MHP begins year with export boost

By Aidan Fortune

- Last updated on GMT

Growth in exports is in line with the company's strategy
Growth in exports is in line with the company's strategy
Ukraine poultry producer MHP has seen significant export growth in the first quarter of the year, with sales to the Middle East and North Africa (MENA) driving increases.

Ahead of its first-quarter financial results, the business has published a pre-close trading update for the 12 weeks to 31 March 2018.

Its overall production volumes of chicken meat in Q1 2018 increased by 7%, due to decreased flock thinning and increased production of bigger broiler carcases.

MHP’s sales of chicken meat to third parties in Q1 2018 increased by 9% as a result of a significant increase in exports, while its domestic sales volumes decreased by 4% year-on-year.

The growth in exports is in line with the company strategy of targeting products to specific markets and export sales diversification.

During the quarter, MHP’s exports of chicken meat were 28% higher than in the same period last year. Export sales represented around 47% of total poultry sales volumes in Q1 2018, with the business developing its exports mainly in the countries of the MENA and the EU.

In its convenience division, sales volumes of sausage and cooked meat in Q1 2018 remained stable and constituted 8,162 tonnes compared to 8,136 tonnes in Q1 2017. The average sausage and cooked meat price in Q1 2018 increased by 32% to [Ukrainian hryvnia] UAH58.66 per kg (excluding VAT) compared to UAH44.38 in Q1 2017 due to poultry price increases. Sales volumes of convenience food in Q1 2018 increased by 75%.

MHP’s first quarter financial results are expected on 22 May 2018.

Earlier this year, MHP was reported to be in a race for control of French poultry producer Doux​. 

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