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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Good afternoon, everyone, and welcome to the MHP Fourth Quarter and Full Year Results 2021. I will now hand over to Anastasiya to make the introduction.
Dear shareholders and stakeholders, good afternoon, and good morning. Thank you for joining us today for MHP's conference call. This is Anastasiya Sobotyuk, Director of Investor Relations and International Communications. On the call today, together with Viktoria Kapelyushnaya, CFO of MHP, who will discuss MHP's financial and operational results for 2021 in general and by segment as well as current operation environment and expectations for 2022, taking into account that Ukraine is now at war with Russia.
Today's call is based on information released earlier today publicly. However, during our call, we will discuss our projections and plans based on our assumptions, domestic and international trends. Please take it into consideration. After the presentation, we will be glad to answer all your questions. So let's start, regarding on Slide #4 of the presentation.
So we have a different start of the presentation of the results today because Ukraine is at war. The military invasion of Ukraine by Russia forces began at 4:00 a.m. on 24th of February, marking the beginning our full-scale war across Ukraine. Since the beginning of the war, the company has been facing significant logistical and infrastructure challenges in Ukraine. While MHP has been able to continue commercial sales in Ukraine since the war began, export sales ceased, as a result of ports being closed, while export delivery by trucks remain practically impossible.
During March and April, MHP team has been developing alternative logistic growth for exports enabling yet limited volumes to be delivered outside of Ukraine. Because of the restricted sales both inside and outside the country, MHP has to decrease poultry capacity utilization to 80% to 85%. Due to food storage shelling by the Russian forces in March, MHP lost over 3,000 tonnes of poultry products, which is over $6 million in U.S. dollar terms. The facility was Ukraine's largest warehouse for storage of frozen products and was predominantly used by large local retail chains.
As hostilities in the Damask region intensified, Inapal MHP decided to temporarily suspend operations of Ukrainian people and of course, we took care -- proper care of our people. We managed to relocate them. Despite different challenges, MHP is on the way to complete [ mid-year ] sowing campaign. MHP has a clear responsibility in the food security of Ukraine. MHP has continued its preparation despite significant difficulties and disruptions. MHP fully understands how important poultry production is for Ukraine and its population at this difficult time.
All MHP employees are fully committed to every effort to ensure that Ukrainians have access to food now and in the future. Since the war began, the company has provided around 11,000 tonnes of free-of-charge poultry products, other food, equipment cards, diesels and different materials as part of its humanitarian mission. I think we are ready to come back to the company's results now, and we go together on Slide #6 of the presentation.
We start with operational update. Despite all challenges at the beginning of 2021, [indiscernible] has announced a temporary [indiscernible] ban because of that, the group delivered an exceptional performance in 2021, driven by a combination of excellent weather conditions, which resulted in a record harvest and strong prices for grain and poultry products. Poultry production increased by 3% to around 764,000 tonnes of chicken meat, while sales remained stable. 2021 harvest was one of the MHP's record harvest with over 2.6 million tonnes of crops. And these crops are being used mainly internally for order production. And of course, traditionally for exports.
Financial results for the year look as follows: revenue increased by 24% to over USD 2.3 billion, with exports revenue representing 53% of total revenue, mainly driven by an increase in export of poultry meat. Adjusted EBITDA increased by 91% and reached USD 648 million, driven mainly by actual results in grain growing operations. As a result of substantial EBITDA growth, net debt to LTM EBITDA ratio constituted below 2x.
Let's go on Slide #7 of the presentation. Key financials for the fourth quarter and full year here. MHP's revenue and asset revenue have been gradually growing quarter-by-quarter, as you can see on the chart on the left, driven by positive results across all business segments. Revenue in the fourth quarter of 2021 increased by 46% year-on-year to $725 million in the quarter, while export revenue increased by 34% to around $422 million, mainly driven by strong cash flow of poultry and grains. Annual results in net profit was USD 353 million, which was almost 5x more than net profit in 2020.
Let's go on to the next slide, Slide #8 of the presentation, which shows us the financial results by segment. The vast majority of the revenue in 2021 traditionally was generated by poultry and related operations segment, 68%, and by Perutnina Ptuj, by the European operation segment, which is 17%. At the same time, grain growing and poultry operations contributed the most to the company's EBITDA. That was 52% and 41%, respectively.
The biggest contributor to the export revenue was from poultry operations, and that constituted almost USD 1 billion.
Let's have a closer look at each business segment and results on our next slide. And here, I pass my vote to Viktoria.
Thank you, Anastasiya. Good afternoon, everyone. Let's have a look at MHP, Ukraine Poultry segment performance, Slide #9. It is important to highlight that during 2021, all MHP poultry production facility in Ukraine have been operated at full capacity despite different challenges at the beginning of the year at an influential break on coronavirus. As you can see, MHP delivered exceptional strong results last year compared to the previous year, driven mainly by strong poultry produce, both in Ukraine and international. Total revenue in poultry segment increased by 24% year-on-year, driven mostly by an increase in poultry prices. Exports driven by price growth for chicken breasts and fillet in EU and [indiscernible] and small chicken in MENA region.
In Ukraine [indiscernible] compensating a substantial increase in poultry production cost and reaching the same level of profitability as in pre-COVID-19 time. Poultry production costs last year increased by 28% in U.S. dollar, driven by significant growth of grain, [ poultry and rice ], quarter-on-quarter poultry cost also increased, mainly reflected higher cost of sunflower. So [indiscernible] as well as increase in price for energy, especially mainly for gas and packaging materials.
Let's move to the next slide, #10, our Grain Growing segment has performance exceptional and historical strong results. EBITDA last year amounts almost $400 million compared to the same -- compared to 150 million last year, driven mainly by imperative strong harvest of winter crops, over 20% high year-on-year, and grain crops over 60% year-on-year as well as very strong international grain prices around 40% increase year-on-year. EBITDA per year to last year reached amount of $1,000, which is a record result in MHP's history.
Let's proceed on to the Slide #11. Meat Processing business following a strategy of culinary and transformation of the company has a positive trend in volume and price, mainly due to increased sales of more expensive SKU and expectation of cooperation with large horeca channels with more marginal product sales increase. Adjusted EBITDA of this segment decreased driven mainly by increase in raw material price, which has not yet been offset by increase in price of meat processing product.
Let's go to the Slide #12. Several words about Perutnina Ptuj. Growth in capacity in Serbia and Croatia result in 16% increase in poultry sales year-on-year, which resulted in EBITDA growth of 20% year-on-year, more with the significant EBITDA growth is attributable to higher operational efficiencies, which allowed to offset growing cost of raw material, positive impact from appreciation of euro against dollar, as well as one-off effects related to insurance and some changes in accounting treatment, but very insignificant amount, around $1.5 million year-on-year.
Let's go to Slide 13. A few you words about our cash flow and liquidity position. Cash from operations increased mainly in line with the increase of EBITDA and additional impact was due to the change in fair biological assets and agricultural produce, which represents noncash adjustment. [indiscernible] Due to funds in working capital during 2021 was mostly related to high investment in stocks of corn designed for internal use only and following the high yield last year and significantly high our investment in sunflower seed as well as increasing price on sunflower seed. Sunflower seed and [indiscernible] total capex last year amounted to $140 million mainly related to requirements in maintenance, established state-of-the-art culinary centers in Kiev, improvement and expansion in Perutnina Ptuj production facility and modernization and cost optimization projects as well as development of new culinarian products.
Regarding the debt, due to significant improvement in EBITDA with substantial improved leverage net debt-to-EBITDA and ratio was 1.9 versus [indiscernible]. Advance of the period, MHP total debt was $1.5 billion and net debt about $1.2 billion, 99% of total our debt was long-term debt, about 96% of [indiscernible]. Our average weight interest rate was 6.7%. In terms of liquidity at the end of December, we had around $275 million in cash. Our currency balance remains strongly positive and our dollar determinated export revenue fully covered all our debt service and other payments in foreign currency.
And now, I give the floor to on to [indiscernible] the update and outlook.
Thank you very much, Victoria. So we all see that the company's performance in 2021 was very strong, but times are different now. And of course, we remain strong and united as a whole team. We continue to operate with maximum devotion and responsibility because we all know that Ukraine food security depends on our work, making this important task our #1 priority. And which this business model practically gives us an additional value or an advantage. In plain terms, we convert grain into chicken, and logistically, that simplifies the work of the business. So we are now working on active logistics with the targets to increase volumes of poultry meat. I have to say that it is still very challenging, frankly.
MHP hopes to harvest grain crops from around 90%, 95% of our land, whereas we are currently, as I mentioned previously, having spring sowing campaign, it is in progress. MHP is expecting shortly to recommend production and export of vegetable oil, but there remains extreme uncertainty about how the war in Ukraine will progress and the effects this could have on MHP's operations over the coming months. And as a result, and in spite of the group's success in maintaining operations thus far, at this stage, as we all understand, it is not possible to provide guidance as to how the year may turn out.
I think I can finish our presentation here, and I would like to thank you very much. And of course, we are ready to take your questions. And operator, team?
[Operator Instructions] So our first question comes from Daniel Zaczkiewicz from Barclays.
So with the regard to the logistical challenges that you're facing exporting because of the blockade at Black Sea. So you've been trying to export more by road. What are the main challenges that you face increasing exports by road and rail. Is it mainly availability of drivers in trucks? Or are there other complications?
Separately, could I ask about how you've been managing your cash flow. Obviously, there was the coupon grace period extensions but you're facing -- still facing working capital challenges in terms of customer payment -- and also what approach have you been taking towards CapEx?
Thank you for your question. Yes, I will start with -- yes, about our logistic problems, you understand that we export, as Anastasiya mentioned today, we export meat and sunflower, try to export sunflower in [indiscernible] oil. And in previous last year, for example, only 30% of total our exports of meat was export to EU. The 70% is the export through sea ports, yes? And we have a little bit of problem. First of all, the cost quantities of trucks which they are ready to go to, yes, quantity of trucks, yes, it is a big problem, yes? Because, for example, last year, part it will be around 300 trucks. Today, we need to have completely other figures. And what we have today is a huge view on [ parts ], on border, because just -- yes, because the number just 1 month ago, trucks from our factory go to Europe and come back to factory, it was around 1 week. Today, more than 2 weeks. Yes, this is a problem. No, maybe this is the biggest problem, yes the trucks, quantity of trucks. And that is the periods of time which just for 1 way.
Regarding your question about working capital, our investment, you completely right. Because today -- and it is not just, because today, for example, our delivery and time for delivering from our factory to [indiscernible] , it was this minimum 50 days. Previously, it was approximately 20 days, delivering to our clients.
And regarding Kiev, and for example -- and which is why we need to invest more money in working capital, in trade receivables and in stocks. And then -- and generally, we have now -- we have in Ukraine, in [indiscernible] Ukraine and outside Ukraine, we have mostly -- not inside, mostly on the way. We have huge talk of chicken. It is, today, the figure is around 50,000, significantly higher than previous years.
And regarding products, we understand very challenging situation. And we provide huge works, and we start to stop all our projects, most of our projects. But some of them, it was on final stages, and that is why -- and we understand, for us, it's very important to finalize this project because due to the project, we can produce a value-added product for export markets. And for us, especially in current situation, it's very useful for us to produce product with higher price and with higher profitability.
And if you think about total CapEx, what we see for this year, because we invest in our CapEx during the only during the 2 months. At the beginning of the year, it was approximately $20 million, $25 million as we understand, that our CapEx is minimum around $80 million approximately.
And what is your -- the last question about what?
The call had dropped briefly. I'm just reopening the line, just one moment. Daniel, your line is opening again, if you want any follow-up questions.
That's good. Thank you. You answered my questions.
So our next question comes from Abbas Ali from JPMorgan Asset Management.
A couple of things from my side. One, in terms of operational sort of risks that you're facing, obviously, very difficult to forecast how things will pan out. But are there particular facilities or assets that you're seeing are at higher risk or -- or when I say higher risk, if they were to come under pressure, that you would need additional funding? Or do you feel that your -- the business is reasonably far away from where the fighting is happening. So if you could share some more color around that. And second, if you could give me a bit more clarity on the dividend. So I'm just reading some headlines about the dividend not being paid out. But is that relating to last year's dividend that was supposed to be paid here or no decision on dividends being made for 2022?
Thank you for your questions. The first question regarding dividend, with the result 2021. Due to the -- but we had excellent results, but in current situation, we cannot pay and even we cannot imagine how to pay dividend in current situation because we understand for the most important to save our liquidity. And the main, our target to continue to work, and we need to -- some liquidity part is very important.
The most important thing is to have the liquidity to protect company and to -- operational now, to protect operational company, because you understand the current situation, it's very difficult to predict what we can have tomorrow, what challenges and what catastrophe potential we can have tomorrow.
Regarding the [indiscernible] regarding the -- our assets, fortunately for us, most of our assets are located in the Central of Ukraine in the Central Ukraine. On the east of Ukraine, and we closed our operation, meat-processing company Ukrainian Bacon. This company is located in [indiscernible] region. One month ago, we closed this capacity, unfortunately, and we provide evacuation of our employees maybe approximately about 40% of total because it is a Ukrainian Bacon location, it's very close to [indiscernible] 30 kilometers, and it was not possible to work in that condition there.
So we have another question from Rahul Chopra at Caspian Capital.
This is Irene from Caspian. Just wanted to ask you about, again, kind of your liquidity position and how -- I mean, it sounds like you're paying all the workers and whether or not you project that you're going to have a liquidity need in the next 6 to 12 months.
You're completely right maybe, because for us, is the most important thing to protect and our employees and to reveal responsibility because in Ukraine, we have 28,000 employees. And we always -- during all our history, we always tell that employees, our workers, is the most important stakeholder for company because our people make this business, and due to our people, MHP was and even current situation, is so successful because it is the biggest of our value. And they fit our priority. You're completely right.
Current, our position, liquidity position is around 100 -- right now it's around 160 -- $60 million, $50 million, but at the same time, if you look at our cash flow in April, in May, in April, in June, we have the negative cash flow because we have the so big investment in working capital, one of them is sowing campaign. The second, as I told, changes our condition with of this export is completely, which is why we need to invest so big money in stocks and trade receivables.
We have a text question from [ Matias Fradet ] at Caverion Capital. [ Matias ] asks, could you please provide a breakdown of exports by mode of transportation versus road versus rail for 2021 or prior to the start of the war.
I would like to see a bit about export breakdown, yes?
Yes.
Yes. In 2021, yes, -- in 2021, we had cost approximately 400,000 tonnes, 120 is the European by trucks. Rest of them, it is export to the MENA region, Africa country by ship through ports. 2022, you understand that we all, all our from Ukraine, all our export goes by truck. And some of them directly to Europe. And are these report [indiscernible] today is the port, but we will see. Are you clear? Are you clear?
Can we go to the next question, please?
Yes. So the next question comes from we have a follow-up question from Abbas Ali at JPMorgan Asset Management.
Yes. Just on the Grain segment EBITDA for last year, can you just explain the growth there? I mean it's much higher than revenue. What am I missing?
No, no it's as huge as it is, and in our case because the most part -- yes, I will explain, because the most part of the grain we consume internally for poultry. And accordingly, [indiscernible] all our grain, which we keep in stock, we need to recognize on our balance sheet at market price. You understand that? Because most parts of our grain, we consume internally, but at the same time, we include in cost of production of chicken, we took grain at market price, because for us, it's very important. Of course, it is very important to understand what is our market profitability in grain segment, farmer business and in poultry segments.
Okay. So the EBITDA has basically gone up because the value of the grain has gone up. It's not realized cash just yet?
Yes, some of them, not realized, some of them are realized because our chicken is this grain during the fourth quarter and some of the chicken results here.
And so the 300 something -- I don't have the number, sorry, in front of me $338 million or whatever the EBITDA from the grain segment. How much of that is because of revaluation?
It seems to me around -- if you look around 150, I don't remember. Just 1 minute. But what I would like to emphasize that is the real grain that we keep in our storage and consume during those quarter and the second quarter consume in our chicken, yes. We don't have -- it is completely different situation for other, for example, agricultural company in Ukraine because it's a big issue to sell this grain at market price. But we consume internally, yes, for chicken production.
No, I understand. And when you consume internally, I guess, your cost of production for the chicken will go up. So that's where the adjustment will happen?
Yes.
Okay. So $150 million, is that --
Yes. Yes. Around it. Yes, yes.
Our next question comes from Catherine Joint from Columbia Threadneedle.
In terms of just a follow-up, that gave the breakdown for the export by truck and ship. This year so far, have you been able to continue any exports from Ukraine beyond that at the beginning of January, February, post the war? And then in terms of your plans for your logistics to replace. Obviously, ports are very important and there's only so much you can ramp up by trucks. Realistically, do you think that this could be a big difference here to really turn the story around? Or is it just too early to say.
I'm so sorry, but we definitely didn't catch your second question because of the connection. Thank you very much. If you can repeat it, that will be great.
Of course, yes. So this is just in terms of the logistics plans that you have to have other options and what sort of progress is that? And how much can you really expect that to offset the loss by the ports basically?
Okay. Thank you for your question. Regarding our chicken, chicken export, we -- but we cannot guarantee because you understand is there always is a problem. In current situation, we don't know exactly what problems and where next bomb was happened in the Ukraine.
Of course, yes.
And completely. But our expectation that we connect every month, around 20 to 25, maybe sold 1,000 tonnes of chicken, or we will try to do it.
Okay. Great. And have you been able to continue to do any exports since the start of the war?
Yes. So we start to export. After start of the war by the beginning Of April. Maybe by the last date of March. During the March, maybe the last days of the March.
Our next question comes from Devin Cameron from Aviva Investors.
I was just looking for an update on the current planting season, I guess, for spring/summer this year. Have you been able to or are you going to be able to plant as much as previous years, or will that go down?
Thank you for questions. This is a question about our lands we should cultivate, yes? This year, very close last year, but less than 10,000 hectares, 350,000 approximately. In some region, we did not provide. In some territory, we did not provide sowing campaign. Up until today, looks like every time, not so bad during the good. But anyway, to say exactly, because we have the very big history here in our -- and because we keep the farming business, and sometimes even in May, everything is good. But unfortunately, the catastrophe happened in July, in August. Yes. Until today, everything looks like not bad.
Our next question comes from Antonio Gomez at Ninety One.
The question I had was, your working capital ended 2021 at a very high level, I think, partly driven by very high inventories versus historically and then agricultural projects as well. I was wondering, in the first quarter, you had really good volumes, driven by January and February. I was wondering how much of that agricultural produce and inventory you've actually sold on and actually had cash delivered on, and how much is still tied up in working capital?
Yes, why we have so high investment in working capital 2021, I will try to explain because it's very important. At the beginning of the year, in 2021, we have so low inventories at agriculture produce in stock. It's the lowest in our history because maybe -- because our -- just I would like to mention that our leverage year ago, years ago, it was 3.7, yes? And that is why we did not provide investment in working capital because it is still a difficult time for MHP, it was. And this is why, yes, for this year, and that is why if you look at for full year results, you can see that huge investment in working capital because at the beginning, we have almost 20, yes, is the main issue why we have so big investment in working capital? And the second to your question about the Q1?
So going into Q1, how much has that declined?
Decline in investment in working capital, yes, decline in investment in working capital regarding our poultry segment. But regarding our grain segment, we had investment because we would -- we need to buy and we buy it in July [indiscernible].
Sure. Yes. And but the agricultural produce, did you sell it, that $511 million?
No, no, no. Maybe in January, in February yes, we sold. But mostly, this stock, we will use during the 9 months, yes, because mostly for using in for food -- in food.
Okay. And when the next season comes along, will you have capacity to take it in on top of that agricultural projects that you already have in storage?
Sorry. Yes, please repeat.
So my question is, will you have the storage when the next crop comes along? Do you have capacity to store it?
Yes, yes, we have enough storage. And we try it and we slightly change our crop rotation this year. We increased land on the sowing and decreased slightly on the corn because it's completely different yield per hectare and completely different need storage for that. Yes, we have enough storage.
And in terms of -- sorry, one final question. Just in terms of the export capacity, you mentioned that you've had a lot of supply chain issues. I was just wondering versus prewar -- or what percentage of normalization do you think you've reached? And how much do you need to execute on your plan in the following crop to generate that liquidity to repay your interest?
Your question about the grain, yes?
Yes. So how much have you been able to export?
Regarding grain, for us, it's very important to provide export rates, and maybe 1,000 of core because there our yield -- maybe some part in 100,000 of wheat and [indiscernible] we will use internally.
Okay. We have another text question. This is from Natalia Shpygotska from Dragon Capital. Natalia asks 3 questions. First, could you please comment on the company's current liquidity and payment discipline among food retail chains in Ukraine? Secondly, also, could you please comment on poultry sales dynamics so far in 2Q '22? And thirdly, could you please elaborate a bit on the current poultry production costs?
Natalia, thank you very much for your very detailed questions. Thank you. Regarding payment discipline, I assume that you understand that all retail in Ukraine now have a lot of problems, a lot of problems. And we have some problem with discipline. And unfortunately, even we have not just a problem with modern retail, and we would view our very good and maybe the most strongest franchising, yes, because our partners worked in [indiscernible], even in [indiscernible] and to do this -- everything is good [indiscernible] with the people, but unfortunately, people lost business completely Yes, we understand that near-term discipline program, but we try to reach and to reach agreement and to solve this program yes.
Regarding our sales and our maybe price in domestic market regarding chicken meat, yes, if you compare the volume of which we sold, for example, April compared to the last year -- compared to the same period of last year, our sales volume decreased by approximately 10%, 12%. At the same time, price in April, in May, completely the same than we have in January due to the -- but usually, it's the main -- it's the high season, and usually always the main price is higher than -- because it's the barbecue season, it's higher. The high season is higher, but not for this year. Our price completely the same than in January.
And the last question about what about cost of production, no? Yes, cost of production. Now, cost of production now is, compared to the last year, if you compare it to the high because you understand the corn is the higher, because we include corn in cost of production at market prices, which we have in Ukraine during the harvesting time. And this price was higher than previous year is the main yes. Cost of production high year-to-year approximately by [indiscernible] 15%, 20%.
Thank you. So the next question comes from Stefan Jaslowitzer from BNP.
Actually, most of my questions have been answered. Just one quick one on -- a follow-up on the export side. You mentioned that, historically, only 20% of the exports go towards the EU. Can that number be increased? Or is that limited because of quotas?
Yes, you're completely right. It's limited by quarters. Yes, we -- now, we are selling out of the quarter, but very significant because in -- out of the quarter, got some duty more than 1-0. Yes, it's huge figures.
So we have a question from Dmitry Ivanov of Jefferies.
Can you hear me now?
Yes, we can hear you, yes.
Thank you for keeping us updated in this uncertain times. I have like 2 questions. First, on your Slovenia operations in [indiscernible]. I know that like it's difficult for you just to provide any kind of initial guidance for Ukrainian business. But can you give us more color on your operations in Slovenia in terms of the expected volumes, sales volumes and cash costs expected from the situation. I know that from Q1 2022 results kind of -- we saw some positive trends in prices for poultry. But can you give us more color in terms of the cash costs to produce poultry in Slovenia? Is this operation self-efficient? How do you procure order for the production? Can the separation be sufficient and et cetera.
So any kind of color in terms of the Slovenian operations for the year 2022 would be much appreciated. Maybe I'll start here, and I'll ask a second question later.
Thank you for your question. This year is a difficult year for all poultry producer in Europe, not just except -- not for Perutnina because you understand, price of corn and wheat in Europe now is unrealistic figures, EUR 350 per ton. And this is the main -- the same tradition with price of gas. This is the true driver for increased cost of production, which is why we don't expect, based of -- because cost of production year-to-year in Perutnina increased approximately by 30% around 25%, 30%.
And at the same time, we have planned to increase our sales volume in Croatia and Serbia because we create some new facilities. But -- and we have increased price, but not completely the same, not equal in our increase of cost.
Is it fair to say -- is it fair just to say that EBITDA levels achieved in year 2021 for your operating...
Yes, we think that we can yes, we are -- we think that we can achieve -- it is our target to achieve -- Perutnina to achieve. No, but based on current situation, it is something -- it is -- yes, we need to follow the increase in price, but at the same time, it's not very simple task, you understand?
Of course. And in terms of the CapEx needs for your Slovenia operations, do you need to incur any additional CapEx. So how should we approach like our CapEx...
No, no. Just to follow, yes, you understand that we must provide maintenance CapEx in Ukraine, in Perutnina, because without maintenance, we will have the huge problems. And this part is very important because if we don't provide maintenance is enough level, I'm sure that in this case, we will have the huge problem with our cost of production, with top-out production and such is why. And at the same time, we started some projects in Perutnina to increase capacity in Serbia in the some stages, and we will continue -- and not finalize, and continue on this project.
Understood. Understood. So -- okay. So that is clear. And my second question is regarding kind of also just want to get more color on your export operations. So of course, you mentioned that there are lots of issues, including availability of truck drivers to kind of export grain poultry from the country. I'm also curious about sunflower oil, because I know that it's also a material significant contributor to your revenue. So I know that it's kind of difficult to export sunflower oil by trucks. So what's the situation with some flow well? And how do you plan just to sell it? Or it will be like most...
Yes, you're completely right. Sunflower export is a huge issue, and we try to find different decisions how to provide transportation and through bus, how to say [Foreign Language] shipment, yes? And some of railway. But anyway, it is the same as a huge problem, but we try to push.
By shipment, you mean like by seaports through [indiscernible] Romania Constanta, or other destinations?
You cannot imagine how different destinations, a lot of different -- yes, a lot of different clients, a lot of different way...
We have a tax question from Nick Ivanov at PGIM.
You said that your cash on the balance sheet is around $150 million. Do you have any revolving credit facilities unutilized in addition to that cash?
Evolving credit facilities in addition to the cash we have got?
Yes. Any revolving credit facilities unutilized in addition to that cash?
Commitment, yes? Full time commitment. No, we have some facilities, but -- commitment facilities. But now, in Ukraine is very difficult to attract on. But we have some negotiations with some banks and financial institutions. But now, we try -- but we mostly concentrate just for liquidity, for cash, because we provide very -- a lot of very hard work to attract some loans from different institutions, but not yet. That was what happened.
Okay. And we have one final tax question from Anton [indiscernible] from ICU. Anton asks, taking into account limited export, would you be able to fully reprofile all your poultry capacities to domestic market? Would there be enough demand for that? Also, are you considering grain export by the railway? And what might be the size?
The first question, if I understood you correctly, if we can sell all our production volume on domestic market, yes? No, no, no, it's completely impossible. No. We produce more our capacity more than total consumption in Ukraine of meat. No, no, no, taking it, no, It's completely impossible.
No, no. And regarding grain by railway, yes, export grain for us, as I mentioned previously, it's not so a big problem because the biggest part of grain, which we produce, we consume internally. But regarding exports, yes, we are -- grain anyway, we are considering a lot of different possibilities, [indiscernible] grain, bars, different.
I'm not seeing any more questions. So I will now hand over to Anastasiya and Victoria for closing remarks.
Thank you very much, team. Thank you very much dear stakeholders. That was a very nice call. Lots of questions. Thank you for your involvement. And of course, we are here to answer additional questions in case you have them. So please take an opportunity to reach out our team -- and, of course, we will be glad to answer all your questions and queries. Thank you, and have a lovely evening, and have a lovely day. Good bye.
That concludes today. Thank you very much.