Agriculture
February 01, 2011
MHP S.A.: Full Steam Ahead - MHP’s reported FY10 operational results highlighted the company’s fullcapacity operations and came in line with our forecasts. Sales of poultry rose 27% YoY to USD 570mn, sales of sunflower oil jumped 78% YoY to USD 180mn, and sales of processed meat grew by 33% YoY to USD 73mn. The majority of the sales growth took place on the back of higher production volumes, with the remainder occurring on price growth. We maintain our positive stance on MHP, and reiterate our BUY recommendation on the stock with a target price of USD 24.0 per share.
