t
09 September 2021, Limassol, Cyprus
MHP SE
Financial Results for the Second Quarter and Six Months Ended 30 June 2021
MHP SE (LSE:MHPC), the parent company of a leading international agro-industrial group with headquarters in Ukraine, today announces its results for the second quarter and six months ended 30 June 2021. Hereinafter, MHP SE and its subsidiaries are referred to as "MHP", "The Company" or "The Group".
Starting from the publication of its financial results for Q1 2021, MHP shows relevant comparisons of results not only year-on-year but also to the preceding period. Accordingly, Q2 2021 results in Poultry, Meat Processing and European Operating segments are compared not only with Q2 2020 but also with Q1 2021. For Grain Growing Operations, where results are driven by seasonality effects, this comparison is not relevant.
OPERATIONAL HIGHLIGHTS
Q2 2021
· Poultry production volume increased by 5% year-on-year to 190,908 tonnes (Q2 2020: 181,291 tonnes). Poultry production volumes of the European Operating Segment (Perutnina Ptuj or PP) amounted to 29,455 tonnes (Q2 2020: 26,101 tonnes).
· The average chicken meat price increased by 31% year-on-year to US$ 1.67 per kg (Q2 2020: US$ 1.27 per kg) (excluding VAT). The average price of poultry meat produced by PP during Q2 2021 was EUR 2.53 per kg (Q2 2020: EUR 2.50 per kg).
· Chicken meat exports totaled 109,055 tonnes, an increase of 23% compared to 88,505 tonnes in Q2 2020.
H1 2021
· Poultry production volume slightly decreased to 357,531 tonnes (H1 2020: 359,931 tonnes). Poultry production volumes of PP amounted to 54,117 tonnes (H1 2020: 49,959 tonnes).
· The average chicken meat price increased by 18% year-on-year to US$ 1.56 per kg (H1 2020: US$ 1.32 per kg) (excluding VAT). The average price of poultry meat produced by PP was EUR 2.51 per kg (1H 2020: EUR 2.53 per kg).
· Chicken meat exports increased by 12% to 191,315 tonnes compared to 170,553 tonnes in H1 2020.
FINANCIAL HIGHLIGHTS
Q2 2021
· Revenue increased to US$ 542 million, up 28% year-on-year (Q2 2020: US$ 425 million).
· Export revenue increased to US$ 285 million, 32% higher year-on-year, representing 53% of total revenue (Q2 2020: US$ 215 million, 51% of total revenue).
· Operating profit increased to US$ 239 million, up 163% year-on-year (Q2 2020: US$ 91 million); operating margin more than doubled to 44% (Q2 2020: 21%).
· Adjusted EBITDA (net of IFRS 16) increased by 120% to US$ 277 million; adjusted EBITDA margin (net of IFRS 16) increased from 30% to 51%.
· Net profit increased to US$ 231 million, compared to US$ 112 million in Q2 2020, including non-cash foreign exchange gains of US$ 31 million (Q2 2020: US$ 52 million). Net profit before foreign exchange differences amounted to US$ 201 million compared to US$ 60 million in Q2 2020.
H1 2021
· Revenue increased to US$ 989 million, up by 14% year-on-year (H1 2020: US$ 867 million).
· Export revenue increased to US$ 502 million, 11% higher year-on-year representing 51% of total revenue (H1 2020: US$ 453 million, 52% of total revenue).
· Operating profit increased to US$ 255 million, up 85% year-on-year and operating margin increased from 16% to 26%.
· Adjusted EBITDA (net of IFRS 16) increased by 55% to US$ 334 million; adjusted EBITDA margin (net of IFRS 16) increased from 25% to 34%.
· Net profit increased to US$ 232 million, compared to a loss of US$ 62 million in H1 2020, primarily reflecting a US$ 51 million non-cash foreign exchange gain in H1 2021 compared with a US$ 129 million foreign exchange loss in H1 2020). Net profit before foreign exchange differences amounted to US$ 182 million compared to US$ 67 million in H1 2020.
FINANCIAL OVERVIEW
|
(in mln. US$, unless indicated otherwise) |
|
Q2 2021
|
|
Q2 2020
|
% change1) YoY |
|
H1 2021
|
|
H1 2020
|
% change1) |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
542 |
|
425 |
28% |
|
989 |
|
867 |
14% |
|
IAS 41 standard gains |
|
146 |
|
43 |
240% |
|
125 |
|
46 |
172% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
292 |
|
127 |
130% |
|
358 |
|
219 |
63% |
|
Gross profit margin |
|
54% |
|
30% |
24 pps |
|
36% |
|
25% |
11 pps |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
239 |
|
91 |
163% |
|
255 |
|
138 |
85% |
|
Operating profit margin |
|
44% |
|
21% |
23 pps |
|
26% |
|
16% |
10 pps |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
281 |
|
129 |
118% |
|
344 |
|
226 |
52% |
|
Adjusted EBITDA margin |
|
52% |
|
30% |
22 pps |
|
35% |
|
26% |
9 pps |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (net of IFRS 16) |
|
277 |
|
126 |
120% |
|
334 |
|
216 |
55% |
|
Adjusted EBITDA margin (net of IFRS 16) |
|
51% |
|
30% |
21 pps |
|
34% |
|
25% |
9 pps |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit before foreign exchange differences |
|
201 |
|
60 |
235% |
|
182 |
|
67 |
172% |
|
Net profit margin before forex gain |
|
37% |
|
14% |
23 pps |
|
18% |
|
8% |
10 pps |
|
Foreign exchange result |
|
31 |
|
52 |
-40% |
|
51 |
|
(129) |
140% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit/(loss) |
|
231 |
|
112 |
106% |
|
232 |
|
(62) |
474% |
|
Net profit margin |
|
43% |
|
26% |
17 pps |
|
23% |
|
-7% |
30 pps |
1) pps - percentage points
Average official FX rate for Q2 2021 UAH/US$ 27.59 and for Q2 2020 UAH/US$ 26.91
Average official FX rate for H1 2021 UAH/US$ 27.78 and for H1 2020 UAH/US$ 25.98
DIVIDENDS
On 28 April 2021, shareholders of MHP at the AGM approved payment of an annual dividend of US$ 0.2803 per share, equivalent to US$ 30 million, to shareholders on the register as of 07 May 2021. The Board of Directors approved that no dividend will be paid on the Company's shares held in treasury. As of 30 June 2021, dividends were fully paid to shareholders.
DIAL-IN DETAILS
MHP's management will host a conference call for investors and analysts followed by Q&A on the day of the results
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The dial-in details are:
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Time:
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14.00 London / 16.00 Kyiv / 09.00 New York |
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Title: |
Financial results for Q2 and H1 2021
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UK:
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+44 203 984 9844 |
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Ukraine:
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+380 89 324 0624 |
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USA:
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+1 718 866 4614 |
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PIN code:
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645982 |
In order to follow the presentation together with the management, please follow the link:
https://mm.closir.com/slides?id=645982
For Investor Relations enquiries, please contact:
Anastasia Sobotiuk (Kyiv) +38 044 207 99 58 [email protected]
Segment Performance
Poultry and Related Operations Segment
|
|
|
Q2 2021 |
Q2 2020 |
% change YoY1) |
Q1 2021 |
% change QoQ1) |
H1 2021 |
H1 2020 |
% change1) |
|
Poultry |
|
|
|
|
|
|
|
|
|
|
Sales volume, third parties tonnes |
|
181,804 |
170,912 |
6% |
154,370 |
18% |
336,174 |
328,385 |
2% |
|
Domestic sales volume, tonnes |
|
72,749 |
82,407 |
-12% |
72,110 |
1% |
144,859 |
157,832 |
-8% |
|
Export sales volume, tonnes |
|
109,055 |
88,505 |
23% |
82,260 |
33% |
191,315 |
170,553 |
12% |
|
Share of export sales, % |
|
60% |
52% |
8 pps |
53% |
7 pps |
57% |
52% |
5 pps |
|
Average price per 1 kg net of VAT, US$ |
|
1.67 |
1.27 |
31% |
1.43 |
17% |
1.56 |
1.32 |
18% |
|
|
|
|
|
|
|
|
|
|
|
|
Average price per 1 kg net of VAT, UAH (Ukraine) |
|
45.05 |
31.82 |
42% |
41.50 |
9% |
43.28 |
32.14 |
35% |
|
Average price per 1 kg net of VAT, US$ (Ukraine) |
|
1.63 |
1.18 |
38% |
1.48 |
10% |
1.56 |
1.24 |
26% |
|
Average price per 1 kg net of VAT, US$ (export) |
|
1.69 |
1.35 |
25% |
1.38 |
22% |
1.56 |
1.40 |
11% |
|
|
|
|
|
|
|
|
|
|
|
|
Sunflower oil |
|
|
|
|
|
|
|
|
|
|
Sales volume, third parties tonnes |
|
35,192 |
82,646 |
-57% |
55,958 |
-37% |
91,140 |
163,356 |
-44% |
|
Soybeans oil |
|
|
|
|
|
|
|
|
|
|
Sales volume, third parties tonnes |
|
11,871 |
10,841 |
10% |
11,146 |
7% |
23,017 |
21,609 |
7% |
1) pps - percentage points
Chicken meat prices
The total volume of chicken meat sold to third parties in H1 2021 increased by 2% to 336,174 tonnes (H1 2020: 328,385 tonnes) mainly as a result of an increase in export sales predominantly to the MENA region. In Q2 2021 domestic sales decreased by 12% to 72,749 tonnes compared to Q2 2020 (but relatively stable quarter-on-quarter), mainly due to decreased sales of frozen chicken and lower sales of MDM and whole chicken.
Poultry export prices in Q2 2021 increased by 25% year-on-year, and by 22% quarter-on-quarter, mainly driven by strong prices on breast and fillet in Europe and positive price trends for quarters driven by international poultry production cost increases.
Poultry prices on the domestic market in Q2 2021 increased by 38% year-on-year mainly affected by a substantial poultry production cost increase since Q4 2020 and upward price trends for all proteins.
Vegetable oil
In Q2 2021, sunflower oil sales volume amounted to 35,192 tonnes, down 57% year-on-year. In H1 2021 MHP's sales of sunflower oil decreased by 44% compared to H1 2020 to 91,140 tonnes, mainly due to a decrease in production as a result of a decreased share of sunflower cake in fodder (due to a change in the fodder recipe).
Sales of soybean oil amounted to 11,871 tonnes in Q2 2021, 10% higher year-on-year, and 23,017 tonnes in H1 2021, 7% higher year-on-year, mainly as a result of raising production to support the increased share of soybean cake in fodder and increased third party sales.
|
(in mln. US$, unless indicated otherwise) |
|
Q2 2021 |
Q2 2020 |
% change YoY1) |
Q1 2021 |
% change QoQ1) |
H1 2021 |
H1 2020 |
% change1) |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
392 |
302 |
30% |
315 |
24% |
707 |
608 |
16% |
|
- Poultry and other |
|
334 |
238 |
40% |
248 |
35% |
582 |
476 |
22% |
|
- Vegetable oil |
|
58 |
64 |
-9% |
67 |
-13% |
125 |
132 |
-5% |
|
|
|
|
|
|
|
|
|
|
|
|
IAS 41 standard gains/(losses) |
|
18 |
(5) |
460% |
1 |
1700% |
19 |
6 |
217% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
110 |
51 |
116% |
33 |
233% |
143 |
118 |
21% |
|
Gross margin |
|
28% |
17% |
11 pps |
10% |
18 pps |
20% |
19% |
1 pps |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
108 |
54 |
100% |
32 |
238% |
140 |
122 |
15% |
|
Adjusted EBITDA margin |
|
28% |
18% |
10 pps |
10% |
18 pps |
20% |
20% |
0 pps |
|
Adjusted EBITDA per 1 kg (net of IAS 41) |
|
0.50 |
0.35 |
43% |
0.20 |
150% |
0.36 |
0.35 |
3% |
1) pps - percentage points
Revenue increased by 16% in H1 2021 compared to H1 2020 as a result of increased sales volumes and prices of chicken meat.
IAS 41 standard gain in Q2 2021 amounted to US$ 18 million (compared with a US$ 5 million loss in Q2 2020) mainly as a result of increase in prices of chicken meat.
Gross profit in Q2 2021 increased by 116% year-on-year to US$ 110 million. This was mainly due to increases in both sales volumes and chicken meat prices. Poultry production costs in Q2 2021 slightly decreased compared to Q1 2020 reflecting lower cost of sunflower cake in fodder as well as the lower utility costs.
Adjusted EBITDA in H1 2021 increased by 15% as a result of an increase in gross profit partly offset by an increase in administration, sales and distribution expenses.
Grain Growing Operations Segment
In 2021, the Company is to harvest around 355,000 hectares of land.
As of the date of this report, only the Company's harvesting campaign of winter crops is complete. All spring crop (corn, soybeans and sunflower) yields are expected to be good and are in line with the Company's expectations taking into account weather conditions.
Winter crops current (bunker) yields are as follows:
|
|
|
20211) |
|
2020 |
||
|
|
|
MHP's average |
Ukraine's average |
|
MHP's average |
Ukraine's average |
|
|
|
tonnes per hectare |
|
tonnes per hectare |
||
|
|
|
|
|
|
|
|
|
Wheat |
|
6.1 |
4.6 |
|
5.1 |
4.1 |
|
Rapeseed |
|
3.4 |
2.7 |
|
2.7 |
2.3 |
1) The latest available indicators at the publishing date.
|
(in mln. US$, unless indicated otherwise) |
|
H1 2021 |
|
H1 2020 |
|
% change |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
Revenue |
|
12 |
|
35 |
|
-66% |
|
|
|
|
|
|
|
|
|
IAS 41 standard gains |
|
102 |
|
38 |
|
168% |
|
|
|
|
|
|
|
|
|
Gross profit |
|
147 |
|
49 |
|
200% |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
171 |
|
73 |
|
134% |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (net of IFRS 16) |
|
161 |
|
65 |
|
148% |
Revenue in H1 2021 amounted to US$ 12 million compared to US$ 35 million in H1 2020. The decrease was mainly attributable to the lower amount of crops in stock designated for sale as of 31 December 2020, compared to stock for sale as of 31 December 2019, mainly as a result of lower yields in 2020.
IAS 41 standard gain in H1 2021 amounted to US$ 102 million compared to US$ 38 million in H1 2020. The gain mainly represents the result of the revaluation of crops in fields (biological assets) at the reporting date, due to increases in grain prices.
Meat Processing and Other Agricultural Operations segment
|
Meat processing products |
|
Q2 2021 |
Q2 2020 |
% change YoY |
Q1 2021 |
% change QoQ |
H1 2021 |
H1 2020 |
% change |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume, third parties tonnes |
|
8,462 |
8,607 |
-2% |
7,607 |
11% |
16,069 |
16,522 |
-3% |
|
Price per 1 kg net VAT, UAH |
|
80.72 |
70.77 |
14% |
75.59 |
7% |
78.29 |
69.99 |
12% |
Sales volume of meat processing products remained almost unchanged year-on-year and amounted to 16,069 tonnes in H1 2021. The average processed meat price increased by 12% year-on-year to UAH 78.29 per kg in H1 2021 driven mainly by an increase in raw material price (poultry meat).
|
Convenience food |
|
Q2 2021 |
Q2 2020 |
% change YoY |
Q1 2021 |
% change QoQ |
H1 2021 |
H1 2020 |
% change |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume, third parties tonnes |
|
4,485 |
4,361 |
3% |
4,180 |
7% |
8,665 |
8,537 |
1% |
|
Price per 1 kg net VAT, UAH |
|
50.91 |
38.63 |
32% |
43.03 |
18% |
47.11 |
39.91 |
18% |
Sales volumes of convenience food in H1 2021 remained stable and amounted to 8,665 tonnes. The average price in H1 2021 increased by 18% to UAH 47.11 per kg (excluding VAT), due to increased sales of more expensive SKUs and expansion of cooperation with large HoReCa channels such as McDonalds Ukraine and KFC (since Q2 2021) with more marginal products sales increase.
|
(in mln. US$, except margin data) |
|
Q2 2021 |
Q2 2020 |
% change YoY1) |
|
Q1 2021 |
% change QoQ1) |
|
H1 2021 |
H1 2020 |
% change1) |
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
42 |
34 |
24% |
|
36 |
17% |
|
78 |
67 |
16% |
|
- Meat processing |
|
34 |
26 |
31% |
|
27 |
26% |
|
61 |
53 |
15% |
|
- Other2) |
|
8 |
8 |
0% |
|
9 |
-11% |
|
17 |
14 |
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IAS 41 standard gains/(losses) |
|
3 |
1 |
200% |
|
- |
100% |
|
3 |
- |
100% |
|
Gross profit |
|
8 |
3 |
167% |
|
5 |
60% |
|
13 |
8 |
63% |
|
Gross margin |
|
19% |
9% |
10 pps |
|
14% |
5 pps |
|
17% |
12% |
5 pps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
6 |
3 |
100% |
|
4 |
50% |
|
10 |
9 |
11% |
|
Adjusted EBITDA margin |
|
14% |
9% |
5 pps |
|
11% |
3 pps |
|
13% |
13% |
0 pps |
1)pps - percentage points
2)includes milk, cattle, and feed grains.
Revenue in H1 2021 increased by 16% year-on-year to US$ 78 million due to increase in price of meat processing products. Adjusted EBITDA increased to US$ 10 million due to higher returns earned from milk operations.
European Operating Segment
|
Poultry |
|
Q2 2021 |
Q2 2020 |
% change YoY |
Q1 2021 |
% change QoQ |
H1 2021 |
H1 2020 |
% change |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume, third parties tonnes |
|
19,508 |
15,855 |
23% |
16,042 |
22% |
35,549 |
31,038 |
15% |
|
Price per 1 kg net VAT, EUR |
|
2.53 |
2.50 |
1% |
2.48 |
2% |
2.51 |
2.53 |
-1% |
Poultry sales in Q2 2021 increased by 23% to 19,508 tonnes (Q2 2021: 15,855 tonnes) and 22% quarter-on-quarter. This was facilitated by increased production of chicken meat following expansion of facilities in Croatia and Serbia. Average prices remained relatively stable year-on-year and constituted EUR 2.53 in Q2 2021.
|
Meat processing products1) |
|
Q2 2021 |
Q2 2020 |
% change YoY |
Q1 2021 |
% change QoQ |
H1 2021 |
H1 2020 |
% change |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Sales volume, third parties tonnes |
|
9,868 |
9,429 |
5% |
9,148 |
8% |
19,016 |
18,635 |
2% |
|
Price per 1 kg net VAT, EUR |
|
2.80 |
2.69 |
4% |
2.71 |
3% |
2.76 |
2.72 |
1% |
1) includes sausages and convenience foods
Meat processing product sales were up 5% year-on-year and amounted to 9,868 tonnes in Q2 2021 (Q2 2020: 9,429 tonnes) and 8% quarter-on-quarter. Average prices in Q2 2021 increased by 4% to EUR 2.80, remained relatively stable in H1 2021 year-on-year.
|
(in mln. US$, except margin data) |
|
Q2 2021 |
Q2 2020 |
% change YoY1) |
Q1 2021 |
% change QoQ1) |
H1 2021 |
H1 2020 |
% change1) |
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
104 |
79 |
32% |
87 |
20% |
191 |
157 |
22% |
|
|
|
|
|
|
|
|
|
|
|
|
IAS 41 standard gains |
|
2 |
2 |
0% |
- |
100% |
2 |
2 |
0% |
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
31 |
24 |
29% |
24 |
29% |
55 |
44 |
25% |
|
Gross margin |
|
30% |
30% |
0 pps |
28% |
2 pps |
29% |
28% |
1 pps |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
21 |
16 |
31% |
12 |
75% |
33 |
28 |
18% |
|
Adjusted EBITDA margin |
|
20% |
20% |
0 pps |
14% |
6 pps |
17% |
18% |
-1 pps |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (net of IFRS 16) |
|
20 |
15 |
33% |
12 |
67% |
32 |
26 |
23% |
|
Adjusted EBITDA margin (net of IFRS 16) |
|
19% |
19% |
0 pps |
14% |
5 pps |
17% |
17% |
0 pps |
1) pps - percentage points.
Revenue increased by 22% to US$ 191 million in H1 2021, mainly as a result of an increase in poultry sales volume. Adjusted EBITDA (net of IFRS 16) reached US$ 20 million and US$ 32 million in Q2 2021 and H1 2021 respectively. An increase in Adjusted EBITDA in Q2 2021 year-on-year was mainly attributable higher volumes sold and higher operational efficiencies which allowed PP to offset growing cost of raw materials.
Current Group Cash Flow
|
(in mln. US$) |
|
Q2 2021 |
|
Q2 2020 |
|
|
H1 2021 |
|
H1 2020 |
|
Cash from operations |
|
86 |
|
22 |
|
|
151 |
|
99 |
|
Change in working capital |
|
(1) |
|
(7) |
|
|
(102) |
|
(123) |
|
Net Cash from operating activities |
|
85 |
|
15 |
|
|
49 |
|
(24) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in investing activities |
|
(41) |
|
(23) |
|
|
(55) |
|
(77) |
|
Including: |
|
|
|
|
|
|
|
|
|
|
CAPEX1) |
|
(31) |
|
(20) |
|
|
(54) |
|
(41) |
|
Cash from financing activities |
|
6 |
|
(41) |
|
|
(14) |
|
(13) |
|
Dividends |
|
(33) |
|
(30) |
|
|
(38) |
|
(30) |
|
Total financial activities |
|
(27) |
|
(71) |
|
|
(52) |
|
(43) |
|
|
|
|
|
|
|
|
|
|
|
|
Total change in cash2) |
|
17 |
|
(79) |
|
|
(58) |
|
(144) |
1)Calculated as cash used for Purchases of property, plant and equipment plus cash used for purchases of other non-current assets
2)Calculated as Net Cash from operating activities plus Cash used in investing activities plus Total financial activities
Cash flow from operations before changes in working capital in H1 2021 amounted to US$ 151 million (H1 2020: US$ 99 million).
Use of funds in working capital during H1 2021 was mostly related to investments in crops in the fields to be harvested in H2 2021. The difference compared to H1 2020 was mainly attributable to lower investments in inventory during H1 2021 (sunflower and soya) designated for internal consumption.
In H1 2021 total CAPEX amounted to US$ 54 million mainly related to modernization projects, new products development, maintenance and further improvements at Perutnina Ptuj production facilities.
Debt Structure and Liquidity
|
(in US$, millions) |
|
30 June 2021 |
|
31 December 2020 |
|
30 June 2020 |
|
Total Debt 1) |
|
1,453 |
|
1,462 |
|
1,467 |
|
LT Debt 1) |
|
1,435 |
|
1,453 |
|
1,442 |
|
ST Debt 1) |
|
53 |
|
36 |
|
31 |
|
Trade credit facilities2) |
|
(35) |
|
(27) |
|
(6) |
|
Cash and bank deposits |
|
(162) |
|
(218) |
|
(185) |
|
Net Debt1) |
|
1,291 |
|
1,244 |
|
1,282 |
|
LTM EBITDA 1) |
|
458 |
|
340 |
|
345 |
|
Net Debt / LTM EBITDA1) |
|
2.82 |
|
3.66 |
|
3.72 |
1) Net of IFRS 16 adjustments: as if any lease that would have been treated as an operating lease under IAS 17 as was in effect before the 1 January 2019, is treated as an operating lease for purposes of this calculation. In accordance with covenants in MHP's bond and loan agreements, these data exclude the effects of IFRS 16 on accounting for operating leases.
2) Indebtedness under trade credit facilities that is required to be repaid within 12 months of drawdown should be excluded for purposes of this calculation.
As of 30 June 2021, the share of long-term debt in the total outstanding debt remained at 99%. The weighted average interest rate was below 7%.
As of 30 June 2021, MHP's cash and cash equivalents amounted to US$ 162 million. Net debt increased to US$ 1,291 million, compared to US$ 1,244 million as at 31 December 2020.
The Net Debt / LTM adjusted EBITDA (net of IFRS 16) ratio was 2.82 as of 30 June 2021, lower than the limit of 3.0 defined in the Eurobond agreement. Thus, as from 09 September 2021, the date of publication of reviewed interim condensed consolidated financial statements for the six-month period ended 30 June 2021, the restrictions under the indebtedness agreements are no longer binding on the Group.
As a hedge for currency risks, revenue from the export of grain, sunflower and soybean oil, sunflower husks, and chicken meat are denominated in US Dollars and Euros, sufficient for covering debt service expenses. Export revenue for H1 2021 amounted to US$ 502 million or 51% of total revenue (US$ 453 million or 52% of total sales in H1 2020).
Outlook
As expected, after difficult fourth (2020) and first (2021) quarters during which increased costs of poultry production (driven by higher grain costs) could only partly be recovered by increased poultry prices, external trends impacted much more favourably on our business in the second quarter, resulting in a record financial result for the first half. This powerful combination of positive trends has continued into the second half of the year, with poultry prices increasing in both export and domestic markets, excellent weather conditions generating strong crop yields and high global grain prices. As a result, with a successful hedging programme to lock in a high proportion of grain prices, we have raised our expectations for the full year with EBITDA now expected to reach a record of close to US$600 million. The net debt to EBITDA ratio, which already improved significantly to 2.82 as at 30 June, is expected to improve further to around 2.0 by year-end.
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) and in the EU.
Ukraine: MHP has the greatest market share (around 57% of industrial production) 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). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale. To support its sales, MHP maintains a distribution network consisting of 15 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times.
MHP also has a leading grain cultivation business growing corn 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 is a leading poultry and meat-processing producer in the Balkans, has production assets in four Balkan countries: Slovenia, Croatia, Serbia, Bosnia and Herzegovina; owns distribution companies in Austria, Macedonia and Romania and supply products to 15 countries in Europe. Perutnina Ptuj is a vertically integrated company across all states of chicken meat production - feed, hatching eggs production and hatching, breeding, slaughtering, sausages and further poultry processing production.
Since May 15, 2008, MHP has traded 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.