Ukraine’s MHP posts lower profit despite revenue growth in 2025 results

UKRAINE – MHP SE recorded a mixed financial performance for the year ended 31 December 2025, with revenue rising but profitability across key indicators weakening.

The company reported quarterly revenue of more than US$1.13 billion, up 44% compared with the same period in the previous year, driven mainly by stronger sales volumes and pricing improvements.

However, operating profit for the year declined to US$63 million, a 33% drop year-on-year, while the operating margin narrowed from 12% to 6%.

Adjusted EBITDA fell 12% over the same period, with its margin decreasing from 17% to 10%, reflecting increased cost pressures across the group’s operations.

The fourth quarter also showed volatility, as MHP posted a net loss of US$28 million compared with a US$3 million profit a year earlier.

Despite these quarterly swings, full-year revenue rose 24% year-on-year to US$3.77 billion, indicating continued expansion in sales activity.

Profitability pressures and currency effects

Operating profit for the full year declined 15% to US$376 million, while the associated margin dropped by four percentage points to 15%, highlighting ongoing pressure on earnings quality.

Adjusted EBITDA improved slightly to US$569 million, although the margin still fell to 15%, reflecting rising input and operational costs.

Net profit for the year stood at US$187 million, up 30% year-on-year, a result the company linked mainly to lower foreign exchange losses compared with the previous year.

Chief executive Yuriy Kosyuk said the operating environment in Ukraine remained difficult due to geopolitical conditions, while noting that the group continued to deliver stable results and advance its strategic plans.

MHP chair John Rich stated that the company remains focused on international growth, with particular attention on expansion opportunities in Europe.

Business performance and regional operations

In Ukraine, MHP operates large-scale poultry production assets alongside meat processing facilities and a significant agricultural land base supporting its vertically integrated model.

The company also operates across southeastern Europe, including slaughterhouses and processing plants, while its European segment includes assets in Slovenia, the Netherlands, and Spain.

The 2025 acquisition of Spain’s Uvesa Group expanded MHP’s regional footprint, adding poultry and pork production capacity, although valuation adjustments linked to African swine fever in wild boar affected results.

Across the European segment, revenue rose 76% to US$1.01 billion, supported by higher sales volumes in multiple countries and stronger pricing conditions.

Overall, poultry and meat operations accounted for 51% of total revenue, while European operations contributed 27%, agriculture 12%, and vegetable oils 10%.

MHP exported to more than 70 countries in 2025, reinforcing its position as one of Europe’s largest poultry producers with an estimated annual slaughter capacity of 528 million birds.

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