MHP EBITDA jumps 72% in 9M21
18 November 2021
Revenue at Ukraine’s leading poultry meat producer and
farmer MHP (MHPSA, MHPC LI) rose 16.5% yoy to USD 1,647 mln in 9M21 and its
EBITDA jumped 71.9% yoy to USD 519 mln, according to its interim results
published on Nov. 18. The company’s poultry segment EBITDA rose 16.7% yoy to
USD 210 mln and its farming segment EBITDA jumped 3.3x yoy to USD 261 mln in
9M21. The meat processing segment contributed USD 11 mln, or 26.7% lower yoy.
The company’s EU-based facilities generated USD 50 mln of EBITDA in 9M21, or
31.6% higher yoy.
MHP’s operating cash flow before working capital
changes increased 27.0% yoy to USD 375 mln, while net cash flow from operations
rose 87.0% yoy to USD 258 mln in 9M21. The company’s CapEx was USD 92 mln, or
58.6% higher yoy.
Its net debt-to-LTM-EBITDA ratio was 2.09x at
end-September, compared to 3.33x a year ago and 3.66x nine months ago.
In 3Q21, MHP’s total EBITDA jumped 2.2x yoy to USD 186
mln (a 32.9% qoq decrease), while its poultry segment EBITDA rose 20.7% yoy to
USD 70 mln (or 35.2% lower qoq). The company’s EBITDA from its farming segment
jumped 7.7x yoy (or 32.4% lower qoq) to USD 100 mln in 3Q21. The company’s meat
processing segment EBITDA plunged 83.3% yoy and qoq to USD 1 mln, while its
EU-based facilities EBITDA rose 50.0% yoy (or 10.0% lower qoq) to USD 18 mln in
3Q21.
Also, the company’s report included information about
the almost completed harvest campaign. The preliminary corn yield jumped 92.9%
yoy to 11 t/ha, the wheat yield rose 15.7% yoy to 5.9 t/ha and the sunflower
seed yield increased 17.2% yoy to 3.4 t/ha.
Andriy Perederey: The strong
key crop yields growth and increase of poultry prices was a main driver of the
company’s EBITDA in 9M21. The company’s EBITDA decreased on a qoq basis due to
lower selling volumes of poultry and processed meat in 3Q21. Also, we estimate
MHP’s EBITDA in the poultry segment will be in the range of USD 260-270 mln in
2021 (vs. USD 194 mln in 2020) and we see MHP’s USD 600 mln EBITDA guidance in
2021 (up 52% yoy) as realistic.
