It explained: “To increase MHP’s financial strength, we have tasked a newly-created business transformation group with ambitious goals to improve the efficiency of all business processes. This includes transforming customer service, the digitalisation of processes and the creation of a new franchising business model. This team is in the early stages of investigating potential new products and processes which, over time, will create thoughtful, balanced solutions for increased efficiency.”
Other goals for the business included investment in its commercial kitchen concept and to maintain progress towards a production target of 850-880,000 tonnes of poultry meat by 2024, as well as growing export and agricultural divisions.
MHP also recently launched an antibiotic-free range of poultry products in Ukraine.
In its results for the 12 months to 31 December 2019, MHP recorded a year-on-year revenue growth of 32%, up to $2,053m from $1,552m in 2018. This was attributed to a growth in sales of poultry meat, vegetable oils and convenience food as well as the completed acquisition of Balkans operation Perutnina Ptuj.
Its export revenues were up 28% year-on-year and made up 58% of total revenue during 2019. Net profit for the year was $215m, up from $128m in the previous year.
In the results statement, chief executive officer Yuriy Kosyuk said that the recent changes to the global protein market doesn’t change MHP’s goals. “At the time of writing we find ourselves in highly uncertain times due to the Covid-19 pandemic. I want to reassure our people that their health and safety is paramount and that we will continue to provide necessary support and assistance. I remain confident that MHP is uniquely positioned and will not only adapt to successfully manage the short-term challenges, but will evolve to optimally position itself to capitalise on the medium- and long-term opportunities in our industries.
“2019 was a challenging year for MHP, but it was also a pivotal year in our history. We integrated Perutnina Ptuj into our operations and, perhaps more importantly, we instigated change; we are in the process of transforming the company’s business model so that we as a group are more efficient and more customer oriented. This transformation will embrace new technology and innovation and will rely on each and every one of our talented and committed employees; I am confident that they can rise to the challenge and deliver for our stakeholders.”