MHP profited USD 232 mln in H1 2021

MHP, the agro and industrial holding founded and chaired by Yuri Kosyuk, generated a USD 232 mln net profit in H1 2021, compared to a loss of USD 62 mln in H1 2020.

As per the company's report, the loss primarily reflects a USD 51 mln non-cash foreign exchange gain in H1 2021 compared with a USD 129 mln foreign exchange loss in H1 2020). Net profit before foreign exchange differences amounted to USD 182 mln compared to USD 67 mln in H1 2020.

"As expected, after difficult fourth (2020) and first (2021) quarters during which increased costs of poultry production (driven by higher grain costs) could only partly be recovered by increased poultry prices, external trends impacted much more favourably on our business in the second quarter, resulting in a record financial result for the first half. This powerful combination of positive trends has continued into the second half of the year, with poultry prices increasing in both export and domestic markets, excellent weather conditions generating strong crop yields and high global grain prices," the report reads.

The company marks that with a successful hedging programme to lock in a high proportion of grain prices, MHP has raised its expectations for the full year with EBITDA now expected to reach a record of close to USD 600 mln. The net debt to EBITDA ratio, which already improved significantly to 2.82 as at 30 June, is expected to improve further to around 2.0 by year-end.

MHP's revenue increased to USD 989 mln in H1 2021, up by 14% year-on-year (H1 2020: USD 867 mln). Export revenue increased to USD 502 mln, 11% higher year-on-year representing 51% of total revenue (H1 2020: USD 453 mln, 52% of total revenue).

Operating profit in the reporting period boosted to USD 255 mln, up 85% year-on-year and operating margin increased from 16% to 26%.

Adjusted EBITDA (net of IFRS 16) grew by 55% to USD 334 mln; adjusted EBITDA margin (net of IFRS 16) increased from 25% to 34%.

Q2 2021 financial statements:

The company's revenue increased to USD 542 mln, up 28% year-on-year (Q2 2020: USD 425 mln). MHP's export revenue increased to USD 285 mln, 32% higher year-on-year, representing 53% of total revenue (Q2 2020: USD 215 mln, 51% of total revenue).

Operating profit increased to USD 239 mln, up 163% year-on-year (Q2 2020: USD 91 mln); operating margin more than doubled to 44% (Q2 2020: 21%).

Adjusted EBITDA (net of IFRS 16) increased by 120% to USD 277 mln; adjusted EBITDA margin (net of IFRS 16) increased from 30% to 51%.

The agroholding received USD 231 mln of net profit, compared to USD 112 mln in Q2 2020, including non-cash foreign exchange gains of USD 31 mln (Q2 2020: USD 52 mln). Net profit before foreign exchange differences amounted to USD 201 mln compared to USD 60 mln in Q2 2020.

Earlier the company informed about signing the agreement with the Ukrainian Startup Fund to exchange information on best practices in the development of the start-up ecosystem.