Pre-close trading update for the first quarter ended 31 March 2020


 MHP SE (LSE: MHPC), the parent company of a leading international agro-industrial group with headquarters in Ukraine, focusing primarily on the production of poultry and cultivation of grain, today announces its pre-close trading update for the first quarter ended 31 March 2020. Hereinafter, MHP SE and its subsidiaries are referred to as “MHP”, “The Company” or “The Group”.

MHP’s operational results of Perutnina Ptuj (PP) are included into the results of activities and are shown separately (European operating segment).


An outbreak of H5N1 avian influenza in Ukraine (the Vinnytsia region) was announced in Q1 2020 and caused a temporary cessation of exports from Ukraine to the EU (reopened at the beginning of March 2020), Saudi Arabia and other MENA markets (reopened in February and March 2020),  and CIS countries (expected to reopen from May 2020). In order to mitigate adverse impact on MHP’s operations and profitability, the Management of the Company decided to decrease capacity utilization of poultry production complexes by approximately 10% (since February until the end of March 2020). Since the beginning of April, all Company’s poultry production facilities continued to operate at full capacity again.

MHP’s overall production volumes of chicken meat in Q1 2020 increased by 4% and constituted 178,640 tonnes (Q1 2019: 171,272 tonnes), as a result of new rearing sites launched into operations during 2019 (Phase 2 (1 line) of the Vinnytsia poultry complex) as well as due to the increased share of heavier chicken production.       


Q1 2019

Q1 2020

% change












Sales volume, third parties, tonnes





-        Sales in Ukraine, third parties, tonnes





-        Export sales volume, third parties, tonnes





Average price per 1 kg net of VAT, UAH





Average price per 1 kg net of VAT, USD





Price per 1 kg net of VAT, UAH (Ukraine)





Price per 1 kg net of VAT, USD (export)















* Average official FX rate for Q1 2020 UAH/US$ 25.05 and for Q1 2019 UAH/US$ 27.31

Due to the challenging/decreased exports (banned markets), total sales of chicken meat to third parties in Q1 2020 decreased by 4% and constituted 157,729 tonnes of chicken meat compared to 164,004 tonnes in Q1 2019. Domestic sales volumes increased by 7% year-on-year to 75,681 tonnes, driven by an increased share of frozen chicken (following the strategy to decrease stocks).

Poultry Exports

Due to the sales restrictions (bans) imposed by the EU and MENA region countries governments predominantly, the Company had to redirect its sales volumes to the continues, which remained open at the time. It became almost impossible to follow the strategy of market and product targeting. At the same time, MHP continued to follow its strategy of export sales diversification as much as it could.

In Q1 2020 MHP’s exports of chicken meat constituted 82,048 tonnes, which is 12% lower than in the same period last year (Q1 2019: 93,045 tonnes), with significant decrease of countries in export portfolio. Export sales represented around 52% vs 57% of total poultry sales volumes in Q1 2020 and Q1 2019, respectively.

Poultry Prices

The average chicken meat price for chicken meat in Q1 2019 constituted UAH 34.41 (US$ 1.37) per kg, net of VAT, and decreased by 11% (3% in US$, respectively) compared to the same period last year, mainly driven by the dilution of profitability per kg affected by banned exports and increased sales of frozen chicken in Ukraine. However, at the same time, average poultry prices in Q1 2020 remained relatively stable compared to average poultry prices in Q4 2019 – UAH 34.69 (US$ 1.43) per kg, net of VAT.

Oil Sales

Sales volume, tonnes

Q1     2019

Q1          2020

% change


Sunflower oil





Soybean oil






In Q1 2020, MHP’s sales of sunflower oil decreased by 19% to 80,710 tonnes compared to 99,826 tonnes in Q1 2019, mainly as a result of delivery terms change. In Q1 2020, soybean oil exports decreased by 29% to 10,768 tonnes compared to 15,152 tonnes sold in Q1 2019, mainly due to decrease in production as well as a result of delivery terms change.

The Company considers vegetable oils exports as one of the “natural hedge” routes accumulating additional hard currency revenues and protecting the Company from volatilities in local currency.




MHP has around 72,140 ha under winter crops, of which approximately 56% is sowed with winter wheat and 43% with winter rapeseeds. All winter crops are currently in good condition. This year MHP is going to harvest around 360,000 hectares.


MHP’s 2020 spring sowing campaign is ongoing now.



Meat processing products

Q1     2019

Q1 2020

% change


Sales volume, third parties tonnes





Price per 1 kg net VAT, UAH










Convenience food

Q1     2019

Q1 2020

% change


Sales volume, third parties tonnes





Price per 1 kg net VAT, UAH





Sales volumes of sausage and cooked meats in Q1 2020 remained relatively stable and constituted 7,860 tonnes compared to 7,572 tonnes in Q1 2019. The average sausage and cooked meat price in Q1 2020 increased by 5% to UAH 68.90 per kg, net of VAT, compared to UAH 65.73 in Q1 2019.

Sales volumes of convenience food in Q1 2020 remained relatively stable and reached 4,039 tonnes. The average price in Q1 2020 decreased by 7% to UAH 40.29 per kg, net of VAT, due to the increased sales of more affordable SKUs.

EUROPEAN OPERATING SEGMENT (operations of Perutnina Ptuj)



Q1 2019*


Q1 2020











Sales volume, third parties tonnes






Price per 1 kg net VAT, EUR






* result of PP  from 21 February 2019 when the acquisition was completed

In Q1 2020, Perutnina Ptuj’s (PP) poultry production facilities produced 23,858 tonnes of chicken and turkey meat, while poultry sales constituted 15,183 tonnes. Prices were relatively stable year-on-year and in Q1 2020 constituted EUR 2.56 per kilogram (Q1 2019: EUR 2.57).

Meat processing products


Q1 2019*


Q1 2020










pdf TU Q1 2020 eng  Download >

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