MHP SE: Financial Results for the First Quarter 2025

21 May 2025, Limassol, Cyprus MHP SE Financial Results for the First Quarter ended 31 March 2025 MHP SE (LSE:MHPC), the parent company of a leading international food and agri company headquartered in Ukraine, today announces its unaudited results for the first quarter ended 31 March 2025. Hereinafter, MHP SE and its subsidiaries are referred to as "MHP", "The Company" or "The Group". Presentation of 2024 results for the conference call with stakeholders can be found here: https://mhp.com.ua/en/mhp-se/results-and-presentations DIAL-IN DETAILS 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 Q1 2025 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 For Investor Relations enquiries, please contact: Anastasia Sobotiuk (Kyiv) +38050 339 29 99 +357 99 76 71 26 a.sobotyuk@mhp.com.ua Q1 2025 RESULTS MHP is reporting good operational and financial results for Q1 2025 thanks to stable export and domestic sales, continued strong demand for poultry and non-commodity products, more favorable price environment for poultry products and MHP team's success in minimizing adverse impacts and disruption to production and operational cost. Future results may again be adversely affected by War-related challenges that are not under MHP's control. OPERATIONAL HIGHLIGHTS Q1 2025 · Poultry meat production volume in Ukraine remained stable y/y at 180,869 tonnes (Q1 2024: 178,487 tonnes). Poultry meat production volumes at PP increased by 4% y/y to 35,272 tonnes (Q1 2024: 33,958 tonnes). · MHP Ukraine's average poultry meat price increased by 10% y/y to US$ 2.18 per kg (Q1 2024: US$ 1.99 per kg) excluding VAT. The average price of poultry meat produced by PP stayed on the same level y/y at EUR 3.55 per kg (Q1 2024: EUR 3.44 per kg). · Poultry meat exports from Ukraine remained stable y/y at 97,227 tonnes (Q1 2024: 98,055 tonnes). FINANCIAL HIGHLIGHTS Q1 2025 · Revenue increased by 8% y\y to US$ 779 million (Q1 2024: US$ 719 million). · Operating profit decreased to US$ 60 million, down by 29% y/y (Q1 2024: US$ 84 million) and operating margin also decreased to 8% (3M 2024: 12%). · Adjusted EBITDA (net of IFRS 16) decreased by 7% y/y to US$ 111 million (Q1 2024: US$ 119 million); adjusted EBITDA margin (net of IFRS 16) also decreased to 14% (Q1 2024: 17%). · Net profit of US$ 32 million (3M 2024: net profit of US$ 16 million), primarily reflecting a US$ 13 million non-cash foreign exchange gain in Q1 2025 compared with a US$ 40 million of loss in Q1 2024. SEGMENT PERFORMANCE Poultry and processed meat and related operations Q1 2025 · Revenue increased by 6% at US$ 421 million(Q1 2024: US$ 398 million). · Gross profit decreased to US$ 101 million fell by 11% y/y (Q1 2024: US$ 114 million) and gross margin also decreased to 24% (Q1 2024: 29%). · Adjusted EBITDA (net of IFRS 16) decreased by 7% y/y to US$ 80 million (Q1 2024: US$ 86 million); adjusted EBITDA margin (net of IFRS 16) slightly decreased to 19% from 22%. Vegetable oil operations Q1 2025 · Revenue remained stable y/y at US$ 119 million (Q1 2024: US$ 116 million). · Gross profit decreased to US$ 1 million fall by 92% y/y (Q1 2024: US$ 13 million) and gross margin also decreased to 1% (1Q1 2024:11%). · Adjusted EBITDA (net of IFRS 16) decreased by 92% y/y to US$ 1 million (Q1 2024: US$ 12 million); adjusted EBITDA margin (net of IFRS 16) also decreased to 1% from 10%. Agriculture operations Q1 2025 · Revenue increased by 33% y/y to US$ 92 million (Q1 2024: US$ 69 million). · Adjusted EBITDA (net of IFRS 16) increased to US$ 35 million which is 106% y/y (Q1 2024: US$ 17 million). European operating segment Q1 2025 · Revenue at US$ 147 million was up by 8% y/y (Q1 2024: US$ 136 million). · Gross profit increased to US$ 32 million up by 7% y/y (Q1 2024: US$ 30 million) but gross margin remained unchanged at 22% (Q1 2024: 22%). · Adjusted EBITDA (net of IFRS 16) increased by 6% y/y to US$ 19 million (Q1 2024: US$ 18 million); adjusted EBITDA margin (net of IFRS 16) remained at the same level of 13%. CURRENT GROUP CASH FLOW (in mln. US$) Q1 2025 Q1 2024 Cash from operations 101 90 Change in working capital (56) 12 Net Cash from operating activities 45 102 Cash used in investing activities (60) (65) Cash from financing activities 16 (73) Total change in cash1) 1 (36) 1)Calculated as Net Cash from operating activities plus Cash used in investing activities plus Cash used in financing activities Debt Structure and Liquidity As at 31 March 2025 the Net Debt equals to US$ 1,192 million and LTM adjusted EBITDA (net of IFRS 16) was at US$559million (31 December 2024: US$ 1,179 million and US$ 566 million respectively). The Net Debt / LTM adjusted EBITDA (net of IFRS 16) ratio was 2.13 as of 31 March 2025, well below the limit of 3.0 defined in the Eurobond agreement. 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. 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. MHP SE AND ITS SUBSIDIARIES Interim condensed consolidated Financial Statements As of and for the three-month period ended 31 March 2025 CONTENTS STATEMENT OF MEMBERS OF THE BOARD OF DIRECTORS................................................................. 3 MANAGEMENT REPORT........................................................................................................................ 4 INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2025 INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME.............................................................................................................................................................. 5 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION..................................... 6 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY..................................... 7 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS................................................ 9 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.............................. 11 1. Corporate information..................................................................................................................... 11 2. Basis of preparation and accounting policies................................................................................... 12 3. Changes in the group structure........................................................................................................ 13 4. Segment information...................................................................................................................... 14 5. Profit for the period ....................................................................................................................... 15 6. Property, plant and equipment........................................................................................................ 15 7. Inventories and agricultural produce................................................................................................ 15 8. Shareholders' equity....................................................................................................................... 15 9. Bank borrowings............................................................................................................................ 16 10. Bonds issued.............................................................................................................................. 17 11. Related party balances and transactions....................................................................................... 19 12. Operating environment................................................................................................................. 20 13. Contingencies and contractual commitments................................................................................. 21 14. Fair value of financial instruments................................................................................................. 22 15. Risk management policy.............................................................................................................. 22 16. Subsequent events...................................................................................................................... 23 17. Authorization of the interim condensed consolidated financial statements....................................... 23 STATEMENT OF MEMBERS OF THE BOARD OF DIRECTORS In accordance with Article 10 of the Transparency Requirements (Securities for Trading on Regulated Market) Law 190(l)/2007 ("Law"), as amended, the members of the Board of Directors of MHP SE confirm that to the best of our knowledge: (a) The interim condensed consolidated financial statements for the period from 1 January 2025 to 31 March 2025 that are presented on pages 5 to 23: i. were prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union and in accordance with the provisions of Article 10 (4) of the Law, and ii. give a true and fair view of the assets and liabilities, the financial position, and the profits of MHP SE and the businesses that are included in the interim condensed consolidated financial statements as a whole and (b) the interim management report gives a fair review of the information required under Article 10 (6) of the Law. 20 May 2025 Members of the Board of Directors: Chief Executive Officer Yuriy Kosyuk Chief Financial Officer Viktoriia Kapeliushna Director John Clifford Rich Director Philip J Wilkinson Director Andriy Bulakh Director Christakis Taoushanis Director Oscar Chemerinski MANAGEMENT REPORT Key financial highlights During the three-month period ended 31 March 2025 consolidated revenue increased by 8% to USD 779 million, compared to USD 719 million for the three-month period ended 31March2024. Export sales for the three-month period ended 31 March 2025 constituted 63% of total revenue and amounted to 489 USD million, compared to USD 453 million, 63% of total revenue for the three-month period ended 31 March 2024. Revenue grew across all segments, primarily driven by the Poultry and Agriculture segments, due to higher poultry meat prices and increased grain sales volumes. Gross profit decreased by 4% to USD 163 million for the three-month period ended 31 March 2025, compared to USD 170 million for the three-month period ended 31 March 2024. The decline was primarily driven by weaker margins in the Poultry and Vegetable Oil segments, partially offset by improved performance in the Agriculture operations. Operating profit fell to USD 60 million for the three-month period ended 31March2025, down from USD 84 million for the same period in 2024. The decrease was driven by adverse changes in gross profit and increased payroll expenses within the selling, general, and administrative functions along with additional war-related costs recorded under other operating expenses. Profit for the three-month period ended 31 March 2025 was USD 32 million, up from USD 16 million for the same period in 2024. This increase was mainly attributable to the relative stabilization of Ukrainian Hryvnia against USDollar and EURO, leading to a foreign exchange gain of USD 13 million for the three-month period ended 31 March 2025, compared to a loss of USD 40 million for the same period in 2024. Dividends In view of continuing War-related uncertainties and the resulting need to preserve liquidity to support the Company's ongoing business operations, the Directors decided not to declare a final dividend for the 2024 financial year. No interim dividend has been declared for the three-month period ended 31 March 2025. Risks and uncertainties Russian invasion On 24 February 2022, Russian forces began a military invasion of Ukraine resulting in a full-scale war across the Ukrainian State (the "War"). Focused on continuity and sustainability of its business and the preservation of value for all stakeholders, the Group has concentrated on two key areas: the safety of its employees and the food security of the country by prioritizing a continuous supply of food to the population of Ukraine. As a result of the War, MHP has experienced a number of significant disruptions and operational issues within its business, which are described in detail in Note 12 Operating environment. Detailed information on this matter can also be found on page 171 of the Annual Report, which is available at mhp.com.cy. Management believes that the Group has adequate resources to continue in operational existence for the foreseeable future. However, due to the currently unpredictable effects of the ongoing War on the significant assumptions underlying management forecasts, Management concludes that a material uncertainty exists, which may cast significant doubt about the Group's ability to continue as a going concern and, therefore, the Group may be unable to realize its assets and discharge its liabilities in the normal course of business. Other risks and uncertainties There are a number of potential risks and uncertainties, which could have a material impact on the Group's performance over the remaining nine months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider that the principal risks and uncertainties have changed since the publication of the 2024 Annual Report on 28 April 2025. A detailed explanation of the risks, and how the Group seeks to mitigate them, can be found on pages 221 to 224 of the Annual Report which is available at mhp.com.cy. 20 May 2025 On behalf of the Board: Chief Executive Officer Yuriy Kosyuk Chief Financial Officer Viktoriia Kapeliushna INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the three-month period ended 31 March 2025 (in millions of US dollars, unless otherwise indicated) Read More

MHP SE: Financial Results for the First Quarter 2025

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