MHP - 2Q19 IFRS Results: EBITDA per kg Down 19% y-o-y in 2Q19
MHP released its 2Q19 IFRS results on Friday. Revenues climbed 31% y-o-y to $510 mln in 2Q19, mainly thanks to the acquisition of Perutnina Ptuj, with the share of export sales coming in at 56%. The profitability of the poultry segment was weakened by increased production costs, so cash EBITDA per kilogram of chicken meat decreased by 19% y-o-y to $0.46 in 2Q19. Even after incorporating the acquisition of Perutnina Ptuj into our model, we have downgraded our 2019 and 2020 EBITDA forecasts by 4% and 11% due to our weaker expectations for the poultry segment. We cut our target price from $15.00 to $10.00 per share but keep our HOLD recommendation.MHP is a holding company. Through its subsidiaries, Co. is engaged in poultry and related operations, grain growing, as well as other agricultural operations. Co.'s poultry and related operations integrate all functions related to the production of chicken, including hatching, fodder manufacturing, raising chickens to marketable age, processing and marketing of branded chilled products and include the production and sale of chicken products, sunflower oil, mixed fodder and convenience food products. Grain growing produces and sells grains. Other agricultural operations comprise the production and sale of cooked meat, sausages, beef, milk, goose meat, foie gras, fruit and feed grains.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.