MHP SE Reports Strong Revenue Growth and Net Profit Increase for 2025, Completes UVESA Acquisition

MHP 2025 results analysis – strong revenue growth, higher net profit, but weaker margins

MHP has delivered the sort of results that look good at first glance and a bit more mixed once you dig in. Revenue for 2025 rose 24% year on year to US$ 3,766 million, while net profit improved to US$ 187 million from US$ 144 million. That is clearly positive.

But there is a catch. Operating profit excluding impairment fell 15% to US$ 376 million, and operating margin slipped to 10% from 14%. In plain English, MHP sold a lot more, but it kept less profit from each dollar of sales.

The company says strong demand for chicken meat and processed products, better pricing and resilient operations helped performance. The completed acquisition of Grupo UVESA in Spain also gave the top line a big lift and matters strategically, because it pushes MHP further into Europe at a time when Ukraine remains a very tough operating environment.

Key number	12M 2025	12M 2024
Revenue	US$ 3,766 million	US$ 3,046 million
Operating profit excluding impairment	US$ 376 million	US$ 440 million
Operating margin	10%	14%
Adjusted EBITDA net of IFRS 16	US$ 569 million	US$ 566 million
Adjusted EBITDA margin	15%	19%
Net profit	US$ 187 million	US$ 144 million
Net debt	US$ 1,532 million	US$ 1,179 million

Why MHP revenue jumped in 2025 – chicken demand stayed strong and UVESA boosted Europe

The biggest headline here is growth. Q4 revenue surged 44% to US$ 1,131 million, and that is a sizeable move for a food producer operating through war and geopolitical disruption. For the full year, MHP benefited from solid demand and better prices in both Ukraine and export markets.

In Ukraine, average poultry meat prices rose 16% to US$ 2.35 per kg for 2025, excluding VAT. In the European operating segment, excluding UVESA, average poultry meat prices rose 5% to EUR 3.64 per kg. That pricing support did a lot of the heavy lifting.

Volumes were more mixed. Poultry meat production in Ukraine fell 5% to 677,079 tonnes, but the European operating segment excluding UVESA grew 13% to 165,138 tonnes. UVESA then added another 84,089 tonnes of poultry meat and 29,005 tonnes of pork from the acquisition date of 31 July 2025.

Exports from Ukraine were basically flat at 368,563 tonnes versus 371,198 tonnes last year. That tells you demand held up, but MHP is not relying purely on Ukraine for growth anymore.

MHP profitability trends – headline net profit improved, underlying margins moved the wrong way

This is the bit investors should not skip. Net profit improved, yes, but the RNS makes clear that this was driven primarily by a much smaller non-cash foreign exchange loss. A non-cash item means it affects accounting profit, but not necessarily the cash coming into the business.

The foreign exchange loss was US$ 12 million in 2025 compared with US$ 125 million in 2024. That helped push net profit up to US$ 187 million. So the earnings line looks better, but the improvement was not mainly due to stronger day-to-day trading.

Adjusted EBITDA, which is a commonly used cash profit measure before interest, tax, depreciation and amortisation, rose only slightly to US$ 569 million from US$ 566 million. More importantly, the adjusted EBITDA margin dropped to 15% from 19%.

Q4 was even softer on this front. Revenue was up strongly, but operating profit excluding impairment fell 33% to US$ 63 million, adjusted EBITDA dropped 12% to US$ 114 million, and MHP reported a net loss of US$ 28 million compared with a net profit of US$ 3 million a year earlier. That is not disastrous, but it does show growth is coming with pressure on profitability.

Poultry and processed meat drove MHP growth while vegetable oil operations disappointed

The poultry and processed meat business remains the star of the show. In 2025, segment revenue rose 18% to US$ 1,926 million, gross profit climbed 21% to US$ 450 million, and adjusted EBITDA increased 26% to US$ 317 million. That is exactly what you want to see from MHP’s core engine.

The European operating segment also had a strong year on revenue, up 76% to US$ 1,010 million, with adjusted EBITDA up 37% to US$ 119 million. Even so, gross margin fell to 18% from 25%, which again points to integration and cost pressure rather than clean, effortless growth.

Vegetable oil operations were the obvious weak spot. Revenue fell 14% to US$ 394 million, gross profit dropped 74% to US$ 12 million, and adjusted EBITDA fell 71% to US$ 14 million. When a segment goes from an 11% EBITDA margin to 4%, that is a proper deterioration.

Agriculture was mixed. Revenue rose 14% to US$ 436 million, but adjusted EBITDA slipped 2% to US$ 259 million. So the broader picture is simple enough: poultry is carrying the group, Europe is growing fast, and vegetable oil is dragging.

UVESA acquisition impact on MHP – strategic diversification with execution risk

MHP completed the acquisition of over 92% of Grupo UVESA on 31 July 2025. That matters because UVESA is one of Spain’s leading poultry and pork producers and runs a vertically integrated model, meaning it controls multiple stages of production rather than relying heavily on third parties.

Strategically, I think this is the most important part of the RNS. MHP is building more scale in Europe, diversifying hard-currency earnings and reducing its dependence on one geography during wartime. That is sensible corporate strategy.

The other side of the coin is integration risk. The company says it will focus on operational alignment, knowledge sharing and targeted investments, but the financial benefits are not fully disclosed yet. Investors should assume this deal strengthens the long-term story, while also accepting that margins may stay under pressure in the near term.

MHP debt, cash flow and balance sheet – still within limits, but leverage is clearly higher

Cash flow was decent at the operating level. Cash from operations rose to US$ 413 million from US$ 343 million, and net cash from operating activities improved to US$ 271 million from US$ 246 million for the full year.

But acquisition-led growth costs money. Cash used in investing activities jumped to US$ 541 million from US$ 333 million, while financing inflows increased to US$ 298 million from US$ 17 million. Net debt rose to US$ 1,532 million from US$ 1,179 million.

The reassuring bit is that leverage still looks controlled. Net debt to last twelve months adjusted EBITDA was 2.69, below the Eurobond covenant limit of 3.0. That gives MHP breathing room, but not loads of it. If margins weaken further, that cushion gets thinner.

MHP outlook for 2026 – moderate cost inflation now, possible pricing relief later

The outlook is cautious but not gloomy. MHP expects moderate increases in grain, vegetable oil and poultry costs, driven mainly by higher energy and fertiliser prices. It says this may have a mild adverse effect on profitability in the short term.

Management also expects market prices for grain, vegetable oils and poultry to adjust upward with a 6-8 month lag, which could help offset those higher costs later on. That sounds reasonable, but it is still an outlook, not a guarantee.

Geopolitical risk remains a live issue. The company continues to manage the War in Ukraine and wider tensions in the Middle East, especially around logistics and supply chains. That uncertainty has not gone away, even if MHP has become much better at handling it.

What this MHP RNS means for retail investors

My take is that this is a good, not perfect, set of results. The positives are strong revenue growth, a higher full-year net profit, resilient poultry demand, and a meaningful expansion in Europe through UVESA. Those are all real strengths.

The negatives are just as real. Margins are lower, Q4 ended in a loss, vegetable oil operations were poor, and net debt is up sharply. So if you only read the revenue and net profit headlines, you miss half the story.

Overall, MHP looks like a business that is growing and diversifying well under difficult conditions, but paying for that growth with tighter profitability and higher leverage. That makes it interesting, but not risk-free. If you want the detailed presentation and annual report, MHP has published them here and here.