Ukrainian poultry producer and grain trader, MHP, has seen its annual profit for 2013 plunge 48% despite higher sales.

The company's net income fell significantly to US$162 million in 2013, compared with US$311 million a year earlier, while operating profit dropped by 29% to US$272 million.

The company cited lower grain prices, which affected the grain trading arm of the company, as the main reason for the negative results.

However, the company strengthened its position as a leading poultry producer. Revenues from poultry sales were up 6% to US$1.5 billion, primarily due to increased production.

The company is optimistic about the outlook for 2014, as lower grain costs would bring costs down for its poultry production.

"Our robust and broadly-based operation served us well, and our vertically integrated model means that those low grain prices are now working in our favour in the form of lower poultry production costs in 2014," Kosyuk added.