MHP (MHPC) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 increased 10% year-on-year to $1.6 billion, driven by strong poultry, agriculture, and European segments, despite lower volumes and weakness in vegetable oil sales.

• Net profit rose 67% to $75 million in H1 2025, mainly due to foreign exchange gains reversing prior year losses.

• Operational resilience maintained despite ongoing war in Ukraine, with continued strategic growth including the acquisition of EVESA/UVESA Group in Spain.

• Operating profit declined 29% year-over-year to $136 million, impacted by higher payroll, administrative, and war-related costs.

• Export sales accounted for 61% of total revenue, slightly down from 64% in the prior year period.

Financial highlights

• Gross profit was stable at $368 million in H1 2025, with poultry and agriculture offsetting lower vegetable oil margins.

• EBITDA (net of IFRS 16) declined 11% to $236 million; operating profit fell 89% to $136 million due to higher SG&A, depreciation, and war-related costs.

• Q2 2025 revenue increased 11% year-over-year to $856 million; adjusted EBITDA fell 14% to $125 million.

• Cash from operations before working capital changes was $180 million in H1; CAPEX was $134 million, stable year-on-year.

• Net debt as of June 30, 2025, was $1,243 million; net debt/LTM adjusted EBITDA ratio at 2.30, below covenant limits.

Outlook and guidance

• Full-year EBITDA guidance is $550 million including the new Spanish acquisition.

• Full-year CAPEX guidance (excluding the acquisition) is approximately $280 million.

• Continued pressure expected from energy, payroll, and inflation on production costs.

• Management expects continued operational challenges due to the ongoing war in Ukraine, with material uncertainty about the Group’s ability to continue as a going concern.

• The expiration of EU Autonomous Trade Measures may impact export conditions; management is monitoring and preparing to adjust operations.