AUS
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Highlights
- Revenue growth: Q3 2024 revenue up 5% year-on-year to US$ 773 million.
- Profit growth: Operating profit up 62%, with net profit rising to US$ 96 million.
- Resilience during war: MHP adapts to wartime conditions, despite ongoing challenges in Ukraine.
MHP SE (LSE:MHPC), a leading agro-industrial group headquartered in Ukraine, announced its third-quarter and nine-month results for 2024, reflecting resilience amidst ongoing conflict and a strong financial performance.
Operational Performance Amidst War
As of November 19, 2024, MHP has navigated over 1,000 days since the Russian invasion of Ukraine. Despite significant challenges, the company has maintained operational resilience. MHP's workforce has been heavily impacted by the war, with 12% of its staff, over 3,300 employees, currently mobilized to the Armed Forces of Ukraine. War-related costs have increased to US$ 38 million, up from US$ 23 million in the same period last year. Nevertheless, MHP continues to prioritize business continuity and employee safety.
Production and Export Highlights
In Q3 2024, poultry meat production in Ukraine decreased by 10% year-on-year to 167,836 tonnes, while production in the European segment increased by 11%. The average price of poultry in Ukraine rose by 6%, reflecting inflationary pressures. Export volumes from Ukraine fell by 9%, indicating the impact of the war on international trade.
For the first nine months of 2024, MHP’s poultry production in Ukraine remained stable, while production in the European segment grew by 8%. Exports from Ukraine saw a more significant decrease of 11%.
Financial Highlights
MHP's Q3 2024 financial performance showed strong growth:
- Revenue: Increased by 5% year-on-year to US$ 773 million.
- Operating Profit: Rose by 62% to US$ 154 million, with the operating margin improving to 20%.
- Adjusted EBITDA: Up by 56% year-on-year to US$ 173 million, driven by better performance in the Agriculture division.
- Net Profit: Increased significantly to US$ 96 million, compared to US$ 55 million in Q3 2023.
For the first nine months of 2024:
- Revenue: Stayed almost stable at US$ 2.26 billion.
- Operating Profit: Increased by 40% to US$ 346 million, reflecting an improved operating margin of 15%.
- Adjusted EBITDA: Rose by 33% to US$ 437 million, mainly due to better results from Agriculture operations.
- Net Profit: Reached US$ 141 million, despite a US$ 98 million non-cash foreign exchange loss compared to a gain of US$ 7 million in 2023.
Outlook and Challenges
MHP remains focused on overcoming the challenges posed by the ongoing conflict while adapting to a dynamic geopolitical environment. The company continues to prioritize workforce safety and business continuity, all while delivering solid financial results.
