According to the official information released by the company, company is pursuing its business strategy with successful implementation of the key facilities, such as a major one in Vinnitsa. Company has already invested approximately USD 600 M in the development of the project of the course of its development since 2010 until 2012. Company has already initiated preliminary launch of the facility in Vinitsa during the 4th Quarter of 2012. At the moment company has already launched incubator, slaughterhouse, 4 cultivation zones and several other facilities. Company is aiming at developing chicken cultivation zones, increasing production capacity.

Company has increased poultry production volume by 5% to 404 thousand tons during 2012 compared to 384 thousand tons in 2011, mainly due to production boost of Vinnitsa production complex with 20 thousand tons production volume in 2012 as well as effective production pace, utilized by MHP overall. Company reported chicken sales increase of roughly 1% from 370 900 to 375 300 tons with a 15% price per kg increase from UAH 15 to UAH 17.9.

MHP also reported increase in sales of sunflower oil by 12% from 173 600 tons to 195 000 tons in 2012 compared to 2011. Price of sunflower oil dropped by -11% from 1245 UAH per ton to 1109 UAH per ton. Due to unfavorable weather conditions, company’s crop declined by 6% from 1.712 M tons in 2011 to 1.617 million tons in 2012.

AgroInvest comment: company is yet to release its financial results, however, based data stated in operational results report, with increase of production volumes and price increase of company’s main product: poultry, we expect increase of Key Performance indicators for the company. 

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UkrAgroConsult