May 2, 2023

MHP Ukraine announces US$230 million loss for 2022

MHP, Ukraine's largest poultry processor, announced a net loss of US$231 million in 2022, compared to a profit of US$393 million the previous year in its annual report, Poultry World reported.

However, the company has returned to profitability, with a net profit of US$38 million in the fourth quarter of 2022.

Last year, MHP estimated that "substantial war-related costs since the Russian invasion on February 24, 2022" totaled US$69 million. This figure includes community support donations, inventory and biological asset write-offs, and other war-related expenses.

Working with volunteers since the start of the conflict, MHP has provided extensive humanitarian aid, including a free supply of approximately 12,000 tonnes of poultry products to the Ukrainian people.

As the conflict continues, MHP stated that there are additional risks to its operations in 2023.

The company's operations are still under threat as a result of recurring attacks on Ukraine's critical infrastructure. But MHP's production facilities in Ukraine remain near full capacity, the company's report said.

MHP also said that it was able to rebuild the logistics that had been severely damaged by the conflict and resume export operations. It stated that poultry exports increased by 6% year on year in the fourth quarter of 2022, owing primarily to an intentional reduction of poultry stocks in non-resident warehouses, which accumulated in significant volumes during 2022 to secure stable export contracts.

MHP said its own facilities have not yet suffered any physical damage as a result of the war. The company has reorganising its logistics and is once again exporting grain, vegetable oils, and poultry meat to over 70 countries.

-      Poultry World