March 29, 2011

Ukraine's MHP to increase revenue

Ukrainian agricultural producer MHP plans to boost revenue in 2011, with a larger land bank and poultry exports to the EU, said Chief Executive Yuri Kosyuk on Monday (Mar 28).

"We expect significantly higher revenues than in 2010," Kosyuk said. "Our land bank is 60% larger this year."

Regulators have completed the testing of MHP produce which will allow the company to commence exports to the EU. "In April or May the EU will discuss the issue of poultry supplies from Ukraine. Chances are good that exports to the EU will start this year," he said.

Kosyuk said London-listed MHP could sell poultry both to retailers and food producers for further processing. The company is also watching African markets, he said.

MHP said its revenue grew 33% last year to US$944 million. EBITDA grew by 20% to US$325 million and net income from continuing operations increased by 35% to US$215 million.

Kosyuk said MHP's investments this year would focus on the construction of a new poultry farm in Ukraine's Vinnytsya region, which will start producing 100,000 tonnes of poultry per year in 2013 and double its capacity in 2014.

"From time to time we get interesting acquisition offers which we consider," he said. "I do not rule out further expansion of the agricultural sector. This is limited to Ukraine for now," he added.