By Michael Susin
MHP SE said Friday that it is experiencing a severe reduction in revenue due to the Russia-Ukraine crisis and that it won't complete its 2021 audit on time due to the hostilities.
The company, which is the parent of an international agro-industrial group with headquarters in Ukraine, said it expects revenue and associated losses to prevail during the conflict and some months after hostilities cease.
The company--which is responsible for around half of all chicken produced for the Ukrainian domestic market with production of around 300,000 metric tons of chicken meat annually--said it continues to supply the local retail chains and institutions. Some meat is being distributed in most affected areas on a free-of-charge basis, it added.
However, export sales have ceased and export delivery with trucks is practically impossible, while it produces enough to satisfy domestic consumption, with excess stock being frozen.
"Currently, delivery across Ukraine is highly problematic due to lack of drivers and fuel and practically impossible to the regions which are under heavy fire," it said.
The company said its European operations at Perutnina Ptuj in Slovenia haven't been affected.
Write to Michael Susin at Click Here To Get Funded!