MHP Boosts Chicken Meat Sales 30% in 2Q
OREANDA-NEWS. July 15, 2010. Myronivsky Hliboproduct (AIM: MHPC LI) boosted chicken meat sales in 2Q10 by 30% yoy to 85.5 ths mt, according to a trading update. Over 1H10, chicken meat sales are up 45% yoy to 168.5 ths mt. MHP related the increase the launch of its Myronivka phase two facility in 2H09. MHP produced 47.3 ths mt of sunflower oil, up 59% yoy in 2Q09 (95.9 ths mt in 1H10 or +61% yoy). In 2Q10, sausage and cooked meat production volumes increased 36% yoy to 8 ths
Concorde Capital: based on the results reported, we anticipate ~10% qoq sales growth of MHP in 2Q10 to USD 220 mln (+30% yoy), primarily driven by 11.6% qoq growth in domestic poultry prices to UAH 13.82/kg (-0.3% yoy) and a 30% yoy increase in poultry output to 85.5 ths mt. This goes in line with our forecasts of USD 871 mln (+23% yoy) for MHP’s sales in FY2010 at annual poultry output of 330 ths mt (+16% yoy). We also maintain our forecast for MHP’s FY2010 EBITDA of USD 227 mln (-16% yoy, EBITDA margin: 26%, -12 pp yoy), supported by the management’s comments on higher production costs yoy in 2Q10, associated with the market price of corn this year.