LONDON: Agricultural and food processing company MHP SE reported stable operational and financial performance in the first quarter of 2025, driven by steady export and domestic sales, strong poultry demand, and favorable pricing. However, the company warned that ongoing war-related disruptions could impact future results.
Operational Performance
MHP’s poultry production in Ukraine remained stable year-over-year at 180,869 metric tons, while its subsidiary, Perutnina Ptuj (PP) in Slovenia, saw a 4% increase to 35,272 metric tons. The average poultry price in Ukraine rose 10% to $2.18 per kilogram, while PP’s prices held steady at 3.55 euros per kilogram. Exports from Ukraine were nearly unchanged at 97,227 metric tons.
Financial Results
Revenue grew 8% to $779 million, but operating profit fell 29% to $60 million, with margins dropping to 8%. Adjusted EBITDA (excluding IFRS 16 effects) declined 7% to $111 million. Net profit improved to $32 million, aided by a $13 million foreign exchange gain compared to a $40 million loss in Q1 2024.
Segment Performance
– Poultry & Processed Meat: Revenue rose 6% to $421 million, but gross profit fell 11% to $101 million.
– Vegetable Oil: Revenue was flat at $119 million, but gross profit plunged 92% to $1 million.
– Agriculture: Revenue jumped 33% to $92 million, with adjusted EBITDA more than doubling to $35 million.
– European Operations: Revenue increased 8% to $147 million, with adjusted EBITDA up 6% to $19 million.
Cash Flow & Debt
Net operating cash flow dropped to $45 million from $102 million a year earlier, partly due to working capital changes. Net debt stood at $1.19 billion as of March 31, with a leverage ratio of 2.13, below the Eurobond covenant limit of 3.0.
Despite the challenges, MHP credited its team for mitigating disruptions. The company cautioned that war-related risks remain outside its control and could affect future performance.
MHP SE is a leading Ukrainian agro-industrial company specializing in poultry, meat processing, and grain production.