OREANDA-NEWS. MHP S.A. (“MHP” or the “Company”, LSE ticker: “MHPC”), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, today announces its unaudited results for the second quarter and the six months ended 30 June 2013.

Operational highlights

Poultry and related operations

• During the first half of the year all the Company's chicken production facilities

continued to operate at full capacity.

• Currently the Vinnytsia poultry farm operates at full capacity on 7 rearing sites (out of

12).

• The Company's share of industrially produced chicken in Ukraine in H1 2013

remained around 50%.

• The volume of chicken meat sales to external customers in H1 2013 year-on-year

increased by 13% to 205,300 tonnes due to the increased production of chicken meat at the Vinnytsia poultry farm.

• In Q2 2013, chicken meat price (both domestic and export) remained stable

compared to Q1 2013; however, the average chicken price decreased by 7% to UAH

16.20 per 1 kg of adjusted weight (excluding VAT) compared to Q2 2012. In H1 2013, average chicken meat price was UAH 16.26, 5% lower than in H1 2012. The decrease in average poultry prices is mostly related to the increased share of export in total poultry sales (as a result of lower price for frozen chicken compared to fresh).

• In H1 2013, 111,160 tonnes of sunflower oil were sold at an average price of USD

1,120 per tonne; this was 17% higher in volume and 1% higher in price compared to H1 2012 due to the increased production of fodder and in line with world market price trends accordingly.

• During Q2 2013, the volume of exported chicken meat sales continued the growing

dynamics of previous quarters, exploring new business opportunities in different business regions. This resulted in growth of export sales in H1 2013 by almost 3 times compared to the same period last year to 54,750 tonnes of frozen chicken meat.

Grain growing

• During the period the Company increased its land bank by 35,000 hectares in Ukraine. In July 2013, the Company acquired 40,000 hectares in Russia.

• In 2013 the Company expects to harvest around 290,000 hectares of land in grain growing operations.

• MHP's current yields of wheat (5.5 tonnes per hectare) and rape (3.2 tonnes per hectare), continue to be substantially higher than Ukraine's average.

Other agriculture

• Sausage and cooked meat production volumes decreased slightly from 16,510 tonnes in H1 2012 to 16,110 tonnes in H1 2013 due to the continuous product mix optimization.

• The Company's market share of Ukraine's sausage and cooked meat products in Ukraine remained stable at around 10%

Financial highlights

Q2 2013 highlights

• Revenue of USD 352 million remained stable compare to Q2 2012 as a result of higher chicken meat sales being offset by lower external grain sales.

• EBITDA of USD 120 million, decrease of 18% compared to Q2 2012, predominantly due to inflated poultry production cost and softening average poultry prices.

• Net income of USD 53 million decreased by 56% compared to USD 122 in Q2 2012 reflecting the reduction in EBITDA and due to one-off transaction costs related to new Eurobond issued in April 2013.

H1 2013 highlights

• Revenue of USD 656 million remained stable compared to H1 2012 as a result of higher chicken meat sales being offset by lower external grain sales.

• EBITDA of USD 193 million, decrease of 16% compared to H1 2012, predominantly due to inflated poultry production cost and softening average poultry prices.

• Net income of USD 90 million decreased by 47% compared to USD 170 million in H1 2012 reflecting the reduction in EBITDA, higher depreciation related to new Vinnytsia complex and one-off transaction costs related to new Eurobond issued in April 2013.

Commenting on the results, Yuriy Kosyuk, Chief Executive Officer of MHP, said:

“This was a challenging period for the Company with correspondingly weaker financial results.

Despite the challenging macroeconomic situation in Ukraine, during the first half of the year the Company significantly increased its capacity at each production site of our new Vinnytsia complex, enabling us to increase poultry exports in line with our strategy of export diversification.