MHP to boost sales of chicken in 2014

The increase of production at its Vinnytsia poultry farm will allow MHP to boost the volume of poultry sales this year by 23% on year-to-year comparison, according to the Ukraine agricultural analysts.

Experts predict that the problems of the beginning of the year were temporary, and MHP will see strong operational results at the end of the year.

In particular, according to analyst agency Concorde Capital Roman Topolyuk, the company is currently improving its EBITDA due to the lower production costs in the segment of poultry production which is caused by the low grain prices of the last harvest.

This, it is believed, will have a positive impact on the company’s profitability in the next two following quarters.

“Good prospects for 2014 are supported by the planned increase in the volume of the Vinnytsa poultry farm that will increase sales of chicken by 23% in 2014 to 550,000 tonnes,” he said.

At the same time, the prospects of the development of MHP have recently been seriously improved by the International Financial Corporation which announced its decision to allocate credit to the holding of up to US$250 mln for the expansion of its operation at the production ground in Vinnytsia.