Two key drivers will provide MHP's revenue growth in 2018 — Perederey
MHP's poultry sales and high crop yields will be the key drivers of its revenue growth in 2018. This was stated by the investment analyst at Concorde Capital Andrew Perederey.
"We see that the company’s poultry segment EBITDA in 2018 will be lower y-o-y due to higher selling costs, which support export sales growth," he commented.
MHP’s poultry segment EBITDA is expected in the range of USD 320-330 mln in 2018 vs. USD 367 mln in 2017, but the y-o-y decrease will be offset by better results of its grain segment (based on the company’s estimates about bumper crop yields).
"And in our view, the company will have the ability to generate total EBITDA of USD 470-480 mln in 2018 (up from USD 452 mln in 2017). So we remain bullish on MHP stock and neutral on its Eurobonds," Andrew Perederey added.
In Q3 2018, the agri-industrial holding Myronivsky Hliboproduct (MHP) increased poultry exports by 52% to 80.36 thou. tons of supplies compared to the prior-year period.