The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Daniel Zaczkiewicz - Barclays Bank PLC, Research Division - Analyst
: Just based on the outlook that you've given, where should we expect net leverage to be by the end of the year? And could you also just go over
the CapEx we should expect for the year? And then finally, could I just ask just on the working capital movements, was that a normalization of
working capital? Or is it something we should expect to unwind the large outflow we saw in Q1?
Question: Daniel Zaczkiewicz - Barclays Bank PLC, Research Division - Analyst
: Just the 2020, yes.
Question: Konstantin Fastovets - Adamant Capital - Analyst
: I have a couple of questions. So first of all, could you comment on the price outlook for the second quarter and maybe for the rest of the year as
well. You mentioned that the pandemic is having a negative effect on demand globally. So I guess that means that your export prices may go down
further. And with that, I also wanted to clarify on where you see domestic prices going as well because in the first quarter, when I compare the data
that you have on average with what the Ukrainian statistics service is showing. So your prices are down by 11%, and they actually showed that
meat prices overall were up by 2.4%. And I understand the difference is that you sold more frozen poultry. Well, could you go into that a bit and
sort of talk about why that happened and whether you expect that to change going forward?
Question: Konstantin Fastovets - Adamant Capital - Analyst
: I see. Could you comment on the share of frozen chicken that you sell? Because from what I understand, it negatively affects your average price.
Is that something that's -- that you agree with?
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Right. And so -- and will that share of frozen product, will that go -- be going down in the next 3 quarters? Or do you expect that to...
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Okay. So can we -- is it -- would it be true to say that that's one of the reasons why your domestic prices should be going up compared to what
should be...
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Right. Okay. And then -- and you mentioned that -- you said it's 11% down year-on-year. Did I hear you correctly, at the moment?
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Domestic price?
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Okay. Okay. And also -- so I guess tied with that, if we talk about costs, so your costs went down quarter-to-quarter, right, significantly because, I
guess, no bonus payments and also cheaper gas and the devaluation effect. Do you still -- well, given where costs are at the moment, and last --
during the last call, you said that you're targeting, you're expecting to see EBITDA per kilo at about $0.40. Is this something you still find realistic
for this year given where prices are and where costs are? Or do you think that it's going to be lower than that?
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Okay. I see. And then -- and just one more question. With regard to the grain segment. So could you give a bit of an outlook on where you see
yields for this year as compared to last year? Because of the drought there was -- projections were very pessimistic because of the drought.
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Okay. And your forecast of $295 per hectare, that's including revaluation, right?
Question: Konstantin Fastovets - Adamant Capital - Analyst
: Including, yes? And do you expect the effect to be positive for the year or negative for the year, for this revaluation?
Question: Dilawer Farazi - Loomis - Analyst
: I just want to clarify a couple of things. I may have missed them because the line was cutting in and out. Pricing expectations for Europe and your
production. You're reducing the production to Europe 20% from your expected plan. What is your expectation for year-on-year European exports
and the pricing expectations as well? Yes. And the leverage you're giving at the moment, that's IFRS leverage, right? That's it.
Question: Dilawer Farazi - Loomis - Analyst
: IFRS 16, yes?
Question: Dilawer Farazi - Loomis - Analyst
: And you believe MENA will make up the shortfall or which region do you think is specifically going to be more of a focus for you?
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