MHP raises poultry selling price 18% yoy in 2011
1 February 2012
MHP (MHPC LI) increased poultry production 9% yoy to 88.9 kt in 4Q11 and 12% yoy over FY11 to 370.1 kt, the company reported yesterday. The average selling price rose 18% yoy to UAH 17.0/kg (net of VAT) and 10% yoy to UAH 15.0/kg in FY11. As with 2010, MHP’s poultry capacities were fully loaded, with management attributing the marginal growth in output to improved efficiency. Chicken exports increased by almost 80% yoy in 2011 and reached nearly 10% of total sales. MHP sold 173.6 kt of sunflower oil (-11% yoy) for an average price of USD 1,145/t (+35% yoy) last year. Grain operations, reported previously in detail, grew 88% by volume, mainly due to a 71% increase in acreage.
Yegor Samusenko: The key positive message in yesterday’s operations update was that MHP’s selling price remained high: after floating at UAH 12-14/kg over the last three years, the price rose to UAH 16.1/kg in 3Q11 and stayed at UAH 17.0/kg in 4Q11. We upgrade our projection of the company’s EBITDA for 2011 from USD 360 mln to USD 392 mln, incorporating improved poultry pricing and better crop harvest figures. We reiterate our BUY recommendation.
