MHP SE - Operational Monthly Update - July 2022

MHP SEAnnouncement

19/08/2022 10:30

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RNS Number : 6230W  MHP SE  19 August 2022

19 August 2022, Limassol, Cyprus

 

MHP SE

Monthly Operational Update for the period ended 31 July 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 July 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 utilisation of poultry production. 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.

 Poultry                                                   July    July 2021  % change YoY  June 2022  % change MoM

                                                           2022
 Production volume, tonnes                                 52,039  63,982     -19%          56,767     -8%
 Sales volume, third parties tonnes                        56,543  64,276     -12%          55,676     4%
 ·      Ukraine                                            25,561  25,688     0%            25,588     0%
 ·      Export                                             30,982  38,588     -20%          30,088     3%
 Share of export sales, %                                  55%     60%        -5 pps**      54%        1 pps
 Average price per 1 kg net of VAT, US$*                   2.09    1.72       21%           2.04       2%

 Sunflower oil
 Sales volume, third parties tonnes                        22,555  13,311     92%           22,544     13%
 Soybeans oil
 Sales volume, third parties tonnes                        1,167   6,381      -82%          4,045      -71%

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

2. GRAIN GROWING OPERATIONS UPDATE

Winter crops (wheat, rapeseeds and other) harvesting is progressing on around
69,700 ha of land. Rapeseeds harvest has been complete on around 27,500 ha
with around 3.8 t/ha yield. Wheat harvesting is progressing on around 40,700
ha of land, 85% complete, with current 5.5 t/ha yield.

Spring crops are in good conditions. The weather conditions are also
relatively good, however, there are some regions in Ukraine with extreme
weather conditions, where it is hot and very dry.

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

3. MEAT PROCESSING AND OTHER AGRI OPERATIONS

 Meat processing products and Convenience Food      July   July 2021  % change YoY  June 2022  % change MoM

                                                    2022
 Sales volume, tonnes                               2,502  4,883      -49%          2,421      3%
 Price per 1 kg net VAT, UAH                        76.16  71.41      7%            73.37      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.

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