MHP

LSE-listed MHP, Ukraine’s largest poultry producer, held a conference call on its 1Q23 results. Profitability last quarter was supported by stable q-o-q poultry sale volumes and prices and an additional cost-saving effect from high crushing margins in the vegetable oil segment. At the same time, as sunflower oil prices have dropped sharply thus far in 2Q23, MHP’s poultry production costs are likely to increase q-o-q. Also, due to temporary import restrictions introduced by selected EU countries in April, MHP had to suspend poultry exports for a week and later resumed supplies at higher transportation costs. Based on the current operating environment and assuming no further asset damage, the company expects its 2023 EBITDA to be close to last year’s level of $443m (incl. IFRS 16) or slightly higher.

LSE-listed MHP, Ukraine’s largest poultry producer, published its 1Q23 financial results this morning, reporting sales of $746m (+35% y-o-y), EBITDA of $124m (+148%; incl. IFRS 16 effect), and net income of $49m (vs. $108m loss in 1Q22). Quarterly EBITDA before IFRS 16 stood at $117m, up 172% y‑o-y. Export sales totaled $522m or 70% of total revenue (vs. 56% in 1Q22).