MHP poultry sales decline 2% yoy in 1Q21

Poultry sales at Ukraine’s leading poultry producer MHP
(MHPC LI, MHPSA) slid 2.1% yoy to 154.4 kt in 1Q21, according to the company’s
trading update published on April 15. The company’s poultry production
decreased 6.7% yoy to 166.6 kt in 1Q21. Its poultry export was 82.3 kt, or 0.3%
more yoy, while domestic poultry sales decreased 4.7% yoy to 72.1 kt. The
average poultry price was USD 1.36/kg in 1Q21, which is 0.7% lower yoy. It
implies MHP’s revenue from poultry sales dropped 11.8% yoy to USD 209 mln in
1Q21. Its EU-based facilities sales rose 5.7% yoy to 16.0 kt at an average
price of EUR 2.48 (3.1% lower yoy) in 1Q21.

Andriy Perederey: The
company’s poultry production volumes and sales decreased due to restrictions
set by the EU since Dec 2020 caused by avian flu outbreaks in Ukraine. So, the
company made the decision to produce smaller chickens with a focus on the MENA
market. Meanwhile, the company’s poultry production facilities have operated at
full capacity. So, we expect that poultry sales will be flat or slightly lower
yoy in 2021. However, the lowering of poultry prices could put pressure on the
company’s poultry revenue, which could be offset by higher vegetable oil prices
in 2021.