MHP: Poultry revenue grows but overall profits drop

Ukrainian poultry producer and grain trader MHP has posted a 48% fall in annual profits despite higher sales, according to representatives of the company.

The company posted a net income in 2013 of US$162 mln compared with US$311 mln a year earlier. Operating profit also fell by 29% to US$272 mln.

However, representatives of the agricultural holding state the main reason for the negative results was lower grain prices affecting the grain trading arm of the company. At the same time, the company only strengthened its position on the poultry market. Thus, revenues for the year were up 6% to US$1.5b n, which MHP said was “primarily due to increased production of poultry”.

The group has expressed optimism for 2014 since lower grain costs would result in lower poultry production costs.

In particular, the CEO of MHP, Yuriy Kosyuk comments: “Although 2013 was a challenging year for MHP, we made an important progress on a number of fronts. During the year, and in line with all Ukrainian grain growers, we faced lower market prices for our output year on year. Our robust and broadly-based operation served us well, and our vertically integrated model means that those low grain prices are now working in our favour in the form of lower poultry production costs in 2014.”