MHP (MHPC) H1 2024 earnings summary

Executive summary

• Revenue for 6M 2024 was $1,489 million, down 4% year-over-year, with net profit at $45 million, a 33% decrease, mainly due to an $81 million FX loss.

• Adjusted EBITDA for 6M 2024 rose 21% to $264 million, driven by strong agriculture and European operations.

• Over 3,000 employees mobilized to the Armed Forces, with war-related costs and losses reaching $26 million, including a $7 million inventory loss from a warehouse strike.

• No dividends declared for 2023 or 6M 2024 due to ongoing uncertainties and liquidity preservation.

• Export revenue comprised 64% of total revenue in H1 2024, with poultry exports accounting for 57% of segment sales.

Financial highlights

• Q2 2024 revenue fell 5% year-over-year to $770 million, while adjusted EBITDA grew to $145 million (19% margin).

• Gross profit for 6M 2024 was $294 million (19% margin), with operating profit up 26% to $192 million.

• Net profit margin for 6M 2024 was 3%, down from 4% in 6M 2023; EPS was $0.39, down from $0.66.

• Net debt at period end was about $1.1 billion, with total debt near $1.5 billion.

• Cash and cash equivalents at $294 million as of June 30, 2024.

Outlook and guidance

• Poultry prices expected to remain stable in H2 2024, with production facilities operating near full capacity.

• Full-year CapEx projected at $300–$350 million, with $250 million expected for 2025.

• EBITDA for 2024 forecasted to be similar to 2023, around $450–$460 million.

• Grain segment EBITDA expected to be higher year-over-year due to strong harvest and high prices.

• Inflationary pressures and currency volatility are expected to persist in H2 2024.