Nasha Ryaba (MHP’s brand) boosted chicken exports by 47% in 2015

20.07.2015

Alex MorgunFinancial Analyst of "UkrAgroConsult"

Myronivsky Hliboproduct (Nasha Ryaba brand) published an operational report for H1 2015. The company reported a rise in chicken production and exports. The latter grew due to the opening EU market and new markets in Asia, the Near East, and Africa. The company also reported growth of sunoil sales with a downward trend in export prices. UkrAgroConsult notes a 3.10% rise in Nasha Ryaba’s share price since the beginning of 2015, to USD 10.30.

MHP boosted chicken output driven mainly by increased production output of the Vinnytsya poultry farm. Production volume increased 4% to 278.4 KMT in H1 2015. Total sales of the company rose by 2% to 257.4 KMT. At the same time, selling price of chicken went up by 58% to UAH 26.65/kg.

According to the company, domestic chicken sales fell by 2% in H1 2015, mostly due to the sales slump in Luhansk and Donetsk regions. Export sales of chicken increased 47% in Q2 2015 and 15% in H1. They totaled 66 KMT, or 25.6% of the company’s overall sales. Exports to the EU amounted to 18% of MHP’s total chicken exports, whereas the company itself assesses Asia, the Near East, and Africa as markets with high potential.

Company Sunoil sales increased by 6% to 145.8 KMT in H1. Export price fell by 9% to USD 779/MT in H1. This price sank to USD 766 in Q2 2015. In addition, the company exported 5.1 KMT of soybean oil for USD 733/MT.

The company is planning to harvest an area of 340 Th ha, including land parcels obtained under a swap with Agrokultura. Sales of processed meat products shrank by 21% in the first half-year, while their price increased 67%.

The company’s share price has grown by 3.10% in 2015, according to the London Stock Exchange and UkrAgroConsult’s calculations.

MHP’s data show stabilization of the situation for agricultural businesses and priority of exports in the company’s sales, at least at the current stage because of declined purchasing power of Ukraine’s population. UkrAgroConsult’s experts also emphasize the importance of Asia, the Near East, and Africa as growing markets for the future development of Ukrainian agricultural companies.

 

 

 

 

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