MHP increases EBITDA 45% yoy in 1Q14, posts net loss on UAH devaluation

MHP increases EBITDA 45% yoy in 1Q14, posts net loss on UAH devaluation



14 травня 2014 года
Конкорд Капитал

Мироновский хлебопродукт (МХП) (MHPC)


Europe’s leading poultry producer MHP (MHPC LI) increased its net revenue 2% yoy in 1Q14 to USD 309 mln, according to the company’s report of May 14. MHP’s EBITDA grew 45% yoy to USD 106 mln, and EBITDA margin widened 10pp yoy to 34%. The company endured foreign currency loss of USD 366 mln due to hryvna devaluation, which brought the bottom line to a net loss of USD 316 mln. MHP’s net debt stood almost unchanged YTD at USD 1.1 bln, while Net Debt to LTM EBITDA ratio lowered to 2.62x as of end-1Q14, compared to 2.89x as of end-2013.

In the same report, MHP announced that its board had approved dividends at the highest authorized pay-out level, 50% of net income in 2013, or USD 80 mln. This implies a USD 0.757 DPS and 5.2% dividend yield, based on the May 13 closing price.

Roman Topolyuk: Improvement in 1Q14 EBITDA is a result of lower poultry costs, driven by cheap prices for grain from the recent harvest, which is going to have a positive impact on the company’s profitability in the next two quarters as well. A strong outlook for 2014 is supported by the planned ramp up of the Vinnitsa complex, increasing poultry sales 23% yoy in 2014 to 550 kt. Under such circumstances, we expect that MHP’s net debt to EBITDA will be maintained below the covenant of 3x.

The bad news is that the one-off loss from 1Q14 isn’t likely to be counterbalanced by profits in next quarters, unless hryvna appreciates significantly, which brings a dim outlook for dividends in 2015.

Источник: Конкорд Капитал

Аналитик: Роман Тополюк
Другие обзоры по компаниям и отраслям от Конкорд Капитал


Компании

все компании