(VAN) In the third quarter of 2024, MHP, Ukraine’s largest poultry processor, generated a net profit of US$96 million. This is 75% up compared with the previous year.
MHP’s Ukraine’s division sees a production decline, partly compensated by a rise in the output of the European subsidiary. Photo: MHP.
MHP’s third quarter was its most successful this year. Overall, during the first 9 months of 2024, the company’s net profit increased by 16% to US$141 million, MHP calculated, further indicating that the financial performance improved despite the negative impact of the Ukrainian currency fluctuations and the remaining high war-related costs.
For instance, MHP estimated the non-cash foreign exchange loss this year to be US$98 million. Last year, this factor generated a net profit of US$7 million for the company. “Overall, war-related costs remain high, reaching US$38 million compared to US$23 million in the first 9 months of 2023,” MHP said.
More employees drafted
Besides, the company keeps experiencing certain difficulties due to ongoing mobilisation. Citing data from the Ukrainian Economy Ministry, MHP stated that the workforce in Ukraine has shrunk by 12% since the conflict began. Against this background, the company added, one of the key priorities for the business is “addressing existing and future workforce issues and maintaining employee safety”.
MHP reported that 3,300 of its employees had been mobilised into the Ukrainian armed forces since the start of the hostilities in February 2022. This figure equals 12% of the MHP employee strength, and continues to grow. In previous reports, the company estimated that the mobilisation cost it around 10% of all workers.
European subsidiary is doing well
In the third quarter of 2024, MHP estimated that poultry production of its Ukrainian assets dropped by 10% to 167,840 tonnes. Meanwhile, European production facilities, comprised of the Slovakian poultry company Perutnina Ptuj, boosted output by 11% to 38,520 tonnes.
MHP poultry exports from Ukraine dropped by 9% to 90,490 tonnes, the company estimated.
During the first 9 months of 2024, the volume of poultry meat production in Ukraine also decreased slightly to 533,740 tonnes against 546,370 tonnes in the previous year. Production climbed by 8% in the European segment, reaching 107,950 tonnes.
In the outlook for 2025, MHP describes the Ukrainian market situation as “uncertain and volatile, [as] war continues”. In addition, the company expects downward trend in prices internationally, with some stability in Ukraine.
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