10:15 14.11.2018

MHP sees net loss of $48 mln in Q3 2018 over foreign exchange translation loss

2 min read
MHP sees net loss of $48 mln in Q3 2018 over foreign exchange translation loss

Myronivsky Hliboproduct (MHP) in July-September 2018 saw $48 million of net loss compared with $41 million of net profit in July-September 2017 over foreign exchange translation loss.

According to unaudited financial statements of the holding, revenue grew by 19% in Q3 2018, to $422 million, earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 6%, to $99 million and operating profit decreased 17%, to $71 million.

The holding said that over the period exports revenue totaled $275 million, which is 62% of total revenue ($212 million in Q3 2017 or 57%). The operating margin was 16%.

In January-September 2018, net profit of MHP fell by 44% year-over-year, to $142 million. Revenue grew by 17%, to $1.136 billion. Exports revenue totaled $660 million, or 58% of total revenue ($561 million in January-September 2017 or 58%).

Operating profit decreased 9%, to $283 million, EBITDA – 2.4%, to $362 million.

According to the report, net profit decreased mainly due to reduction in government grants income ($41 million) and one-off transaction costs ($33 million) related to new eurobond issued in April 2018, as well as the non-cash foreign exchange translation loss.

Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of grain, sunflower oil, and meat.

MHP supplies cooled chicken half-carcasses to the European market, which are processed, in particular, at its enterprises in the Netherlands and Slovakia.

The land bank of the company at the end of 2017 was about 370,000 hectares.

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