**Summary of MHP SEs Half-Year/Interim Report for Q2 and 6M 2025**
**Financial Performance and Operational Highlights:**
**Revenue Growth** MHP SE reported a 10% year-on-year (y/y) increase in consolidated revenue to USD 1,635 million for the six months ended June 30, 2025, driven primarily by higher contributions from the Poultry segment due to increased prices for poultry and processed meat.
**Profitability** Operating profit decreased by 29% y/y to USD 136 million, mainly due to lower gross profit, higher payroll-related expenses, and increased war-related expenses. Net profit for the period was USD 75 million, up from USD 45 million in the same period in 2024, largely due to a net foreign exchange gain of USD 14 million.
**Segment Performance**
**Poultry and Related Operations** Revenue increased by 14% y/y to USD 897 million, with adjusted EBITDA up 6% y/y to USD 166 million.
**Vegetable Oil Operations** Revenue decreased by 5% y/y to USD 224 million, with adjusted EBITDA down 78% y/y to USD 6 million due to compressed margins from elevated oilseed prices.
**Agriculture Operations** Revenue increased by 4% y/y to USD 192 million, with adjusted EBITDA stable at USD 69 million.
**European Operating Segment** Revenue increased by 15% y/y to USD 322 million, with adjusted EBITDA stable at USD 49 million.
**Strategic Developments**
**Global Expansion** MHP completed the acquisition of over 92% of Grupo UVESA, a major Spanish poultry and pork producer, in July 2025. This acquisition aims to enhance MHPs presence in the European and Middle Eastern markets, focusing on operational excellence, sustainable development, and global food security.
**Integration Process** The integration of UVESA will emphasize operational alignment, knowledge sharing, and targeted investments in efficiency and product innovation. MHP plans to strengthen export capabilities and expand market reach.
**Operational Challenges and Resilience**
**Impact of War in Ukraine** The ongoing conflict continues to affect MHPs operations, with drone and rocket attacks disrupting production and increasing war-related costs. Despite these challenges, MHP has demonstrated resilience, with its H1 2025 performance reflecting the agility of its business model and the efforts of its workforce.
**Export Stability** Poultry meat exports from Ukraine remained stable y/y at 185,589 tonnes for the six months ended June 30, 2025.
**Financial Position and Liquidity**
**Net Debt** As of June 30, 2025, net debt was USD 1,243 million, with a Net Debt to LTM adjusted EBITDA ratio of 2.30, well <mark style="background-color:yellow">below</mark> the covenant limit of 3.0.
**Cash Flow** Net cash from operating activities was USD 162 million for the six months ended June 30, 2025, with net cash used in investing activities at USD 179 million and net cash used in financing activities at USD 20 million.
**Future Outlook and Risks**
**Going Concern** Management believes the Group has adequate resources to continue operations for the foreseeable future, but a material uncertainty exists due to the unpredictable effects of the war and other factors, which may cast doubt on the Groups ability to continue as a going concern.
**Debt Management** MHP is focused on ensuring timely servicing of its Eurobond indebtedness maturing in April 2026, with a strong track record of meeting debt obligations and constructive relationships with bondholders.
**Corporate Social Responsibility**
**Humanitarian Support** MHP continues to support humanitarian relief efforts in Ukraine through its strategic partner, the Charitable Foundation MHP - HROMADI.
**Conclusion**
MHP SEs H1 2025 results reflect a mix of operational resilience, strategic expansion, and ongoing challenges posed by the war in Ukraine. The companys focus on global expansion, operational efficiency, and financial stability positions it to navigate these challenges and pursue long-term growth.