MHP posts $85M loss in Q1 despite strong revenue growth
Currency losses, rising costs hit Ukrainian poultry group's margins
19 June 2026
2 minute read
By: MHP SE reported a net loss of $85 million for the first quarter of 2026, reversing a $32 million profit a year earlier, despite consolidated revenue rising 31% to $1,022 million, the Ukrainian poultry and agriculture group announced.
Operating profit fell 68% to $19 million, with operating profit as a share of revenue down to 2% from 8% a year earlier. The company said the decline was driven by flat gross profit, which failed to offset higher selling, general and administrative expenses tied to the first-time consolidation of Spanish poultry and pork producer UVESA, along with increased payroll and transportation costs.
The net loss was further weighed down by a $53 million loss tied to currency movements, compared with a $13 million gain in the same period last year. This reflected the weakening of the Ukrainian hryvnia against the US dollar and euro, which increases the dollar value of debts MHP's Ukrainian operations owe in those currencies. The loss is an accounting adjustment rather than a cash cost.
Revenue growth was driven primarily by the European business, which reflected the consolidation of UVESA from July 2025. Revenue from European operations rose 141% to $354 million, while gross profit there increased 103% to $65 million. Export sales accounted for 50% of total revenue, down from 63% a year earlier, as UVESA's sales are concentrated in the domestic European market.
Earlier this month, MHP also announced an agreement to acquire Greek poultry producer Th. Nitsiakos.
Poultry meat production volume in Ukraine declined to 173,092 tonnes from 180,869 tonnes a year earlier, while production volumes at Perutnina Ptuj rose 19% to 42,032 tonnes. MHP Ukraine's average poultry meat price fell 3% to $2.11 per kg, while the average price in the European business rose slightly to €3.60 per kg.
The poultry and processed meat business saw gross profit fall 41% to $60 million, with profit as a share of revenue down to 13% from 24%, which the company attributed to weaker margins in that part of the business.
MHP's net debt stood at $1,497 million as of March 31, at a level the company said remained within the limit set by its bond agreements. The board did not declare a dividend for 2025 or an interim dividend for the quarter, citing the need to preserve cash amid war-related uncertainties.
At its recent Annual General Meeting on June 18, all resolutions were passed. CEO Yuriy Kosyuk and the full board of directors were all re-elected.
