MHP (MHPC) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 rose 32% year-over-year to $2.161 billion, driven by European expansion and the consolidation of UVESA, though export share declined due to increased domestic sales in Spain.

• Gross profit increased 8% to $397 million, mainly from fair value gains in agriculture and UVESA consolidation, offset by lower poultry margins.

• Operating profit fell 17% to $113 million due to higher SG&A expenses, while net loss was $57 million, primarily from foreign exchange losses linked to Hryvnia depreciation.

• Adjusted EBITDA remained stable at $232 million, with margin declining from 14% to 11%.

• Diversified operations and European expansion helped offset challenges from Ukraine's volatile environment.

Financial highlights

• Revenue: $2.161 billion (+32% YoY); Gross profit: $397 million (+8% YoY).

• Adjusted EBITDA: $232 million (down 2% YoY); EBITDA margin: 11% (down from 14%).

• Net loss: $57 million, mainly due to foreign exchange losses.

• Operating cash flow decreased to $94 million for H1 2026, reflecting lower cash earnings from poultry.

• CapEx for H1 2026 totaled $90–93 million, focused on maintenance and modernization.

Outlook and guidance

• Full-year EBITDA guidance: $420–$450 million, lower than budgeted due to challenging conditions.

• CapEx for 2026 expected at $220–$230 million, with new projects in Ukraine halted since May.

• Working capital investment for the year projected at $20–$30 million.

• Poultry prices and oil crushing business expected to drive improved results in H2; European operations typically stronger in the second half.

• Agriculture segment profitability expected to decline in H2 due to lower grain prices.