MHP

MHP is the largest poultry producer in Ukraine with a 58% share of industrially produced poultry in 2016 and 33% of domestic poultry consumption (incl. imports). Sales of chicken meat and related products account for about 60% of annual revenues.

Shareholders Structure

SUMMARY

Market Price ($) 3.400
Market Cap ($m) 364
Enterprise Value ($m) 1,830
Shares Outstanding 107,038,208
Code MHPC LI

Recommendations

FV ($) ****
Upside (%) ****
Recommendation ****
Indicator 2018 2019 2020 2021 2022
Sales ($m) 1,552 2,056 *** *** ***
EBITDA ($m) 450 427 *** *** ***
Net Income ($m) 129 215 *** *** ***
Net Debt ($m) 1,131 1,342 *** *** ***
Indicator 2018 2019 2020 2021 2022
P/E 2.81 1.69 *** *** ***
P/Sales 0.23 0.18 *** *** ***
EV/EBITDA 3.3 4.0 *** *** ***
P/Book 0.33 0.23 *** *** ***

MHP is the largest poultry producer in Ukraine with a 58% share of industrially produced poultry in 2016 and 33% of domestic poultry consumption (incl. imports). Sales of chicken meat and related products account for about 60% of annual revenues.
Year 2024 2026 2029
Issue Volume ($m) 500 550 350
Coupon Rate (% p.a.) 7.75% 6.95% 6.25%
Coupon Frequency S/A S/A S/A
Maturity date 5/10/2024 4/3/2026 9/19/2029
Ratings: Fitch/Moody`s/S&P CC/Caa3/CCC CC/Caa3/CCC CC/Caa3/CCC
Market Price* ($) 96.00 82.00 72.50
Market YTM* 26.90% 17.50% 13.40%
Spread over UST* - - -
Note: *Based on bid price.
Year 2020 2021 2022E
Net Sales ($m) 1,911 *** ***
EBITDA ($m) 395 *** ***
Net Income ($m) (133) *** ***
EBIT Coverage Ratio (x) 1.54 *** ***
Net Debt/Equity (%) 133.5% *** ***
Covenants
Restriction on payment of dividend -
Financial Reports A - within 135 days; S/A - within 90 days
Max. Consolidated Net Debt/EBITDA* 3:1
Events of Default
Failure to pay 30 days
Cross default $10m
Expiry of license, illegality, insolvency etc. -
Judgements $10m/60 days

Latest news about MHP

Feb 20, 2024
| Food & Agriculture

MHP — S&P upgrades to CCC, outlook negative

S&P Global Ratings upgraded its long-term issuer credit rating on MHP to CCC from Selective Default (SD), with a negative outlook, after the company completed a second buyback of its 2024 Eurobonds ($138m tendered at 95% of par). S&P said that while it had initially viewed the buybacks as a distressed debt exchange, those ultimately resulted in a more manageable 2024 debt maturity profile for MHP. The negative rating outlook reflected Ukraine’s sovereign rating.
Jan 25, 2024
| Food & Agriculture

MHP — Fitch affirms at CC following bond tender

Fitch Ratings affirmed its Long-Term Issuer Default Rating (IDR) on MHP at CC following the company’s completion of a second tender offer to repurchase its 2024 notes. The agency decided not to treat the buyback as a distressed exchange as investors’ participation in it was voluntary. Fitch concluded that MHP’s refinancing risk eased post-tender.
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