MHP Food and Agricultural Holding, Ukraine’s largest chicken producer, has submitted a binding offer to acquire UVESA Group (UVESA), the market leader in the Spanish food industry in the production of poultry and pork, the company’s press service reports.
“The transaction is an open tender offer addressed to all current shareholders of UVESA, which is subject to certain conditions, including, but not limited to, reaching the minimum acceptance threshold of 50.01%. If regulatory approvals are required to close the deal, MHP will ensure that all requirements are met,” the statement said.
The agroholding emphasized that this acquisition is another step in MHP’s development in international markets and strengthening the company’s position as an important player in the global food market and the European market in particular. Expanding its international presence is in line with MHP’s strategy of transforming itself into an international culinary company with operations in key regional markets.
MHP is one of the largest investors in Ukraine. Since the full-scale invasion, MHP has invested UAH 14.8 billion in business development in Ukraine.
“MHP’s main priority remains the further development of its business in Ukraine. We are working to ensure food safety, stable operation of enterprises, strengthening the country’s economy, supporting the military, our teams and communities, investing in Ukrainian businesses that expand the MHP culinary ecosystem,” the agroholding said, adding that despite the war, MHP demonstrates resilience and growth, scaling up its practices at foreign assets.
The company already has successful experience in acquiring and developing companies in the European Union – in 2019, Perutnina Ptuj (Slovenia, Serbia, Croatia, Bosnia and Herzegovina) became part of MHP Group.
MHP has considerable expertise in poultry production – for the second year in a row, the company has retained the status of the largest poultry producer in Europe according to the WATT Poultry International rating.
In addition, thanks to MHP’s business approaches, solutions and expertise, the European company has significantly increased its efficiency – Perutnina Ptuj’s EBIDTA grew from $34 million in 2018 to $91 million in 2023.
“This experience of MHP will make it possible to make a significant contribution to the agricultural and food sectors in Spain. The deal will help meet the growing demand for high quality and affordable food in the world. This step is of great importance for strengthening the food security of the European Union and is fully in line with Ukraine’s European integration aspirations to become part of the single European market,” MHP summarized.
UVESA Group was founded in 1964 by a group of veterinarians who acquired the Piensos Uve feed mill (Tudela, Navarra province). Between 1972 and 1984, the group expanded its assets to three feed mills, and in 1985 acquired its own slaughterhouse. In 2001, it opened a poultry factory with slaughter and processing facilities in Málaga, in 2008 a new poultry processing plant and in 2016 a poultry hatchery in Navarre. In 2017, Prado Vega and Saconda merged to become Uvesa Cuellar Uvesa Catarroja. By 2020, the company owned 600 integrated farms and launched the production and export of raw sausage under the Alpico brand, as well as a line of halal meat products under the Basmahal brand.
“MHP is the largest chicken producer in Ukraine. The company produces cereals, sunflower oil, and processed meat products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue last year increased by 14% to $3.021 billion.
In the third quarter of this year, MHP earned $96 million in net profit, which is 75% higher than in the third quarter of 2023, while revenue increased by 5% to $773 million, gross profit grew by 47% to $249 million, operating profit by 62% to $154 million, and adjusted EBITDA by 56% to $173 million.
In January-September 2024, MHP, Ukraine’s largest chicken producer, reduced sales of sunflower oil by 11% compared to the same period in 2023, to 330.24 thousand tons.
“The decline is primarily due to a change in the recipe for oilcake production, which led to a decrease in oil production,” the holding company said in a report to the London Stock Exchange.
“In January-September 2024, MHP also reduced sales of soybean oil by 9% compared to the same period in 2023, to 35.46 thousand tons.
Revenue of the vegetable oils segment in January-September 2024 decreased by 27% to $355 mln, which led to a decrease in adjusted EBITDA (excluding IFRS 16) to $42 mln compared to $71 mln in the same period last year, which the agricultural holding explains by a decline in both world oil prices and sales volumes.
“MHP is the largest chicken producer in Ukraine. The company produces cereals, sunflower oil, and processed meat products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue last year increased by 14% to $3.021 billion.
In the third quarter of this year, MHP earned $96 million in net profit, which is 75% higher than in the third quarter of 2023, while revenue increased by 5% to $773 million, gross profit grew by 47% to $249 million, operating profit by 62% to $154 million, and adjusted EBITDA by 56% to $173 million.
Two Ukrainian producers of chicken and eggs, MHP and Avangard, topped the list of European producers of chicken and eggs and took 15th place in the global ranking, according to the WattPoultry magazine, which researches the global market for the production, processing and sale of poultry products.
According to the ranking, MHP agricultural holding topped the list of broiler producers in the European Union and took 15th place in the world ranking with a production of 704 thousand tons of chicken meat per year.
Ukrainian agricultural holding Avangard was ranked first among egg producers in the European Union and 15th among world leaders with a production of 13.3 million eggs.
“Demand for chicken meat continues to grow and consumption is expected to increase by 16% between 2024 and 2033, according to the Organization for Economic Cooperation and Development (OECD) and the Food and Agriculture Organization, which is obviously good news for global poultry producers. Nothing is guaranteed, but as demand remains high, companies in our industry at least have plenty of opportunities to capitalize on them,” the publication emphasized.
The compilers of the rating reminded that broiler and egg producers, wherever they are in the world, are forced to deal with disease outbreaks and increasingly stringent regulations. However, they can at least be sure that demand for their products will continue.
MHP is the largest chicken producer in Ukraine. It produces grain, sunflower oil, and processed meat products.
In 2023, the company earned $142 million in net profit compared to a net loss of $231 million a year earlier. Last year, the group’s revenue increased by 14% to $3.021 billion.
As reported, in March 2022, Avangard announced losses of UAH 1.5 billion since the beginning of Russia’s military invasion of Ukraine. Russian aggression has led to the shutdown of a number of the group’s key poultry farms, and chickens at the Chornobaivska poultry farm (Bilozerka, Kherson region) were left without food and died.
“Ukrlandfarming is one of the largest agricultural holdings in Eurasia. It is engaged in growing grain, raising cattle, and distributing machinery, fertilizers, and seeds. “Avangard, a part of it, is Ukraine’s largest producer of eggs and egg products.
The Saudi Arabian Investment Company for Agriculture and Livestock (SALIC) has concentrated 12.6% of all outstanding shares of MHP, Ukraine’s largest chicken producer.
“SALIC, a wholly owned subsidiary of the Public Investment Fund of the Kingdom of Saudi Arabia (KSA), has acquired 13,514,563 GDRs of MHP SE, the parent company of MHP,” the Ukrainian agricultural holding said in a stock exchange announcement.
MHP’s share price on the London Stock Exchange is about $4 per share.
Salic was founded in 2012, in Ukraine the company already controls the agricultural holding Continental Farmers Group with a land bank of about 195 thousand hectares.
MHP is one of the largest agricultural holdings in Ukraine, which has been actively developing outside the country in recent years. Its Ukrainian land bank is about 370 thousand hectares.
In the first half of 2024, the company reduced its net profit by 33% to $45 million, due to foreign exchange losses of $81 million compared to $5 million in the first half of 2023. EBITDA increased by 20% to $280 million on a 4% decrease in revenue to $1.489 billion, thanks to crop production.
MHP’s founder, majority shareholder and Chairman of the Board is Ukrainian businessman Yuriy Kosyuk.
MHP Food and Agricultural Holding, Ukraine’s largest chicken producer, reduced sales of sunflower oil by 7% to 229.27 thousand tons in January-June 2024 compared to the same period last year.
“This is mainly due to a decrease in the production of sunflower cake,” the holding said in a report on the London Stock Exchange on Friday.
“In January-June 2024, MHP also reduced sales of soybean oil by 15%, to 23.82 thousand tons, compared to the same period last year, but they remained stable compared to the previous quarter.
Revenues of the vegetable oils segment in January-June 2024 decreased by 32% to $236 mln, which led to a decrease in adjusted EBITDA (excluding IFRS 16) to $27 mln compared to $48 mln in the same period last year, which the agricultural holding explains by the decline in world oil prices.
“MHP is the largest chicken producer in Ukraine. The company produces grain, sunflower oil, and meat processing products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue increased by 14% to $3.021 billion last year.
“In the second quarter of 2024, MHP earned $29 million in net profit, up 71% compared to the second quarter of 2023. Its EBITDA increased by 40% to $153 million, while revenue decreased by 5% to $770 million. The agroholding attributed the increase in profitability to improved performance in the crop sector.
Overall, net profit decreased by 33% to $45 million for the half-year, due to foreign exchange losses of $81 million against $5 million in the first half of 2023. EBITDA increased by 20% to $280 million on a 4% decrease in revenue to $1.489 billion, driven by crop production.
MHP’s founder, majority shareholder and Chairman of the Board is Ukrainian businessman Yuriy Kosyuk.
MHP Food and Agricultural Holding, Ukraine’s largest chicken producer, reduced meat exports from Ukraine by 12% to 87,799 thousand tons in April-June 2024.
According to the holding’s report on the London Stock Exchange on Friday, MHP increased poultry production in the European operating segment (PP) to 35.46 thousand tons, up 6.5% year-on-year.
The agricultural holding noted that the volume of meat production in Ukraine remained stable in the period under review at 187.414 thousand tons against 181.69 thousand tons in the same period last year.
At the same time, the average price of poultry meat in Ukraine remained stable and was in line with last year’s figure at $1.97 per kg (excluding VAT). The average price for poultry produced in the European segment also remained virtually unchanged at EUR3.54 per kg compared to EUR3.64 per kg in the same period last year.
MHP reduced poultry exports from Ukraine in the second quarter of 2024 by 12% to 87,799 thousand tons compared to the same period last year.
In January-June of this year, the agricultural holding practically did not change the volume of poultry production in Ukraine – 365.901 thousand tons against 359.332 thousand tons in the same period of 2023. The volume of poultry production in the European segment of MHP increased by 7% to 69,418 thsd tonnes. A year earlier in the same period, this figure was 65,087 thousand tons.
The average price of MHP poultry in Ukraine remained almost unchanged at $1.98 per kg excluding VAT, compared to $1.92 a year earlier. The average price for poultry meat produced in the European segment also remained virtually unchanged at EUR3.49 per kg in the first six months of 2024 (EUR3.58 per kg in the first six months of 2023).
In the first half of 2024, MHP reduced poultry exports from Ukraine by 12% to 185.854 thousand tons. A year earlier, this figure was 212.106 tons for the same period.
The total volume of poultry sales to third parties in January-June 2024 decreased by 8% year-on-year to 327.215 thousand tons, mainly due to a significant decrease in export sales, the agricultural holding explained.
At the same time, the total sales of processed poultry meat in the first half of this year increased by 19% to 20.386 thousand tons due to production growth and further transformation into a culinary company. The average price of value-added products increased by 4% to $2.90 per kg as a result of changes in the product mix.
MHP is the largest chicken producer in Ukraine. The company produces cereals, sunflower oil, and processed meat products.
As reported, the company received $142 million in net profit in 2023 compared to $231 million in net loss a year earlier. The group’s revenue increased by 14% to $3.021 billion last year.
In the second quarter of 2024, MHP earned $29 million in net profit, up 71% compared to the second quarter of 2023. Its EBITDA increased by 40% to $153 million, while revenue decreased by 5% to $770 million. The agroholding attributed the increase in profitability to improved performance in the crop sector.
Overall, net profit decreased by 33% to $45 million for the half-year, due to foreign exchange losses of $81 million against $5 million in the first half of 2023.
EBITDA in crop production increased by 20% to $280 million, while revenue decreased by 4% to $1.489 billion.
