20th Jun 2008 07:00
MHP S.A.
Unaudited Results for the First Quarter ended 31 March 2008
Friday 20 June 2008
MHP S.A. ("MHP" or the "Company"), one of the leading agro-industrial companies in Ukraine, focusing on the production of poultry and the cultivation of grain, today issues its maiden set of first quarter financial results since listing its shares on the Main Market of the London Stock Exchange in May 2008.
Financial highlights
Revenue increased 133% to US $176 million (Q1 2007: US $76 m.)
EBITDA increased 146% to US $ 59 million (Q1 2007: US $24 m.)
EBITDA margin increased to 34% (Q1 2007: 32%)
Net income increased 430% to US $24 m (Q1 2007: US $5 m)
Net income margin increased to 14% (Q1 2007: 6%)
Yuriy Kosyuk, Chief Executive Officer of MHP, said:
"I am pleased with our strong performance in the first quarter of 2008 and of the good progress that we have so far made in the second quarter. Our vertical integration strategy has ensured that costs are controlled and that has given us an excellent platform for maximising shareholder value for the remainder of the year and beyond. As well as focussing on vertical integration, our strategy of expanding production capacity, continuing to develop our distribution and customer base, and continued agro-industrial diversification ensures that we are well placed to continue to grow and develop the business. Based on current trends and performance we are confident that we will produce a strong set of full year results. "
Market update
Continued household consumption growth
Ukraine's per capita meat consumption remains one of the lowest in Europe
Households and small farms produce the majority of cattle and pork
Increased grain prices are leading to a reduction of cattle and pork livestock
Despite significant price growth, poultry meat continues to be the cheapest source of animal protein
Post period end
MHP successfully completed its IPO on the Main Market of the London Stock Exchange in May 2008 Following the exercise of the over-allotment option the global offering comprised 13,975,000 existing ordinary shares in the form of GDRs offered by the WTI Trading Limited (the Selling Shareholder), and 10,750,000 new ordinary shares in the form of GDRs offered by the Company, corresponding to a total offer size of US$371 million. The Offering represented approximately 22.32% per cent of the Company's issued ordinary share capital immediately after the exercise of the over-allotment option.
Trading performance
MHP's poultry division is the main contributor to the Company's total turnover comprising approximately 90% of total group revenues. Revenues from sales of poultry meat and related products increased by 143% to US$157million in Q1 2008 from US$65 million in Q1 2007. This increase in revenue was primarily attributable to production growth and increased sales prices. Sales volumes of chicken meat for the Q1 2008 were approximately 70% higher than in Q1 2007, primarily due to the increased capacity and production volumes coming on stream at Myronivka poultry farm. Operation profit (or segment result) in poultry segment increased by 174% from US$17 million in Q1 2007 to US$45 million in Q1 2008. Due to MHP's vertically integration the Company is able to keep production costs stable. In Q1 2008 the production cost of 1kg of poultry meat remained at the Q4 2007 level.
Revenues from the grain segment only materialise in the second half of the year due to the harvest cycle and so Q1 2008 only contains the revenue from sale of grain stocks which have already been revalued to market prices in 2007.
Revenue from other agricultural operations was US$17 million in Q1 2008 compared to US9 million in Q1 2007; this was increased by 84%. This increase was due to an increase in volume in sausage and smoked food production in the meat-processing plant in the Crimea. Operation profit (or segment result) from other agricultural operations was US$3 million compared to almost "zero" in Q1 2007. Sausage volume increased by 199% from 1,149 tonnes in Q1 2007 and 2,515 in Q2 2008.
Outlook
Trading in the current quarter is fully in line with our expectations. Going into the second quarter of 2008 and into the second half of the year we expect costs to remain under control due to our strategy of vertical integration and the price of poultry meat to continue to grow especially into the second half of the year where they are historically higher. We have seen unsatisfied consumer demand for poultry meat since February 2008. We also expect yield forecasts to be favourable across all crops in Ukraine for the remainder of 2008. Therefore, we are confident that we will achieve strong financial results for the full year.
Strategy
MHP's overall objective is to maintain and expand its position as one of the leading agroindustrial companies in Ukraine, while strengthening its position as the leading Ukrainian poultry production company and developing its grain cultivation operations. The Ukrainian agricultural sector has great growth potential, so MHP is looking to grow organically and it is also looking for value added acquisitions that will enhance shareholder value.
-Ends-
There will be a webcast conference call for analysts and investors today at 9am US Eastern time, 2pm UK time, 4pm Kiev time and 5pm Moscow time.
The conference will be accessible by phone by dialling in +44(0) 1452 587 434 and the conference ID is 52519555.
A live webcast of the presentation will be available at
https://webconnect.webex.com/webconnect/onstage/g.php?t=a&d=668873872
The password is 52519555
For further information please contact:
|
Financial Dynamics Ben Foster (London) Marc Cohen (London) Leonid Solovyev (Moscow) For investor relations enquiries |
London: +44 20 7831 3113 Moscow: +7 495 795 06 23 |
Notes to Editors:
Information on MHP
MHP is the leading producer of poultry products in Ukraine, with a 2007 market share for industrially produced chicken meat of approximately 36%, according to the State Committee on Statistics of Ukraine. Management expects the annual consumption levels for poultry in Ukraine to continue to grow in the short to medium term.
It has strong brands in the consumer markets in which it operates. Based on research conducted by GfK in February 2008, unprompted brand recognition of MHP's "Nasha Ryaba" brand was 92%, and prompted brand recognition was 100%. MHP also has several other national and regional brands for processed meat products. Management believes that its brands are perceived as representing the highest quality and greatest reliability thereby helping to support a strong pricing strategy. MHP intends to continue to focus its marketing efforts on enhancing the value of its brands, particularly "Nasha Ryaba".
MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and growout to processing, marketing, distribution and sales (including through MHP's franchise outlets). In 2007, MHP internally produced all of the hatching eggs for its chicken operations and all of its fodder. Based on its 2007 harvest, MHP expects to source internally approximately 60% of the corn used for fodder during 2007-2008 agricultural year. Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale.
MHP's current business developed from its grain trading activities in 1999 and 2000, when MHP was one of the leading grain traders in Ukraine. MHP currently grows corn, to support the vertical integration of its chicken production and, increasingly, other grains such as wheat and rape for sales to third parties. In 2007, MHP produced 476,000 tonnes of grain, compared to 291,000 tonnes in 2006. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.
In 2007, approximately 60%, and 30% respectively, of MHP's chicken and other meat products, were sold through branded franchise points of sale and to retail chains. In recent years, major supermarket chains have become an increasingly important distribution channel for MHP's food products in Ukraine, and MHP expects sales through these chains to increase further. MHP is the preferred supplier of chicken and various other meat products to a number of nationwide supermarket chains, including Furshet, Velyka Kyshenya and Metro, enabling MHP's product availability and penetration and therefore sales to increase as these retailers continue to expand throughout Ukraine.
To support its sales, MHP maintains a distribution network consisting of 11 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times. MHP's distribution and logistical centres also provide general support to MHP's franchisees and monitor franchisees' compliance with MHP's retail standards. Management believes that MHP's extensive distribution network helps it to enhance its overall customer service, and to secure its market positioning, by ensuring quality, reliability and timely product delivery and increases the overall availability of MHP's products.
MHP was the first to introduce a number of value-added products to the Ukrainian market, including its "Lehko!" line of convenience food products and meat snacks, as well as delicacies such as foie gras and its premium "Certified Angus" beef products. MHP has also been a leader in retailing and packaging innovation, such as its branded franchisee "Nasha Ryaba" network. Management believes that these consumer driven innovations address a shifting trend among consumer preferences in Ukraine toward healthier, higher quality and convenient food consumption.
MHP has been active in agricultural operations since 1998 and MHP's founder, Mr Kosyuk, was one of the first to capitalise on opportunities in the Ukrainian agricultural market following Ukraine's transition to a market economy. Most of MHP's senior management team comprised of experienced highly motivated professionals who have worked closely and effectively together, have been with MHP since 1998, when MHP started its grain trading activities and have over 100 years of combined agro-industry experience. Management believes that MHP's agro-industry expertise will help it to identify and capitalise on additional opportunities in the future.
Strategy
Key elements of MHP's strategy include:
Expanding chicken production capacity. In order to meet the expected growth in demand, MHP has begun and already completed the first phase of its expansion programme to substantially increase its annual poultry production capacity to 350,000 tonnes by 2010.
Expanding capacity for grain production. In light of world prices and demand, MHP intends to further expand its grain cultivation capacities by acquiring rights to additional high-yielding land plots throughout Ukraine, particularly in areas near its existing grain production facilities. In the short to medium term MHP intends to expand its grain growing capacities by approximately 20% to 25% annually through acquisitions of rights to additional land plots in Ukraine, concentrating on fertile soils in proximity to its existing facilities.
Increasing vertical integration. MHP perceives vertical integration as key to maintaining consistently high quality standards and reducing costs by realising economies of scale. MHP aims to become self-sufficient in corn requirements for its poultry production in the 2008-2009 agricultural years and onwards. In addition, MHP intends to continue to find complementary uses for the various by-products of its production processes.
Continue to develop MHP's distribution network and customer base. MHP plans to further develop its distribution network through opening of additional distribution centres in major Ukrainian cities to capture additional retail shelf space, improve geographic coverage and increase product availability and visibility. Management believes that MHP will benefit from its position as a significant supplier of chicken and other meat products to Ukraine's modern supermarket chains as these chains continue their rapid national expansion.
Continued agroindustrial diversification. MHP has continually sought to develop new business lines and intends to continue this focus on producing valueߛadded products, such as new convenience food products under its "Lehko!" brand, in order to further improve its sales margins and to strengthen its brands. As part of this diversification strategy, MHP is currently considering further development and expansion of its meat processing facilities and intends to maintain its beef and pork production facilities to position MHP to capitalise on future growth as these markets develop in Ukraine.
Information on Ukraine
Independent since 1991, Ukraine represents a large consumer market with 46 million people and a growing economy fuelled by the rising affluence of domestic consumers and external demand for Ukrainian products. In 2007, per capita GDP amounted to US$2,965 and the current pace of household income growth is expected to be sustained in 2008 owing to increasing salaries and enlarged social payments. The WTO approved Ukraine's "accession package" in February 2008 and Ukraine is expected to become a member of the WTO in May 2008.
Forward-Looking Statements
This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHP S.A. Such statements do not guarantee that these are actions to be taken by MHP S.A. in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. MHP S.A. does not intend to change these statements to reflect actual results.
MHP S.A.
AND ITS SUBSIDIARIES
Condensed Consolidated Interim Financial Statements
For the three months
ended 31 March 2008
MHP S.A. AND ITS SUBSIDIARIES
TABLE OF CONTENTS
Page
|
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2008 |
|
|
Condensed consolidated interim balance sheet |
2 |
|
Condensed consolidated interim income statement |
3 |
|
Condensed consolidated interim statement of changes in shareholders' equity |
4 |
|
Condensed consolidated interim statement of cash flows |
5-6 |
|
Notes to the condensed consolidated interim financial statement |
7-13 |
|
MHP S.A. AND ITS SUBSIDIARIES |
||||
|
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET |
||||
|
AS OF 31 MARCH 2008 (in Ukrainian Hryvnias and in thousands) |
||||
g26,872
|
Notes |
31 March 2008 |
31 December 2007 |
||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Property, plant and equipment, net |
3,156,135 |
3,155,028 |
||
|
Prepayments for property, plant and equipment |
28,059 |
29,699 |
||
|
Deferred tax assets |
13,658 |
13,658 |
||
|
Long-term agricultural VAT prepaid |
8,795 |
8,795 |
||
|
Non-current biological assets |
221,634 |
212,586 |
||
|
Other non-current assets |
43,052 |
40,468 |
||
|
Total non-current assets |
3,471,333 |
3,460,234 |
||
|
Current assets |
||||
|
Inventories |
240,517 |
215,358 |
||
|
Biological assets |
560,868 |
458,466 |
||
|
Agricultural produce |
96,625 |
159,984 |
||
|
Other current assets, net |
153,872 |
133,199 |
||
|
Taxes recoverable and prepaid, net |
241,350 |
229,272 |
||
|
Trade accounts receivable, net |
141,108 |
102,832 |
||
|
Cash and cash equivalents |
105,114 |
50,942 |
||
|
Total current assets |
1,539,454 |
1,350,053 |
||
|
Total assets |
5,010,787 |
4,810,287 |
||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
|
Equity attributable to equity holders of the Parent |
||||
|
Share capital |
1,269,121 |
1,269,121 |
||
|
Additional paid-in capital |
303,299 |
303,299 |
||
|
Revaluation reserve |
47,275 |
47,672 |
||
|
Retained earnings |
552,589 |
433,874 |
||
|
2,172,284 |
2,053,966 |
|||
|
Minority interest |
66,386 |
64,034 |
||
|
Total equity |
2,238,670 |
2,118,000 |
||
|
Non-current liabilities |
||||
|
Long-term bank borrowings |
341,818 |
332,686 |
||
|
Bonds issued |
1,232,118 |
1,230,198 |
||
|
Long-term finance lease and vendor financing obligations |
158,409 |
154,215 |
||
|
Other long-term payables |
11,664 |
10,129 |
||
|
Deferred tax liabilities |
32,851 |
32,851 |
||
|
Total non-current liabilities |
1,776,860 |
1,760,079 |
||
|
Current liabilities |
||||
|
Trade accounts payable |
92,975 |
126,837 |
||
|
Accounts payable for property, plant and equipment |
46,103 |
48,611 |
||
|
Other current liabilities |
87,781 |
91,331 |
||
|
Short-term bank borrowings and current portion of long-term bank Borrowings |
414,917 |
372,969 |
||
|
Current portion of bonds issued |
200,000 |
200,000 |
||
|
Interest accrued |
55,467 |
20,717 |
||
|
Current portion of finance lease obligations |
72,996 |
70,210 |
||
|
Deferred income |
25,018 |
1,533 |
||
|
Total current liabilities |
995,257 |
932,208 |
||
|
Total liabilities |
2,772,117 |
2,692,287 |
||
|
Contingencies and contractual commitments |
- |
- |
||
|
Total liabilities and shareholders' equity |
5,010,787 |
4,810,287 |
On behalf of the Board
|
___________________________ Yuriy Kosyuk/Chief Executive Officer |
_______________________________________ Viktoria Kapelyushnaya/Chief Financial Officer |
|
M MHP S.A. AND ITS SUBSIDIARIES |
||
|
CONDENSED CONSOLIDATED INCOME STATEMENT |
||
|
FOR THE THREE MONTHS ended 31 MARCH 2008 (in Ukrainian Hryvnias and in thousands) |
||
|
Three months ended 31 March |
||||
|
Notes |
2008 |
2007 |
||
|
Continuing operations |
||||
|
Revenue |
890,375 |
382,210 |
||
|
Net change in fair value of biological assets and agricultural produce |
270 |
467 |
||
|
Cost of sales |
(658,368) |
(288,912) |
||
|
Gross profit |
232,277 |
93,765 |
||
|
Selling, general and administrative expenses |
(78,973) |
(51,185) |
||
|
Government grants recognized as income |
88,079 |
43,152 |
||
|
Other operating income and expenses |
(6,388) |
(1,469) |
||
|
Operating profit before loss on impairment of property, plant and equipment |
234,995 |
84,263 |
||
|
Loss on impairment of property, plant and equipment |
- |
- |
||
|
Operating profit |
234,995 |
84,263 |
||
|
Finance costs, net |
(66,535) |
(55,915) |
||
|
Foreign exchange (losses)/gains, net |
(45,750) |
(8,205) |
||
|
Other income and expenses |
957 |
1,648 |
||
|
Other expenses, net |
(111,328) |
(62,472) |
||
|
Profit before tax |
123,667 |
21,791 |
||
|
Income tax expense |
(1,567) |
1,229 |
||
|
Profit for the year from continuing operations |
122,100 |
23,020 |
||
|
Discontinued operations |
||||
|
(Loss)/profit for the year from discontinued operations |
- |
(643) |
||
|
Net profit for the year |
122,100 |
22,377 |
||
|
Attributable to: |
||||
|
Equity holders of the Parent |
118,318 |
21,952 |
||
|
Minority interest |
3,782 |
425 |
||
|
Earnings per share |
||||
|
From continuing operations (UAH per share): |
||||
|
Basic |
1.18 |
0.23 |
||
|
Diluted |
1.18 |
0.23 |
||
|
From continuing and discontinued operations (UAH per share): |
0.22 |
|||
|
Basic |
1.18 |
0.22 |
||
|
Diluted |
1.18 |
|||
On behalf of the Board
|
_______________________________ Yuriy Kosyuk/Chief Executive Officer |
______________________________________ Viktoria Kapelyushnaya/Chief Financial Officer |
The notes on pages 7 to 13 form an integral part of these condensed consolidated financial statements.
|
MHP S.A. AND ITS SUBSIDIARIES |
||
|
CONDENSED CONSOLIDATED INTERIM STATEMENT OF Changes in Shareholders' Equity |
||
|
FOR THE THREE MONTHS ended 31 MARCH 2008 (in Ukrainian Hryvnias and in thousands) |
||
|
Attributable to Equity Holders of the Parent |
Minority interest |
Total equity |
|||||||||||
|
Share capital |
Additional paid-in capital |
Revaluation reserve |
Retained earnings |
Total |
|||||||||
|
1 January 2007 |
1,269,121 |
287,713 |
2,858 |
224,111 |
1,783,803 |
68,879 |
1,852,682 |
||||||
|
Net profit for the period |
- |
- |
- |
21,952 |
21,952 |
425 |
22,377 |
||||||
|
31 March 2007 |
1,269,121 |
287,713 |
2,858 |
246,063 |
1,805,755 |
69,304 |
1,875,059 |
||||||
|
1 January 2008 |
1,269,121 |
303,299 |
47,672 |
433,874 |
2,053,966 |
64,034 |
2,118,000 |
||||||
|
Net profit for the period |
- |
- |
- |
118,318 |
118,318 |
3,782 |
122,100 |
||||||
|
Depreciation charged to the revaluation of property, plant and equipment reserve |
- |
- |
(397) |
397 |
- |
- |
-- |
||||||
|
Acquisition and changes in non-controlling interest in subsidiaries |
- |
- |
- |
- |
- |
(1,430) |
(1,430) |
||||||
|
31 March 2008 |
1,269,121 |
303,299 |
47,275 |
552,589 |
2,172,284 |
66,386 |
2,238,670 |
||||||
On behalf of the Board
|
_______________________________ Yuriy Kosyuk/Chief Executive Officer |
_______________________________________ Viktoria Kapelyushnaya/Chief Financial Officer |
The notes on pages 7 to 13 form an integral part of these condensed consolidated financial statements.
|
M MHP S.A. AND ITS SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FFLOWS |
|||
|
FOR THE THREE MONTHS ENDED 31 MARCH 2008 |
|||
|
(in Ukrainian Hryvnias and in thousands) |
|
Three months ended 31 March |
|||
|
2008 |
2007 |
||
|
Operating activities |
|||
|
Profit before income tax |
123,667 |
21,148 |
|
|
Adjustments to reconcile profit to net cash provided by operations |
|||
|
Depreciation of property, plant and equipment |
64,186 |
37,278 |
|
|
Finance costs, net |
66,535 |
55,915 |
|
|
Effect of fair value adjustments |
(270) |
5,420 |
|
|
Non-operating foreign exchange loss/(gain), net |
45,750 |
8,205 |
|
|
Change in allowance for irrecoverable amounts and VAT and direct write-offs |
2,302 |
323 |
|
|
Impairment of property, plant and equipment |
|||
|
(Gain)/loss on disposal of property, plant and equipment |
1,800 |
(138) |
|
|
Other non-cash items |
(343) |
(2,219) |
|
|
Operating profit before working capital changes |
303,627 |
125,932 |
|
|
Increase in inventories |
(30,811) |
(15,710) |
|
|
Increase in biological assets |
(83,692) |
(21,741) |
|
|
Decrease in agricultural produce |
43,672 |
2,104 |
|
|
Decrease in natural gas stock |
- |
18,559 |
|
|
Increase in other current assets |
(16,467) |
(2,159) |
|
|
Increase in taxes recoverable and prepaid |
(17,412) |
(24,998) |
|
|
(Increase)/decrease in trade accounts receivable |
(39,073) |
24,963 |
|
|
Increase in other long-term payables |
2,747 |
31 |
|
|
(Decrease)/increase in trade accounts payable |
(33,519) |
1,871 |
|
|
(Decrease)/increase in other current liabilities |
(4,576) |
2,666 |
|
|
Increase in deferred income |
23,485 |
1,829 |
|
|
Cash generated by operations |
147,981 |
113,347 |
|
|
Finance costs paid |
(30,334) |
(20,853) |
|
|
Interest received |
1,324 |
2,671 |
|
|
Income tax paid |
(1,567) |
(1,118) |
|
|
Net cash generated by operating activities |
117,404 |
94,047 |
|
|
Investing activities |
|||
|
Purchases of property, plant and equipment |
(63,575) |
(343,052) |
|
|
Purchases of other non-current assets |
(2,584) |
- |
|
|
Proceeds from disposals of property, plant and equipment |
882 |
18,736 |
|
|
Purchases of non-current biological assets |
(3,548) |
(51,208) |
|
|
Short-term deposits |
(5,000) |
1,273 |
|
|
Withdrawals of short-term deposits |
8,819 |
- |
|
|
Loans provided to employees, net |
(1,315) |
(2,196) |
|
|
Loans provided to related parties, net |
(354) |
(1,850) |
|
|
Net cash used in investing activities |
(66,675) |
(378,297) |
|
|
M MHP S.A. AND ITS SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FFLOWS |
|||
|
FOR THE THREE MONTHS ENDED 31 MARCH 2008 |
|||
|
(in Ukrainian Hryvnias and in thousands) |
|||
|
Financing activities |
|||
|
Proceeds from loans received |
303,000 |
234,483 |
|
|
Repayment of bank loans |
(284,504) |
(116,140) |
|
|
Finance lease payments |
(15,053) |
(12,930) |
|
|
Net cash generated by financing activities |
3,443 |
105,413 |
|
|
Net increase /(decrease) in cash and cash equivalents |
54,172 |
(178,837) |
|
|
Cash and cash equivalents at beginning of the PERIOD |
50,942 |
224,297 |
|
|
Cash and cash equivalents at end of the PERIOD |
105,114 |
45,460 |
On behalf of the Board
|
_______________________________ Yuriy Kosyuk/Chief Executive Officer |
______________________________________ Viktoria Kapelyushnaya/Chief Financial Officer |
The notes on pages 7 to 13 form an integral part of these condensed consolidated financial statements.
|
Operating entity
|
Country of registration
|
Year established/ acquired
|
Principal
activity
|
Effective ownership interest*, %
|
||
|
31 March
2008
|
|
31 December 2007
|
||||
|
MHP S.A.
|
Luxembourg
|
2006
|
Holding company
|
Parent
|
|
Parent
|
|
|
|
|
|
|
|
|
|
RHL
|
Republic of Cyprus
|
2006
|
Sub-holding
company
|
100
|
|
100
|
|
|
|
|
|
|
|
|
|
MHP
|
Ukraine
|
1998
|
Management,
marketing and
sales
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Myronivsky Zavod po
Vygotovlennyu Krup i
Kombikormiv (“MZVKK”)
|
Ukraine
|
1998
|
Fodder and
sunflower
oil production
|
88.3
|
|
84.7
|
|
|
|
|
|
|
|
|
|
Peremoga Nova
(“Peremoga”)
|
Ukraine
|
1999
|
Chicken farm
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Druzhba Narodiv Nova
(“Druzhba Nova”)
|
Ukraine
|
2002
|
Chicken farm
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Oril-Leader (“Oril”)
|
Ukraine
|
2003
|
Chicken farm
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Tavriysky
Kombikormovy
Zavod (“TKZ”)
|
Ukraine
|
2004
|
Fodder production
|
99.9
|
|
99.9
|
|
|
|
|
|
|
|
|
|
Ptahofabryka Shahtarska
Nova (“Shahtarska”)
|
Ukraine
|
2003
|
Breeder farm
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Myronivska
Pticefabrica
(“Myronivska”)
|
Ukraine
|
2004
|
Chicken farm
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Starynska Ptahofabryka
(“Starynska”)
|
Ukraine
|
2003
|
Breeder farm
|
84.8
|
|
84.8
|
|
|
|
|
|
|
|
|
|
Ptahofabryka Snyatynska
Nova (“Snyatynska”)
|
Ukraine
|
2005
|
Geese breeder
farm
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Zernoproduct
|
Ukraine
|
2005
|
Fodder grain
cultivation
|
89.8
|
|
89.8
|
|
|
|
|
|
|
|
|
|
Katerynopilsky Elevator
|
Ukraine
|
2005
|
Fodder production
and grainstorage
|
99.8
|
|
99.8
|
|
|
|
|
|
|
|
|
|
Druzhba Narodiv
(“Druzhba”)
|
Ukraine
|
2006
|
Cattle breeding,
plant cultivation
|
95.3
|
|
95.3
|
|
|
|
|
|
|
|
|
|
Agrofirma Kyivska
(“Kyivska”)
|
Ukraine
|
2006
|
Cattle breeding
|
75.8
|
|
75.8
|
|
|
|
|
|
|
|
|
|
Crimean Fruit Company (“Crimean Fruit”)
|
Ukraine
|
2006
|
Fruits grain
cultivation
|
81.8
|
|
81.8
|
|
|
|
|
|
|
|
|
|
NPF Urozhay
(“Urozhay”)
|
Ukraine
|
2006
|
Fodder grain
cultivation
|
89.8
|
|
89.8
|
|
|
|
|
|
|
|
|
|
Agrofort (“AGF”)
|
Ukraine
|
2006
|
Fodder grain
cultivation
|
86.0
|
|
86.0
|
|
|
|
|
|
|
|
|
|
Zernoproduct-Lypivka
(“ZPL”)
|
Ukraine
|
2006
|
Fodder grain
cultivation
|
62.9
|
|
62.9
|
|
Name of the related party
|
Nature of relations with the Group
|
|
Mr. Yuriy Kosyuk
|
Chief Executive Officer of MHP S.A. and the
Principal Shareholder of the Group
|
|
WTI
|
Immediate parent, company owned by
Mr. Yuriy Kosyuk
|
|
Mrs. Olena Kosyuk
|
Wife of Mr. Yuriy Kosyuk
|
|
Allied Tech LLP (United Kingdom)
|
Companies owned or controlled by
Mr. Yuriy Kosyuk
|
|
Allied Tech LLC (USA)
|
|
|
Allied Tech Commerce LLP (United Kingdom)
|
|
|
Agrofirma Berezanska Ptahofabryka
|
|
|
ULL Beteiligungs und Management GmbH
|
|
|
Merkaba LLC
|
|
|
Spector
|
Company owned by Merkaba LLC
|
|
|
Revenue
|
|
Segment result
|
|
Gain / (loss) from recognition at fair value
|
||||||
|
|
Three months ended
|
|
Three months ended
|
|
Three months ended
|
||||||
|
|
31 March 2008
|
|
31 March 2007
|
|
31 March 2008
|
|
31 March 2007
|
|
31 March 2008
|
|
31 March 2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Poultry and related operations
|
792,998
|
|
326,646
|
|
229,402
|
|
83,726
|
|
14,100
|
|
5,675
|
|
Other agricultural operations
|
88,254
|
|
47,931
|
|
15,138
|
|
339
|
|
2,312
|
|
(5,106)
|
|
Grain growing
|
9,123
|
|
7,633
|
|
1,780
|
|
198
|
|
(16,142)
|
|
(102)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated expenses
|
|
|
|
|
(11,325)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total of continues operations
|
890,375
|
|
382,210
|
|
234,995
|
|
84,263
|
|
270
|
|
467
|
Related Shares:
Mhp Reg S