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 2022 | August 2021 | % change YoY | July 2022 | % change MoM |
| 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 2022 | August 2021 | % change YoY | July 2022 | % change MoM | |
| 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:
|
Anastasiya Sobotyuk |
+38 050 339 29 99 +357 99 76 71 26
|
| | |
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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