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MHP releases neutral 1H12 operations update

MHP releases neutral 1H12 operations update

17 July 2012

MHP’s (MHPC LI) poultry sales remained virtually unchanged yoy at 181,600 tons in 1H12 as company continued to operate at full capacity, according to MHP’s press release from yesterday. The company said demand for chicken meat remained strong and the company managed to sell almost 100% of chicken produced. Average 2Q12 selling price was up 25% yoy (up 4% qoq) to UAH 17.48/kg (net of VAT) while 1H12 price was up 28% yoy to UAH 17.14/kg. The company also said it recently started harvesting wheat, rapeseed and barley and it expects the crop yields will remain “good enough” and significantly higher than Ukraine’s average despite tough weather conditions. The company’s land banks has stayed relatively stable at 280,000 ha.

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