Ukraine’s largest chicken producer sees its profits decrease by 67%, and losses from the war reach $10M.

MHP Agroholding, in the first quarter of the year, earned $16M in net profit, which is less than a third of the result from the first quarter of 2023 ($49M), according to a report from the London Stock Exchange. It is noted that the decrease is due to a loss from an exchange rate difference of $40M compared to a profit of $4M for the same period last year.

The report indicates that the company’s turnover in January-March this year decreased by 4% to $719M, in particular exports, by 2.6%, to $453M (63% of total turnover). It is also highlighted that the first quarter of the war-related expenses amounted to $10M compared to $6M in the first quarter of last year.

As a result of shelling on May 17 in the Odesa region, a warehouse rented by the company for storing frozen chicken products was wholly destroyed, resulting in losses of $8M. The company has also purchased alternative power sources to maintain uninterrupted production in the event of power outages.