MHP

LSE-listed MHP, Ukraine’s largest poultry producer, reported 2025 EBITDA of $641m including the IFRS 16 effect, up 1.4% y-o-y, and $569m excluding IFRS 16, up 0.5% y-o-y, as sales rose 24% y-o-y to $3.8bn. End-2025 net debt excluding IFRS 16 stood at $1.5bn, implying a Net Debt/EBITDA ratio of 2.69x, up from 2.08x at end-2024. On a pro-forma basis, including Spanish meat producer UVESA’s LTM EBITDA, the ratio stood at 2.49x. Year-end cash increased 17% y-o-y to $415m, though management indicated it has recently dropped to around $350m. Management expects 2026 EBITDA to decline by around 15% y-o-y due to the negative impact of higher fuel prices following military escalation in the Middle East. The company continues poultry exports to the region, with a 30-40% increase in delivery costs being offset by higher poultry selling prices. In 2026, MHP expects the MENA region to account for around 20% of poultry exports. For 2026, MHP guides for CAPEX of $250-280m, in line with $275m in 2025, and expects a $30-40m working capital release following a $142m build-up last year.

S&P Global Ratings upgraded its long-term issuer credit rating of MHP by one notch to CCC+ from CCC after the company redeemed its $550m 2026 Eurobonds using proceeds from the new $550m 2029 issue, substantially reducing short-term refinancing risks. The agency assigned the new 2029 notes a long-term rating of CCC+. At the same time, S&P cautioned that longer-term refinancing risk remains elevated, particularly given the sizable 2029 maturities, when both the $550m and $350m notes fall due.