Differing performance in Ukrainian poultry sector
The largest poultry producer in the Ukraine, MHP Holding, and one of the largest producers of eggs in the country, Ovostar Union, have recently reported their operational data for the first quarter of 2014. The egg producer reached a good rise in profits, while MHP reported large losses.
During the first quarter of the year, the revenue of Ovostar Union increased by 11% year-on-year to US$19.5 million. Gross profit for the period increased by 38% to US$9.8 million from US$7.1 million, while gross margin reached 50% due to lower cost of feed in 1Q 2014 than in the same period of the previous year.
The CEO of Ovostar Union Borys Bielikov commented: "The Group's management is overall content with financial results achieved by Ovostar Union in the first quarter of this year despite the complicated political and economic situation."
At the same time the management of MHP, reported losses due to problems within the Ukrainian economy. In particular the fall of hryvnia has resulted that the company during the first quarter of 2014 received losses of US$366 million – which is, for instance, two times higher profit the company received in the whole 2013.
The management of MHP commented that despite economic problems of the country, the bad performance indicators of the company was connected to the price which fell by 4% in the first quarter of 2014, compared to the last months of 2013.
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