MHP SE Earnings Call: Growth Amidst Financial Challenges

MHP SE Sponsored GDR RegS ((MHPSY)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for MHP SE Sponsored GDR RegS painted a picture of robust revenue growth and strategic expansion, particularly in European markets through the acquisition of UVESA. Despite these positive strides, the company faces profitability pressures due to rising costs and significant challenges related to debt and capital controls, leading to a balanced perspective of both achievements and risks.

Revenue Growth

In the third quarter of 2025, MHP SE reported a remarkable 29% year-on-year increase in revenue, reaching approximately $1 billion. For the first nine months of 2025, revenue rose by 16% year-on-year to over $2.6 billion. This growth was driven by strong performance in poultry, agricultural, and European operations, showcasing the company’s ability to capitalize on market opportunities.

European Operations Expansion

The acquisition of UVESA in July 2025 significantly bolstered MHP’s European operations, leading to an 18% year-on-year increase in EBITDA for this segment. UVESA alone contributed $126 million in revenue and $9 million in EBITDA within just two months post-acquisition, highlighting the strategic value of this acquisition.

Agricultural Operations Performance

MHP’s agricultural operations demonstrated impressive results, with over 330,000 hectares harvested and more than 2 million tonnes of crops collected. The wheat yield reached a record high of 7.7 tonnes per hectare. The segment’s EBITDA saw a significant improvement, driven by higher prices of grain and oilseeds.

Pressure on Profitability

Despite a 27% increase in EBITDA in Q3 2025, MHP’s profitability was under pressure due to higher payroll, SG&A costs, and increased war-related expenses. These factors have created challenges in maintaining profitability margins.

Vegetable Oil Segment Weakness

The vegetable oil segment faced challenges, with a decline in EBITDA year-on-year. This was attributed to high prices of sunflower and soybean seeds, which were not fully offset by changes in oil prices, impacting the segment’s overall performance.

Debt and Liquidity Concerns

MHP’s financial health is under scrutiny as the company grapples with nearly $1.1 billion in total debt and net debt of about $1.5 billion. The $550 million notes due in April 2026 pose a significant challenge, compounded by capital controls that restrict the use of offshore cash for debt repayment.

Forward-Looking Guidance

Looking ahead, MHP anticipates a total EBITDA for 2026 to be around $580-600 million, with a positive cash flow expectation of about $30-50 million. The company remains focused on enhancing UVESA’s performance and maintaining prudent financial management as it prepares for refinancing its 2026 bonds. Despite geopolitical and operational challenges, MHP’s strategic initiatives aim to sustain growth and financial stability.

In conclusion, the earnings call for MHP SE Sponsored GDR RegS revealed a company navigating both growth opportunities and financial challenges. While revenue growth and strategic expansions are notable achievements, the pressures on profitability and debt management remain critical areas to watch. Investors and stakeholders will be keenly observing how MHP addresses these challenges in the coming quarters.