OREANDA-NEWS. On 22 April 2009 MHP S.A. (Ў§MHPЎЁ or the Ў§CompanyЎЁ, LSE ticker: Ў§MHPCЎЁ), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, announced its financial results for the fourth quarter 2008 and full year ended 31 December 2008.

Key financial highlights for the fourth quarter of 2008:

Revenue increased 2% to US\\$169 million (Q4 2007: US\\$165 million).

EBITDA increased 43% to US\\$70 million (Q4 2007: US\\$49 million).

EBITDA margin increased to 42% (Q4 2007: 29%).

Financial results adversely affected by 50% depreciation of hryvna against US dollar and non-cash foreign exchange losses due to revaluation of the companyЎ¦s foreign-currency debt

Net loss from continuous operations of the quarter was US\\$ 165 million (2007: net income US\\$4 million) due to non-cash foreign exchange losses of US\\$198 million

Key financial highlights for the full year

Revenue increased 69% to US\\$803 million (2007: US\\$474 million).

EBITDA increased 88% to US\\$312 million (2007: US\\$166 million).

EBITDA margin increased from 35% to 39%.

Net income from continuous operations for the year decreased to US\\$15 million (2007: US\\$50 million) due to the non-cash foreign exchange losses of US\\$187 million.

Operational highlights of the year

IPO on the Main Market of the London Stock Exchange successfully completed in May 2008, raising US\\$161 million

All MHPЎ¦s poultry production facilities continued to operate at full capacity throughout the year and consumer demand for chicken meat remained high Chicken meat sales to third parties on adjusted-weight basis increased by 26% to 215,000 tonnes (2007: 170,000 tonnes).

In July 2008 MHP acquired 80% stake in Ў§Ukrainian BaconЎЁ, a private meat processing company with current production capacity of approximately 50 tonnes of meat products per day and a production potential of 200 tonnes per day

Sausage and cooked meat production volumes more than doubled to 16,000 tonnes

Land bank increased from 148,500 to 180,000 hectares

Record-breaking yields across all crops compared to UkraineЎ¦s average

Agreement in December 2008 to sell non-core stake in Ў§Agrofirma KyivskaЎЁ to continue to focus on its key businesses

Post period end:

‡P   All companyЎ¦s chicken production facilities continue to work at full capacity

‡P   US\\$20 million of short term borrowings successfully refinanced, extending maturities to Q1 2010

‡P   New law enacted in February 2009 has extended indefinitely VAT and profit tax benefits for Ukrainian agricultural producers (previously effective until 1 January 2011)

‡P   Re-styling of MHPЎ¦s locomotive Ў§Nasha RyabaЎЁ brand and launch of new advertising campaign in April 2009.

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

Ў§I am pleased to report that 2008 was a good year for MHP. Following the IPO we have been able to achieve all the promises we gave and havemade great strides in advancing our strategy of expanding our domestic activities and deepening our vertical integration, whilst continuing to control production costs and grow market share. The Ukrainian market continues to represent a significant growth area for us as our consumers continue to substitute imported chicken and more expensive pork and beef with domestically produced chicken meat.

Ў§Despite the challenging economic conditions, both domestically and globally, MHPЎ¦s financial position is strong and we have continued to produce high-quality products at low production costs that are sold to our customers at affordable prices. We are confident that we have the land, the facilities, the skills and the resources to provide value for our shareholders in 2009 and beyond.ЎЁ