MHP poultry sales rise 3% yoy, prices jump 26% in 4Q21

Ukraine’s largest poultry producer MHP (MHPC LI,
MHPSA) sold 180.0 kt of poultry meat in 4Q21, which is 2.8% higher yoy (and
2.9% lower qoq), according to its Jan. 27 trading update. The company’s poultry
exports were 104.8 kt, 10.7% higher yoy and 1.3% lower qoq, while domestic
sales slid 11.0% yoy and 5.3% qoq to 70.8 kt in 4Q21.

During the quarter, the average poultry selling price
jumped 26.5% yoy to USD 1.72/kg (1.1% lower qoq).

In 2021, MHP’s poultry sales inched up 0.6% yoy to
704.0 kt, while the average selling price jumped 21.6% yoy to USD 1.63/kg. The
company’s export sales volumes rose 7.7% yoy to 402.4 kt and domestic poultry
sales decreased 10.9% yoy to 288.8 kt in 2021.

MHP’s expectations for crop yields in 2021 are about
10.0 t/ha for corn (79% higher yoy) and about 3.2 t/ha for sunflower (14%
higher yoy). The company’s wheat yield rose 16% yoy to 5.9 t/ha in 2021.

Dmytro Khoroshun: The
expected high harvest results of key crops (corn & sunflower seed) will
have a positive impact on the company’s EBITDA in 2021. 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). We see MHP’s USD 600 mln EBITDA guidance in 2021 (up
52% yoy) as realistic.