MHP sees 3.3-fold rise in net profit in 2017

=Net profit of Myronivsky Hliboproduct (MHP) grew 3.3-fold last year, to $230 million compared with 2016.

The company said in a report published on the London Stock Exchange (LSE) on Wednesday, revenue grew by 13.4%, to $1.288 billion.

Export revenue amounted to $732 million, which is 15.3% more than in 2016. This is 54% of total revenue.

Gross profit rose by 14.5%, to $396 million, operating profit – by 15.1%, to $365 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 10.6% in 2017, to $459 million. EBITDA margin fell to 36% from 37%.

Export revenue in Q4 2017 totaled $171 million, which is 54% of total revenue over the period. EBITDA margin grew to 28% from 23%. Adjusted EBITDA increased to $88 million from $72 million.

Revenue totaled $318 million and grew by 2% year-over-year.

Net loss in Q4 2017 accounted for $27 million compared with net loss of $28 million in 2016, including $62 million of non-cash foreign exchange translation loss.

Gross profit stood at $65 million (27.5% up year-over-year).

"Our financial results were in line with Management expectations, with EBITDA of $459 million and an EBITDA margin of 36%. Exports of poultry, oils and grains generated a further increase in hard currency revenues, which grew by 15% year-on-year to $732 million," the company said, citing CEO Yuriy Kosiuk.

MHP is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.

The company supplies cooled halved carcasses of hens to the European market. They are processed there, including at its enterprises in the Netherlands and Slovakia.