Ukraine. MHP net profit in 2019 went up by 68%

MHP agro-industrial holding posted a net profit of USD 215 mln for 12M 2019, 68% higher YoY (12M 2018: USD 128 mln).

Adjusted EBITDA margin (net of IFRS 16) decreased to 18% (2018: 29%). Adjusted EBITDA (net of IFRS 16) decreased to USD 376 mln vs. USD 450 mln in 2018 driven by low commodity prices (both for crops and poultry) and the effects of adverse weather conditions, combined with the significant strengthening of the Ukrainian Hryvnia.

Holding's revenue increased to USD 2,056 mln, 32% higher YoY (12M 2018: USD 1,552 mln) driven by an increase in sales of poultry meat, vegetable oils and convenience food, as well as by the acquisition of Perutnina Ptuj.

Export revenue amounted to USD 1,186 mln, 58% of total revenue (12M 2018: USD 924 mln, 60% of total revenue), up 28% YoY from the continued strategy of geographic diversification of exports.

Operating profit totalled USD 216 mln, down 31% YoY from USD 312 mln; operating margin declined from 20% to 11%.

"At the time of writing, we find ourselves in highly uncertain times due to the Covid-19 pandemic. I want to reassure our people that their health and safety is paramount and that we will continue to provide necessary support and assistance. I remain confident that MHP is uniquely positioned and will not only adapt to successfully manage the short-term challenges but will evolve to optimally position itself to capitalize on the medium- and long-term opportunities in our industries," commented Yuriy Kosyuk, MHP CEO.

He noted that the year 2019 was challenging for the company as it was integrating Perutnina Ptuj into its operations.

"We are in the process of transforming the company’s business model so that we as a group are more efficient and more customer-oriented. This transformation will embrace new technology and innovation and will rely on each and every one of our talented and committed employees; I am confident that they can rise to the challenge and deliver for our stakeholders," he added.

Previously reported that MHP initiated the construction of Ukraine's first Battery Energy Storage System (BESS) with a capacity of 25 MW.

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