REG - MHP SE - Financial Results Q4 and 12M 2024

MHP SEAnnouncement

Mon 07:10

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RNS Number : 3997G  MHP SE  28 April 2025

28 April 2025, Limassol, Cyprus

MHP SE

Results for the Fourth Quarter and Twelve Months Ended 31 December 2024

MHP SE (LSE:MHPC), the parent company of a leading international food and agri
company with headquarters in Ukraine, today announces its audited results for
the fourth quarter and twelve months ended 31 December 2024. Hereinafter, MHP
SE and its subsidiaries are referred to as MHP, The Company or The Group.

 

Full version of the Annual Report 2024 can be found here:
https://mhp.com.ua/en/mhp-se/financial-reports
(https://mhp.com.ua/en/mhp-se/financial-reports)

Presentation of 2024 results for the conference call with stakeholders can be
found here: https://mhp.com.ua/en/mhp-se/results-and-presentations
(https://mhp.com.ua/en/mhp-se/results-and-presentations)

 

DIAL-IN DETAILS TO JOIN CONFERENCE CALL FOR STAKEHOLDERS

MHP's management will host a conference call for investors and analysts
followed by Q&A on the day of the results.

The dial-in details are:

Time:                            13.00 London / 15.00
Kyiv / 08.00 New York

Title:
Financial results for Q4 2024 and 12M 2024

UK:
+44 203 984 9844

Ukraine:                            +380 89 324 0624

USA:                                   +1
718 866 4614

PIN code:                         645982

 
 

To follow the presentation with the management team, please use the following
link:

https://mm.closir.com/slides?id=645982
(https://mm.closir.com/slides?id=645982)

 

For Investor Relations inquiries, please contact:

Anastasia Sobotiuk (Kyiv)                       +38 050
339 29 99

+357 99 76 71 26

a.sobotyuk@mhp.com.ua (mailto:a.sobotyuk@mhp.com.ua)

The Group demonstrated a robust performance in 2024, a remarkable achievement
when viewed against the backdrop of the profound and ongoing challenges posed
by the full-scale war. Despite the adversity, operations continued at full
capacity. This resilience, reflected in our full year results, stands as a
testament to the unwavering support of our stakeholders and the extraordinary
commitment and courage of our workforce.

 

 

 

WAR IN UKRAINE - UPDATE

The war in Ukraine has now entered its fourth year, continuing to inflict a
devastating toll on the country and its people. The loss of life, widespread
displacement, and the severe impacts on both physical and mental health
underscore the deep humanitarian crisis.

Amid these challenges, MHP has shown remarkable resilience. Yet, the business
environment remains difficult, vulnerable, and highly unpredictable. Despite
this, MHP continues its transformation into a world-leading sustainable food
producer, with exports reaching over 80 countries globally.

Operating under such volatile conditions requires constant adaptation. Our
priorities remain clear: protecting our employees, ensuring business
continuity, and contributing to food security in Ukraine. We remain focused on
navigating the evolving geopolitical landscape while addressing current and
future workforce challenges with determination and care.

 

OPERATIONAL HIGHLIGHTS

Q4 2024

·          Poultry meat production volume in Ukraine was stable y/y
at 177,481 tonnes (Q4 2023: 172,275 tonnes). Poultry meat production volumes
of the European Operating Segment (PP) increased by 23% 38,284 tonnes (Q4
2023: 31,075 tonnes).

·          MHP Ukraine's average poultry meat price increased by 5%
to US$ 2.07 per kg (Q4 2023: US$ 1.98 per kg) excluding VAT. The average
price of poultry meat produced by PP was stable at EUR 3.37 per kg (Q4 2023:
EUR 3.49 per kg).

·          Poultry meat exports from Ukraine increased by 12% to
94,858 tonnes (Q4 2023: 84,945 tonnes).

12M 2024

·          Poultry meat production volume in Ukraine remained stable
y/y at 711,218 tonnes (12M 2023: 718,644 tonnes). Poultry meat production
volumes at PP increased by 12% y/y to 146,236 tonnes (12M 2023: 131,021
tonnes).

·          MHP Ukraine's average poultry meat price was stable y/y
at US$ 2.02 per kg (12M 2023: US$ 1.95 per kg) excluding VAT. The average
price of poultry meat produced by PP also stayed on the same level y/y at EUR
3.47 per kg (12M 2023: EUR 3.54 per kg).

·          Poultry meat exports from Ukraine decreased by 6% y/y to
371,198 tonnes (12M 2023: 396,923 tonnes).

 

FINANCIAL HIGHLIGHTS

Q4 2024

·          Revenue increased by 8% y/y to US$ 784 million (Q4 2023:
US$ 727 million).

·          Operating profit (excluding impairment) of US$ 94
remained almost stable y/y the same as operating margin at 12% y/y (Q4
2023:US$ 92 million and 13% respectively).

·          Adjusted EBITDA (net of IFRS 16) increased by 11% y/y to
US$ 129 million (Q4 2023: US$ 116 million); adjusted EBITDA margin (net of
IFRS 16) remained almost unchanged y/y at 16% (Q4 2023: 16%).

·          Net profit decreased to US$ 3 million, compared to a
profit of US$ 20 million for Q4 2023.

12M 2024

·          Revenue remained stable y\y at US$ 3,046 million (12M
2023: US$ 3,021 million).

·          Operating profit (excluding impairment) increased to US$
440 million, up by 30% y/y (12M 2023: US$ 339 million) and operating margin
also increased to 14% (12M 2023: 11%).

·          Adjusted EBITDA (net of IFRS 16) increased by 27% y/y to
US$ 566 million (12M 2023: US$ 445 million); adjusted EBITDA margin (net of
IFRS 16) also increased to 19% (12M 2023: 15%).

·          Net profit of US$ 144 million (12M 2023: net profit of
US$ 142 million), primarily reflecting a US$ 125 million non-cash foreign
exchange loss in 12M 2024 compared with a US$ 40 million in 12M 2023.

 

SEGMENT PERFORMANCE

Poultry and processed meat and related operations

Q4 2024

·          Revenue increased by 12% y/y to US$ 433 million (Q4 2023:
US$ 386 million).

·          Gross profit of US$ 72 million decreased by 21% y/y and
gross margin decreased to 17% y/y (Q4 2023: US$ 91 million and 24%
respectively).

·          Adjusted EBITDA (net of IFRS 16) decreased by 36% y/y at
US$ 38 million (Q4 2023: US$ 59 million); adjusted EBITDA margin (net of IFRS
16) also decreased to 9% (Q4 2023:15%).

12M 2024

·          Revenue remained almost unchanged at US$ 1,633 million
(12M 2023: US$ 1,643 million).

·          Gross profit decreased to US$ 372 million fall by 7% y/y
(12M 2023: US$ 402 million) but gross margin remained almost unchanged at 23%
(12M 2023:24%).

·          Adjusted EBITDA (net of IFRS 16) decreased by 21% y/y to
US$ 252 million (12M 2023: US$ 319 million); adjusted EBITDA margin (net of
IFRS 16) slightly decreased to 15% from 19%.

Vegetable oil operations

Q4 2024

·          Revenue decreased by 11% y/y to US$ 102 million (Q4 2023:
US$ 114 million).

·          Gross profit of US$ 3 million decreased by 67% y/y and
gross margin decreased to 3% y/y (Q4 2023: US$ 9 million and 8%
respectively).

·          Adjusted EBITDA (net of IFRS 16) decreased by 33% y/y at
US$ 6 million (Q4 2023: US$ 9 million); adjusted EBITDA margin (net of IFRS
16) also decreased to 6% (Q4 2023:8%).

12M 2024

·          Revenue decreased to US$ 457 million, which is 25% y/y
(12M 2023: US$ 606 million).

·          Gross profit decreased to US$ 47 million fall by 41% y/y
(12M 2023: US$ 79 million) and gross margin also decreased to 10% (12M
2023:13%).

·          Adjusted EBITDA (net of IFRS 16) decreased by 40% y/y to
US$ 48 million (12M 2023: US$ 80 million); adjusted EBITDA margin (net of IFRS
16) slightly decreased to 11% from 13%.

Agriculture operations

Q4 2024

·          Revenue increased by 18% y/y to US$ 105 million (Q4 2023:
US$ 89 million).

·          Adjusted EBITDA (net of IFRS 16) increased to US$ 100
million, which is 163% y/y (Q4 2023: US$ 38 million).

12M 2024

·          Revenue increased by 68% y/y to US$ 381 million (Q4 2023:
US$ 227 million).

·          Adjusted EBITDA (net of IFRS 16) increased to US$ 264
million which is 43x y/y (Q4 2023: US$ 6 million).

European operating segment

Q4 2024

·          Revenue increased by 7% y/y to US$ 144 million (Q4 2023:
US$ 134 million).

·          Gross profit of US$ 32 million increased by 23% y/y and
gross margin increased to 22% y/y (Q4 2023: US$ 26 million and 19%
respectively).

·          Adjusted EBITDA (net of IFRS 16) decreased by 46% y/y at
US$ 13 million (Q4 2023: US$ 24 million); adjusted EBITDA margin (net of IFRS
16) also decreased to 9% (Q4 2023:18%).

12M 2024

·          Revenue at US$ 575 million was up by 6% y/y (12M 2023:
US$ 545 million).

·          Gross profit increased to US$ 145 million up by 10% y/y
(12M 2023: US$ 132 million) but gross margin remained almost unchanged at 25%
(12M 2023: 24%).

·          Adjusted EBITDA (net of IFRS 16) decreased by 4% y/y to
US$ 87 million (12M 2023: US$ 91 million); adjusted EBITDA margin (net of IFRS
16) slightly decreased to 15% from 17%.

 

CURRENT GROUP CASH FLOW

 (in mln. US$)                           Q4 2024       Q4 2023       12M 2024      12M 2023
 Cash from operations                     53            62            343           377
 Change in working capital                (72)         (19)           (97)          61
 Net Cash from operating activities        (19)           43           246           438
 Cash used in investing activities       (74)           (73)         (333)         (228)
 Cash from financing activities           131             13           17           (86)
 Total change in cash(1))                 38            (17)          (70)           124

(1))Calculated as Net Cash from operating activities plus Cash used in
investing activities plus Cash used in financing activities

 

Debt Structure and Liquidity

As at 31 December 2024 the Net Debt equals to US$ 1,179 million and LTM
adjusted EBITDA (net of IFRS 16) raised to US$ 566 million (31 December
2023: US$ 1,101 million and US$ 445 million respectively).

The Net Debt / LTM adjusted EBITDA (net of IFRS 16) ratio was 2.08 as of 31
December 2024, well below the limit of 3.0 defined in the Eurobond agreement.

 

Subsequent Events

UVESA Transaction

On 20 March 2025, the Group entered into a Share Purchase Agreement (SPA) with
shareholders representing over 41% of the share capital of Grupo UVESA, one of
the leading poultry production companies in Spain. The agreement provides for
the acquisition of shares at a fixed price of EUR 225 per share, with an
additional contingent consideration of up to EUR 21.43 per share, subject to
certain post-closing conditions. The SPA included provisions allowing other
shareholders of Grupo UVESA to join the agreement within one month from the
signing date under the same terms. Pursuant to these provisions, additional
shareholders joined the agreement within the allowed timeframe, bringing total
participating equity shares to 91.77% as of the date of authorization of these
consolidated financial statements. The completion of the transaction is
subject to obtaining regulatory approvals, including merger control and
foreign subsidies clearance by the European Commission. The acquisition is
aligned with the Group's strategic goal to expand its presence in the European
poultry market. The consideration is expected to be settled in cash upon
completion. As at the date of authorization of the financial statements, the
transaction had not yet been completed and the necessary procedures to
determine the fair values of the identifiable assets and liabilities of the
acquiree have not yet commenced.

 

Notes to Editors:

 

About MHP

MHP SE is a publicly listed (London Stock Exchange) international food and
agri company, producing high-quality healthy food products that enhance
consumers' lives. The company operates in agriculture, food production, and
retail, with manufacturing facilities in Ukraine and South-Eastern Europe, as
well as subsidiaries in the Netherlands, the United Kingdom, the UAE, Saudi
Arabia, and other EU countries.

 

MHP employs over 36,000 people in Ukraine and abroad and is ranked among the
top 10 employers in Ukraine, according to Forbes Ukraine. The company exports
its products to more than 80 countries worldwide and manages a land bank of
360,000 hectares across 12 regions in Ukraine.

 

During the full-scale war, MHP sees its mission as supporting the economy and
food security of Ukraine. The company is the largest taxpayer in the
agricultural sector and is also one of the top 5 largest investors in the
country.

 

As a culinary company, MHP develops over 15 product brands, including Qualiko,
Sultanah, Аssilah, Nasha Ryaba, Apetytna, Lehko!, Bashchynskyi, Skott Smeat,
RyabChick, and others.

To ensure that Ukrainians always have access to high-quality and delicious
food, the company, together with its partners, develops several retail chains:
MeatMarket stores, Fresh Food, Nasha Ryaba and Döner Market restaurants,
which offer tasty and safe fast food.

 

MHP in Ukraine, in collaboration with its strategic partner, the Charitable
Foundation MHP - GROMADI, is actively engaged in community development
enhancing community livability, while also supporting those in greatest
need.

 

MHP in Ukraine is fostering the MHP Standing Together program, which provides
personalized assistance and comprehensive support to military personnel,
veterans, their families, and those awaiting the return of their loved ones
from the frontlines.

 

The founder and CEO of MHP is Ukrainian businessman Yuriy Kosyuk.

 

 

South-Eastern Europe: Perutnina Ptuj is a leading poultry and meat-processing
company in Southeast Europe. The company operates production facilities in
four countries of the region: Slovenia, Croatia, Serbia, and Bosnia and
Herzegovina. It also owns distribution companies in Austria, North Macedonia,
and Romania, and supplies its products to 26 countries across Europe. In
addition, Perutnina Ptuj is also present on the U.S. market and exports
directly to the United Arab Emirates.

 

Perutnina Ptuj is a vertically integrated company, managing every stage of
chicken meat production - from feed manufacturing, production and hatching of
eggs, to breeding, slaughtering, sausage production, and advanced poultry
processing.

 

Forward-Looking Statements

This press release might contain forward-looking statements that refer to
future events or forecast financial indicators for MHP SE. Such statements do
not guarantee that these are actions to be taken by MHP SE in the future, and
estimates can be inaccurate and uncertain. Actual final indicators and results
can considerably differ from those declared in any forward-looking statements.
MHP SE does not intend to change these statements to reflect actual results.

 

 

 

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