Mironovskiy Hliboproduct SA (MHPC) reported 20% profit increase in 2011, mainly due to increased volume of sales and sale prices, as well as
active land acquisitions that lead to higher harvest volumes. Net income of the company has seen increase of 30% to the level of USD 1.23 billion,
while sales rose to 370 900 tons, 12% yoy. Increase in sales accounts for 80% of exports sales to the new markets such as Libya, Lebanon,
Uzbekistan and Angola. Company has targeted Africa, the Middle East and Asia as potential export targets for 2012. The most recent news of MHP
planning to acquire production plant in Poland also confirms the fact that the company is starting to think more globally, as domestic market
becomes more saturated.

AgroInvest comment: MHP will continue growth via expansion in foreign markets. Such measures are good for the company also in terms of
diversifying its risks, especially political ones as production facilities abroad will negate potential interventions of Ukrainian government in company’s
activities (bans, quotas, etc.)
 

AgroInvest