MHP poultry price rises 31% yoy in 1Q12

MHP (MHPC LI), Ukraine’s largest poultry producer, reported an increase in its poultry price of 31% yoy in 1Q12 to UAH 16.75/kg, according to a trading update released yesterday. Sales volumes to third parties remained flat at 85 kt (up 1% yoy), at full capacity. Export sales reached 10 kt of chicken meat in 1Q12 or 12% of total sales to third parties. Sunflower oil production was down 1% yoy to 45.6 kt in 1Q12, with an average selling price of USD 1,085/t, down 17% yoy. In its farming segment, MHP sold 82 kt of corn at an average price of USD 224/kt, 19 kt of wheat at USD 186/t and 5.8 kt of soybean at USD 397/kt. In meat processing, sales volumes fell 5% yoy to 7.5 kt, with the average selling price growing by 18% yoy to UAH 21.53/kg. The company plans to announce its financials for 1Q12 on May 17.

Yegor Samusenko: The company’s chicken meat prices remained firm in 1Q12 at the level of our price forecast for 2012, even though the first quarter is historically weak in terms of pricing. Based on announced operating figures, we estimate MHP’s revenues at USD 292 mln in 1Q12 (up 24% yoy) and EBITDA at USD 98 mln (up 61% yoy).