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MHP SE (LSE: MHPC) published its monthly operational update on June 24, 2022, for the period ending May 31, 2022. For May 2022, poultry production volume was 58,086 tonnes, a 7% decrease year-on-year, while third-party sales volume decreased 8% to 53,370 tonnes, and the average price rose 18% to $2.01 per kg. The company also reported year-on-year decreases in sunflower oil sales volume by 48% to 8,726 tonnes and soybean oil sales volume by 78% to 881 tonnes, with the spring sowing campaign completed on schedule in mid-May.
| Date | 24 Jun 2022 |
| Time | 07:27:58 |
| Category | Corporate updates |
| ID | 0966Q |
24 June 2022, Limassol, Cyprus
MHP SE
Monthly Operational Update for the period ended 31 May 2022
MHP SE (LSE: MHPC), the parent company of a leading international agro-industrial group with headquarters in Ukraine, today announces its monthly operational update for May 2022. Hereinafter, MHP SE and its subsidiaries are referred to as "MHP", "the Company" or "the Group".
1. POULTRY AND RELATED OPERATIONS (w/o PP)
Since the beginning of the Russian war in Ukraine, the Company has been facing complex challenges and disruptions, which, primarily, resulted in a decrease in capacity utilisation of poultry production to around 85%. Since April, the Company has been extensively developing alternative routes to resume and continue exports. As of today, export of all proteins from Ukraine continues to be extremely challenging and requires 24/7 attention and management. The Company's also continues to undertake efforts on improving poultry sales in Ukraine through logistics and sales channel optimization.
|
Poultry |
|
May 2022 |
May 2021 |
% change YoY |
April 2022 |
% change MoM |
|
Production volume, tonnes |
|
58,086 |
62,462 |
-7% |
55,501 |
5% |
|
Sales volume, third parties tonnes |
|
53,370 |
58,076 |
-8% |
35,010 |
52% |
|
· Ukraine |
|
29,179 |
23,186 |
26% |
20,738 |
41% |
|
· Export |
|
24,191 |
34,891 |
-31% |
14,273 |
69% |
|
Share of export sales, % |
|
45% |
60% |
-15 pps** |
41% |
5 pps |
|
Average price per 1 kg net of VAT, US$* |
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 2022 |
May 2021 |
% change YoY |
April 2022 |
% change MoM |
|
|
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:
|
Anastasiya Sobotyuk (Kyiv) |
+38 050 339 29 99
|
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|
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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.