Bloomberg News

Ukraine’s MHP Says Earnings May Beat Forecasts by as Much as 12%

November 17, 2011

Nov. 17 (Bloomberg) -- Mironovskiy Hleboproduct SA, a Ukrainian poultry producer, expects this year’s earnings to exceed its forecast by 10 percent to 12 percent helped by a good grain harvest.

“Our nine-months results shows that we will exceed our full year financial results forecasted before,” Chief Financial Officer Viktoria Kapelyushnaya said in a phone interview in Kiev. “Our Ebitda will exceed what we expected before by 10-12 percent or by $40 to $45 million.”

Chicken meat sales rose by 13 percent in nine months to 282,000 tons, the company said today. Average chicken meat prices rose by 15 percent in the third quarter compared with the same period a year earlier. Net income more than doubled to $115 million in third quarter.

Kiev-based MHP, which is currently growing grain on 280,000 hectares, plans to expand its land holdings to as much as 500,000 hectares (1.2 million acres) to boost grain output and exports, its Chief Executive Officer Yuriy Kosyuk said in June. The company’s average corn yields rose by 25 percent this year to 9.8 tons per hectare, the company said today.

The removal of grain export duty last month helped boost growth and MHP will reap more than 1 million tons of corn this year, double last year’s level, Kapelyushnaya said. MHP aims to export at least 40 percent of its grain output and has sought permission to export poultry to the European Union, she said.

Chicken meat exports doubled in the first nine months of the year on shipments to Asia, the Middle East, Libya and Iraq, Kapelyushnaya said.

“We consider Saudi Arabia but it takes time to enter such markets,” Kapelyushnaya said. “We want to develop relations with countries who will be our long-term partners, who will be importing meat ten years from now.”

--Editors: Tim Farrand, Peter Branton

To contact the reporters on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net; Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editors responsible for this story: Balazs Penz at bpenz@bloomberg.netClaudia Carpenter at ccarpenter2@bloomberg.net


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