Ukrainian agribusiness company MHP reduces sunflower oil sales by 11%, soybean oil by 9% in Jan-Sept 2024

MOSCOW. Nov 26 (Interfax) - MHP, a leading Ukrainian food and agribusiness holding company and the largest producer of chicken in Ukraine, reduced its sales of sunflower oil by 11% to 330,340 tonnes in January-September 2024 compared to the same period in 2023.

The decline has been prompted primarily by the changing of the sunflower cake production formula, which reduced the volume of oil production, Ukrainian media cited MHP's report at London Stock Exchange.

MHP also reduced the sales of soybean oil by 9% to 35,460 tonnes in January-September 2024 compared to the same period in 2023.

The company's sales of vegetable oils were down 27% to $355 million in January-September 2024, which prompted a decline in the adjusted EBITDA (excluding IFRS 16) to $42 million compared to $71 million in the same period in 2023. The company attributed this to a decline in both oil prices and their sales on global markets.

MHP is the largest producer of chicken in Ukraine, and it also produces grains, sunflower oil, and processed meat products.

As reported, the company posted $142 million in net profit in 2023 compared to $231 million in net loss a year before. The group's sales last year grew by 14% to $3.021 billion.

MHP saw $96 million in net profit in Q3 2024, up by 75% from Q3 2023. Its sales grew by 5% to $773 million, gross profits were up by 47% to $249 million, operating profits up by 62% to $154 million, and adjusted EBITDA up by 56% to $173 million.