Agriculture
May 12, 2011
MHP S.A.: EBITDA Up, Net Income Down - MHP today released its financial results for 1Q11. Revenue rose by 23% YoY to USD 247mn and EBITDA increased by 15% YoY to USD 57mn. The EBITDA margin slipped 1.7p.p. to 22.9%, from 24.6% a year before. Operating profit advanced 15% YoY to USD 42mn. Simultaneously, pretax profit plunged 40% YoY due to a USD 6mn loss from depreciation of the US Dollar against the Euro in 1Q11. Net income fell 45% YoY to USD 20mn. We retain our BUY recommendation on the MHPC stock with a target price of USD 24.0 per share.
