Profitable first half of 2021 for MHP

MHP saw its broiler meat exports grow in the first half year of 2021, at decent price levels for breast meat. Photo: Henk Riswick

MHP managed to improve all key financial performance parameters in the first half of 2021 despite a slight drop in poultry production, MHP said in its recent quarterly report.

The Ukrainian company increased its revenue to US$ 989 million, up 14% year-on-year, the firm said. Net profit rose to US$ 232 million compared to a loss of US$ 62 million in the first half of 2020, primarily reflecting a US$ 51 million non-cash foreign exchange gain in the first half of 2021 compared with a US$ 129 million foreign exchange loss in the first half of 2020. Export revenue increased to US$ 502 million, 11% higher year-on-year representing 51% of total revenue, MHP estimated.

The solid financial performance has been secured by rising prices for chicken and sustainable export quantities. Poultry production volume slightly decreased to 357,531 tonnes, against 359,931 tonnes in the first half of 2020. Meanwhile, poultry production volumes of MHP’s Slovenian division, Perutnina Ptuj, amounted to 54,117 tonnes compared to 49,959 tonnes in the same period of the previous year.

Chicken exports up

The company said that chicken meat exports increased by 12% to 191,315 tonnes compared to 170,553 tonnes in the first half of 2020. The average chicken meat price increased by 18% year-on-year to US$ 1.56 per kg, excluding VAT. The average price of poultry meat produced by Perutnina Ptuj was € 2.51 per kg compared to € 2.53 per kg in the first half of 2020. Poultry export prices in the second half of 2021 increased by 25% year-on-year and by 22% quarter-on-quarter, mainly driven by strong prices on breast and fillet in Europe and positive price trends for quarters driven by international poultry production cost increases, MHP said.

Outlook remains bright

“As expected, after the difficult fourth quarter of 2020 and first quarter of 2021 during which increased costs of poultry production, driven by higher grain costs, could only partly offset by increased poultry prices, external trends impacted much more favourably on our business in the second quarter, resulting in a record financial result for the first half [of 2021],” MHP said.

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“This powerful combination of positive trends has continued into the second half of the year, with poultry prices increasing in both export and domestic markets, excellent weather conditions generating strong crop yields, and high global grain prices. As a result, with a successful hedging programme to lock in a high proportion of grain prices, we have raised our expectations for the full year with EBITDA now expected to reach a record of close to US$ 600 million,” MHP added.