2024
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GLOBAL REACH
UKRAINIAN
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39
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226
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124
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150
153
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation |
Business Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial
and Sustainability
Information Statement
158
159
165
170
Statement of the Board of
Directors
Independent Auditor’s Report
Consolidated Financial
Statements
Notes
STRATEGIC
REPORT
GOVERNANCE
FINANCIAL
STATEMENTS
Key Contacts & Advisors
Financial Calendar
Glossary of Terms
SHAREHOLDER
INFORMATION
Chair’s Introduction to Corporate
Governance
Corporate Governance Report
Board of Directors
Audit & Risk Committee Report
Nominations and Remuneration
Committee Report
Sustainability & International
Affairs Committee Report
Management Report
FINANCIAL
PERFORMANCE
PAGE 39
BOARD OF
DIRECTORS
PAGE 130
CONSOLIDATED
FINANCIAL
STATEMENTS
PAGE 165
2024
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STRATEGIC
REPORT
FINANCIAL
PERFORMANCE
PAGE 39
CHAIR'S
STATEMENT
PAGE 7
Measuring our Success and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business Model
Our Values: Dilosophy
Key Performance Indicators
Financial & Operational Review
Alternative Performance Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and Sustainability
Information Statement
3
2024
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FINANCIAL HIGHLIGHTS 2024
MEASURING OUR
SUCCESS AND PROGRESS
REVENUE
US$ million
2024
3,046
1 Adjusted EBITDA is net of IFRS 16
WAR-RELATED COSTS
54
NET DEBT/LTM
EBITDA RATIO
2.08
2024
2023
2.47
NET DEBT
US$ million
1,179
2024
2023
1,101
EXPORT REVENUE
2024
2023
US$ million
1,807
1,840
stable
stable
stable
ADJUSTED EBITDA1
2024
2023
2024
2023
US$ million
US$ million
445
566
27% y/y
54% y/y
EXPORT REVENUE AS
A % OF TOTAL REVENUE
2024
2023
60%
60%
2023
3,021
35
US$ million
4
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGIC AND OPERATIONAL HIGHLIGHTS
OUR APPROACH TO RESPONSIBLE BUSINESS
RESILIENCE AND
INNOVATION
OVERSIGHT AND
STRATEGY
EMBEDDING ESG INTO OUR
OPERATIONS
RESPONSIBLE FOOD
PRODUCTION
INTERNATIONAL
DIVERSIFICATION
PARTNERSHIP
We maintained exports of grains, oils,
poultry meat and poultry products to
over 80 countries despite War-related
and other complex challenges.
Our Ukrainian operations continued to
run at full capacity utilisation.
We established an Operational ESG
Committee which reports directly
to the Board-level Sustainability &
International Affairs Committee
(“S&IA Committee”).
We formalised ESG as one of the
Company’s Objectives and Key Results
(“OKRs”), thereby putting ESG on an
equal footing with other operational-
focused metrics.
We implemented updated GLOBAL
G.A.P. standards at three feed mills and
two poultry farms, retained all of MHP’s
existing certifications, and ensured
sustainable sourcing by auditing key
crop suppliers under the ISCC standard.
In December 2024, we announced
our binding offer to acquire UVESA
Group, a market leader in the Spanish
food industry, further increasing our
footprint in Europe.
We increased our presence in MENA
and in the Kingdom of Saudi Arabia
through our 45% stake in MHP Desert
Hills for Poultry Company.
We embedded our Customer Business
Development (“CBD”) philosophy into
our everyday operations.
S&IA
Committee
Report on
page 150.
S&IA
Committee
Report on
page 150.
Chair’s
Statement
on page 7.
Growth
Pillars 4 & 6
on pages
92 and 110.
Strategy &
Purpose on
page 15.
CEO’s
Statement
on page 11.
5
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
PEOPLE
WE WORK FOR UKRAINE
PLANET
SUPPORT FOR OUR
WORKFORCE
CLIMATE CHANGE
STRATEGY
SUPPORT FOR THE PEOPLE
OF UKRAINE
OUR TRANSITION TO
CARBON NEUTRALITY
SUPPORT FOR VETERANS
HEALTH & SAFETY
PERFORMANCE
Continued payment in full of salaries
to our 2,724 mobilised employees1;
we have paid a total of over UAH
2.2 billion (US$ 53 million) in salaries
to mobilised employees since the
start of the War.
Comprehensive support for our
30,889 employees based in Ukraine
and their families.
Our project, supported by the EBRD,
to put in place a robust, science-based
Group-wide Sustainability Strategy in
2025 is on track. In 2024, we carried out
an assessment of climate change risks,
impacts and opportunities.
Cultural, social, and economic initiatives
and the provision of humanitarian aid
for the people of Ukraine since the start
of the War.
We invested US$ 42.5 million in
renewable energy generation,
focusing on solar power, innovation,
energy storage, and the production of
biomethane and bio-LNG.
Expansion of our rehabilitation
and reintegration programme
for demobilised employees and
other veterans.
The Company provides individual
and comprehensive support to
military personnel, veterans, and
their families as part of the “MHP
Standing Together” programme.
Our largest biogas plant in Ladyzhyn
was certified according to ISO
45001:2018 Occupational health and
safety management systems.
Growth
Pillar 2 on
page 70.
TCFD on
page 117.
Growth
Pillar 3 on
page 86.
Growth
Pillar 6 on
page 110.
Growth
Pillar 3 on
page 86.
Growth
Pillar 4 on
page 92.
GHG EMISSIONS –
UKRAINE
ENERGY MANAGEMENT –
UKRAINE
WATER USAGE
Scope 1 emissions, tonnes: 548,110,
+3.9% y/y (2023: 527,5572 tonnes)
Scope 2 emissions, tonnes: 223,024,
-2.0% y/y (2023: 227,656 tonnes)
Total energy from renewable sources:
2,274 TJ, +9.3% y/y (2023: 2,081 TJ)
Of which biogas: 1,636 TJ, -15.4% y/y
(2023: 1,394 TJ)
Ukraine water usage: 16.5 million m3,
+9.3% y/y (2023: 15.1 million m3)
European Operating Segment water
usage: 2.2 million m3, +9.2% y/y
(2023: 2.0 million m3)
Growth
Pillar 6 on
page 110.
Growth
Pillar 6 on
page 110.
Growth
Pillar 6 on
page 110.
1 Total mobilised employees as at 31 December 2024
2 data has been corrected and amended accordingly (changed from 362,323)
6
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
Dr John Rich
Executive Chair, MHP Board
THE WAR IN UKRAINE HAS
NOW ENTERED ITS FOURTH
YEAR AND CONTINUES TO
TAKE A TREMENDOUS TOLL
ON UKRAINE AND ITS PEOPLE
WITH DEVASTATING LOSS OF
LIFE, PROFOUNDLY NEGATIVE
IMPACTS ON PHYSICAL AND
MENTAL HEALTH, AND MASSIVE
DISPLACEMENT AND DISRUPTION.
CHAIR’S STATEMENT
Whilst MHP has remained resilient, business
continues
to
be
difficult,
vulnerable,
and
unpredictable.
MHP
has
continued
its
transformation to a world-leading sustainable
food producer, and it exports to over 80 countries
worldwide.
The
Group
delivered
a
robust
performance in 2024, but this must be put into
the context of the significant and deep challenges
that War poses daily. I will emphasise again
that business remains extremely difficult and
unpredictable, and we remain focused day-to-day
on navigating the dynamic geopolitical landscape
while maintaining operations. Addressing existing
and future workforce challenges, maintaining
employee safety, and ensuring business continuity
to sustain food security in Ukraine remain MHP's
key priorities.
Our operations continue at full capacity and
this, together with our FY 2024 performance, is
testament to the unwavering support of all our
stakeholders, and to the tremendous commitment
and bravery of our workforce. They overcome the
persistent challenges presented by War and they
are willing to be agile and adaptable to the new
operational realities in which they find themselves
daily, often retraining or relocating to take on new
responsibilities.
7
FINANCIAL
STATEMENTS
SHAREHOLDER
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STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
The Company continues to address existing and
future workforce challenges. Since 2022, in total,
11% of our workforce, or 3,463 employees, have been
mobilised to the Armed Forces of Ukraine as of 31
December 2024. It saddens me deeply to report that
163 MHP employees have been killed, 9 captured
and 116 missing in action due to the War. A further
623 MHP employees have returned as veterans.
Despite the challenges of War, and the agility
and adaptability required to maintain operations,
our vertically-integrated business model remains
unchanged as we continue to deliver upon our
growth strategy. We made significant progress
during the year in international diversification
and global outreach, in product development,
in innovation and leadership, and in our focus on
sustainability. We are proud to be an international
food and agri company with Ukrainian heritage.
OUR PEOPLE
I want to express my deepest thanks and
appreciation to everyone for their efforts during
the year. It is impossible to overstate the enduring
dedication, resilience, and commitment shown by
all our 30,889-strong workforce in Ukraine as they
adjust to the new realities of Wartime.
I remain extremely grateful to the Board’s Non-
Executive Directors, and to the team of Executive
Directors, for their support and special contributions
during Wartime. The Non-Executive Directors
continue to provide support, counsel, and guidance
to the management team to enable the latter to
conduct their day-to-day activities as effectively
as possible. They have also continued to play an
essential role in the conduct of dialogue with our
broad range of stakeholders throughout 2024.
More information on the Board’s contribution
and interaction with stakeholders can be found
in the Sustainability & International Affairs (“S&IA”)
Committee Report on page 150, in the Corporate
Governance Report on page 127, and Growth Pillar
1 on page 64.
I want to emphasise the exceptional contribution
from our CEO, Yuriy Kosyuk. Yuriy continues to be an
inspiring leader during these turbulent times with
his unwavering strength, proactivity, and positivity,
combined with his laser-like focus on the wellbeing
of our people and communities.
SUPPORT FROM OUR STAKEHOLDERS AND
PARTNERS
I am enormously appreciative of the support
provided during the year by all our stakeholders
including our people, our suppliers, our financiers,
shareholders, bondholders, and the international
and development finance institutions from which
MHP has received funding. The support has been
instrumental, both to our ability to deliver a robust
performance for 2024, and to continue to supply
international and domestic markets with essential
food staples. A thriving Ukrainian agricultural sector
is critical, not only for sustaining Ukraine but also
as an integral part of the solution to many of the
global and regional food supply and environmental-
related challenges we face now and in the future.
I would like to thank the international financial
community for their continued backing, patience
and
trust
despite
the
material
War-related
restrictions and disruption. In May 2024, the
Group completed the scheduled redemption of all
outstanding Eurobonds due in 2024, with a total
nominal value of US$ 500 million. The timely and
full redemption of these bonds, despite immense
challenges,
demonstrates
MHP’s
unwavering
commitment to its bondholders and stakeholders.
We remain extremely grateful to our partner
development finance institutions, including the
International Finance Corporation (“IFC”), U.S.
International Development Finance Corporation
(“DFC”), and European Bank for Reconstruction and
Development (“EBRD”) for loan facilities provided
in 2023-2024.
FINANCIAL POSITION
Our liquidity position is strong yet nuanced. The
National Bank of Ukraine’s (“NBU’s”) controls on
cross-border foreign-currency payments limit the
Company’s ability to service its foreign-currency
debt obligations. In addition, offshore cash
generated is subject to repatriation rules with
cash from some exports of grains and vegetable
oils needing to be repatriated within 120 days and
of poultry meat within 180 days.
The next significant maturity of Eurobonds is due
in April 2026. Repayment of principal from Ukraine
is restricted by the NBU. There remains no visibility
on when the NBU's restrictions will be lifted.
Our liquidity is supported by a strong cash balance
of US$ 355 million as at 31 December 2024 of which
65% is held outside Ukraine. More information can
be found in the Financial & Operational Review on
page 39.
DIVIDENDS
In view of continuing War-related uncertainties and
the resulting need to preserve liquidity to support
the Group’s ongoing business operations and
strategy, the Directors have decided not to declare
a final dividend for the 2024 financial year. No final
dividend was declared for the 2023 financial year.
CORPORATE GOVERNANCE
MHP aspires to the achievement of best practice in
line with established international standards. The
Board regards the UK Corporate Governance Code
2018 as the appropriate international benchmark for
its approach for this accounting period. From 2025,
MHP will align with the 2024 Code. MHP also complies
with the governance requirements of Cypriot law.
8
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
In June 2024, John Grant retired from the Board
as Senior Independent Director and Chair of the
Audit & Risk Committee. The Board and Senior
Management Team would like to thank John
for his invaluable and thoughtful contribution
to the growth of MHP during his distinguished
tenure. Christakis Taoushanis became MHP’s
Senior Independent Director when John Grant’s
retirement took effect, as well as being appointed
a member of the Nominations and Remuneration
Committee (“NRC”), and Oscar Chemerinski was
appointed Chair of the Audit & Risk Committee
(“ARC”). The Group’s ability to fill these positions
demonstrates the depth of experience and skillsets
on the Board. Further information on the Board,
including the Board Skills and Diversity Matrix, can
be found in the Board of Directors section of the
Corporate Governance Report on page 127.
Until June 2024, the Board comprised three
Executive Directors, four Non-Executive Directors,
and an Executive Chair. Following the retirement
of John Grant in June 2024, the Board comprises
three Executive Directors, three Non-Executive
Directors, and an Executive Chair. As the Group
continues to develop and execute on its strategy,
the structure of the Board will be reviewed and will
evolve accordingly. To this end, MHP continues to
review and conduct a phased succession plan to
ensure replenishment of the Board to maintain
and enhance its skill levels, knowledge and
independence. Further information can be found
in the Corporate Governance Report on page 127
and in the NRC Report on page 147.
MANAGEMENT OF WAR-RELATED RISKS
The Group continues to face a wide range of
substantive War-related challenges and risks,
which are subject to unpredictable and rapid
change, and so must continuously assess levels of
risk and evaluate the actions required to protect
its operations and market position. The Group
responds immediately to adverse operational
impacts, ensuring it is ready to take all actions
necessary to rebuild, restore and restart production
in the shortest time possible. For more information,
see Risk Management on page 54 and the ARC
Report on page 141.
A FOCUS ON SUSTAINABILITY
We have continued to make steady, thoughtful and
planned advances in our approach to sustainability
across the Group. I have noted previously that
adversity, whilst never welcomed, both necessitates
innovation and presents opportunities. The Group
has continued to capitalise upon these to progress
in a broad range of areas. This progress has been
accelerated during 2024 by the dedication of
significantly increased resources at an operational
level. This has had the effect of achieving widespread
buy-in at all levels throughout the organisation,
consequently bringing about positive change in
the culture of the Company to be more focused
on continuous improvements in sustainability.
In addition, we have been able to align with the
sustainability-related
requirements
from
our
partner development finance institutions in the
form of Environmental and Social Action Plans
(“ESAPs”). I am proud of our initiatives in this area,
even more so given they took place during Wartime
in Ukraine. More information on our progress with
the implementation of sustainable projects can be
found in our Growth Pillars from pages 61 to 116.
In September 2024, we established an Operational
ESG Committee which reports directly to the Board’s
Sustainabiility and International Affairs (“S&IA”)
Committee and comprises Top Management
representatives. The goal of the Operational ESG
Committee is to consolidate the importance
of sustainability at a strategic and operational
level over the medium- to long-term. In 2025, we
will finalise the ESG Roadmap which the S&IA
Committee will use as a framework to monitor
progress going forwards. Another significant step
in embedding sustainability into our operations
during the year was the formalising of ESG as
one of the Company’s Objectives and Key Results
(“OKRs”), thereby putting it on an equal footing
with other financial and operational metrics.
We made significant progress during the year
in our preparation for the implementation of the
requirements of forthcoming EU sustainability
regulations, initiating the systems transformation
required to align our reporting. We are working
with our auditors and advisors towards the
implementation of these requirements and we
look forward to further clarifications following the
publication in February 2025 of the EU’s Omnibus
package. For further information, please see the
S&IA Report on page 150.
Animal welfare remains a top priority, and we are
committed to further improving the world-class
safety standards which prevail in all the Group’s
businesses. See Growth Pillar 4 on page 92 for more
information on our sustainable farming practices.
THE PLANET
We remain committed to putting in place a
robust and Group-wide Sustainability Strategy,
incorporating
climate
change
policy.
During
2024, MHP completed a climate risk assessment
of impacts and, together with external advisors,
developed a Roadmap. This process is on track, and
I look forward to updating you in due course.
Alongside this project, we continued to focus on
reducing our carbon emissions, and upon our
journey towards carbon neutrality by 2050. Our
three biogas facilities remain in operation, and we
continued to invest in our biomethane and bio-LNG
production units at two plants in Ukraine during
the year, whilst also furthering plans and designs
for a fourth greenfield biogas project. We continue
to make significant investments into renewable
energy sources, including our solar power plants
which now have a capacity of 12.3 MW. We are
9
FINANCIAL
STATEMENTS
SHAREHOLDER
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STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
focused on reducing emissions from farming
practices, increasing the proportion of the landbank
participating in carbon projects and applying
innovation with outside partners. More details on
all these initiatives can be found in Growth Pillar
6 on page 110. In addition, through our leadership
position in innovative circular business practices, our
operations eliminate biological production waste at
every stage of the production process and reduce
our emissions. More detail on our circular economy
model can be found in Value Creation | Business
Model on page 21). In 2023, following our work with
Alltech E-CO2, MHP became first poultry company
worldwide to achieve Carbon Trust certification for
its poultry production.
Sustainable agriculture must be at the heart of
Ukraine’s reconstruction, providing economic,
social and environmental gains. Unfortunately,
the War is having a very damaging impact on
the environment. Flora and fauna are suffering,
and the soil and water are affected by debris and
chemicals in certain areas. Despite the War, we
have continued to make significant advances in
our approach to regenerative farming, restoring
the health of the land, water, and nutrients to
protect the environment. Areas of focus include
an increase in land devoted to cover crops,
biologisation of production, manure nutrition
systems, reduced tillage, and our commitment to
abandon ploughing as a type of tillage by 2028,
replacing it with vertical tillage, and the use of
disk ripper and chisel plow technology. More
information on our developments and innovation
in this area can be found in Growth Pillar 6 on
page 110.
GLOBAL PARTNERSHIPS AND DEVELOPMENTS
We have continued to increase our presence in the
Kingdom of Saudi Arabia (“KSA”) through our 45%
stake in MHP Desert Hills for Poultry Company.
The partnership represents a strategic pivot in
our global outreach and is emblematic of our
Dr John Rich
Executive Chair, MHP Board
28 April 2025
shared vision to integrate international expertise
with local insights, ensuring that regional food
security targets are met. This investment also
provides opportunities in poultry genetics, with
Tanmiah Food Company, through its Desert Hills
for Veterinary Services Ltd subsidiary, being the
largest independent producer of poultry genetics
in KSA, exporting over 50% of its produce.
Saudi Arabia and the MENA region remain an
integral part of MHP’s vision of becoming a global
food company. Regional market dynamics including
low poultry consumption and high population
growth will provide regional growth opportunities,
particularly as geopolitical tensions and conflicts
stabylise. The acquisition of a 12.6% stake in MHP
SE in September 2024 by SALIC, a subsidiary of the
Public Investment Fund of the Kingdom of Saudi
Arabia, itself driven by the KSA’s ongoing efforts to
expand its global business and build an integrated
value chain, is testament to the resilience of our
business model and the growth potential of key
agri-food sector markets.
In December 2024, we announced our binding
offer to acquire UVESA Group, a market leader in
the Spanish food industry with well-established
poultry and pork operations. Once completed,
the
acquisition
will
provide
a
long-term
strategic investor for UVESA Group and valuable
opportunities for collaboration with local farmers
and businesses, helping to strengthen the wider
poultry supply chain and contribute to Spain’s
broader agricultural sector.
Following this offer, on 20 March 2025, MHP
signed a Share Purchase Agreement (SPA)
with shareholders representing 41% of UVESA’s
share capital. During the subsequent adherence
period, we signed several additional adherence
deeds with other shareholders, allowing MHP
to obtain control over UVESA upon completion
of the transaction. Pursuant to these provisions,
additional shareholders joined the agreement
within the allowed timeframe, bringing total
participating equity shares to approximately 90% as
of the date of this report.
The transaction remains subject to the fulfilment
of certain conditions, most notably the receipt of
required regulatory approvals, including merger
control clearances, as well as foreign subsidies
clearance from the European Commission.
In March 2025, we announced that MHP had
obtained formal agreement from the Government
of Spain for this strategic investment in a leading
Spanish agri-food group with a strong presence in
the poultry industry. This milestone reflects MHP’s
strong track record as a trusted and responsible
investor.
The transaction aligns with MHP’s commitment
to
supporting
sustainable
food
production,
innovation, and growth in the European market.
Whilst we are making good progress, there is of
course no certainty that this deal will complete. If
it does, it will be another important strategic step
in our international diversification, increasing our
footprint in Europe, and building upon our highly
successful acquisition and integration of Perutnina
Ptuj (“PP”) that our CEO reviews in his Statement.
M&A
The final regulatory approvals, completion, and
subsequent integration of UVESA Group remain
the M&A priorities in the near- to medium-
term. However, where we are able to, given the
unpredictable wartime conditions, we will continue
to monitor opportunities to accelerate and expand
our culinary transformation.
10
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SHAREHOLDER
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Measuring our Success
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Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
OUR PEOPLE IN UKRAINE HAVE RISEN TO THE PHYSICAL
AND PSYCHOLOGICAL CHALLENGES AND ADAPTED
TO THE OPERATIONAL REALITIES OF WARTIME. I AM
GRATEFUL TO EVERYONE FOR THEIR RESILIENCE
AND COMMITMENT. MHP WILL CONTINUE TO PROVIDE
STABILITY FOR UKRAINE AND ITS PEOPLE AND WE ARE
FOCUSED CONSTANTLY ON EVOLVING OUR PROGRAMMES
OF SUPPORT TO OUR MHP FAMILY.
2024 was another difficult year for Ukraine and its people: more
than three years have now passed since the full-scale Russian
invasion and MHP continues to operate in a highly volatile and
challenging environment. Despite the deep challenges of War, we
delivered a robust operational and financial performance during
2024, and our journey to becoming a world-leading, sustainable
food producer continues and is well established.
CEO’S
STATEMENT
OPERATIONAL UPDATE
At the time of publication, all our production facilities
in Ukraine continue to operate at full capacity, but
we can give no assurance that this will remain the
case and that our facilities or the infrastructure we
use will not be subject to damaging attacks.
War-related operational challenges are managed
daily and are focused mainly on labour supply,
logistics, supply chain, and energy security.
Mobilisation has led to a shortage of supply and
skillsets and the labour market in Ukraine remains
constrained. The main impacts for our Ukrainian
operations have been felt in logistics, heavy
machinery, and warehousing. These have been
traditionally male-dominated sectors, and we are
actively promoting women into these roles.
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
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Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
We have successfully maintained exports to over
80 countries and continue to manage disruption
along key export routes by taking proactive steps to
mitigate risks and remaining agile in our approach.
Regular targeting by Russian drones of Ukrainian
ports and other transport-related infrastructure
makes the situation unpredictable.
Uncertainty remains over the further development
of poultry imports from Ukraine into the EU after
5 June 2025, when the current Autonomous
Trade Measures (“ATMs”) are due to end. We
remain grateful for the UK and EU’s support and
recognition that maintaining Ukraine’s macro-
economic stability is essential to fight Russian
aggression. For more information, see the
Sustainability & International Affairs Committee
Report on page 150.
In MENA, we saw exciting growth in key product
categories, especially in ready-to-cook and pre-
cooked products.
EXECUTING ON OUR GROWTH STRATEGY
FIVE YEARS TOGETHER:
MHP AND PERUTNINA PTUJ (“PP”)
PP was our first acquisition outside Ukraine, and
is now an integral part of our operations. I want to
reflect on the enormous progress we have made
together since our cooperation began in 2019.
Before its integration, PP had strong regional
brand recognition but faced challenges in
scaling its sustainability and efficiency practices.
Over five years, more than €242 million has
been invested by MHP in PP's new facilities and
infrastructure, modern technology, and employee
training, resulting in higher production capacity,
less production downtime, and more efficient
resource utilisation. Revenue has increased from
€243 million in 2019, to €532 million in 2024. We
have also aligned PP with MHP’s sustainability
vision and targets, rethinking existing processes,
Yuriy Kosyuk
CEO and Founder, MHP
28 April 2025
adopting new technologies, and investing in
renewable energy.
The trust placed in us by the PP employees, as well as
their willingness to embrace the corporate culture
of MHP while maintaining their local identity and
brand value, has been integral to our combined
success, and I am extremely grateful to them. I
am also proud that our partnership has brought
tangible benefits to the region: job creation and
economic growth, improved food safety standards,
environmental
protections,
and
funding
for
community development programmes that will
enhance quality of life.
UVESA ACQUISITION
In December 2024, building on our growth and
success in Europe, we announced our binding offer
to acquire UVESA, a market leader in the Spanish
food industry with well-established poultry and pork
operations. We expect to finalise this acquisition
later this year and are looking forward to working
with our new partners and local communities.
More information on our progress can be found in
the Financial & Operational Review on page 39. For
more information on our strategy, see Strategy &
Purpose on page 15.
SUPPORT FOR OUR PEOPLE AND COMMUNITIES
Support for our people and communities is deeply
rooted within the Group’s DNA and remains one
of our top priorities across all of our activities.
Since the outbreak of the War in Ukraine, MHP
has been providing systematic humanitarian
and social support. Over the three years of the full-
scale war, MHP, together with the MHP’s strategic
social partner – Charitable Foundation MHP-
Hromadi, supported more than 280 businesses
with over UAH 30 million, over 400 social projects
with more than UAH 35 million, and more than 30
cultural initiatives with over UAH 80 million.
We ensure our salaries are competitive across
the Group and that we continue to be a leading
employer. During 2024, we continued to expand
and develop our industry-leading training and
development programmes, and progressed with
the digitisation of our systems.
We have continued to pay the salaries of mobilised
employees in Ukraine and have paid a total of US$
53 million since the start of the War. Our “MHP
Standing Together” programme supports and cares
for mobilised employees and returning veterans,
alongside their families and communities. It is a
distressing reality that the number of veterans
in need of assistance will increase going forward,
and we are actively involved in the systematic
development of a rehabilitation system in Ukraine.
Further information on our activities can be found
in Growth Pillar 2 and Growth Pillar 3 on pages 70
and 86 respectively.
OUR VALUES AND OUR CULTURE
We are an international company with Ukrainian
roots and heart, united by our Values. The War has
brought our MHP Family closer to one another. In
H2 2022, at a time when many of us in Ukraine felt
at our most exposed, and so best able to distill what
really matters, we revisited our corporate Values.
During 2023, we refined and finalised these Values
and, during 2024, we focused on embedding them
into the culture of the Group: firstly, rolling them
out to middle management levels and then, in
September, to the whole organisation. We will
continue to further embed our Values, with next
steps including the checking of key processes
to ensure they align and that we are living our
Values. For more information on our system of core
Values – called Dilosophy – see page 30.
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
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Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
To provide high-quality, affordable, and
responsibly-produced food products
and food solutions which improve the
lives of our customers across the world.
WE ARE MHP
WHAT WE DO
OUR VISION
As a leading international food and
agri group, we export our products
and food solutions to over 80 countries
worldwide. We are also the largest
producer of poultry, TOP-10 producer
of culinary and processed-meat
products, and one of the largest
producers of grains and vegetable
oils in Ukraine. MHP is a leading
poultry meat producers in the EU and
TOP-10 poultry meat producer in the
world (Source: WattPoultry Magazine).
To be a world-leading sustainable food
and agro producer.
OUR STRATEGY
OUR CULTURE AND VALUES
RESPONSIBLE BUSINESS
We’re driving long-term growth and value creation by focusing on
our five strategic pillars. Since 2019, we have been evolving into a food
company, and this transformation is now well underway.
We’re creating a shared culture that fosters an environment of like-minded
people who know and share the Group’s Values.
We’re driving growth based on responsible business practices;
our six growth pillars guide us as we pursue our Purpose and strategy.
International
Diversification
Leadership and
Innovation
A focus on
Sustainability
Empowered
Human Capital
Culinary
Transformation
Continuous
Development
Transparency and
Honesty
Partnerships
Responsibility
Goal-orientation
Stakeholder
Engagement
Responsible Food
Production
Our Role in Society and
Our Licence to Operate
Our People and
Their Wellbeing
Business
Conduct
Planet
OUR PURPOSE
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Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
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Review
Alternative Performance
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Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
WHERE WE OPERATE
WE EXPORT
TO 70+ COUNTRIES
OUR BUSINESS MODEL
Our production facilities are principally located in Ukraine and Southeastern
Europe. Other operations include a cutting facility in the Netherlands, an
associate company in Saudi Arabia, and sales and distribution offices in MENA
(UAE, Saudi Arabia) and the UK.
We have a vertically-integrated structure which drives efficiency
and quality control. Our operations are reported through four
business segments.
GROUP REVENUE BY
DESTINATION
POULTRY EXPORT
VOLUMES BY DESTINATION
REVENUE BY BUSINESS
SEGMENT
GROUP EXPORT BY
BUSINESS SEGMENT
Export
60%
Domestic
40%
Africa
5%
Asia and other
3%
EU
38%
2024
2024
2024
2024
European Operating Segment
Poultry & Related Operations
Vegetable Oil Operations
Agriculture Operations
CIS
20%
MENA
34%
Value Creation | Business Model
on page 21.
19%
53%
15%
13%
8%
52%
24%
16%
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGY & PURPOSE
DESPITE THE CONTINUED CHALLENGES POSED BY THE WAR IN UKRAINE, WE MADE SIGNIFICANT PROGRESS
DURING 2024 ON ALL FOUR OF OUR STRATEGIC PILLARS.
STRATEGIC
PILLAR
STRATEGIC
OBJECTIVE
BUSINESS SEGMENT
FOCUS
HOW WE WILL ACHIEVE OUR OBJECTIVE
WHAT WE ACHIEVED IN 2024
INTERNATIONAL DIVERSIFICATION
International
diversification
and expansion
The expansion of existing and entry into new
export markets through market targeting
and increased sales of higher margin, value-
added products. These sales in turn drove our
culinary transformation.
In MENA, growth was driven by sales of commodity products (Iraq,
Jordan, Oman and Qatar), pre-cooked products (Saudi Arabia and
UAE), and ready-to-cook products (Saudi Arabia, UAE, Bahrain, Iraq
and Qatar).
In Europe, a shift in product mix towards value-added products and
growth in CBD revenue offset a decline in volume. The European
business established partnerships with two international and
three local retail chains in Central and Eastern Europe; three local
retailers, one cash & carry operator, and one national HoReCa
distributor (supply of pre-cooked products) in Southwestern
Europe; and five regional quick-service restaurant (“QSR”) chains,
one international QSR chain, and one retail customer in the UK.
In other markets, revenue growth was driven by product mix, with
value-added product share and sales price growth in Asia (Hong
Kong and Singapore), Canada, Africa and selective CIS markets
(Georgia, Moldova and Kazakhstan). In CIS, we expanded our
partnership with McDonald’s into Azerbaijan and Georgia and started
the first international collaboration with Domino’s in Azerbaijan.
BUSINESS SEGMENT KEY:
Poultry and Related
Operations Segment
Vegetable Oil
Operations
Agriculture
Operations
European Operating
Segment (“PP”)
15
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGIC
PILLAR
STRATEGIC
OBJECTIVE
BUSINESS SEGMENT
FOCUS
HOW WE WILL ACHIEVE OUR OBJECTIVE
WHAT WE ACHIEVED IN 2024
INTERNATIONAL DIVERSIFICATION (CONTINUED)
Expansion of
international
sales and
distribution
network
Launch of new international sales branches
and distribution offices, and the potential
establishment of joint ventures.
The continued expansion and evolution of
our CBD programme, collaborating with, and
creating solutions and value for, our clients in
areas including product development, business
models, supply chains, and customer service.
Continued development of our CBD programme across all regions.
We executed 61 and 26 new CBD cases with clients in our major
markets of Europe and MENA respectively. In MENA, 17 of the new
CBD initiatives were in Saudi Arabia highlighting our strategic focus
and growth potential in the region.
Establishment of a new distribution office in Canada.
M&A
opportunities
and strategic
partnerships
Continue to monitor and explore M&A
opportunities in the UK, EU, and MENA.
In December 2024, we announced our binding offer to acquire
UVESA Group, a market leader in the Spanish food industry with well-
established poultry and pork operations. For more information, see the
Subsequent Events section of the Financial & Operational Review on
page 39.
We acquired 70% of KK & Sons Group Ltd, a UK-registered logistics
company, for US$ 3.9 million, to boost the Group’s logistics
capabilities in Ukraine and abroad.
We acquired 100% of Toni d.o.o. in Croatia for US$ 14.1 million,
enhancing the grain supply chain stability for our Slovenian and
Croatian markets.
We invested US$ 7.5 million for a 49% stake in Ukrainskyi Miasnyi
Khutir, a meat-processing company in Ukraine. For more information
on this acquisition, see Subsequent Events in the Financial &
Operational Review on page 39.
We have continued to increase our presence in the Kingdom of
Saudi Arabia (“KSA”) through our 45% stake in MHP Desert Hills for
Poultry Company.
Poultry and Related
Operations Segment
Vegetable Oil
Operations
Agriculture
Operations
European Operating
Segment (“PP”)
BUSINESS SEGMENT KEY:
16
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
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Financial & Operational
Review
Alternative Performance
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Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGIC
PILLAR
STRATEGIC
OBJECTIVE
BUSINESS SEGMENT
FOCUS
HOW WE WILL ACHIEVE OUR OBJECTIVE
WHAT WE ACHIEVED IN 2024
OUR CULINARY TRANSFORMATION
Continued
transformation
to a food
company
The continued development of value-added
food products, supported by our state-of-the-
art culinary research centre, and in collaboration
with customers and leading culinary experts.
Development of retail and HoReCa segments
including street food, dark kitchens, and
virtual restaurants.
Strategic partnerships with food industry players,
and investment in businesses that expand the
Group’s culinary expertise.
CBD training for all sales teams.
The share of Group revenue from value-added products increased,
with growth seen across all regions, particularly MENA.
We established new strategic partnerships with QSR, retail and
HoReCa in all regions.
Our retail network (including both owned and franchised stores)
decreased to 1,682 outlets (2023: 1,743) with partners closing or losing a
a number of outlets in Ukraine due to the War. Over half of these were
in the East of the country, close to the military front. During the year,
franchise partners opened, modernised or reinnovated 168 outlets,
resulting in 56% of our retail network now represented by new formats.
In Ukraine, we launched our “Food Service” project providing ready-
to-eat portioned meals for corporate staff and national retail chains;
additional services offered include menu planning and consulting
services for planning staff canteens and dining areas.
We developed new technology to produce ready-made meat for
shawarma and for cut-after-cook products.
BUSINESS SEGMENT KEY:
Poultry and Related
Operations Segment
Vegetable Oil
Operations
Agriculture
Operations
European Operating
Segment (“PP”)
17
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Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGIC
PILLAR
STRATEGIC
OBJECTIVE
BUSINESS SEGMENT
FOCUS
HOW WE WILL ACHIEVE OUR OBJECTIVE
WHAT WE ACHIEVED IN 2024
LEADERSHIP AND INNOVATION
Become the
undisputed
leader in the
agricultural
market of
Ukraine
Ensure high efficiency crop production through
higher yields and optimisation of cost control
as well as improved resource management
strategies. Central to this will be the upgrading
of agricultural machinery and the digitisation
of production and harvesting processes
including the use of technology including
Artificial Intelligence (“AI”) for real-time analysis,
forecasting and facilitation of decision making.
Ensure the stability of the Group’s landbank.
We have implemented precision agriculture across a total of 150,000
hectares of land across 12 regions of Ukraine. This process begins
with an agrochemical analysis of productivity zones with the findings
enabling us to increase yields and optimise costs. As part of this
process, the area of variable-rate fertiliser application increased to
61,052 hectares (2023 harvest: 9,755 hectares) with variable-rate lime
(addressing soil acidity) applied to 7,171 hectares.
We are investing in irrigation systems that enhance the stability and
quality of our crops. This approach is actively used to optimise seed
production, and cultivation which are the foundations for providing the
Company with high-quality seeds. In 2024, 1,099 hectares of land were
under irrigation systems (2023: 1,054 hectares).
Brand
promotion and
development
Continue to promote and develop MHP’s strong
brands, both domestically and internationally,
through consumer-driven innovation, rigorous
quality control, and the introduction of new
products and categories.
We launched a new premium brand, Super Fileo, which
encompasses all forms of chicken thigh fillet products, including
chilled, processed, and marinated options. This is the first and
currently the only brand on the Ukrainian market focused exclusively
on this chicken part.
We repositioned TM Legko! from specialising in chicken nuggets to a
broader “multiform” umbrella category of frozen and chilled products,
designed for quick and easy preparation in just 2 to 20 minutes.
Continuous
improvement
A commitment to continuous improvement
and increased production efficiency across
all business segments through sustainable
and high product quality; increased efficiency
and productivity; sustainable cost control;
a positive impact on the environment;
employee satisfaction, development and
wellbeing; customer satisfaction; innovation
and modernisation.
Continued focus on innovation across everything we do, driven by
our growth mindset and our proactive acceptance of the risks of
doing business in Ukraine during Wartime.
page 54.
Successful and dynamic management of complex operational
challenges, including missile attacks on Ukrainian infrastructure and
regular disruption to energy supply, enabling the Group to continue
operations in both Ukraine and international markets.
page 50.
BUSINESS SEGMENT KEY:
Poultry and Related
Operations Segment
Vegetable Oil
Operations
Agriculture
Operations
European Operating
Segment (“PP”)
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
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Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGIC
PILLAR
STRATEGIC
OBJECTIVE
BUSINESS SEGMENT
FOCUS
HOW WE WILL ACHIEVE OUR OBJECTIVE
WHAT WE ACHIEVED IN 2024
A FOCUS ON SUSTAINABILITY
Steady, planned
and thoughtful
development
of MHP’s
approach to
sustainability
A drive for continuous improvement including
carbon footprint; biosecurity standards; leading
international environmental standards; health
and safety standards; our role in society;
business conduct; and animal welfare practices.
MHP is always looking for new ways to efficiently allocate resources
to ensure that our products are as healthy, safe, resource-efficient
and sustainable as possible.
We progressed Climate Risk Assessment project with the EBRD
with the aim of putting in place a robust, Group-wide climate
change policy. This will form part of the Group’s Sustainability Policy
and Strategy which are due to be finalised in 2025.
We achieved GLOBAL G.A.P. and ISCC certification at three and
fifteen of our sites respectively for our sustainable farming practices.
page 94.
To reduce emissions associated with soil cultivation, we have
committed to abandoning ploughing as a type of tillage by
2028. In 2023, the cultivation methods used on our landbank
were ploughing (50%), conventional tillage (29%), and minimal
(or conservation) tillage (21%). During 2024, the proportion of the
landbank cultivated through ploughing reduced to 34% while 46%
was conventionally tilled, and 20% under minimal tillage.
Carbon credits are generated for our sustainable farming practices.
We continued our work with Agreena (since 2023) and Cargill
(since 2025) to generate soil carbon credits. The proportion of our
landbank participating in carbon projects increased by 40% to
47,600 hectares y/y.
We began the process of assessing ESG risks in our supply chain
through the conduct of a suppliers’ questionnaire.
page 106.
We remain focused on circular business practices and, in line with
this, have announced the establishment of a pet food product line
in Croatia. The business will primarily target the EU market (with a
focus on Southeastern Europe), and Ukraine. The total investment is
expected to be over EUR€ 40 million.
BUSINESS SEGMENT KEY:
Poultry and Related
Operations Segment
Vegetable Oil
Operations
Agriculture
Operations
European Operating
Segment (“PP”)
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Strategy & Purpose
Value Creation | Business
Model
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Key Performance
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Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGIC
PILLAR
STRATEGIC
OBJECTIVE
BUSINESS SEGMENT
FOCUS
HOW WE WILL ACHIEVE OUR OBJECTIVE
WHAT WE ACHIEVED IN 2024
A FOCUS ON SUSTAINABILITY (CONTINUED)
People and
workforce
Development of the Group’s approach to
people, including provision of a healthy and safe
workplace and an environment that enables
every employee to develop their skills to their
full potential.
We focused on embedding our system of corporate Values into the
culture of the Group.
page 30.
We launched our full-scale corporate health programme for our
workforce in Ukraine providing medical insurance and access to
corporate doctors.
pages 78-79.
Our reskilling programme for employees and our extensive
rehabilitation and reintegration programme for veterans in Ukraine
evolved and expanded.
page 88.
We created 17 special jobs in Ukraine for veterans with disabilities or
those who were seriously injured during military service.
page 89.
We introduced a Workplace Improvement programme at Perutnina
Ptuj, mostly focusing on operational and production staff.
page 79.
Alternative
energy projects
Expanding alternative energy projects
including solar, wind (pilot project), biogas,
biomethane, bio-LNG, and bioenergy with
carbon capture and storage (“BECCS”),
resulting in carbon sequestration.
We continued to operate our three biogas facilities, with a combined
capacity of 18 MW energy. Our biogas plant in Ladyzhyn in Ukraine
was certified according to ISO 14001 (environmental management
systems).
page 110.
We continued to invest in the production of biomethane and bio-
LNG.
page 114.
We invested in 13.6 MW capacity of solar plants, including 6 MWh
battery energy storage systems (“BESS”) in Ukraine.
We completed our year-long study in Ladyzhyn looking at the
viability of the installation of wind turbines.
page 113.
BUSINESS SEGMENT KEY:
Poultry and Related
Operations Segment
Vegetable Oil
Operations
Agriculture
Operations
European Operating
Segment (“PP”)
20
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
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Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
VALUE CREATION
OUR CULINARY
TRANSFORMATION
SUSTAINABLE
FINANCIAL HEALTH
GOVERNANCE
Over the past five years, we have been evolving
from a provider of raw materials to a company
specialising in the development of culinary
solutions. Our focus is on collaborating with and
understanding the needs of our customers and
consumers: what they want to eat, and where,
and on the convenience of our products.
Our businesses have a long track record of
revenue and cash generation providing a
solid platform for value creation.
We have a well-established approach
to governance and a clear governance
framework; we operate with integrity.
MARKET AND PRODUCT
DIVERSIFICATION
We are focused on the needs of our customers and
on the development of new products and culinary
solutions. We have deep domain knowledge of
both our domestic and export markets, and are
able to adapt swiftly to opportunities and capitalise
on new markets for our products. We export to
over 80 countries worldwide.
OUR RESPONSIBLE
BUSINESS
We have a Group-wide approach to
responsible business and our six Growth
Pillars guide us as we pursue our strategy.
INVESTMENT
AND INNOVATION
Sustained and broad investment,
including extensive R&D
programmes, enables continuous
efficiency improvements and
fosters our innovative culture.
We continue to work tirelessly
to support the people of Ukraine
through a range of economic, social
and cultural initiatives.
WE WORK
FOR UKRAINE
1 The War in Ukraine continues and the information on this page must
be read in the context of a highly challenging and unpredictable
operating environment.
HOW WE CREATE VALUE1
21
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Key Performance
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Financial & Operational
Review
Alternative Performance
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Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
We are committed to fostering
long-lasting relationships based on
trust, value creation, and responsible
business practices with all of our
suppliers and with the local farmers
we partner with.
CUSTOMERS
COMMUNITIES
OUR PEOPLE
ENVIRONMENT
INVESTORS
PARTNERS
SUPPLIERS
We work with our customers to
develop and provide our products
and culinary solutions. Central to
this are our “CBD” programme and
our culinary ecosystem, including our
Culinary Centre.
We are a proactive member of our
local communities and support over
234,300 landowners in Ukraine. We
are committed to doing whatever
we can to help maintain security and
stability during Wartime.
Our employees are our greatest asset.
We are building a business culture
in which our employees embrace
new challenges, capitalise on new
opportunities, and have the confidence
to establish new ways of doing things,
thereby realising their potential.
We aim to conduct our activities
in an environmentally-responsible
manner, and to meet the global
challenges presented by climate
change. Our operations support
the circular economy.
We strive to generate
positive returns for
our shareholders and
bondholders through
financial rigour and
effective management of
our financial resources.
Through partnerships,
we are committed to
integrating our collective
strengths to catalyse
transformative change in
Ukraine and worldwide,
and to work to ensure food
security.
Page 64.
Page 86.
Page 70.
Page 110.
Page 64.
Page 104.
Page 64.
THE VALUE WE CREATE FOR OUR STAKEHOLDERS
22
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
1 Data is for FY 2024
2 Meat processing products and convenience food from poultry meat and beef
3 Total number of distribution centers worldwide is 25
OUR BUSINESS MODEL1
350,850
hectares
3,937
hectares
100%
in-house production
79%
in-house production
17 MW
2 biogas plants
1 MW
1 biogas plant
с. 2.0
million tonnes
produced
c. 0.3
million tonnes
produced
100%
in-house processing
100%
in-house processing
385,214
tonnes of sunflower
oil produced
1,440
tonnes of soybean
oil produced
c. 8.2
million per week
c. 1.5
million per week
394
vehicles
146
vehicles
100%
in-house production
99%
in-house production
51,394
tonnes produced
50,850
tonnes produced
1,493
outlets (owned
and franchised)
189
franchise outlets
MHP UKRAINE
PERUTNINA PTUJ
LAND
SUNFLOWER AND
SOYBEAN PROTEIN
FODDER PRODUCTION
BREEDING
HATCHING
POULTRY PRODUCTION
SLAUGHTERHOUSES
MEAT PROCESSING2
ECO ENERGY
DISTRIBUTION3
RETAIL
Land on long-term lease in Ukraine
with a harvest of 2.1 m tonnes
(344,700 ha harvested) of grain
Land on long-term lease in
Southeastern Europe
48,480 tonnes of soybean oil
produced
1 facility in Serbia
3 production facilities
3 facilities in Slovenia,
1 in Croatia and 1 in Serbia
2 breeding complexes with 538 m
hatching eggs produced
3 locations, 90 m hatching eggs produced
(Slovenia, Bosnia & Herzegovina, and Serbia)
Hatchery of day-old chickens: 4 locations
(Slovenia, Croatia, Bosnia & Herzegovina, and Serbia)
4 locations, 21% in-house production
(Slovenia, Croatia, Bosnia & Herzegovina, and Serbia)
5 facilities (2 in Slovenia, 1 in Croatia,
1 in Bosnia & Herzegovina, 1 in Serbia)
3 vertically-integrated poultry
complexes, from hatching to
rearing and processing
13 MW
9 solar power plants
1 MW
4 solar power plants
9 distribution centres
in Ukraine
11 distribution centres
in Southeastern Europe
4 production facilities
7 production facilities
23
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
WHAT DIFFERENTIATES US
OUR VERTICALLY-
INTEGRATED
STRUCTURE WHICH
ENABLES US TO:
EFFECTIVELY CONTROL
PRODUCTION COSTS
REDUCE OUR
DEPENDENCE ON THIRD-
PARTY SUPPLIERS
REDUCE OUR EXPOSURE
TO RAW MATERIAL
PRICES
REDUCE OUR
ENVIRONMENTAL
IMPACT
MAINTAIN STRICT
BIOSECURITY AND
QUALITY STANDARDS
QUICKLY REALISE
GAINS FROM CIRCULAR
BUSINESS PRACTICES
OUR CONTRIBUTION TO THE
CIRCULAR ECONOMY
OUR CULINARY
ECOSYSTEM
STRONG BRANDS
By applying circular business
practices, our operations eliminate
biological production waste and
reduce emissions.
Our culinary ecosystem is driving
our culinary transformation.
Our brands have high recognition with
a reputation for quality and innovation.
Page 25.
Page 27.
Page 28.
We believe our chicken complexes are amongst the
most efficient and biosecure in the world.
MODERN PRODUCTION ASSETS
24
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
MHP’S APPROACH TO THE CIRCULAR ECONOMY
Since its foundation, MHP has been implementing
circular business practices, which are a key part
of the Group's sustainable development strategy
and address industry-wide challenges posed
by waste generated during poultry production
and agricultural business processes. Due to its
vertically-integrated business model, all production
segments of the Group are interconnected,
which enables us to use resources efficiently and
minimise waste.
At the initial stage of the production cycle, MHP
grows grains, which become the raw material
to produce vegetable oils and high-quality
compound fodder. This fodder is used to raise
poultry and cattle, which ensures quality control
and biosecurity at all stages, as well as efficiency
of production processes. The resulting meat is
then used to make processed-meat products
and finished culinary products. Thanks to its
integrated model, MHP introduced the practice
of reusing by-products in its production processes
at an early stage of development. For example,
after grain harvesting, stubble is left behind and
used to produce organic fertilisers, while straw is
used as bedding on poultry parent stock farms
and cattle farms.
Two of the main ingredients for fodder production
are soya and sunflower meal. By-products such
as grain residue and soya husks as well as soya
and sunflower meal are sold for further use and
processing, as shown in the diagram overleaf.
Sunflower husks, which are produced from the
seed-hulling process, are used as bedding material
at poultry farms and briquetted for combustion at
biogas plants.
A separate achievement of MHP Group is the
operation of its three biogas complexes which
have a combined capacity of 18 MWs and which
process chicken manure, flotation sludge from
poultry complexes, and cattle manure into biogas
and biomethane. As a result, the Group not only
generates green energy but also produces digestate,
a nutrient-rich product of bioconversion of organic
materials used to create organic fertilisers that are
returned to the fields. Over the past three years,
MHP’s organic fertiliser has enabled a 9% reduction
in the volume of synthetic fertilisers applied by the
Group. In 2023, following our work with Alltech
E-CO2, we became first poultry company worldwide
that has achieved Carbon Trust certification for its
poultry production.
MHP Group’s circular approach not only reduces
the negative impact on the environment, but
also improves production efficiency, ensuring
the Group's sustainable growth and responsible
use of natural resources. A detailed overview of
MHP’s circular business practices is set out in the
diagram overleaf.
25
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
POULTRY MEAT
MILK
LIVE CATTLE
STUBBLE
CHICKEN MANURE
MANURE
CATTLE
MANURE
FEED RESIDUES
CHICKEN
MANURE
FLOTATION
SLUDGE
BRIQUETTED
SUNFLOWER
HUSK
HUSK
(BEDDING
FOR CHICKENS)
PELLETS AND BRIQUETTES
FOR HEATING
STRAW
(BEDDING FOR CATTLE)
GRAIN
GRAIN GROWN
SOYBEAN HUSK,
SOYBEAN AND
SUNFLOWER MEAL
HYDROCOLLOIDS2
UNCONDITIONED
EGGS
PROCESSED
ANIMAL
BY-PRODUCTS
(FOR FOOD
PURPOSES)
FAT
(FOR FOOD, FEED
AND TECHNICAL
PURPOSES)
OIL WASTE
BLOOD,
BY-PRODUCT
BONES,
BY-PRODUCT
WASTE FROM
PACKAGING
MATERIALS
(FOR RECYCLING)
WASTE FROM
PACKAGING
MATERIALS
(FOR RECYCLING)
FODDER
GRAIN
PRODUCTION
OF ORGANIC
FERTILISERS
OILS & FODDER
PRODUCTION
POULTRY
BIOGAS3 /
BIOMETHANE
SALES AND
LOGISTICS
MEAT-PROCESSING
BEEF
FODDER
CONVENIENCE FOOD,
CULINARY
PRODUCTS
RCULAR
ONOMY
CATTLE
BREEDING
DIGESTATE1
GRAIN RESIDUES
STRAW
(BEDDING FOR CHICKENS)
SECONDARY
METAL RAW
MATERIALS
SECONDARY
METAL RAW
MATERIALS
VEGETABLE
OIL
Digestate - a nutrient-rich product of bioconver-
sion of organic materials (manure) used to
create organic fertilisers.
Hydrocolloids - often called gums - are carbohy-
drate polymers with thickening, gelling, and
stabilising properties, and are often used in the
food, pharmaceutical, and cosmetic industries.
The biogas is also being used at MHP’s produc-
tion facilities.
1
2
3
ORGANIC
FERTILISERS
BIOGAS/
BIOMETHANE
MHP’S CIRCULAR ECONOMY
1 Digestate - a nutrient-rich product of bioconversion of organic
materials (manure) used to create organic fertilisers.
2 Gums - are carbohydrate polymers with thickening, gelling,
and stabilising properties, and are often used in the food,
pharmaceutical, and cosmetic industries.
3 The biogas is also being used at MHP’s production facilities.
26
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
Our culinary transformation reflects the accelerating
changes in the food production landscape as
consumer behaviours shift to food choices and
higher value-added convenience products.
Our culinary ecosystem - our community of experts
and partners with deep domain knowledge of the
needs of consumers and our customers – is driving our
transformation and the creation of customer value.
We are expanding our culinary ecosystem through
continued investment in R&D and innovation, and
with both Ukrainian and international partners
through joint ventures, acquisitions, financial
investment or the sharing of expertise. We see
HoReCa as a key driver of change in consumer
culture, and we are actively involved in this process.
CULINARY ECOSYSTEM
CULINARY
CENTRE
• Design & testing
of new products
• Platform for
collaboration with
HoReCa, B2B, B2C
CULINARY
EXPERTS
• Culinary direction
• Product
development
CULINARY
SOLUTIONS
• Convenience food
• Ready-to-cook
& ready-to-eat
products
INVESTMENT
• Financial
investment
• Expertise
STRATEGIC
PARTNERSHIPS
• Food industry
players
• Shared expertise
and market
access
RETAIL
OUTLETS
• Franchised
& owned
stores close to
consumers
• Convenience
stores
OUR CULINARY ECOSYSTEM
27
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
OUR BRANDS - UKRAINE
•
Whole
•
Parts
•
Marinated
•
Minced
•
Formed
•
Ready to cook
MEAT &
CONVENIENCE
FROZEN
EXPORT
•
Ready to eat
•
Snacks
CONVENIENCE
UKRAINE
DRIED MEAT
•
Ready to eat
•
Snacks
CONVENIENCE
CONVENIENCE AND
CULINARY
UKRAINE
UKRAINE
DRIED MEAT
•
Whole
•
Parts
•
Minced
•
Sliced
•
Ready to eat
CHILLED
MEAT
UKRAINE
•
Parts
•
Minced
CHILLED
MEAT
UKRAINE
•
By-products
•
Whole
•
Minced
•
Formed
CHILLED
MEAT &
CULINARY
UKRAINE
•
Whole
•
Parts
•
Marinated
•
Formed
CHILLED
FROZEN
MEAT & CULINARY
UKRAINE
•
Ready to cook
•
Ready to eat
•
Supplementary
products (e.g. mustard,
mayonnaise, ketchup)
CHILLED
EXPORT
MEAT,
CULINARY,
VEGETABLE AND
CONVENIENCE
FROZEN
Umbrella food
solution for
culinary
•
Customised food
service solutions to
meet the diverse needs
of corporate/business
clients
•
Ready-to-eat portioned
food
•
Sausages
•
Smoked chicken
•
Pate
CHILLED
PROCESSED
MEAT
UKRAINE
•
Parts
•
Formed
•
Marinated
CHILLED
MEAT &
CULINARY
UKRAINE
•
By-products
•
Whole
•
Parts
•
Minced
EXPORT
MEAT &
CULINARY
UKRAINE
FROZEN
Umbrella food
solution for
HoReCa
•
Whole
•
Parts
•
Minced
•
Sous vide
•
Food solutions
CHILLED
EXPORT
MEAT,
CULINARY,
VEGETABLE AND
CONVENIENCE
FROZEN
•
Whole
•
Parts
EXPORT
MEAT
FROZEN
CHILLED
•
Parts
•
Minced
•
By-products
•
Ready to cook
•
Formed
MEAT
FROZEN
UKRAINE
EXPORT
•
Ready to eat
•
Ready to cook
CHILLED
PROCESSED
MEAT & CONVENIENCE
FROZEN
UKRAINE
•
Ready to eat
•
Ready to cook
FROZEN
PROCESSED
MEAT
UKRAINE
•
Ready to eat
CHILLED
PROCESSED AND
CONVENIENCE
UKRAINE
28
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
OUR BRANDS - PERUTNINA PTUJ
•
Ready to eat
•
Sliced
•
Ready to cook
•
Ready to eat
•
Sliced
•
Ready to cook
•
Pate
•
Sausages
•
Natural feed mixtures
for cattle, pigs, poultry,
and other animals
•
Sausages
CHILLED & FROZEN
CHILLED & FROZEN
CHILLED
ANIMAL FEED
CHILLED
PROCESSED MEAT &
CONVENIENCE
PROCESSED MEAT &
CONVENIENCE
PROCESSED MEAT
PROCESSED MEAT
EUROPE
EUROPE
SERBIA
SLOVENIA
SLOVENIA
OUR BRANDS - UKRAINE (CONTINUED)
•
Pickling vegetables
•
Marination
•
Boiled and raw
vegetables
CHILLED
VEGETABLES & FRUITS
UKRAINE
•
Ready to cook
•
Ready to eat
CHILLED
MEAT & COULINARY
STORES
UKRAINE
FAST FOOD
RESTAURANTS
UKRAINE
•
Ready to eat
29
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
MHP’S VALUE SYSTEM IS CALLED DILOSOPHY. THE NAME WAS INSPIRED BY THE
UKRAINIAN TERM “DILO” WHICH MEANS TAKING ACTION. THE FIVE FUNDAMENTAL
VALUES THAT COMPRISE DILOSOPHY UNDERPIN ALL OF MHP’S TRANSACTIONS, STRATEGY
DECISIONS AND PLANNING.
OUR VALUES: DILOSOPHY
EMBEDDING MHP’S VALUES INTO ITS CULTURE
ACROSS THE BUSINESS
MHP takes pride in its position as an international
company with Ukrainian roots and global reach.
It is committed to ongoing investment in and
refinement of the core Values that sustain
the culture of the Group, even during the new
operational realities created by the War in Ukraine.
The process of adapting to these new realities has
highlighted aspects of MHP’s business conduct
that are key to the way that the Group performs
its activities. During 2024, MHP continued to
embed these Group Values, bringing to fruition
an initiative that began in the second half of 2022
when MHP’s Board and Senior Management
Team revisited the way that the Group addresses
the value system that underpins its business
activities. The campaign not only improved how
these Values are expressed but also ensured that
they are an important element of day-to-day
business and medium- to long-term planning.
DILOSOPHY AND THE FIVE FUNDAMENTAL VALUES
We know that development is only possible
through change. Therefore, we change
ourselves and unite with those who are ready
to change. We are open to transformation and
innovation, and we are constantly learning.
CONTINUOUS
DEVELOPMENT
Partnership means working together to
achieve mutually beneficial results both within
and outside the Company. We are ready to
listen, to hear and to take an interest in each
other’s needs. We openly share information,
experience and resources to ensure that the
overall result is greater than the sum of our
individual results.
GOAL-ORIENTATION
We always keep our focus on our goals.
We overcome obstacles and find opportunities
to achieve our goals in the most efficient way.
RESPONSIBILITY
We take responsibility for our decisions and
keep to our agreements. When things go
wrong, we don’t focus on mistakes but rather
make efforts to find the right solution. We offer
alternative approaches to solving problems
when we see inefficiencies in processes. We
are conscientious about our work because we
understand that the success of the Company
depends on everyone’s input.
TRANSPARENCY
AND HONESTY
We are honest in our communication with
each other. We initiate open discussion of
problems, provide reasoned feedback and are
ready to take feedback constructively.
PARTNERSHIPS
30
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
INTERNAL STAKEHOLDER DIALOGUE
In 2023, the Group commenced an extensive
internal stakeholder dialogue programme about
Dilosophy to refine and develop its Values and
principles, increase the understanding of what they
mean in practice, and obtain buy-in around the
business. During 2023, the programme involved
senior management across the Group. In 2024, the
programme involved middle management.
In
September
2024,
a
presentation
about
Dilosophy was made to everyone within the Group.
Over 30 events were held and subsequently, an
engagement survey was conducted to collect and
assess employee views and apply them to refine
the outlined approach.
PLANNED ACTIVITIES IN 2025
In 2025, the rollout of Dilosophy will feature
a
further
survey
of
employee
views.
This
programme
will
aim
to
assess
and
collect opinion on how MHP’s Values are being
reflected
within
its
recruitment
activities,
its supplier selection, the pricing of MHP’s products,
the setting of budgets, and the reporting of adverse
incidents.
31
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
KEY PERFORMANCE
INDICATORS
WE MONITOR PROGRESS AGAINST THE DELIVERY OF OUR STRATEGIC GOALS USING SEVERAL FINANCIAL
KEY PERFORMANCE INDICATORS (“KPIS”). EACH KPI PROVIDES A WAY OF MEASURING ELEMENTS OF OUR
STRATEGY. OUR STRATEGY IS FOCUSED UPON THE MEDIUM TO LONG TERM AND THEREFORE WE CONSIDER
HOW WE HAVE PERFORMED OVER A NUMBER OF YEARS, SHOWING THE KPIS FOR THE LAST FIVE YEARS.
1 Adjusted EBITDA and Adjusted EBITDA margin are net of IFRS 16
60%
15%
61%
15%
53%
27%
53%
18%
1,601
384
1,265
648
1,016
340
1,807
445
1,911
2,372
2,642
3,021
GROUP REVENUE
GROUP EXPORT REVENUE
GROUP ADJUSTED EBITDA1
2020
2020
2020
2021
2021
2021
2022
2022
2022
2023
2023
2023
2024
2024
2024
60%
19%
3,046
1,840
566
% of Group Revenue
Group Revenue, US$m
Export Revenue, US$m
Adjusted Group EBITDA1, US$m
Adjusted Group EBITDA margin1, %
32
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
REVENUE, US$M
EXPORT REVENUE, US$M
ADJUSTED EBITDA (NET OF IFRS 16), US$M
HOW WE CALCULATE IT
As reported.
Revenue to destinations outside country of production.
Adjusted EBITDA (net of IFRS 16) is defined as profit before tax,
net finance costs, depreciation and amortisation, net after-tax
exceptional and non-recurring items, net foreign exchange loss,
and net losses on impairment of property, plant and equipment.
WHY WE MEASURE IT
To ensure we are successful in growing the business.
To ensure we are delivering on our strategy of
international expansion, in turn leading to additional hard
currency revenue. Export revenue provides MHP with a
natural hedge against local currency volatility.
To track the underlying performance of the business.
2024 PROGRESS
Revenue was stable y/y, with a decrease in revenue
from the Vegetable Oil Segment offset by improved
performances in Agriculture Operations and the
European Operating Segment.
Export revenue remained stable y/y.
A 27% y/y increase in Adjusted EBITDA (net of IFRS 16) was largely
attributable to higher gross profit, partially offset by increased
payroll-related expenses in selling, general, and administrative
functions, as well as additional War-related costs.
STRATEGY IN WAR
The Company's strategy remains unchanged but
adaptations have been made to our business
model since the outbreak of War enabling us to
maintain operations and production.
In response to War-related challenges, MHP has
proactively and continuously managed and adapted its
logistics arrangements so as to continue to meet the
needs of our export markets worldwide.
Following the Russian invasion, there was an immediate shift
of strategy to focus on maintaining business continuity, while
managing the inevitable fluctuation in costs.
33
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
KEY PERFORMANCE
INDICATORS BY SEGMENT
THE GROUP IS UNDERPINNED BY ITS VERTICALLY-INTEGRATED BUSINESS MODELS, ITS EXPERIENCED
MANAGEMENT TEAM, AND ITS DIVERSIFIED DOMESTIC AND INTERNATIONAL MARKETS. ALL OF
THESE FACTORS CONTRIBUTED TO THE GROUP’S ROBUST PERFORMANCE DURING THE YEAR,
DESPITE SIGNIFICANT CONTINUED CHALLENGES POSED BY THE WAR IN UKRAINE.
ADJUSTED EBITDA MARGIN2
ADJUSTED EBITDA1
1 Adjusted EBITDA is net of IFRS 16 and excluding unallocated expenses: (2024: US$ 85 million; 2023: US$ 51 million)
2 Adjusted EBITDA margin of Agriculture Operations is calculated by using total segment revenue
Agriculture Operations, US$m
European Operating Segment, US$m
651
87
252
48
264
Poultry & Related Operations, US$m
Vegetable Oil Operations, US$m
Adjusted Group EBITDA1, US$m
496
91
319
80
6
15%
2023
Poultry & Related Operations
Vegetable Oil Operations
19%
13%
17%
1%
Adjusted Group EBITDA margin1
2024
Agriculture Operations2
European Operating Segment
19%
15%
11%
15%
45%
2024
2023
34
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
POULTRY AND RELATED
OPERATIONS SEGMENT
SALES AND EXPORT
VOLUMES – POULTRY
1 Adjusted EBITDA (net of IFRS 16)
Exports
Sales
Exports (as % of sales volumes)
Thousand tonnes
2024
698
2020
54%
374
704
2021
57%
402
658
2022
56%
368
692
652
2023
57%
57%
397
371
SALES – PROCESSED
POULTRY MEAT
2024
Thousand tonnes
2020
2021
2022
45
2023
53
53
37
38
REVENUE AND
ADJUSTED EBITDA1
Adjusted EBITDA
Revenue
Adjusted EBITDA margin
2024
2020
2021
2022
1,633
2023
15%
252
1,298
194
1,607
267
1,525
202
1,643
319
15%
17%
13%
19%
US$m
35
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
VEGETABLE OIL
OPERATIONS SEGMENT
REVENUE
SALES OF SUNFLOWER OIL
US$m
Thousand tonnes
2024
2024
2020
2020
2021
2021
2022
2022
2023
2023
331
207
273
467
403
283
309
464
606
457
SALES OF SOYBEAN OIL
ADJUSTED EBITDA
AND EBITDA MARGIN1
Thousand tonnes
1 Adjusted EBITDA (net of IFRS 16)
Adjusted EBITDA
Adjusted EBITDA margin
2024
2020
2021
2022
2023
41
45
41
51
53
2024
2023
2022
13%
15%
11%
80
71
48
US$m
36
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
AGRICULTURE
OPERATIONS SEGMENT
REVENUE AND ADJUSTED EBITDA1
PRODUCTION OF GRAINS
1 Adjusted EBITDA is net of IFRS 16
Harvest, thousand tonnes
2024
2020
2021
2022
2023
134
97
188
189
227
381
338
99
6
264
1,707
2,597
1,935
2,558
2,132
Adjusted EBITDA, US$m
Revenue, US$m
2020
2021
2022
2023
2024
Corn
Wheat
Sunflower
YIELDS
Tonnes per hectare
2024
2020
2021
2022
2023
5.6
10.0
7.2
9.9
8.4
5.1
5.9
5.5
6.6
7.2
2.8
3.2
2.5
3.1
3.0
37
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
EUROPEAN OPERATING
SEGMENT (PP)
SALES
2024
2020
2021
2022
2023
Poultry
Processed-meat products
ADJUSTED EBITDA MARGIN1
in 2024
15%
63
39
73
40
74
43
81
47
90
49
REVENUE AND ADJUSTED EBITDA1
2024
2020
2021
2022
2023
Adjusted EBITDA1
Revenue
Adjusted EBITDA margin1
16%
335
53
16%
401
63
14%
464
63
17%
545
91
15%
575
87
1 Adjusted EBITDA (net of IFRS 16) and Adjusted EBITDA margin (net of IFRS 16)
Thousand tonnes
US$m
38
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
Total Group volumes
were stable y/y at
(2023: 849,665 tonnes)
857,454
TONNES
Volumes were flat y/y at MHP
Ukraine at
(2023: 718,644 tonnes)
711,218
TONNES
Volumes increased by 12% y/y
at PP to
(2023: 131,021 tonnes)
146,236
TONNES
12%
FINANCIAL AND
OPERATIONAL REVIEW
MHP Ukraine’s average poultry meat
price increased by 4% y/y to
excluding VAT
(2023: US$ 1.95 per kg)
US$ 2.02
PER KG
PP’s average poultry meat price
remained relatively stable y/y at
(2023: EUR 3.54 per kg)
EUR 3.47
PER KG
4%
Poultry meat export volumes from
Ukraine decreased by 6% y/y to
mainly driven by a reduction in
export volumes to the EU
(2023: 396,923 tonnes)
371,198
TONNES
6%
OPERATIONAL HIGHLIGHTS 2024
STABLE
STABLE
STABLE
POULTRY MEAT PRODUCTION VOLUMES
39
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL HIGHLIGHTS 2024
with a decrease in revenue from
Vegetable Oil Operations offset
by improved performances in
Agriculture Operations and the
European Operating Segment
representing 60% of Group revenue
(2023: 60%)
driven by increased profitability
in Agriculture Operations due to
higher grain and oilseeds prices
reflects a US$ 125 million non-cash
foreign exchange loss in 2024
(2023: a US$ 40 million loss). Net
profit remained stable mainly due
to the depreciation of UAH against
foreign currencies, primarily
the US$ and Euro, during the
reporting period
(2023: US$ 3,021 million)
(2023: US$ 1,807 million)
(2023: US$ 639 million)
(2023: US$ 339 million)
(2023: US$ 445 million)
(2023: US$ 142 million)
US$ 3,046
MILLION
US$ 1,840
MILLION
US$ 848
MILLION
US$ 440
MILLION
US$ 566
MILLION
US$ 144
MILLION
REVENUE
was stable y/y at
EXPORT REVENUE
remained relatively stable y/y at
GROSS PROFIT
increased to
OPERATING PROFIT1
increased to
ADJUSTED EBITDA
NET PROFIT
(net of IFRS 16) increased to
30%
27%
4 pps
3 pps2
33%
(2023: 11%)
14%
OPERATING MARGIN
Y/Y
Y/Y
Y/Y
(2023: 15%)
19%
(net of IFRS 16) increased to
ADJUSTED EBITDA MARGIN
STABLE
STABLE
STABLE
Driven by higher gross profit, partially
offset by increased payroll-related
expenses in selling, general, and
administrative functions, as well as
additional War-related costs
1 excluding impairment of property, plant and equipment.
2 pps = percentage points
increased to
40
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
1 pps – percentage points
2 excluding impairment of property, plant and equipment.
IN US$ MILLIONS,
UNLESS INDICATED
OTHERWISE
2024
2023
%
CHANGE
Y/Y1
Revenue
3,046
3,021
1%
IAS 41 standard gain/(loss)
135
(48)
4x
Gross profit
848
639
33%
Gross profit margin
28%
21%
7pps
War-related expenses
(54)
(35)
54%
Operating profit2
440
339
30%
Operating profit margin
14%
11%
3pps
Adjusted EBITDA
632
508
24%
Adjusted EBITDA margin
21%
17%
4pps
Adjusted EBITDA
(net of IFRS 16)
566
445
27%
Adjusted EBITDA
margin (net of IFRS 16)
19%
15%
4pps
Net profit
144
142
1%
Net profit margin
5%
5%
-
FINANCIAL OVERVIEW
Agriculture
Operations
13%
European
Operating
Segment
19%
53%
Poultry &
Related
Operations
15%
Vegetable Oil
Operations
39%
Poultry &
Related
Operations
European
Operating
Segment
13%
Agriculture
Operations
41%
Vegetable Oil
Operations
7%
SEGMENT PERFORMANCE
IN US$ MILLIONS,
UNLESS INDICATED
OTHERWISE
POULTRY
& RELATED
OPERATIONS
VEGETABLE
OIL
OPERATIONS
AGRICULTURE
OPERATIONS
EUROPEAN
OPERATING
SEGMENT
UNALLOCATED
EXPENSES
TOTAL
Revenue
1,633
457
381
575
-
3,046
%, of total Revenue
53%
15%
13%
19%
0%
100%
Gross profit
372
47
284
145
-
848
War-related expenses
(25)
-
(3)
-
(26)
(54)
Adjusted EBITDA
(net of IFRS 16)
252
48
264
87
(85)
566
%, of total EBITDA
45%
8%
47%
15%
(15%)
100%
Adjusted EBITDA
margin (net of IFRS 16)
15%
11%
69%
15%
n/a
19%
REVENUE 2024
ADJUSTED EBITDA 2024
(excl. unallocated expenses)
41
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
POULTRY AND RELATED OPERATIONS
OVERVIEW
We are the leader in the poultry market in Ukraine and one of
the leaders in the highly fragmented meat-processing market
in Ukraine. We sell our products in Ukraine as well as exporting
to over 70 countries worldwide. We produce, process, and sell
chicken meat (fresh and frozen, whole and cuts); processed meat
products, including sausage and salami; pre-prepared and culinary
products (marinated chicken, and ready-to-eat and ready-to-cook
convenience food, including restaurant-grade products); and
other poultry-related products.
REVENUE
US$ million
1,633
POULTRY
PRODUCED
tonnes
711,218
PROCESSED MEAT
PRODUCED1
tonnes
51,394
EXPORT VOLUMES BY REGION IN TONNES
REVENUE BY DESTINATION
CIS
Africa
Asia and other
MENA
Domestic
(Ukraine)
EU
Export
20%
13%
38%
45%
58%
56%
5%
7%
34%
34%
42%
44%
3%
1%
2024
2024
2023
2023
1 Meat processing products and convenience food from poultry meat and beef
42
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
OPERATIONAL RESULTS
FINANCIAL RESULTS AND TRENDS
POULTRY MEAT1 AND PROCESSED POULTRY
MEAT2
2024
2023
% CHANGE
Y/Y3
Poultry, sales volumes, third party tonnes
652,359
691,981
-6%
Processed poultry meat, sales volumes,
third party tonnes
45,261
37,628
20%
Average poultry meat price per 1 kg net of VAT,
US$
2.02
1.95
4%
Average processed poultry meat price per 1 kg
net of VAT, US$
2.88
2.94
-2%
Export sales, poultry, third party tonnes
371,198
396,923
-6%
Export sales, % of total poultry sales
57%
57%
-
Export sales, processed poultry meat, third
party tonnes
11,816
6,102
94%
Export sales, % of total processed poultry sales
26%
16%
10pps
IN US$ MILLIONS, UNLESS INDICATED
OTHERWISE
2024
2023
% CHANGE
Y/Y1
Revenue2
1,633
1,643
-1%
Poultry meat
1,363
1,402
-3%
Processed poultry meat
127
111
14%
Complementary products and other sales
143
130
10%
IAS 41 standard gain
4
15
-73%
Gross profit
372
402
-7%
Gross margin
23%
24%
-1pps
War-related expenses
(25)
(17)
47%
Adjusted EBITDA
257
321
-20%
Adjusted EBITDA margin
16%
20%
-4pps
Adjusted EBITDA (net of IFRS 16)
252
319
-21%
Adjusted EBITDA margin (net of IFRS 16)
15%
19%
-4pps
Total poultry meat sales volumes declined by 6% y/y in 2024, primarily due to
slightly lower production levels and the absence of the high stock levels available
at the beginning of 2023 which were subsequently sold off during that period.
Total sales volumes of processed poultry meat increased by 20% y/y due to a rise
in production volumes and an increase in convenience-based offerings in line
with the Group’s strategy.
Export volumes of poultry meat decreased by 6% y/y mainly driven by a decline
in volumes to the EU, partly offset by sales to MENA. Export volumes of processed
poultry meat almost doubled y/y.
1 Poultry meat consists of raw and unprocessed parts of chicken, meat after minor processing, meat after
grinding, and chicken meat with the addition of spices (marinated meat)
2 Processed meat consists of poultry meat after significant processing (e.g. added supplements like
vegetables or breading), pre-cooked and ready-to-eat meat
3 pps — percentage points
1 pps – percentage points
2 Revenue from poultry meat includes sales of offal, which is not included in the sales volumes and price data
disclosed in the operational results table on this page
Segment revenue was stable y/y at US$ 1,633 million (2023: US$ 1,643 million).
Gross profit decreased to US$ 372 million, a decline of 7% y/y (2023: US$ 402
million) but gross margin remained relatively stable at 23% (2023:24%). Adjusted
EBITDA (net of IFRS 16) decreased by 21% y/y to US$ 252 million (2023: US$ 319
million); adjusted EBITDA margin (net of IFRS 16) decreased to 15% from 19%.
POULTRY AND RELATED OPERATIONS (CONTINUED)
43
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
VEGETABLE OIL OPERATIONS
OVERVIEW
We
produce
and
sell
edible vegetable oils and
related products, including
sunflower husks for use as
bedding in chicken rearing
sheds, and sunflower pellets
for animal feed. Our facilities
include
one
soybean
crushing plant and three
sunflower crushing plants in
Ukraine. Our customers are
mainly international traders,
an important source of hard
currency revenue.
OPERATIONAL RESULTS
FINANCIAL RESULTS AND TRENDS
In 2024, MHP’s sales of sunflower oil decreased by 14% y/y due to a change in the
production recipe for cake, caused by the high sunflower prices, and resulting
in lower oil production. Sales of soybean oil increased by 4% y/y mainly due to a
change in the production recipe from cake to meal.
SALES VOLUME TO THIRD PARTY TONNES
2024
2023
% CHANGE
Y/Y
Sunflower oil
403,251
466,926
-14%
Soybean oil
53,007
50,766
4%
In 2024, Segment revenue decreased by 25% to US$ 457 million (2023: US$ 606
million) mainly driven by negative trends in vegetable oil prices internationally
and lower sales volumes of sunflower oil.
Gross profit decreased by 41% y/y to US$ 47 million (2023: US$ 79 million) and
gross margin decreased to 10% (2023: 13%). Adjusted EBITDA (net of IFRS 16)
decreased by 40% y/y to US$ 48 million (2023: US$ 80 million); adjusted EBITDA
margin (net of IFRS 16) decreased to 11% from 13% due to due to higher cost of
production.
IN US$ MILLIONS, UNLESS INDICATED
OTHERWISE
2024
2023
% CHANGE
Y/Y1
Revenue
457
606
-25%
Vegetable oil
437
565
-23%
Related products2
20
41
-51%
Gross profit
47
79
-41%
Gross margin
10%
13%
-3 pps
Adjusted EBITDA
49
82
-40%
Adjusted EBITDA margin
11%
14%
-3 pps
Adjusted EBITDA (net of IFRS 16)
48
80
-40%
Adjusted EBITDA margin (net of IFRS 16)
11%
13%
-2 pps
1 pps – percentage points
2 Related products consist of meal, cake and husk
REVENUE
US$ million
457
VEGETABLE OIL
PRODUCED
tonnes
433,694
44
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
REVENUE
US$ million
381
AGRICULTURE OPERATIONS
OVERVIEW
We are one of the leading grain cultivation businesses in Ukraine,
growing crops to produce fodder to support the Group’s chicken
and cattle production. We also raise cattle to produce beef, as
well as milk and other dairy products. We operate three fodder
production complexes and own cattle farms and dairies located
across Ukraine. We lease agricultural land located primarily in
the highly fertile black soil regions of Ukraine. In 2024, our total
landbank constituted approximately 350,850 hectares of land,
representing one of the largest land portfolios in Ukraine.
CROPPED AREA,
HECTARES
REVENUE BY DESTINATION
Wheat
Rape
Soya
Others
Corn
Sunflower
Domestic1
Export
2024
2023
12%
24%
77%
70%
10%
35%
14%
23%
30%
5%
1 Crops used by the Group to process and produce feed meal for the Group’s chicken and cattle production.
CROPS
PRODUCED
million tonnes
2.1
2024
45
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
2024 HARVESTING CAMPAIGN
The trend of increasing land allocation for soya (+38% y/y) and rapeseed
(+4% y/y) while reducing the share of corn (-10% y/y) and sunflower (-18%
y/y) continued, primarily due to the depressed profitability of the latter
crops following the start of the Russian invasion. In 2024, MHP harvested
over 2.1 million tonnes of grains and oilseeds, a decline of 17% y/y, mainly
driven by lower corn and soya yields because of unfavourable weather
conditions during the summer.
FINANCIAL RESULTS AND TRENDS
Segment revenue increased by 68% y/y to US$ 381 million (2023: US$ 227 million)
due to an increase in both sales volumes and prices of grains sold following the
recovery during the year in both domestic and international grain prices after the
steep decline in 2023. Logistics costs also continued to decrease.
Adjusted EBITDA (net of IFRS 16) increased significantly to US$ 264 million (2023:
US$ 6 million). Gross profit and Adjusted EBITDA (net of IFRS 16) also improved
significantly, driven by higher prices across all grains and oilseeds.
IN US$ MILLIONS, UNLESS INDICATED
OTHERWISE
2024
2023
% CHANGE
Y/Y
Revenue
381
227
68%
IAS 41 standard gain/(loss)
134
(63)
3x
Gross profit
284
26
10x
War-related expenses
(3)
(3)
-
Adjusted EBITDA
322
63
4x
Adjusted EBITDA (net of IFRS 16)
264
6
43x
CROP YIELDS
2024
2022
2023
Wheat, t/ha
Rape, t/ha
Soya, t/ha
Corn, t/ha
Sunflower, t/ha
7.2
9.9
8.4
2.5
3.1
3.0
5.5
6.6
7.2
3.8
3.7
3.7
2.4
3.2
2.6
46
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
EUROPEAN OPERATING SEGMENT (PP)
OVERVIEW
We produce and sell chicken meat and processed meat
products, supplying our products to 18 European countries.
We have production assets in Slovenia, Croatia, Serbia, Bosnia
& Herzegovina, and distribution companies in Austria, North
Macedonia, and Romania. Our largest brand by revenue is Poli.
OPERATIONAL RESULTS
Poultry meat1
2024
2023
% CHANGE
Y/Y
Sales volume, third party tonnes
89,720
80,520
11%
Price per 1 kg net VAT, EUR
3.47
3.54
-2%
Processed meat2
2024
2023
% CHANGE
Y/Y
Sales volume, third party tonnes
48,500
46,555
4%
Price per 1 kg net VAT, EUR
3.37
3.33
1%
In 2024, growth in poultry meat sales volumes was driven by an increase
in sales in Slovenia, Bosnia & Herzegovina, and Serbia, driven by a strategic
focus on expanding market presence and boosting sales in these regions.
Processed meat product sales increased 4% y/y due to increased production
of sausages and convenience products in line with the Group’s strategy.
1 Poultry meat consists of raw and unprocessed parts of chicken, meat after minor processing, meat
after grinding, and chicken meat with the addition of spices (marinated meat).
2 Includes sausages and convenience foods.
REVENUE
US$ million
575
POULTRY
PRODUCED
tonnes
146,236
PROCESSED MEAT
PRODUCED
tonnes
50,850
REVENUE BY DESTINATION
Domestic
(Southeastern Europe)
Export
25%
75%
2024
25%
75%
2023
47
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL RESULTS AND TRENDS
GROUP CASH FLOW
IN US$ MILLIONS,
UNLESS INDICATED
OTHERWISE
2024
2023
%
CHANGE
Y/Y
Revenue
575
545
6%
IAS 41 standard gain/
(loss)
(3)
0
-100%
Gross profit
145
132
10%
Gross margin
25%
24%
1pps
Adjusted EBITDA
89
93
-4%
Adjusted EBITDA
margin
15%
17%
-2pps
Adjusted EBITDA
(net of IFRS 16)
87
91
-4%
Adjusted EBITDA
margin (net of IFRS 16)
15%
17%
-2pps
IN US$ MILLIONS, UNLESS INDICATED OTHERWISE
2024
2023
Cash from operations
343
377
Change in working capital
(97)
61
Net Cash from operating activities
246
438
Cash used in investing activities
(333)
(228)
Including CAPEX1
(290)
(212)
Cash from financing activities
17
(86)
Total change in cash2
(70)
124
The European Operating Segment’s revenue
increased by 6% y/y to US$ 575 million (2023: US$
545 million) driven by increased sales volumes.
Gross profit increased by 10% y/y to US$ 145
million (2023: US$ 132 million) whilst gross margin
remained relatively stable at 25% (2023: 24%).
1 Calculated as cash used for purchases of property, plant and equipment.
2 Calculated as net cash from operating activities plus cash used in investing activities plus cash used in financing activities.
Cash flow from operations before changes
in working capital for 2024 declined to US$
343 million (2023: US$ 377 million).
The investments in working capital during
12M 2024 primarily related to the purchase
of corn, sunflower, and soybeans from third
parties for both internal consumption and
trading purposes. Additional contributing
factors included an increase in advances
to suppliers for energy resources, higher
investments in breeders and broilers due
to rising costs, and a growth in recoverable
VAT. Release of working capital during 2023
was mainly attributable to a significant
release of inventories of sunflower seeds
and vegetable oil from the unusually high
levels at the end 2022.
The increase in CAPEX is primarily driven
by substantial investments in several key
areas: expansion in EU, maintenance and
compliance requirements projects. As for
the structure of capital expenditures, the
largest part remains maintenance of existing
facilities, expansion, energy projects such
as BioLNG and Gas generation, Pet Food
production, new facilities of non-commodity
products on meat multicomplex and
margin support projects.
During the year, the Group acquired 100% of
Toni d.o.o. in Croatia for US$ 14.3 million, and
70% of UK-registered KK & Sons Group Ltd
for US$ 3.9 million. The Group also invested
US$ 15.6 million in Ukraine-based Ukrainskyi
Miasnyi Khutir, and US$ 7.1 million in MHP
Desert Hills in the Kingdom of Saudi Arabia.
EUROPEAN
OPERATING
SEGMENT (PP)
(CONTINUED)
48
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
DEBT STRUCTURE AND LIQUIDITY
IN US$ MILLIONS, UNLESS
INDICATED OTHERWISE
31 December 2024
31 December 2023
30 September 2024
Total Debt1, 2
1,534
1,537
1,496
LT Debt1
1,417
1,141
1,381
ST Debt1
282
499
199
Trade credit facilities2
(165)
(103)
(84)
Cash and bank deposits
(355)
(436)
(327)
Net Debt1
1,179
1,101
1,169
LTM Adjusted EBITDA1
566
445
552
Net Debt / LTM Adjusted
EBITDA1
2.08
2.47
2.12
1 Net of IFRS 16 adjustments: as if any lease that would have been treated as an operating lease under IAS 17, as was in effect
before
1 January 2019, is treated as an operating lease for the purposes of this calculation. In accordance with covenants in MHP’s
bond and loan agreements, these data exclude the effects of IFRS 16 on accounting for operating leases.
2 Indebtedness under trade credit facilities that is required to be repaid within 12 months of drawdown should be excluded
for the purposes of this calculation.
SUBSEQUENT EVENTS COMPLETED ACQUISITION IN
2025
The Group obtained control over Ukrainskyi Miasnyi Khutir
in January 2025 as described in Note 4. As of the date of
approval of the consolidated financial statements, the
Group is in the process of completing the purchase price
allocation for this business combination and evaluating
the financial impact of this transaction on its consolidated
financial statements, which is expected to be completed
during twelve months since the acquisition date.
PLANNED ACQUISITION IN 2025
On 20 March 2025, the Group entered into a Share
Purchase
Agreement
(SPA)
with
shareholders
representing over 41% of the share capital of Grupo
UVESA, one of the leading poultry production companies
in Spain. The agreement provides for the acquisition
of shares at a fixed price of EUR 225 per share, with an
additional contingent consideration of up to EUR 21.43
per share, subject to certain post-closing conditions. The
SPA included provisions allowing other shareholders of
Grupo UVESA to join the agreement within one month
from the signing date under the same terms. Pursuant
to these provisions, additional shareholders joined the
agreement within the allowed timeframe, bringing total
participating equity shares to more than 90% as of the
date of authorization of these consolidated financial
statements. The completion of the transaction is subject
to obtaining regulatory approvals, including merger
control and foreign subsidies clearance by the European
Commission. The acquisition is aligned with the Group’s
strategic goal to expand its presence in the European
poultry market. The consideration is expected to be settled
in cash upon completion. As at the date of authorization
of the financial statements, the transaction had not
yet been completed and the necessary procedures to
determine the fair values of the identifiable assets and
liabilities of the acquiree have not yet commenced.
DIVIDENDS
Considering the current risks and uncertainties
following the Russian invasion of Ukraine, and the
resulting need to preserve liquidity to support the
Company’s ongoing business operations and help
sustain the population of the country, the Board of
MHP has decided that no dividends are likely to be
paid for as long as the War continues.
49
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
Adjusted EBITDA, LTM Adjusted EBITDA and
Segment Adjusted EBITDA are presented in this
Report because the Directors consider them to be
important supplemental measures of the Group’s
financial performance. Additionally, the Directors
believe these measures are frequently used by
investors, analysts and stakeholders to evaluate
the efficiency of the Group’s operations and its
ability to employ its earnings for the repayment
of debt, capital expenditure, and working capital
requirements.
EBITDA is defined as profit for the year before
income tax expense, finance costs, finance income,
and depreciation and amortisation expenses.
Depreciation and amortisation expenses are
components of both cost of sales and selling,
general and administrative expenses in the
consolidated financial statements.
Adjusted EBITDA is derived by adjusting EBITDA
(as defined above) for losses on impairment/
reversal of impairment of goodwill and property,
plant and equipment, net losses on disposals of
subsidiaries, and net foreign exchange (loss)/gain.
The Group believes that this measure is more
useful in evaluating the financial performance of
the Company and its subsidiaries than “traditional”
EBITDA due to the exclusion of items that
Management considers not to be representative of
the underlying operations of the Group.
The introduction of IFRS 16 on Leases from January
2019 led to adjustments to the financial statements.
MHP has chosen to present Adjusted EBITDA for
2023 and 2024 both before and after adjustment
for IFRS 16.
LTM Adjusted EBITDA (net of IFRS 16) is defined
as Adjusted EBITDA (net of IFRS 16) for the prior
12 consecutive months ending on such date of
measurement; LTM Adjusted EBITDA is calculated
as if acquisitions of subsidiaries had occurred on
the first day of the prior 12 consecutive months
ending on such date of measurement.
LTM Adjusted EBITDA (net of IFRS 16) excludes the
effects of IFRS 16 on accounting for operating leases.
ALTERNATIVE
PERFORMANCE MEASURES
MHP HAS INCLUDED CERTAIN MEASURES IN THIS REPORT THAT ARE NOT MEASURES OF PERFORMANCE
UNDER IFRS, INCLUDING EARNINGS BEFORE INTEREST, TAXATION, DEPRECIATION AND AMORTISATION
(“EBITDA”) AND LAST TWELVE MONTHS’ EBITDA (“LTM EBITDA”) BOTH AT A CONSOLIDATED AND AT A
SEGMENT LEVEL.
The Group’s Segment measure in the consolidated
financial statements is defined as “Segment result”
and represents operating profit by Segment before
unallocated corporate expense, being the Segment
measure reported to the chief operating decision
maker for the purposes of resource allocation and
assessment of Segment performance. Within this
Strategic Report, the reported Segment result
is adjusted for the amount of depreciation and
amortisation per Segment in order to present
“Segment Adjusted EBITDA” to external users,
which MHP feels is a more commonly-used external
metric familiar to investors.
Net debt is defined as bank borrowing (excl. trade
credit facilities), bonds issued and lease obligations
less cash and cash equivalents. Net debt (net of
IFRS 16) is defined as Net debt less the effects
of lease liabilities recognised under IFRS 16. The
Group believes that net debt is commonly used by
securities analysts, investors and other interested
parties in the evaluation of a company’s leverage.
50
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
In MHP’s bond and loan agreement covenants,
the definitions Adjusted EBITDA, LTM Adjusted
EBITDA, and Net debt exclude the effects of IFRS
16 on accounting for operating leases. They are
calculated as if any lease that would have been
treated as an operating lease under IAS 17 (as was
in effect before 1 January 2019) is treated as an
operating lease.
Adjusted EBITDA is not a measure of MHP’s
operating performance under IFRS, and should
RECONCILIATION OF NET DEBT
Calculation of net debt was aligned with definitions
used for the purpose of assessment of compliance
with debt covenants provided in the respective
loan agreements. Thus, the accrued interest which
has been included previously as part of the carrying
amount of bank borrowings, bonds issued and
finance lease obligations has been excluded from
the amount of total debt.
US$ MILLION
2024
2023
PROFIT FOR THE YEAR
144
142
Income tax
5
31
Finance cost
160
163
Finance income
(21)
(37)
Depreciation and amortisation expense
192
169
EBITDA
480
468
Impairment of goodwill and property,
plant and equipment
27
-
Forex Loss
125
40
ADJUSTED EBITDA
632
508
ADJUSTED EBITDA
(net of IFRS 16)
566
445
US$ MILLION
2024
2023
Bank borrowings
763
379
Bonds issued
894
1,239
Lease liabilities
276
256
TOTAL DEBT
1,933
1,874
Cash and cash equivalents
(355)
(436)
NET DEBT
1,578
1,438
Effect of IFRS 16
(234)
(234)
Trade credit facilities
(165)
(103)
NET DEBT
(net of IFRS 16)
1,179
1,101
RECONCILIATION OF ADJUSTED EBITDA ON 2024
AS OF 31 DECEMBER 2024 AND 2023, NET DEBT WAS AS FOLLOWS:
not be considered as an alternative to profit for the
year, operating profit, Segment result or any other
performance measures derived in accordance with
IFRS or as an alternative to cash flow from operating
activities or as a measure of MHP’s liquidity. Such
measures presented in this Integrated Report may
not be comparable to similarly titled measures of
performance presented by other companies, and
should not be considered as substitutes for the
information contained in the consolidated financial
statements.
51
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
SEGMENT PERFORMANCE
YEAR ENDED 31 DECEMBER 2024
US$ MILLION
POULTRY & RELATED
OPERATIONS
SEGMENT
VEGETABLE OIL
OPERATIONS
SEGMENT
AGRICULTURE
OPERATIONS
SEGMENT
EUROPEAN
OPERATING SEGMENT
ELIMINATIONS
CONSOLIDATED
External sales
1,633
457
381
575
-
3,046
Sales between
business segments
16
178
200
-
(394)
-
Total revenue
1,649
635
581
575
(394)
3,046
SEGMENT RESULTS
164
43
258
62
-
527
Depreciation and
amortisation
93
6
64
27
-
190
SEGMENT ADJUSTED
EBITDA BEFORE
UNALLOCATED EXPENSES
257
49
322
89
-
717
Unallocated expenses
(87)
Unallocated depreciation
and amortisation
2
ADJUSTED EBITDA
632
52
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
SEGMENT PERFORMANCE (CONTINUED)
YEAR ENDED 31 DECEMBER 2023
US$ MILLION
POULTRY & RELATED
OPERATIONS
SEGMENT
VEGETABLE OIL
OPERATIONS
SEGMENT
AGRICULTURE
OPERATIONS
SEGMENT
EUROPEAN
OPERATING SEGMENT
ELIMINATIONS
CONSOLIDATED
External sales
1,643
606
227
545
-
3,021
Sales between
business segments
10
170
207
-
(387)
-
Total revenue
1,653
776
434
545
(387)
3,021
SEGMENT RESULTS
238
77
6
72
-
393
Depreciation and
amortisation
84
4
56
22
-
166
SEGMENT ADJUSTED
EBITDA BEFORE
UNALLOCATED EXPENSES
321
82
63
93
-
559
Unallocated expenses
(54)
Unallocated depreciation
and amortisation
3
ADJUSTED EBITDA
508
53
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
RISK MANAGEMENT
Accordingly, the Group has continuously adapted
its risk management processes and embedded
these throughout the Company in order to align
risk management, strategy and performance
across all entities and enable agile decisions in
response to the changing circumstances.
RISK OVERSIGHT
The Audit & Risk Committee monitors the
effectiveness of the Company’s risk management
and control systems by means of regular updates
from Management, reviews of the key findings of
the external and internal auditors, and an annual
review of the risk management process. Results are
reported regularly to the Board, which has overall
responsibility for risk management.
The Internal Audit function provides objective
assurance to the Management team and to the
Audit & Risk Committee on the effectiveness
of risk management and helps Management
to continuously improve its risk management
framework and processes.
RISK MANAGEMENT FRAMEWORK
The Company’s approach to the identification
and assessment of risks, and the response to
risks, is based on best business practices and the
international COSO (Committee of Sponsoring
Organisations
of
the
Treadway
Commission)
Enterprise Risk Management Framework. The
COSO Framework enables us to identify, classify,
assess, manage and report on the risks that the
Company faces in order to provide reasonable
assurance regarding the achievement of the
Company’s strategy and objectives.
The implementation and functioning of our Risk
Management Policy is supported by training
programmes for Management and employees
that emphasise open communication, with every
employee sharing responsibility for identifying and
managing risks.
PRINCIPAL RISKS
War-related risks are, by definition, substantive
and, in the extreme, could even be existential for
the Company. While the War continues, these are
therefore the most significant threats to MHP's
business continuity and accordingly are profiled at
the top of the following table of Principal Risks.
As many of these risks are outside the Group’s
control, the ongoing crisis has driven MHP to
become a more agile company, with systematic,
fast-paced, and dynamic analysis of risks and
consequent implementation of mitigating actions.
This has forced the pace of development and
change, enhancing the Company's ability and
preparedness to respond to future challenges.
The list of Principal Risks is not exhaustive and
additional risks and uncertainties not currently
known to us, or that we currently deem to be
immaterial, may also materially adversely affect
our business, financial condition, or results.
We therefore remain vigilant and proactive in
identifying and mitigating risks to ensure the
continuity of our operations.
See The Audit & Risk
Committee Report
on page 141.
SINCE 24 FEBRUARY 2022, THE ENVIRONMENT IN WHICH MHP OPERATES HAS CHANGED SIGNIFICANTLY
AS A RESULT OF THE RUSSIAN INVASION OF UKRAINE. THE GROUP NOW FACES A WIDE RANGE OF
SUBSTANTIVE WAR-RELATED CHALLENGES, WHICH ARE SUBJECT TO UNPREDICTABLE AND RAPID CHANGE.
MHP MUST CONTINUOUSLY ASSESS LEVELS OF RISK AND EVALUATE THE ACTIONS REQUIRED TO PROTECT ITS
OPERATIONS AND MARKET POSITION. FAILURE TO MANAGE THESE ISSUES COULD HAVE A SUBSTANTIAL
ADVERSE IMPACT ON OUR BUSINESS AS WE STRIVE TO MAINTAIN OPERATIONS WHILE ACHIEVING OUR
STRATEGIC GOALS AND DELIVERING SUSTAINABLE FINANCIAL PERFORMANCE.
54
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
PRINCIPAL RISK
HOW WE MANAGE THE RISK
TOP 4 WAR-RELATED RISKS
Missile attack on production facilities and storage
containing produce
Energy disruption. Adoption of a balanced energy mix comprised of the national grid, electricity from MHP biogas plants,
and back-up diesel generators.
Fire hazard. Fire engines stationed in production areas; provision of uninterrupted water supply; contractual agreements with
the State Emergency Services guaranteeing urgent arrival in case of fire.
Explosion hazard. Development of strict procedures to avert the risk of explosion and minimise the potential impact.
Destruction/breakdown of equipment or processing and manufacturing facilities. Increased warehousing of spare parts
and equipment in storage facilities remote from production sites; reservation of funds for restoration of property; emergency
reconstruction protocols for plant and other key facilities.
Production stoppage. In the most severe situations, poultry breeding and hatching may be reduced and, where unavoidable,
livestock thinned.
Financial impact. The Company has modelled a number of scenarios and analysed potential cost reductions, operating an
agile business strategy.
Additional storage facilities and storage approach. Adaptation of our business model, new logistics and supply routes,
accumulation of stock held outside Ukraine.
Interruption to electricity supply
Meat-processing facilities. Reduction of electricity consumption across the entire MHP supply chain.
Supply of products to customers. Greater focus on chilled poultry meat products and planned expansion of European
freezing capacity.
Payment processing centre/distribution centre. Power generators are employed as back up in the case of supply outage
or disruption.
Economic impact of the War on usual
commercial levers
Vigilant monitoring. Monitoring all aspects of the markets in which MHP is present, coupled with production reduction
scenarios and alternative options for receiving and processing payment transactions.
Sufficient credit lines. Facilities are available to cover liquidity risks.
Disruptions to supply of production raw materials
and resources
Supply contracts. Network of reliable and diverse suppliers selected.
Compound feed ingredients and additives. Increased warehousing capacity to store raw materials in optimum conditions.
Minimised travel time and loading / unloading time at transshipment centres and ports.
THE PRINCIPAL RISKS AND UNCERTAINTIES THE GROUP IS FACING ARE SHOWN BELOW
55
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
PRINCIPAL RISK
HOW WE MANAGE THE RISK
OTHER WAR-RELATED RISKS
Military actions in the countries to which we
export goods
Work with lawyers on amending the contracts to minimise the risks of product loss.
Loss of access to leased land, offices and
production facilities in the occupied territories
This geopolitical risk is largely outside MHP’s control. Where possible, mitigating factors may include the relocation of
operations.
Absence or loss of employees resulting in
disruption of business processes
Actions to ensure that employee welfare is protected and strengthened include: evacuating employees deemed most at
risk from dangerous areas to safer “hubs”; ensuring no concentration of critical employees in one location, with back-up
critical functions organised; training employees on defensive measures, including how to behave and protect themselves in
the War; building shelters for employees; providing physical and psychological support to employees; changing motivation
schemes to recognise and reward employees who ensure continuity of production and logistics; and implementing
educational programmes on stress management and maintaining composure in extreme situations.
See also Growth Pillar 2: Our People and Their Wellbeing on page 70.
Lack of human resources for investment projects
Lack of qualified personnel for the launch of new
investment projects, in particular the construction of
new facilities (a large number of specialists serve in
the Armed Forces) and installation/adjustment of new
equipment (foreign specialists refuse to go to Ukraine)
When making a decision regarding the purchase of new production equipment and/or construction projects, work with the
supplier to understand the installation process and configuration, and launch online in Ukraine or through the training of
MHP specialists abroad. Reservation of MHP-qualified specialists so that they are available for overseas travel to undertake
the above training.
A well-developed process for attracting foreign labour has been established, and a pilot project has already been
implemented.
Lack of human resources for production
The outflow of qualified specialists
Reservation of key employees (qualified specialists).
Recruitment and training of students to compensate for the outflow of employees.
Ongoing recruitment initiatives.
Initiatives focused on the reskilling of woman into traditionally male-dominated roles.
A well-developed process for attracting foreign labour has been established, and a pilot project has already been implemented.
Disruption of logistics routes in Ukraine
Mitigating actions include: drawing on, training and/or reskilling of volunteers, retailers, and drivers; expanding our fleet of
trucks; adapting supply chains to the new constraints; actions to ensure adequate stocks of all critical resources.
Inability to conduct export activities
Rapid adaptations to our business model and logistics routes.
Detailed contingency plans have been designed and are in place to maintain exports using as many routes as are available
at any point in time.
Potential cyber-attack, loss of data and disruption
of business processes
Disaster recovery plans have been implemented to respond to potential cyber-attacks targeting critical business operations.
Mitigations include improving the Security Operations Center (“SOC”), the scope of critical resources under continuous
monitoring has been expanded, enabling rapid detection of threats and incident response to minimise operational downtime.
See also Growth Pillar 5: Business Conduct on page 100.
THE PRINCIPAL RISKS AND UNCERTAINTIES THE GROUP IS FACING ARE SHOWN BELOW
56
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
PRINCIPAL RISK
HOW WE MANAGE THE RISK
BUSINESS RISKS
Fluctuations in prices for grains and related
products required for production input
MHP drives cost efficiency across all its businesses, supported by its vertically-integrated business model. MHP’s Agriculture
Operations produce internally 100% of the corn required for poultry feed production. The Company adopts different
approaches for improving feed recipes and the structure of feed so as to optimise cost and increase the feed conversion
ratio at the same time.
Fluctuations in demand for and market prices of
chicken meat
Demand for chicken in the domestic market is expected to remain strong as chicken meat is the most affordable kind of
meat from both a price and diet perspective. MHP products are available for purchase through different sales channels
at all times and the Company offers competitive trade terms to its customers. MHP’s domestic strategy and in particular
its focus on higher value-add products are drivers for increasing the Company’s profitability from chicken meat sales in
Ukraine.
In international markets, MHP continues to benefit from its strategy of geographic diversification of exports combined
with product mix optimisation and a focus on customised products for new potential markets.
Outbreaks of Avian Influenza and other livestock
diseases
To ensure the wellbeing of livestock at MHP’s facilities, the Company has implemented high biosecurity standards and
systems supplemented by a set of preventive veterinary-sanitary and hygiene measures.
Inefficient procurement and an increase in
production costs
MHP strives to continually improve its procurement procedures and production processes. The procurement of strategic
items is centralised with a high level of regulation and control. KPIs are set and are closely monitored with a view to
decreasing the costs of production.
Occurrence of a material product quality or
product safety incident
MHP prioritises product safety and quality in line with international best practice and applicable regulations. It maintains
robust quality and safety management systems and has an excellent track record in this area.
Fluctuations in commodity prices such as gas, fuel
and energy
MHP tightly monitors and controls its gas, fuel and energy costs. Energy price risks are mitigated by a priority focus on
developing renewable sources of energy and a continued increase in the use of co-generation and alternative energy
technology.
Lack of highly-qualified staff at strategic level and
production enterprises
MHP works to maintain positive relationships with employees and strives to build upon its reputation as a high-quality,
responsible employer of choice. MHP launched internal leadership development programmes to identify and prepare high-
potential employees for strategic roles and establish mentorship and coaching programmes, pairing experienced leaders
with rising talents. We have developed cross-functional training to expand employees’ competencies beyond their current
roles and implemented clear career progression plans with structured development paths. MHP also recognises and rewards
high-performing employees through financial and non-financial incentives.
We develop specialised retraining and reskilling programmes for employees returning from military service and created a
supportive environment for reintegration of veterans, including psychological assistance and flexible work arrangements.
THE PRINCIPAL RISKS AND UNCERTAINTIES THE GROUP IS FACING ARE SHOWN BELOW
57
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
PRINCIPAL RISK
HOW WE MANAGE THE RISK
ENVIRONMENTAL RISKS
Climate change and environmental impacts
MHP is committed to conducting all its activities in an environmentally responsible manner and responding to the global
challenges posed by climate change.
MHP’s most significant environmental risks and opportunities include those presented by climate change (such as extreme
weather events), environmental harm caused by the Group’s activities, and issues created by water scarcity (discussed below).
MHP’s environmental impacts are addressed by a process of continuous environmental management development.
MHP is currently developing a sustainability strategy, and took significant steps in 2024 to understand its climate change
risks and further develop its environmental management structures. The Group has received numerous environmental
accreditations relating to its facilities in different countries and these were extended in 2024.
MHP’s climate change risk management and mitigation measures are discussed within the TCFD statement on pages
117 to 120. MHP’s environmental management details and risk mitigation measures are discussed in detail within Growth
Pillar 6 on pages 110 to 116.
Water use and scarcity
MHP’s significant risks include the depletion of water resources and harming those resources as a result of, for example,
pollution from its production facilities.
All MHP production sites use preventive, monitoring and mitigating methods to prevent the depletion of water sources
and prevent contamination of surface and groundwater aquifers.
A programme of continuous development and monitoring will ensure that related risks are minimised and addressed.
Land use and deforestation
Large-scale agricultural and food production is associated with land use-related environmental risks such as deforestation,
peat bog drainage, and environmental contamination from the use of fertilisers.
The land where MHP operates has been analysed for deforestation and a mechanism for managing land that is likely to
be deforested has been introduced, additionally conservation through engagement with a wide range of stakeholders
including employees, customers and suppliers has been actively encouraged.
MHP regularly monitors soil quality and is committed to responsible fertiliser use to minimise the related risk of environmental
contamination.
FINANCE RISKS
Cross-border payments
Ukrainian capital controls and regulations set out by the National Bank of Ukraine (“NBU”) dictate that foreign currency
proceeds generated from exports but originating in Ukraine must be brought back to Ukraine within specific timeframes:
120 days for exports of grains and vegetable oils, and 180 days for exports of chicken meat. There are also partial restictions
set up by NBU with a monthly limit on the repatriation of dividends to non-resident companies abroad.
MHP is capable of servicing its existing loan portfolio from Ukraine. However, the Group is limited in the servicing of
Eurobonds due to NBU limitations on foreign currency payments to non-resident companies on legacy intragroup loans.
At the same time, following the changes introduced by the NBU, Ukrainian companies are now permitted to transfer
foreign currency for dividend payments to non-resident companies, within the amount of regular coupon payments on
Eurobonds, in accordance with the terms of the Eurobonds.
THE PRINCIPAL RISKS AND UNCERTAINTIES THE GROUP IS FACING ARE SHOWN BELOW
58
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
PRINCIPAL RISK
HOW WE MANAGE THE RISK
FINANCE RISKS (CONTINUED)
Fluctuations in foreign exchange rates
Fluctuations in foreign exchange rates continue to be highly unpredictable, influenced by a variety of external factors.
For Ukrainian companies, the ongoing War and shifting geopolitical dynamics, including the reduction of international
financial aid, significantly contribute to economic uncertainty. These elements create volatility in exchange rates, posing
challenges for businesses in managing currency risks amid the ongoing War.
Fluctuations in interest rates
MHP monitors its exposure to interest rates and assesses the potential implications of interest rate fluctuations on its net
interest expenses. The majority of the Group’s debt is structured with a fixed interest rate, with Eurobonds making up the
largest share of the fixed-rate loan portfolio. The Group does not employ derivatives to hedge interest rate risk. Instead, it
manages this risk by maintaining a balanced mix of fixed and variable-rate loans and borrowings.
Credit risk
MHP has a diversified pool of customers. The amount of credit extended to any one customer or group of customers,
including supermarkets and franchisees, is strictly controlled. Credit risks are managed by security provisions included in
agreements with customers. At foreign subsidiaries of MHP, an insurance company is involved to approve the credit limit
and to insure against the risk of non-payment.
Liquidity risk
Unavailability of loans, inability to refinance debts
in 2026
To mitigate liquidity risks, MHP maintains efficient budgeting and cash management protocols to guarantee sufficient
funds are on hand both to fulfill its operational needs and ensure its covenant obligations are met. The Company also
implements a flexible CAPEX programme, allowing for the postponement of capital projects if required.
In addition, the Group has a robust risk management framework in place, with continuous monitoring of external factors
that may impact liquidity.
Furthermore, the Company continues to explore alternative sources of liquidity, including potential long-term financing.
While the evolving geopolitical and economic conditions present challenges, MHP's strong operational cash flow, along
with its proactive approach to liquidity management, provides confidence in the Company’s ability to meet its financial
obligations without disruption. The Group remains committed to maintaining a robust liquidity position and is confident
that it will be able to arrange financing solutions which align with its operational needs and strategic goals.
Inefficient investments
MHP has established and enacted procedures to ensure proper oversight in this domain. The Evaluation of Investment
Projects procedure mandates that the Investment Committee approves the majority of investment projects. For significant
Company investments under the CAPEX programme, formal investment appraisal reports and financial models are
prepared, and these documents are jointly endorsed by the Investment Committee. The Board approves the annual CAPEX
programme in line with the annual Budget.
THE PRINCIPAL RISKS AND UNCERTAINTIES THE GROUP IS FACING ARE SHOWN BELOW
59
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
PRINCIPAL RISK
HOW WE MANAGE THE RISK
STAKEHOLDER RELATIONS RISKS
Local communities and NGOs
MHP is in regular dialogue with its local communities and other stakeholders in the regions in which it operates. The
Company aims to conduct these relationships sensitively and with mutual respect; invests in local infrastructure, education,
and healthcare projects to improve the community's well being; prioritises hiring local workers, providing them with
training and opportunities for growth and reskilling; establishes open channels of communication with local communities
to understand their needs, concerns, and feedback; keeps the community informed about business operations, changes,
and potential impacts; and supports and create programmes with NGOs that directly benefit the local communities' needs.
See also Growth Pillar 1: Stakeholder Engagement on page 64.
Investor and other stakeholder relations
MHP maintains an experienced and well-resourced communications and investor relations team which is supported by
a national and international network of professional advisors. The team ensures that information about the Company is
distributed in a timely manner, is accurate and up-to-date. MHP also monitors external commentary about its activities to
ensure that any inaccuracies are addressed promptly. A qualitative measurement of the Company’s image is performed on
a regular basis and monitored by Top Management and the Board.
See also Growth Pillar 1: Stakeholder Engagement on page 64.
COMPLIANCE RISKS
Legal and regulatory risk
MHP’s Management team actively monitors regulatory developments in the countries in which the Group operates.
The Company also develops and updates internal compliance policies to ensure their relevance and alignment with
current legislation. An effective system for submitting and reviewing complaints has been implemented, allowing for the
timely identification and resolution of potential violations. Additionally, cooperation has been established with external
consultants and legal experts in the countries where the Group operates, ensuring a deeper understanding of local
regulatory requirements and minimising legal risks.
See also Growth Pillar 5: Business Conduct on page 100.
Bribery and corruption
MHP maintains robust anti-bribery and corruption policies and procedures, including a Code of Ethics, which are regularly
reviewed and monitored by the Audit & Risk Committee. MHP also monitors compliance with the established policies and
procedures.
See also Growth Pillar 5: Business Conduct on page 100.
Failure to comply with the covenants under
loan agreements
MHP has developed and follows control procedures to monitor compliance with covenants.
BUSINESS CONTINUITY RISK
Failure of IT systems could materially affect
MHP’s business
Comprehensive contingency measures have been established to mitigate potential cyber threats against operational
technology systems. Mitigations include conducting thorough audits of ICS systems, segmenting OT networks, and
enforcing strict privileged access controls.
See also Growth Pillar 5: Business Conduct on page 100.
60
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
MHP’S GROWTH PILLARS
GRI references 2-22, 3-2
Since 2022, MHP has been reporting on its Six
Growth Pillars to demonstrate how it is delivering
on ESG and sustainability. The Group continues to
succeed in progressing its established commitments
in various areas including addressing climate
change, training and developing its workforce and
providing opportunities for demobilised employees,
maintaining its stakeholder engagement and
communications. These fundamental commitments
were in place in 2024 and will continue throughout
2025 and beyond.
ALIGNING OUR SUSTAINABILITY FRAMEWORK
MHP has maintained and adapted its sustainability
approach even during the time of the War. The
Group is committed to achieving best practice
and carefully monitors the development of global
standards including those relating to climate change,
sustainable
agriculture,
diversity,
equality
and
inclusion as well as new regulatory requirements.
Key aspects of our approach include:
• Identifying
the
United
Nations
Sustainable
Development Goals as the appropriate sustainability
framework for MHP to align its approach;
• Closely following compliance of the International
Financial Institution’s Performance Standards and
considering their recommendations and performing
according to requirements set out in Action Plans;
• Preparing to align with evolving reporting
requirements including those being developed
by the EU and the United Kingdom; and
• Developing data collection to enable us to report
in alignment with evolving regulatory reporting
requirements and best practice.
MHP supports global sustainability stakeholder
initiatives including those set up by governments,
regulators, financial and investment communities,
and NGOs to enhance transparency and consistency
in sustainability practices and the disclosure of
performance.
Through regular stakeholder engagement activities,
MHP has established its approach to sustainability,
created a sustainability framework and prioritised
relevant activities.
OUR SIX GROWTH PILLARS
Our sustainability framework consists of
Six Growth Pillars.
THE PLANET
Page 110 to 116.
STAKEHOLDER
ENGAGEMENT
Page 64 to 69.
OUR PEOPLE AND THEIR
WELLBEING
Page 70 to 85.
RESPONSIBLE FOOD
PRODUCTION
Page 92 to 99.
OUR ROLE IN SOCIETY AND
OUR LICENCE TO OPERATE
Page 86 to 91.
BUSINESS CONDUCT
Page 100 to 109.
These activities are delivered and assessed
through our strategy and policies,
management systems and processes,
performance measurement and monitoring,
and engagement with stakeholders.
DESPITE CHALLENGES
CREATED BY WAR,
THE PRINCIPLES AND
COMMITMENTS CODIFIED
BEFORE THE INVASION
REMAIN INTACT AND WILL
CONTINUE TO BE REFINED
AND DEVELOPED OVER TIME
61
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GRI TABLE
MHP’s 2024 GRI table, which cross-references
the information within this Report, is available for
download from MHP’s website.
ALIGNMENT WITH THE UN SUSTAINABLE
DEVELOPMENT GOALS
The United Nations Sustainable Development
Goals (“UN SDGs”) were designed to provide a
shared blueprint for achieving peace, prosperity
and wellbeing for people and the planet, now and
in the future.
MHP’s responsible business strategy and activities
are closely aligned with the UN SDGs. The Group
aims to contribute constructively to positive global
change. MHP aligns its activities with all seventeen
UN SDGs, which can be found on the next page.
MHP leverages its products and services, workforce,
investments and stakeholder engagement activities
to drive a process of innovation and continuous
improvement.
The following matrix highlights how each of the
seventeen SDGs are addressed under each of the
Growth Pillars. Further information is included in
each Growth Pillar section of this Report.
WHY
Our purpose is to provide our customers with high quality, sustainable proteins,
food products and culinary solutions that are safe and responsibly produced.
AREAS OF FOCUS
(GROWTH PILLARS)
Stakeholder
Engagement
Our People and Their
Wellbeing
Our Role in Society
and Our Licence to
Operate
Responsible Food
Production
Business Conduct
The Planet
HOW
Strategy and Policy Design
Continuous Management Systems Development
Rigorous Performance Measurement and Monitoring
REPORTING
GRI
TCFD
International Standards and Guidelines
OUR APPROACH
62
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MHP’S GROWTH PILLARS AND THEIR ALIGNMENT WITH THE UN SDG’S
UN SDG’S
MHP’S GROWTH PILLARS
STAKEHOLDER
ENGAGEMENT
OUR PEOPLE AND
THEIR WELLBEING
OUR ROLE IN SOCIETY
AND OUR LICENCE TO
OPERATE
RESPONSIBLE FOOD
PRODUCTION
BUSINESS CONDUCT
THE PLANET
NO POVERTY
1
ZERO HUNGER
2
QUALITY EDUCATION
4
GENDER EQUALITY
5
CLEAN WATER AND SANITATION
6
AFFORDABLE AND CLEAN ENERGY
7
DECENT WORK AND
ECONOMIC GROWTH
8
INDUSTRY INNOVATION
AND INFRASTRUCTURE
6
REDUCE INEQUALITIES
10
SUSTAINABLE CITIES AND
COMMUNITIES
11
RESPONSIBLE CONSUMPTION
AND PRODUCTION
12
CLIMATE
ACTION
13
LIFE BELOW WATER
14
LIFE ON LAND
15
PEACE, JUSTICE AND
STRONG INSTITUTIONS
16
PARTNERSHIP FOR THE GOALS
17
63
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GROWTH PILLAR 1
GRI references 3-1
APPROACH & AIMS OF MHP’S
STAKEHOLDER ENGAGEMENT
The commencement of War in Ukraine
in February 2022 meant that MHP had
to immediately adapt its approach to
stakeholder engagement and play an active
role in addressing the crisis. The Group’s Top
Management immediately resolved that the
Group’s stakeholder engagement priorities
were to:
• Support the needs of employees;
• Address the needs of communities in
different parts of the country;
• Provide regular updates to financial partners
and the investment community; and
• Work with other stakeholders to maintain
food security and personal safety for the
Ukrainian population.
MHP’s principal stakeholder engagement
aims include:
• Working
with
internal
and
external
stakeholders to provide the necessary
support to and to maintain communication
with employees (mobilised and demobilised)
and their families;
• Working with internal and external
stakeholders to maintain a wide variety
of community support activities across
Ukraine and to encourage international
stakeholders to provide resources and
support to the Ukrainian population
during the War;
• Supporting
accessible
channels
for
transparent
communication
with
communities and offering opportunities
for cooperation and development;
• Building
collaboration,
trust
and
transparency
between
business
and
local governments to achieve effective
joint project management to support
communities in the regions;
• Working with a wide variety of internal
and external stakeholders in Ukraine to
maintain food security for everyone;
• Working
with
customers,
business
partners and suppliers following best
international practices adhering to fair
business conduct principles and ethics;
and
• Maintaining
communication
with
shareholders,
financiers
and
the
investment community and adhering
to best practices for publicly listed
companies.
MHP’s stakeholder engagement approach
has also aimed to continuously adapt and
evolve in response to the development
of the Group, changes in operational and
regulatory environment as well as challenges.
This approach was in place in 2024 and will
continue into 2025 and beyond.
STAKEHOLDER ENGAGEMENT
64
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MATERIALITY ASSESSMENT
In previous years, MHP conducted a stakeholder
materiality exercise to ensure that it fully
understands the views of its stakeholders in
relation to recent, current and future activities.
Details of this approach can be found in the
2021 Sustainability Report which is available
for download from the Group website. Clearly
this approach had to be changed following
the outbreak of the War. MHP’s stakeholder
engagement activities are currently focused on
the priorities listed above.
MHP started preparing for the new reporting
based on ESRS and has already partially complited
a comprehensive double materiality assessment
exercise, supported by experienced external
advisors. It is due for completion in the first half
of 2025. This will ensure that MHP is aligned
with the more rigorous materiality assessments
required by new and forthcoming regulations.
The S&IA Committee report on page 150 provides
more information on preparedness in the section
headed “Preparing MHP for the Requirements of
EU Regulations”.
UPDATED STAKEHOLDER ENGAGEMENT PLAN
MHP updated its Stakeholder Engagement
Plan in 2024 as part of its evolving and adapting
approach to stakeholder engagement to ensure
that its aims are continuously met. All material
stakeholders
were
parties
involved
in
the
process. This aspect ensured that the updated
plan maximised goal alignment, collaboration
opportunities, and the overall effectiveness of the
outlined activities.
STAKEHOLDER ENGAGEMENT HIGHLIGHTS
The table below sets out how each key stakeholder area of interest is understood and how this was addressed
in 2024 including how MHP’s Board of Directors participated in these activities.
WORKFORCE
MHP has a dedicated and experienced workforce that is committed to, and is a key factor in, achieving MHP’s aims and objectives. Taking care of our people is a top priority.
KEY STAKEHOLDER ISSUES
• A shared vision of MHP’s commitment to the country during the
war;
• Personal and family welfare and security;
• Health and wellbeing, taking into account the special
circumstances created by the war;
• A conducive workplace featuring diversity, inclusion, flexibility,
responsible business practice and clear communication;
• Provision of ongoing employment particularly for MHP employees
within the armed forces and demobilised employees;
• Access to education and professional development opportunities
for students and young professionals; and
• Career guidance and support for school students and teachers in
MHP’s regions of operation.
HOW MHP ENGAGES
• Design of tailored programmes to address the special needs created by the War;
• Regular two-way communication;
• Clear communication of Company and Management goals;
• Training, education and mentoring;
• Programmes for the development of innovative thinking;
• Corporate volunteering;
• Reskilling programmes;
• Grievance mechanism;
• Employment of external advisory services (e.g. psychologists) to address issues caused by the war;
• Regular surveys;
• Collaboration with educational institutions through dual education, internships, and practical training
programmes;
• Career orientation programmes for school students in MHP’s regions of operation; and
• Development of specialised training programmes for teachers.
BOARD INVOLVEMENT HIGHLIGHTS
• Day-to-day involvement of the Chief Executive Officer and the
Deputy Chief Executive Officer;
• Regular discussion of workforce matters at Board meetings and
Board Committee meetings; and
• Regular reporting of workforce information to the Board as part of
internal reporting processes.
2024 HIGHLIGHTS
• Substantial two-way communication resources were applied to ensure ongoing communications and
working activities during the war and successfully addressing potential problems such as cyber-threats;
and
• Communications played an important role in maintaining morale and ensuring that MHP’s
Management were able to address issues as and when they arose.
65
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
COMMUNITIES
MHP’s reputation and business continuity are supported by its aim to be a proactive and supportive member of its local communities and a good neighbour.
KEY STAKEHOLDER ISSUES
• Wellbeing, personal safety, and food security during the war;
• Creating accessible channels for transparent communication to
address concerns and share feedback;
• Holding regular dialogue sessions to discuss community needs,
priorities and MHP’s operational impact;
• Offering opportunities for community members to actively engage
in decision-making processes;
• Supporting the development and maintenance of critical
infrastructure (roads, healthcare facilities, schools);
• Minimising the environmental footprint of operations to preserve
the local ecosystem; and
• Promoting cultural heritage and Ukrainian identity.
HOW MHP ENGAGES
• Developing a revised Stakeholder Engagement plan in 2024 which was adapted for the special
circumstances that have been created by the War and which is aligned with the OKRs of the
CSR department;
• Regularly updating stakeholders with news, progress reports and supplying information about
opportunities for engagement through social media and MHP’s websites;
• In-person engagement activities to facilitate community visits and discussions with designated
MHP representatives (for instance within village council meetings and project public
development hearings);
• Facilitating opportunities for members of the community to engage in the activities of MHP-Hromadi;
and
• Supplying dedicated contact points such as the MHP TrustLine for enquiries, grievancies and
emergencies.
BOARD INVOLVEMENT HIGLIGHTS
• Day-to-day involvement of the Chief Executive Officer and the
Deputy Chief Executive Officer in MHP’s activities to address the
effects of the War in Ukraine.
2024 HIGHLIGHTS
• MHP successfully carried out its strategy of working with a variety of national and international
partners to deliver humanitarian aid to the Ukrainian population to alleviate the effects of the War;
• MHP continued to partner with MHP-Hromadi to enable the Foundation to continue to deliver a wide
variety of community support programmes; and
• MHP continued to actively work with a variety of stakeholders to preserve and develop Ukraine’s
cultural heritage through the conduct of a wide range of projects.
CUSTOMERS, BUSINESS PARTNERS AND SUPPLIERS
MHP’s ongoing and uninterrupted business continuity relies on the strength and maintenance of its relationships with its customers, suppliers and business advisors.
KEY STAKEHOLDER ISSUES
• Business continuation during the War;
• Adaptation of business methods and logistics during the War;
• Fair business conduct, terms and conditions;
• MHP’s approach and performance relating to biosecurity, product
quality, environmental, health and safety matters; and
• Transparency, clear communication channels and opportunities to
engage.
HOW MHP ENGAGES
• Adaptation and redesign of communication channels to take into account the special circumstances
created by warfare;
• Interaction via tender platform;
• Dedicated staff teams to interact with customers, suppliers and business advisors;
• Provision of questionnaires; and
• Participation in regular customer due diligence processes.
BOARD INVOLVEMENT HIGLIGHTS
• Close executive director involvement in the maintenance of
engagement with this key group of stakeholders; and
• Executive directors led the development of a strategy that ensures
the maintenance of functioning and reliable communication
channels and monitoring of performance.
2024 HIGHLIGHTS
• Working with a variety of stakeholders to ensure ongoing food security for the population of
Ukraine; and
• Working with a variety of stakeholders both domestically and internationally to ensure ongoing
business activities at MHP’s sites.
66
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
SHAREHOLDERS, FINANCIERS AND THE INVESTMENT COMMUNITY
MHP’s ongoing access to capital and liquidity depends on maintaining strong and lasting relationships with investors, debt providers, financiers and financial analysts.
KEY STAKEHOLDER ISSUES
• Ongoing liquidity and solvency of the Group;
• Regular access to Management and information during the crisis;
• Financial and operational performance;
• Credit rating;
• Strategy;
• Risk management;
• Environmental, social and governance approach and
performance; and
• Transparency, regular and proactive communication and reporting.
HOW MHP ENGAGES
• Provision of regular access to Top Management and IR personnel;
• Regular provision of conference calls for the investment community;
• Quarterly, six-monthly and annual results announcements;
• One-to-one meetings with investors and financiers;
• Annual general meeting;
• Dedicated IR section on the Company’s website;
• Annual publication of an Integrated Report; and
• Regular communications with rating agencies.
BOARD INVOLVEMENT HIGLIGHTS
• Board members provide an important point of contact for
investors during the period of War in Ukraine.
2024 HIGHLIGHTS
• Successful ongoing management of MHP’s access to capital arrangements including the successful
execution of the Eurobond repayment in 2024; and
• Regular and ongoing dialogue with shareholders and the finance community to ensure ongoing
support and full understanding of MHP’s stability during the duration of the War.
LOCAL GOVERNMENT
MHP’s collaborates with local and national government to create mutually beneficial partnerships that drive economic development, improve public services, and address
community needs.
KEY STAKEHOLDER ISSUES
• Building collaboration, trust and transparency between business
and government to achieve effective joint project management;
• Provision of financial support from business to address community
needs and address issues created by the War; and
• Ensuring business innovation, profitability and community support
is facilitated by an optimal regulatory environment.
HOW MHP ENGAGES
• Inclusion of government in MHP’s Stakeholder Engagement Plan and the ESG Department’s OKRs to
ensure strong collaboration with government at all levels;
• Regular in-person interaction and dialogue with government officials; and
• Regular distribution of news and information about MHP’s activities to government agencies and officials.
BOARD INVOLVEMENT HIGLIGHTS
• MHP’s Board members have regularly been in contact with
governmental organisations in Ukraine and the EU during 2024
concerning the War in Ukraine and related matters; and
• The Board of Directors receives regular reports on regulatory
compliance across the Group.
2024 HIGHLIGHTS
• Partnered with the Ministry of Agraian Policy and Food of Ukraine to deliver the Victory Gardens
grant competition;
• Partnered with the Ministry of Veteran Affairs of Ukraine and the Ukrainian Veterans Fund to deliver
micro-enterpreneurial development grants;
• Partnered with the Ministry of Youth and Sports of Ukraine and Sports For All to deliver grants to
facilitate accessible infrastructure for veterams and people with disabilities; and
• Partnered with the Office of the President of Ukraine, the Ministry of Youth and Sports of Ukraine
and the National Olympic Committee of Ukraine to support the The Will To Win project and the
Ukrainian House Volia Space at the Paris Olympic Games.
67
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
NATIONAL GOVERNMENT AND REGULATORS
MHP’s licence to operate is dependent on its compliance with the applicable laws and regulations.
KEY STAKEHOLDER ISSUES
• Adherence to the applicable laws and regulations;
• Support and cooperation with national economic initiatives; and
• Transparency, clear communications channels and opportunities to
engage.
HOW MHP ENGAGES
• Regular dialogue to establish population needs and requirements during the War in Ukraine and to
design plans to address them; and
• Close cooperation with regulators over matters such as bio-security, health and safety and
environmental matters.
BOARD INVOLVEMENT HIGLIGHTS
• MHP’S Board members supervised contact with central
governmental organisations in Ukraine and elsewhere during 2024;
and
• The Board of Directors receives regular reports on regulatory
compliance across the Group.
2024 HIGHLIGHTS
• MHP continued to work successfully with the Ukraine national government to address the many
challenges presented by the War.
MEDIA
An important element of all MHP’s key stakeholder relations is that the media reports timely and accurate information about its activities.
KEY STAKEHOLDER ISSUES
• How MHP is working to support the population and the country;
• Receipt of timely, complete and up-to-date news and information
about MHP’s activities; and
• Transparency, clear communication channels and opportunities to
engage.
HOW MHP ENGAGES
• Design of communications activity to address the special circumstances created by the War;
• Company websites;
• Regular distribution of Company news and information;
• Availability of Top Management for media interviews and briefings; and
• Use of social media including Facebook, LinkedIn and Instagram.
BOARD INVOLVEMENT HIGLIGHTS
• MHP’s Executive Chairman regularly acts as a spokesperson for
the Company.
2024 HIGHLIGHTS
• MHP continued to use mainstream and social media effectively to maintain communications with a
wide variety of internal and external stakeholders despite the challenging circumstances in Ukraine;
and
• MHP continued to work with different stakeholders to maintain open lines of communication and
prevent inaccurate information being disseminated about its activites and the situation in Ukraine.
68
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
S 172 STATEMENT AND STAKEHOLDER
ENGAGEMENT
Section 172 of the UK Companies Act 2006 requires
each Director of the Company to act in the way he
or she considers, in good faith, would most likely
promote the success of the Company for the benefit
of its members as a whole.
In this way, Section 172 requires a Director to have
regard, among other matters, to the:
Likely consequences of any decisions in
the long term
Interests of the Company’s employees
Need to foster the Company’s business
relationships with suppliers, customers,
and other material stakeholders
Impact of the Company’s operations on
local communities and the environment
Desirability of the Company maintaining
a reputation for high standards of
business conduct
Need to act fairly between members of
the Company
In discharging its Section 172 duties, the Board
has regularly considered the factors set out here
and the views of key stakeholders. By considering
MHP’s objectives and commitment to responsible
business, together with its strategic priorities,
the Board aims to ensure that its decisions are
consistent, predictable, and always in the best
interests of the business.
Further details of the Board’s activities can be found
in the Governance section of this Report on pages
124 to 155 and within the Stakeholder Engagement
Highlights on pages 65 to 68. This information
includes how the Board reaches its decisions; the
matters discussed and debated during the year;
the stakeholder considerations that were central to
those discussions; highlights of Board stakeholder
engagement activity and how the Board fosters
MHP’s relationships with customers, suppliers, and
other stakeholders. Other relevant information can
be found at MHP’s main corporate website at www.
mhp.com.ua.
THE BOARD AIMS TO ENSURE THAT
ITS DECISIONS ARE CONSISTENT,
PREDICTABLE, AND ALWAYS IN THE
BEST INTERESTS OF THE BUSINESS.
69
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GROWTH PILLAR 2
OUR PEOPLE AND THEIR WELLBEING
OUR COMMITMENT
The Group aims to build a culture where
everyone’s welfare, health and safety and
wellbeing matters within a workplace that is
welcoming for everyone.
Everyone at the Group strives to achieve the
goal of zero fatalities and health and safety
incidents resulting in injury or adversely
affecting the health of employees.
MHP GROUP’S FIVE CORE VALUES
MHP Group’s five core Values are outlined
below and are aligned with its strategic
development and goals. They are:
The War that commenced in
February 2022 underlined that
all of our people are MHP’s
greatest asset wherever they
are based around the MHP
Group (“the Group”, “MHP”).
Our established culture of
interaction, cooperation, and
adherence to MHP’s values
is a key factor in the Group’s
international success.
Further information about how MHP is
embedding its values into its culture across
the business can be found in Our Values:
Dilosophy on pages 30 to 31.
PARTNERSHIPS
GOAL-ORIENTATION
CONTINUOUS DEVELOPMENT
RESPONSIBILITY
TRANSPARENCY AND HONESTY
70
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
POLICY HIGHLIGHTS
• MHP undertakes all necessary steps and has
relevant procedures in place to comply with
relevant current remuneration legislation;
• MHP values each employee and will support
everyone to fully realise their potential;
• MHP will build transparent relationships with
all staff and will protect the privacy of every
employee;
• MHP will ensure that the principle of equal
opportunities applies across the Group;
• MHP prohibits discrimination based on personal
characteristics that are not related to workplace
activities or to the performance of duties;
• MHP prohibits the use of child labour, forced
labour and slavery; and
• MHP adheres to the principle of freedom of
association.
MANAGEMENT APPROACH
HR management processes in Ukraine are aligned
with
international
standards
and
Ukrainian
legislation. To maintain this culture, MHP’s HR
team is guided by the principle of transparency in
working with staff.
MHP implements a number of initiatives that
ensure a positive impact on employees and
contribute to their wellbeing.
DIVERSITY AND EQUAL OPPORTUNITIES
MHP supports the principles of gender and age
diversity, ensuring equal access to opportunities for
all employees. This guarantees fair remuneration
and equal conditions regardless of gender or age
group. The diversity principles can be found in more
detail in Diversity Statement of the Group.
JOB SECURITY
The Company provides stable employment with
fair wages, long-term job opportunities, and social
benefits, which enhance employee engagement
and the Company’s operational resilience.
FAIR REMUNERATION
MHP conducts regular monitoring of wage levels
and an annual review of their compliance with
market conditions. Internal policies regulate
the mechanisms for salary review and ensure
competitive compensation.
INCLUSIVITY
MHP aims to create outstanding workplaces for
everyone. For example, MHP is striving to support
people with disabilities through an assessment
of their individual needs followed by maximum
adaptation of working conditions. MHP aims to
establish a unified approach to employee disability
across its enterprises and work is underway to
achieve this aim across the Group.
DIVERSITY AND EQUAL OPPORTUNITIES
STRATEGY
MHP aims to have inclusive workspaces and retail
locations. MHP has recently taken a number of
new steps to achieve this and they include an
accessibility audit of the central office, consultation
centre as well as franchise outlets in Ukraine. At
Myronivka town, an inclusive office for the MHP
Community Charity Fund has been created
and another for the “MHP Standing Together”
programme is nearly complete. A similar facility
is planned for Ladyzhyn town. Additionally, the
Company is currently exploring ways to improve
the accessibility of retail locations.
MHP is also aiming to enhance its diversity culture.
A training course called “MHP Superhumans”
is being developed to educate employees on
appropriate
communication
with
mobilised
employees, veterans, and people with disabilities.
The course will be available to all employees and is
mandatory for retail staff.
ADDRESSING THE EFFECTS OF THE ONGOING WAR
All
MHP’s
activities
continued
successfully
throughout 2024 and into 2025 despite the many
challenges that its operations in Ukraine were
presented with.
The challenges related to the workforce and
MHP’s response to this are widely viewed as a
best-in-class example for other organisations
to follow, both within Ukraine and elsewhere.
Key aspects of the Group’s approach have been
its understanding that effective and regular
communication with all parts of the workforce is
key to understanding and addressing the needs
of the operational environment. Innovation and
adaptation have also been important aspects of
maintaining MHP’s activities and this approach
will continue for the duration of the War.
EUROPEAN OPERATING SEGMENT WORKFORCE
REORGANISATION
At
the
European
Operating
Segment,
Perutnina Ptuj Group conducted a significant
reorganisation
of
the
workforce
structures
in 2024 after conducting a comprehensive
assessment supported by external advisors
and involving several internal workshops and
surveys. Key outcomes included changes in
the roles of senior management members
and local management teams. The changes
facilitate optimal decision making at a local
level
and
enable
senior
management
to
more optimally focus on strategic matters.
Decision making transparency has also been
significantly improved through the development
of
clearer
authorisation
and
accountability
mechanisms.
71
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
EMPLOYEE NUMBERS BY REGION
GRI 2-7
EMPLOYEE NUMBERS AND GENDER DATA
GRI 2-7
UKRAINE
2024
Total
30,889
%
Male
18,097
59
Female
12,792
41
2023
Total
28,788
%
Male
17,311
60
Female
11,477
40
2022
Total
28,298
%
Male
17,262
61
Female
11,036
39
EUROPEAN OPERATING SEGMENT
2024
Total
5,165
%
Male
2,479
48
Female
2,686
52
2023
Total
4,667
%
Male
2.072
44
Female
2,595
56
2022
Total
4,247
%
Male
1,869
44
Female
2,378
56
OTHER LOCATIONS
2024
Total
252
%
Male
168
67
Female
84
33
UKRAINE
REGION
EASTERN
WESTERN
CENTRAL
SOUTHERN
TOTAL
2024
3,027
1,796
25,878
188
30,889
%
10
6
83
1
100
EMPLOYEE DATA – EMPLOYMENT TENURE
GRI 2-7
UKRAINE
2024
Total
Permanent
%
Temporary
%
30,889
29,891
97
998
3
2023
Total
Permanent
%
Temporary
%
28,788
28,043
97
745
3
2022
Total
Permanent
%
Temporary
%
28,298
27,016
95
1,282
5
EUROPEAN OPERATING SEGMENT
2024
Total
Permanent
%
Temporary
%
5,165
3,996
77
1,169
23
2023
Total
Permanent
%
Temporary
%
4,667
3,753
80
914
20
2022
Total
Permanent
%
Temporary
%
4,247
4,162
98
85
2
EMPLOYEE DATA – EMPLOYMENT TENURE BY REGION
GRI 2-7
UKRAINE
REGION
EASTERN
WESTERN
CENTRAL
SOUTHERN
TOTAL
2024
Permanent
2,966
1,655
25,083
187
29,891
Temporary
61
141
795
1
998
EMPLOYEE DATA
At
31
December
2024,
36,306
employees worked for MHP Group.
EMPLOYEE NUMBERS BY REGION
GRI 2-7
OTHER LOCATION
MHP Food
Trading UAE
MHP BV NL
MHP Trade
BV NL
MHP EE
Slovakia
MHP PetFood
HR
MHP SE CY
MHP Saudi
Arabia KSA
MHP Food UK
ltd. UK
Total
2024
62
38
30
1
7
2
93
19
252
%
24
15
12
0
3
1
37
8
100
72
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
EMPLOYEE DATA – FULL/PART TIME
GRI 2-7
UKRAINE
2024
Total
30,889
Full employment
%
Part-time
%
Male
17,744
30,133
98
353
2
Female
12,389
403
2023
Total
28,788
Full employment
%
Part-time
%
Male
16,730
27,564
96
581
4
Female
10,834
643
2022
Total
28,298
Full employment
%
Part-time
%
Male
16,987
27,943
99
179
1
Female
10,956
176
EUROPEAN OPERATING SEGMENT
2024
Total
5,165
Full employment
%
Part-time
%
Male
2,469
5,064
98
12
2
Female
2,595
89
2023
Total
4,667
Full employment
%
Part-time
%
Male
1,982
4,558
98
90
2
Female
2,576
19
2022
Total
4,247
Full employment
%
Part-time
%
Male
1,515
3,459
81
354
19
Female
1,944
434
EMPLOYMENT FULL/PART TIME BY REGION
GRI 2-7
UKRAINE
REGION
EASTERN
WESTERN
CENTRAL
SOUTHERN
TOTAL
2024
Full
2,977
1,756
25,218
182
30,133
Part time
50
40
660
6
756
EMPLOYEE DATA – EMPLOYMENT LEVEL
UKRAINE
Year
Managers
Professionals
Other
Number
%
Number
%
Number
%
2024
2,649
9
6,683
22
21,557
69
2023
2,672
9
5,580
20
20,536
71
2022
2,462
9
5,056
18
20,780
73
EUROPEAN OPERATING SEGMENT
Year
Managers
Professionals
Other
Number
%
Number
%
Number
%
2024
63
1
773
15
4,329
84
2023
82
2
738
16
3,847
82
2022
79
2
710
17
3,458
81
73
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
EMPLOYEE RECRUITMENT DATA
UKRAINE
REGION
EASTERN
WESTERN
CENTRAL
SOUTHERN
TOTAL
2024
798
487
6,679
64
8,028
2023
610
438
7,107
66
8,221
2022
850
243
7,952
-
9,045
GRI 401-1
EUROPEAN OPERATING
SEGMENT
COUNTRY
SLOVENIA
CROATIA
BOSNIA /
HERZOGOVINA
SERBIA
MACEDONIA
ROMANIA
AUSTRIA
TOTAL
2024
509
191
198
451
1
1
0
1,351
2023
486
146
197
615
1
0
0
1,445
2022
337
162
141
454
0
1
2
1,097
2024 RECRUITMENT DATA BY GENDER
UKRAINE
Number
%
Total
8,028
100
Male
4,129
51
Female
3,899
49
GRI 401-1
2024 RECRUITMENT DATA BY AGE
UKRAINE
Number
%
Total
8,028
100
Under 30
2,754
34
30-50
3,791
47
Over 50
1,483
19
GRI 401-1
ANNUAL EMPLOYEE TURNOVER PERCENTAGE BY GENDER
UKRAINE
Total, %
Male, %
Female, %
2024
14.8
14.1
15.6
2023
18.8
17.3
20.8
GRI 401-1
ANNUAL EMPLOYEE TURNOVER PERCENTAGE BY AGE
UKRAINE
Total, %
Under 30, %
30-50, %
Over 50, %
2024
14.8
27.2
13.3
11.0
2023
18.8
17.8
12.6
37.9
GRI 401-1
74
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
EMPLOYEE 2024 SOFT/HARD SKILLS UPGRADE TRAINING
AND DEVELOPMENT DATA
UKRAINE
Soft skills
Hard skills
Total
26,129
7,790
By Gender
Male
46%
73%
Female
54%
27%
By employment level
Managers
18%
22%
Specialists
82%
25%
Workers
-
53%
GRI 404-2
EMPLOYEE 2024 PERFORMANCE AND CAREER
DEVELOPMENT DATA
UKRAINE
Performance appraisals
Competency
assessments
Total
6,076
754
By Gender
Male
45%
58%
Female
55%
42%
By employment level
Managers
24%
100%
Specialists
76%
-
GRI 404-3
75
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GRI 404-2
MANAGERIAL PROFESSIONAL DEVELOPMENT
MHP has always placed important emphasis on
training and development. Management believes
that the development of professional skills adds
significant value and contributes to:
• Professional
and
personal
development
of
employees to maintain a continuous flow of talent;
• Improving
task
performance
through
the
acquisition of new skills and qualifications; and
• Role
flexibility
through
reskilling
and
the
acquisition of new experience.
In 2024, employee skills upgrade programmes
continued to be a key focus area. A total of 26,129
employees participated in soft skills development,
with 46% of participants being male and 54%
female. Of these, 18% were managers, while 82%
were specialists, highlighting a strong emphasis on
developing expertise within the Company. For hard
skills development, a total of 7,790 employees took
part in training sessions, with 73% of participants
being male and 27% female. The training was
distributed among different roles, with 22% of
participants being managers, 25% specialists,
and 53% workers, ensuring comprehensive skill
enhancement across all employee levels.
Key training and development activities in 2024 in
Ukraine included:
• The development of a programme to support
project management by project teams;
• A new training programme to support managerial
skills development for middle-managers;
• The creation of a “Future CEO School” for the
development of future business leaders;
• The development of a programme to enhance
the skills of the technical services leadership;
• A programme to develop leadership skills in
logistics and procurement “Future leaders”; and
TRAINING AND DEVELOPMENT
• Development of online learning facilities which
included 32 online courses at the end of 2024.
EUROPEAN OPERATING SEGMENT TRAINING
AND DEVELOPMENT
Training and development were amongst the
lowest rated categories in the 2023 employee survey
and consequently became a management priority
in 2024. A variety of initiatives were developed in
response. These included:
• A new application to facilitate planning and
monitoring of employee activities and time;
• An online learning application;
• A more sophisticated leadership development
programme for middle and line production
managers was created and delivered with positive
feedback;
• Perutnina Ptuj Group publicly demonstrated its
commitment to employee development through
achieving high ratings for the scope of its training
programmes and for their quality and depth; and
• New mechanisms were created to facilitate
international mobility and relocation of employees
to support career development.
A variety of additional activities were conducted in
2024. The OKR methodology was digitised, updated
and connected with the compensation system for
around 125 members of senior management. New
bonus scales and calculations were introduced for
key leaders and managerial staff to improve the
links to individual value creation. The PP Stars bonus
system was introduced to additionally reward mid-
level staff who have made exceptional contributions
but are not entitled to an annual bonus. A further
system called Project Bonus was also created to
reward individuals who are participating in projects
of particular strategic importance.
DILOSOPHY AND VALUES IN ACTION
MHP’s core Values sustain its culture.
In 2024, we launched the “Dilosophy”
communication
campaign
and
held
39 events for 9,170 employees at all
levels. Additionally, we organised Value
Weeks in the Telegram channels of all
enterprises and directions, where we
shared information about each Value
separately and provided useful materials
to encourage their manifestation. More
information about Our Values: Dilosophy
can be found on pages 30 to 31.
We also launched the “Values in Action”
recognition programme in 2024. This
allows employees to recognise each other
for demonstrating the Company's Values.
In the first 4 months of the programme,
812 participants were acknowledged for
showcasing Values in their everyday work.
MHP GROUP’S FIVE CORE VALUES
MHP Group’s five core Values are outlined
below and are aligned with its strategic
development and goals. They are:
PARTNERSHIPS
GOAL-ORIENTATION
CONTINUOUS DEVELOPMENT
RESPONSIBILITY
TRANSPARENCY AND HONESTY
76
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
OCCUPATIONAL HEALTH & SAFETY
MANAGEMENT APPROACH AND POLICY
GRI 403-1
MHP operates a health and safety management
system based on international best practices
that are compliant with international standards,
national legislation, including regulations.
The system aims to create safe working conditions
and effective risk management at all levels of
the Company, including production facilities,
logistics services, administrative departments
and other business units. The system applies to
all employees, including full-time and temporary
workers, contractors and counterparties working
at MHP Group’s locations. For work at temporary
sites outside the Company's premises or for
contractors working outside the Company's
premises, contractual requirements are in place to
ensure compliance with MHP Group’s health and
safety standards.
All safety standards are regularly reviewed and
changes in legislation and industry standards
are monitored to ensure that the highest level of
protection for employees and business processes
is maintained.
An urgent management priority was to ensure
that employee welfare was maintained and
strengthened following the outbreak of War in
February 2022 and this is ongoing in Ukraine.
MHP’s management team has ensured that
international occupational safety standards are
maintained whilst uninterrupted work patterns
and ongoing production continue.
Both
MHP
and
PP
Group
have
detailed
Occupational Health and Safety Policies which are
available for download. The Policies are regularly
reviewed and are signed by the Chair, Chief
Executive Officer and Chief Financial Officer. The
Board of Directors has overall responsibility for
occupational health and safety at MHP Group.
RISK IDENTIFICATION AND MANAGEMENT
GRI 403-2
Identification of occupational hazards and risk
assessment is an important component of the
health and safety management system. The process
starts with regular inspections of workplaces and
equipment, and analyses of hazards in normal and
unusual situations, such as emergencies, process
changes or working with new materials. Methods
such as HAZID (Risk Assessment) and hazard
identification methods such as FMEA (Failure
Mode and Effect Analysis), HAZOP (Hazard and
Operability Study), and What-If analysis are used to
identify risks, their probability and consequences.
A hierarchy of controls, including such measures
as elimination of hazards, process changes,
technical control, changes in work organisation,
and personnel training, is used to minimise risks.
The quality of these processes is ensured through
the involvement of competent individuals who
are appropriately trained and certified. These
include health and safety engineers, risk assessors,
and middle and senior managers responsible for
implementing policies and procedures. Regular
training and audits ensure that knowledge
and practical skills are updated. Each stage
of the hazard analysis and risk assessment is
documented to maintain a high level of quality
control and verification.
The results of these processes are used to
determine the effectiveness of current security
measures,
identify
weaknesses
and
create
measures to improve them. This allows for
continuous improvement of the health and safety
management system through feedback and
performance monitoring.
To ensure that hazards and unsafe situations
are promptly identified, MHP provides access to
several communication channels, such as internal
platforms (SafetyFirst), email newsletters, safety
information boards at production units, and direct
contact with managers or occupational health and
safety engineers. All reports of potential hazards
and incidents are immediately investigated and
appropriate corrective actions are taken. MHP
guarantees protection of employees from any form
of retaliation for reporting such situations. The
transparency and confidentiality of these processes
encourages reporting in a timely manner.
It is Company policy to allow employees to leave
the workplace if they believe their health or safety
is at risk. All employees have the right to stop work
or move out of an unsafe situation without fear
of disciplinary action or retaliation. Employees
who take such measures are not subject to any
sanctions or liability for their decision. MHP believes
it is important that it fosters an atmosphere of trust
and openness to ensure that every employee feels
safe, regardless of the circumstances.
77
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
INCIDENT INVESTIGATION
The incident investigation process begins with
the immediate reporting of an incident and its
registration in the appropriate system. All incidents,
including accidents, are thoroughly investigated in
accordance with the Procedure for Identification of
Incidents and Internal Investigation of Accidents at
MHP Group Enterprises. This defines the procedure
for dealing with accidents and provides a systematic
approach to their analysis. The procedure includes
an
immediate
assessment
of
the
situation,
determination of the causes of the incident, and
application of corrective measures in accordance
with the control hierarchy to prevent similar
incidents in the future.
This is followed by a detailed analysis of the risks
associated with such incidents, which allows us to
identify weaknesses in the health and safety system.
Corrective and preventive measures, including
both technical and organisational changes, are
implemented. Possible improvements to the health
and safety management system are identified
to prevent similar incidents in the future. The
procedure also involves all stakeholders, including
representatives of the workforce and safety
engineers, to ensure a comprehensive approach to
solving the problem and effective identification of
the causes of the incident.
All
information
about
incidents
and
their
investigations is documented and used for further
analysis, improvement of internal processes and
maintenance of high safety standards at MHP
Group companies.
HEALTHCARE SERVICES
GRI 403-3
Healthcare
services
in
a
company
perform
critical functions that help identify and eliminate
workplace hazards and minimise potential health
risks to employees. One of the main functions of
healthcare services is to regularly conduct medical
examinations of employees, including for specific
risks associated with certain types of work (e.g.
contact with harmful substances, high noise levels,
high temperatures, etc.). This allows potential
health problems to be identified in time and the
necessary measures to be taken to eliminate or
minimise them.
Healthcare
services
also
monitor
working
conditions and develop recommendations for
improving work processes with regard to health
aspects. They work closely with occupational
health and safety and managers to assess
workplace risks and identify steps to reduce or
eliminate those risks (e.g. through changes in
equipment, provision of protective equipment or
modernisation of work processes).
MHP sets clear requirements for the qualifications
of medical staff and regularly conducts certification
and training to ensure a high level of medical
support. The healthcare services also provide
access to medical services for all employees,
including medical care and consultations on
the prevention and treatment of occupational
diseases. Access to these services is facilitated
through a well-established infrastructure of
on-site medical facilities and mechanisms for
employees to quickly contact doctors through
internal communication channels.
EMPLOYEE PARTICIPATION
GRI 403-4
MHP actively involves employees in the process
of developing, implementing and evaluating the
occupational health and safety management system.
An important stage is consultations with employees,
which are carried out at different levels – from
general meetings at the enterprise to specialised
meetings with individual groups of employees who
may be at increased risk. All employees have the
opportunity to express their opinions, suggestions
and comments on occupational health and safety
through various communication.
To ensure that employees have access to relevant
occupational
health
and
safety
information,
updates are provided regularly through internal
information systems, newsletters, training and
briefings. This includes both general safety
information materials and those specific to
individual workplaces or groups of employees.
Access to statistics and incident reports is also
an important element, allowing employees to
be aware of measures taken to improve working
conditions. All of these initiatives contribute to
building a safety culture and maintaining a high
level of employee involvement in processes related
to their health and safety.
MHP uses such form of interaction as specialised
working groups, briefings, and regular meetings
between managers and employees to discuss
health and safety issues to ensure effective
communication and employee participation in
safety matters. Feedback channels, surveys, and
specialised communication platforms are used to
actively engage employees in safety improvement
processes. This allows MHP to effectively engage
employees in discussing important aspects of
workplace safety.
78
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MHP HEALTH
GRI 403-6
In March 2024, MHP launched the MHP
Health programme (Ukraine). This is a
comprehensive
programme
aimed
at
preventing diseases and promoting a
healthy lifestyle. It also provides access
to medical care, including diagnostics,
treatment, free access to a corporate
doctor, medical examinations, emergency
and first aid. The scope of access to these
services
is
determined
by
corporate
guidelines. Medical services are not limited
to occupational risks only, but also cover
the general health of employees, which
contributes to the timely detection and
treatment of various diseases.
To reduce the main non-work-related
health risks, the Company offers a number
of voluntary services and programmes
under
the
MHP
Health
programme.
The programme is aimed at preventing
diseases and maintaining the physical
health of employees.
As
of
December
2024,
20,692
MHP
employees in Ukraine were involved in the
MHP Health programme, which is 67% of
the total number of employees.
EUROPEAN OPERATING SEGMENT WORKPLACE
IMPROVEMENT PROGRAMME
Perutnina Ptuj Group allocated a budget of
EUR 1 million for the improvement of general
working conditions particularly in workplaces
populated by operational and production staff.
Many of the developments were the result of staff
consultation and encompassed a wide range of
activities including technological developments,
the creation and improvement of social areas,
safety equipment additions and infrastructure
enhancements. 80% of the budget was applied in
2024 and the remainder will be applied in 2025.
SAFETY TRAINING
GRI 403-5
All Company employees undergo mandatory
briefings and training on occupational safety, which
includes both general briefings and specialised
programmes for work with a high level of danger.
Induction training is provided to new employees
and those who change their workplace or working
conditions. This helps to familiarise them with the
basic safety requirements, standards of behaviour
in the workplace and occupational health and
safety rules.
In addition, initial on-the-job training is provided
to employees directly in the performance of their
duties, where they are taught safety features in the
context of their specific activities. Regular refresher
training sessions are held to update knowledge of
occupational safety and potential risks.
Employees who perform work with increased
risk (e.g. at heights, with electrical installations,
chemicals or other hazardous materials) receive
specific safety training for such work. Fire safety
and civil defence training is also provided to prepare
employees for emergency response.
The
training
ensures
the
competence
of
employees in safety issues, is constantly updated
in accordance with the current legal requirements
and standards and is conducted by qualified
instructors to achieve the highest level of safety in
the workplace.
MHP EMPLOYEES IN UKRAINE
WERE INVOLVED IN THE MHP
HEALTH PROGRAMME
20,692
79
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
INCIDENT INFORMATION
GRI 403-9
MHP focuses on continuous occupational health
and safety and employee wellbeing improvement
and best international practice at all Ukraine sites.
Unfortunately, two incidents occurred during the
year which led to employee fatalities. In these
circumstances, the procedure is that internal and
State investigations are conducted in relation to
each incident and the findings are shared around
the organisation to ensure that corrective action
is taken, risk is minimised, and similar cases are
avoided in the future.
UKRAINE
2024
2023
2022
Lost time due to health
and safety incidents
(hours)
6,882
6,866
9,891
Lost time due to health
and safety incidents (days)
892
813
1,174
Fatalities
2
21
3
High-severity incidents
9
6
9
Low-severity incidents
66
7
10
Total number of incidents
77
15
22
Lost working time
frequency ratio
(person/hour)
2.89
1.90
0.73
Fatal accident ratio
0.05
0.05
0.16
EUROPEAN OPERATING
SEGMENT
2024
2023
2022
Lost time due to health
and safety incidents (hours)
9,760
7,760
6,720
Lost time due to health
and safety incidents (days)
1,220
970
840
Fatalities
0
0
0
High-severity incidents
3
3
2
Low-severity incidents
8
7
8
Total number of incidents
11
10
10
Lost working time
frequency ratio (person/
hour)
1.43
1.21
1.22
Fatal accident ratio
0
0
0
The increase in the number of health and safety
incidents is associated with an increase in the level
of transparency and employee engagement in
the reporting process. The implementation of the
Leadership programme, which involves middle
and senior managers, has created a culture of trust
where employees are not afraid to report hazardous
situations. This has led to an increase in reported
incidents, but also allowed MHP to identify and
address risks at an early stage.
MENTAL HEALTH
GRI 403-6
Ongoing
dialogue
with
employees
highlighted that one of the key issues for the
workforce is the psychological challenge
presented by the ongoing War. In 2019,
MHP became one of the first companies
in
Ukraine
to
create
a
Psychology
Team that is staffed by specialists. Now
they
are
present
throughout
MHP’s
locations in Ukraine and support all
employees including those returning from
mobilisation. The Team also contributes
to the development and implementation
of a variety of other projects including the
induction programme for new employees
at MHP’s central office, programmes at the
Future Leaders Development Centre, “MHP
Standing Together” programme and anti-
harassment compliance programmes.
In 2024, 4,632 people received individual
psychological
support
and
assistance
sessions. Additionally, the Team organised
675 group activities with a total of 10,577
participants. A further 11 online workshops
were held with 1,003 participants. MHP has
committed to continuing this approach
into 2025 and aims to achieve over 5,000
individual support sessions during the year.
PEOPLE RECEIVED
INDIVIDUAL PSYCHOLOGICAL
SUPPORT AND ASSISTANCE
SESSIONS
4,632
1 2 fatalities, of which one is MHP’s employee and another one is an
employee of a contractor.
80
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
SAFETY TRAINING DATA
GRI 403-5
HEALTH AND SAFETY EXPENDITURE, TRAINING AND INSPECTION DATA
UKRAINE
2024
2023
2022
Number of employees participating in training
at special training centres
4,236
3,446
2,610
Number of employees participating in training
at MHP sites
15,128
13,913
14,852
EUROPEAN OPERATING SEGMENT
2024
2023
2022
Safety training hours
1,159
1,351
1,449
Number of employees
2,318
2,163
1,108
INVESTMENT IN EMPLOYEE HEALTH AND SAFETY
UKRAINE
2024
2023
2022
Total expenditure (UAH thousands)
134,896
102,243
97,955
Financing of occupational health and safety
measures as a percentage of payroll
0.5-3.6
0.4-3.0
0.02-4.7
Expenditure on modern certified PPE
(UAH thousands)
79,300
69,220
46,621
Training for employees in occupational health
and safety departments (UAH thousands)
5,550
3,100
2,791
EUROPEAN OPERATING SEGMENT
2024
2023
2022
Total expenditure (EUR)
131,200
125,642
125,642
Expenditure on modern certified PPE (EUR)
1,255,800
1,172,299
1,141,423
UKRAINE
2024
2023
2022
Number of State Employment Service inspections
7
2
0
Employee prosecutions following State inspections
0
0
0
Number of MHP internal audits/observations/
inspections conducted1
2,176
465
45
EUROPEAN OPERATING SEGMENT
2024
2023
2022
Number of state safety inspections
18
19
15
Employee citations following state inspections
6
48
44
Number of internal audits conducted
170
180
162
INTERNAL AUDIT INSPECTIONS
In Ukraine, MHP’s internal safety audit mechanisms were established in
2017. The system is designed to support MHP’s other safety management
activities through the identification of potential safety risks and addressing
them promptly. MHP is also the subject of regular safety audits by the Ukraine
government’s State Employment Service and the relevant authorities that
govern the European Operating Segment.
INTERNAL AUDIT AND INSPECTION DATA
1 The increase in number is driven by improvement of accounting practices: 2024 data includes internal audits, observations and inspections, while 2022-2023 data includes only internal audits.
81
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
UKRAINE
2024
2023
2022
Workplaces with noise in excess of local law
679
428
328
Number of people at workplaces with noise in
excess of local law
4,261
3,182
4,292
Workplaces with dust concentration in excess of
local law
171
82
96
Number of people at workplaces with dust
concentration in excess of local law
1,869
1,243
818
EUROPEAN OPERATING SEGMENT
2024
2023
2022
Workplaces with noise in excess of local law
40
42
44
Number of people at workplaces with noise in
excess of local law
302
302
310
Workplaces with dust concentration in excess of
local law
25
20
19
Number of people at workplaces with dust
concentration in excess of local law
84
84
84
OCCUPATIONAL HEALTH DATA
GRI 403-2
In recent years, no cases of occupational disease
have been recorded at any MHP sites in Ukraine.
This has been achieved through close monitoring
of working conditions at each location. Features of
these management systems include:
• Regular laboratory testing and instrumentation
control of working conditions;
• Workforce health monitoring on a regular basis;
• Reduction of potentially harmful aspects of
workplace features (for example noise and dust);
• Supply of personal protection equipment; and
• A programme of technological improvement.
IN RECENT YEARS, NO CASES OF
OCCUPATIONAL DISEASE HAVE BEEN
RECORDED AT ANY MHP SITES IN UKRAINE
82
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
KEY ACHIEVEMENTS IN 2024
PEOPLE
• MHP’s Dilosophy project which aims to ensure
that all employees fully understand its core Values
was rolled out in 2024.
• MHP’s established approach to supporting the
workforce through the delivery of psychological
support and assistance to armed forces veterans
and their families was further developed.
• Continued Implementation of the “Resilience
School 3.0” Project in Ukraine. In 2024 we focused
on fostering resources to support mental well-
being, with an emphasis on growth and self-
realisation. 11 online workshops were held, with
1,003 participants involved in the project. The
increase in new participants was 38.3% (from
725 participants in 2023). The Mental Health
Department together with the Psychological
Department contributed to the development and
implementation of various HR projects, including:
• Engagement of Implementation of values
through the Business Game “Compass of
Values”;
• Adaptation of new employees in the central
office;
• Training in emotional intelligence development
for participants of the “Future Leaders”
development programme;
• Participation in the Compliance Programme
“Psychological
Aspects
of
Counteracting
Harassment”;
• Involvement in the Exit Interview process,
Contribution to the “MHP Standing Together”
programme; and
• Participation in the Mentor Training Programme
Engagement
in
the
“Dual
Education
Programme” project.
• In 2023, MHP developed an employee referral
programme which was successfully launched
within the Company. By the end of 2024,
approximately 950 employees in Ukraine (around
12% of the total) had been hired through the
programme which has become one of the main
channels for attracting new staff.
• Team
development
programmes
were
implemented
following
a
comprehensive
assessment for the eight key departments at
MHP. 568 managers participated in leadership
development programmes in 2024, accounting
for 43.5% of the total number of managers from
the middle to Top levels.
• A comprehensive general training programme
for mentors was designed and successfully
implemented.
• Perutnina Ptuj Group created new hybrid
working models which will become fully
operational in 2025 and introduced new tools
for Learning & Development for employees.
MHP’S DILOSOPHY
PROJECT WHICH AIMS
TO ENSURE THAT ALL
EMPLOYEES FULLY
UNDERSTAND ITS CORE
VALUES WAS ROLLED
OUT IN 2024
83
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
KEY ACHIEVEMENTS IN 2024
HEALTH AND SAFETY
• MHP’s established approach to supporting the
workforce through the delivery of psychological
support and assistance to armed forces veterans
and their families was further developed.
• The biogas plant at Ladyzhyn was aligned
with the requirements of ISO 45001 following
the conduct of a detailed gap analysis and
subsequent actions to minimise health and
safety risks.
• MHP Logistics confirmed compliance with the
requirements of ISO 39001. This reflects our efforts
to improve road safety and traffic management
and minimise road traffic accident risks.
• Significant fire safety improvements were made
including the purchase of new fire trucks for the
Starynska Breeding Farm and the Vinnystsia
Poultry Farm.
• Health and safety training procedures were
enhanced by the greater use of video for training
purposes to increase employee engagement.
• Single-level fall risk, a significant health and
safety risk, was addressed by a number of
technical developments including applying
polymer composites to floor surfaces.
• An enhanced programme of first aid training
supported by internal and external qualified
trainers was put in place and attended by Top
Management, line managers, managers and
employees drawn from across the business.
The main aim was to increase employee
preparedness to respond to accidents quickly.
At the end of 2024, 50% of the Top Management
had completed the training and the remainder
will complete it in 2025.
• The
annual
management
OHS
strategic
sessions have become an important platform
for knowledge sharing and learning. In 2024,
special attention was paid to the development
of the MHP Health programme, focussing on
improving employee wellbeing.
• MHP Health received the prestigious HR
Brand Ukraine award in the Company Culture
Code nomination. This award emphasises the
importance of implementing the values of
employee health, safety and wellbeing as the
basis for corporate strategy.
• Perutnina Ptuj Group carried out tasks related
to occupational health and safety as well as fire
safety at all locations - these were continuously
performed in accordance with national laws.
• Professional staff worked in areas such as
expert consulting, preparation and revision
of risk assessments, training, participating in
work equipment inspections and microclimate
measurements,
supervising
construction
sites, actively cooperating with occupational
medicine providers and authorised doctors,
representing the employer and employees in
disability procedures, and representing the
employer during inspections and assessments
by regulatory authorities.
MHP’S ESTABLISHED
APPROACH TO
SUPPORTING THE
WORKFORCE THROUGH
THE DELIVERY OF
PSYCHOLOGICAL
SUPPORT AND
ASSISTANCE TO ARMED
FORCES VETERANS
84
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
PLANS FOR 2025
PEOPLE
• MHP aims to complete the rollout of the core
Dilosophy Values programme for all employees.
• MHP will continue to review and examine the
psychological requirements of its employees,
veterans and families and adapt its support
programmes and facility provision accordingly.
• The employee referral programme will be further
rolled out across MHP’s businesses.
• MHP will form and develop a number of
corporate schools for training and development
purposes. These will include a Logistics School,
a Procurement School, an Internal Engineering
Institute, a Masters School for Production Units,
an Agro-School, an HR Business Partner school,
and a brand marketing school.
• PP Group will fully activate a new 360
assessment process which will be applied at the
planned assessment centre and enable further
development of performance management
processes.
• PP Group will develop its bonus system for its
commercial function and align it with the MHP
Group’s mechanisms. Additionally, the salary
and compensation methods will be updated
and benchmarked to external figures.
• PP Group will conduct a comprehensive
workforce survey following the performance
of a similar exercise in 2023. The structure and
categories assessed will be in line with MHP’s
overall mechanisms to achieve uniformity across
the MHP Group.
HEALTH AND SAFETY
• MHP will develop an enhanced Safety Matters
programme across the business to ensure a
systematic and consistent approach to employee
safety. An important element will be the aim of
ensuring a continuous safety-culture approach
through communication to and the involvement
of every employee.
• MHP will implement an enhanced process
safety system at all of its businesses at
Ladyzhyn town to ensure a high level of safety
in production processes that use hazardous
substances and technologies. This will include
the introduction of new special standards and
procedures to better control technical systems
and working conditions.
• MHP will further develop its employee wellness
programmes. The MHP Health programme will be
extended to cover all levels of the Company and
it will include new initiatives to improve physical
and mental health. A pilot mobile medical office
project will commence. This will provide a high
level of medical care directly at the workplace and
ensure quick and prompt access.
• The digitisation of MHP’s health and safety
monitoring systems will be progressed across
the Group. An important element will be
ensuring that corporate risk management
standards are adopted at all MHP’s businesses
taking into account local regulatory and cultural
requirements. Another key aspect will be the
reporting of information and data through a
single platform that will provide up-to-date data
in real time.
• The adoption of ISO 45001 at MHP’s sites at
Ladyzhyn town will continue alongside a similar
process for more widespread adoption of
ISO 39001.
• MHP will launch a pilot project to improve the
culture of healthy eating amongst its employees.
• 15 members of the internal audit team will
complete training according to ISO 45001
requirements. The knowledge gained will allow
them to ensure a high level of control and
contribute to the further development of MHP’s
occupational health and safety processes and
compliance with best practice international
standards.
• РР Group will aim to consult with the workforce
with the aim of benefitting and expanding
wellbeing and health and safety, facilities and
programmes.
• Training and raising employee awareness at РР
Group will be conducted for all stakeholders,
including simulation exercises (e.g. emergency
drills for fire, evacuation, ammonia leaks, dust
explosions, etc.), strengthening safety culture
and encouraging active reporting of hazards
and near-misses.
MHP WILL DEVELOP AN
ENHANCED SAFETY
MATTERS PROGRAMME
ACROSS THE
BUSINESS TO ENSURE
A SYSTEMATIC AND
CONSISTENT APPROACH
TO EMPLOYEE SAFETY
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Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GROWTH PILLAR 3
GRI 203-1, 413-1
OUR COMMITMENT
Since
its
founding,
MHP
has
always
recognised that a core aspect of its mission
is its positive and meaningful impact
on the communities where it operates
internationally. The Company is committed
to fostering local development through
various key initiatives. This includes:
• Ensuring the provision of high-quality
food, goods, and services to promote food
security;
• Encouraging economic development
by
facilitating
entrepreneurship
and generating local employment
opportunities;
OUR ROLE IN SOCIETY AND
OUR LICENCE TO OPERATE
• Contributing to economic growth by
generating taxation revenue for both
local and national governments, further
supporting the regions it serves; and
• Dedicating
resources
to
enhancing
healthcare provision and infrastructure
development, working to improve the
overall well-being of communities.
MHP's
efforts
in
these
areas
reflect
its
ongoing
commitment
to
social
responsibility,
ensuring
success
and
benefits to people and communities
which are an integral part of its operations.
STRATEGY
MHP’s role in society became more
complex as a result of the War in Ukraine.
The importance of MHP’s commitment
to ethical behaviour, sustainable business
activities
and
the
delivery
of
social
justice has been underlined and has
been a key aspect of the Group’s efforts
to address economic instability, supply
chain disruption and rapidly changing
circumstances. MHP believes that a strong
community is achieved by unity with shared
values, collective efforts, and collaboration.
This philosophy is at the heart of MHP's
Social Sustainability Strategy ("Strategy"),
which is specifically designed to foster and
support these principles.
MHP'S EFFORTS REFLECT ITS
ONGOING COMMITMENT TO
SOCIAL RESPONSIBILITY, ENSURING
SUCCESS AND BENEFITS TO
PEOPLE AND COMMUNITIES
WHICH ARE THE INTEGRAL PART
OF ITS OPERATIONS
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MANAGEMENT APPROACH
MHP meticulously plans its social initiatives
in
Ukraine
through
its
well-equipped
Corporate Social Responsibility Team to
ensure the effective execution of its strategy
and efficient management of resources. In
2024, MHP categorised its social programmes
into two main types: planned and scheduled
initaitves and quickly organised to address
urgent social needs, including those arising
from the challenges of the War. A diverse
range of activities took place, including:
• Humanitarian aid and emergency relief;
• Support for local healthcare systems;
• Education and training initiatives;
• Economic support and job creation
(including supporting start-up and small
businesses);
• Infrastructure maintenance and
development;
• Environmental projects with a focus on
sustainability;
• Community empowerment and
engagement by arranging volunteering;
• Distributing free or reduced-cost MHP
products and services; and
• Promoting inclusivity of demobilised
members of the Ukrainian Armed Forces.
Significant
work
was
conducted
in
partnership with local businesses, local
governments and with other corporate
donors and through MHP’s strategic social
partner – Charitable Foundation MHP-
Hromadi. MHP-Hromadi’s activities were
audited by PwC in 2023 and 2024. The
audits concluded that the Foundation
complies with high standards of financial
management and regulatory compliance.
01
03
02
STRATEGY HIGHLIGHTS
GRI 2-23
Since 2022, MHP continued its activities following the Strategy of MHP. There are three main
points summarising the Strategy in MHP's CSR efforts:
ADAPTATION TO CURRENT REALITIES
AND CHALLENGES
MHP's CSR activities have been promptly
adapted
to
address
the
challenges
posed by the ongoing War in Ukraine.
The Strategy prioritises the restoration
of
production
processes,
support
for
internally displaced persons (“IDPs”), and
assistance to defenders, medical personnel,
and communities affected by the War.
Social programmes focus on food stability,
housing for IDPs, and humanitarian aid
(First Lady Initiative framework in 2024).
EMPHASIS ON SUSTAINABLE
DEVELOPMENT GOALS
The Strategy incorporates ESG principles,
aiming
for
long-term
socio-economic
development.
It
envisions
a
phased
implementation aligned with community
needs,
transitioning
from
addressing
immediate
physiological
and
safety
concerns
to
fostering
social,
esteem,
and
self-actualisation
needs.
Initiatives
include
entrepreneurship
development,
cultural enrichment, and environmental
sustainability.
INSTITUTIONAL AND COLLABORATIVE
FRAMEWORK
The
Strategy
involves
a
structured
approach of the CSR Department through
its divisions and measures in cooperation
with MHP's strategic social partner –
Charitable
Foundation
MHP-Hromadi.
These units collaborate to implement social
programmes and develop partnerships
with NGOs, government bodies, and
local communities. Key initiatives include
promoting microenterprise development,
public initiatives, systemic support for
armed forces, and fostering Ukrainian
culture and identity.
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
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Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
HIGHLIGHTS OF MHP’S
COMMUNITY ACTIVITIES
IN 2024
SUPPORT FOR UKRAINE SINCE THE
COMMENCEMENT OF THE WAR
MHP and its strategic social partner –
Charitable Foundation MHP-Hromadi have
been working together in Ukraine since
the War commenced in February 2022 to
support the defence of the country, veterans
and their families and the remaining
population
to
ensure
health,
safety,
wellbeing and food security for everyone.
These activities significantly expanded in
2023 and 2024.
MHP has been paying the salaries to mobilised
employees since the commencement of the
War. Around 3,463 MHP employees were
mobilised since the beginning of the War and
the total cost has been over UAH 2.1 billion
(US$ 53 million).
MHP and MHP-Hromadi have provided
financial
assistance
to
those
affected
by the War to address matters such as
fatalities and injuries as a result of hostilities
and rehabilitation costs. At the end of
2024 the total cost was approximately
UAH 51 million (US$ 1.2 million).
In September 2023, MHP established the
Centre for Interaction with the Military and
Veterans (“Centre”) to coordinate its support
activities and has donated approximately
UAH 1.4 billion (US$ 38 million) to it.
Since 2022, nearly 14 million tonnes of food
were supplied to the Ukrainian defence
forces and to affected populations, medical
facilities, hospitals and rehabilitation centres.
The Centre has devised and maintains a
social programme called “MHP Standing
Together” which aims to create opportunities
for reintegration and rehabilitation of
veterans. More than 250 people are involved
in
managing
the
programme
which
offers legal, medical and psychological
support, professional adaption, reskilling,
new business grants and the creation of
infrastructure. In 2024, 139 adaptive sports
events involving 7,000 people were held to
support the reintegration of veterans. Legal
support was supplied to around 200 people
to address matters such as social services
assistance and compensation. Around 750
people including 521 veterans received
medical examinations. The programme
supported the creation of 21 facilities
located across the country to coordinate
reintegration activities. Additionally, an
around-the-clock hotline service is operated
to enable military personnel, veterans and
their families to receive advice and support.
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We are MHP
Strategy & Purpose
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Key Performance
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Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
SOCIAL PROGRAMMES AND DEVELOPMENT
PROJECTS
MHP partners with its strategic social partner –
Charitable
Foundation
MHP-Hromadi
to
deliver a wide variety of social programmes
and development projects in Ukraine. These
address numerous areas and include support
for community microenterprise, infrastructure
development, maintenance of food security,
medical programmes and infrastructure, cultural,
sports and artistic events. Some of the many
highlights of these activities in Ukraine are
listed below.
The creation of temporary residences for
internally displaced persons in Dnipro.
A skills development programme for
teachers, doctors and other members of the
communities in Kyiv and Cherkasy regions.
“My Community and MHP: Growing
Together” was developed with Mariupol
University (Kyiv city) and aims to increase
the capacity of communities to obtain
grant funding.
The construction of a children’s home
in Myronivka town in the Kyiv region in
partership with First Lady.
The preservation of buildings with
significant historical value and cultural
heritage located around the country.
The reopening of the cinema in Ladyzhyn
town, the restoration of the library and a
school in Baryshivska village in the Kyiv
region which were destroyed by russian
troops in February-March of 2022, and the
construction of a skatepark in Zgurivka
village in the Kyiv region.
The distribution of medical equipment
including beds and rehabilitation facilities
supplied by a Norwegian charity.
A mobile consultation and diagnostic centre
was launched in 2024 in partnership with
the National Cancer Institute to address
women’s health issues including breast and
cervical cancer risks. During the year, 1,417
people participated in the programme in the
Kyiv and Cherkasy regions.
A medical support project was delivered in
partnership with the Okhmatdyt National
Children’s Hospital and aimed at children
with specific or potential medical issues.
In 2023, this initiative won a Partnership
for Sustainable Development Award
from the UN Global Compact. In 2024,
2,533 children were examined in the Kyiv,
Cherkasy, Khmelnytsky, Vinnytsia and
Dnipro regions.
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Strategy & Purpose
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Key Performance
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Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
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Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
48 SOCIAL INITIATIVES FOR
MILITARY PERSONNEL AND
VETERANS WERE SUPPORTED
WITHIN THE FRAMEWORK OF
THE PROJECT TIME TO ACT
UKRAINE (2022-2024)
At the request of the local authorities at
Myronivka and Kaniv town in the Kyiv and
Cherkasy regions, MHP led a community
strategy development project which aimed
to put in place a ten-year plan. Activities
included six sectoral strategic sessions
with representatives of businesses,
government and the public sector, ten
focus group studies, two public surveys
and six public meetings. Both strategies
were finalised and adopted by the
relevant local government organisations
in December 2024.
A variety of materials and technical
resources were supplied to five educational
institutions to improve the practical
training for students and increase their
readiness for employment. This support
will allow MHP to attract qualified students
for internships and employment within the
organisation.
MHP and MHP-Hromadi supported the
Will to Win project. This was a photo
exhibition and a series of documentaries
about the resilience of six Ukrainian athletes
who, despite the challenges presented
by the War and its effects, continued to
demonstrate the will to win.
A mobile pharmacy project was launched
in December 2024 in partnership with
Ukrvaktsyna, a business owned by the
Ministry of Health of Ukraine to address
parts of the country where access to
essential medicines is limited.
A mobile medical facility to deliver optical,
ultrasound and ECG services was provided
from the Sumy, Kyiv and Cherkasy regions
and delivered over 6,300 examinations.
In partnership with the Office of the
President of Ukraine, MHP and MHP-
Hromadi supported the construction of the
Volia Space Ukrainian House at the 2024
Olympic Games in Paris.
A variety of microenterprise, sporting
and social initiatives were carried out to
support local communities and veterans.
These provided opportunities for a
variety of small and start-up businesses
including those operating in agricultural
production and catering with a particular
emphasis on veteran reintegration.
The services provided include financial
support through the provision of grants
and competitions, advisory services and
training. A notable example is Time to
Act Ukraine which has been operating
for nine years in cities and villages in 14
regions of Ukraine. It aims to promote
important social initiatives through a
country-wide competition. In 2024, 912
projects were submitted and 150 received
grant funding of UAH 14 million and co-
financing in partnership with the Ministry
of Youth and Sport of UAH 26 million.
90
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Key Performance
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Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
PLANS FOR 2025
MHP
will
develop
a
Sustainability
Strategy,
incorporating social and community activities for
approval by the Board and Senior Management
Team. The strategy will have the following areas of
focus.
• Diversity, equality and inclusion;
• Health and wellbeing;
• Education
and
professional
development
(including reskilling);
• Social security (economic inclusion and fair
working conditions);
• Human rights;
• Community socio-economic development;
• Support for military personnel, veterans and their
families; and
• Research and innovation.
“MHP standing Together” programme will continue
its development of solutions at MHP’s enterprises
for the reintegration and adaption of veterans and
their families after demobilisation.
MHP will continue with the performance and
development of its ambitious and extensive social
programmes and development projects in Ukraine
in partnership with MHP-Hromadi.
IMPROVING ROAD SAFETY
During the first quarter of 2024, road accident
statistics in Ukraine highlighted significant increases
(around 8%) in the percentage of road accidents
that led to fatalities when compared to 2023. To
address this in partnership with local communities,
businesses, NGOs, the police and government, MHP
devised a Traffic Safety Awareness Programme to
achieve the following aims.
• To reduce the number and frequency of road
traffic accidents;
• To promote safe driving behaviour;
• To reduce healthcare and insurance costs;
• To improve public health by promoting activities
such as walking and cycling;
• To enhance public wellbeing by making people
feel safer when using the roads;
• To encourage compliance with traffic safety laws
and regulations; and
• To raise awareness amongst young people about
the importance of road safety.
A year-long pilot project commenced in July 2024
in the Vinnytsia region which addressed all road
users but also focused on higher risk groups such
as younger and older drivers, motorcyclists and
commercial vehicle drivers. The campaign’s key
messages focus on the importance of adhering to
speed limits, avoiding distractions whilst driving,
avoiding driving whilst under the influence of
alcohol, seat belt wearing and respecting the safety
of pedestrians and cyclists.
The
campaign,
which
involves
regular
and
continuous
activities
comprises
a
variety of
communication
methods.
These
include
the
distribution of educational materials, the conduct
of workshops and seminars in educational facilities
and workplaces and public service messaging
on radio, television and social media. Interactive
methods have also been applied such as safe
driving courses and cycle safety rodeos for children
and families.
The success of the programme will be measured
by its impact on traffic incident frequency and
stakeholder feedback. The next steps to ensure that
the programme is expanded and enhanced include:
• Expanding geographical coverage: Having
evaluated the success of the pilot project in the
Vinnytsia region, our next step is to expand the
programme to other regions of Ukraine, focusing
on areas with high accident rates and vulnerable
road users:
• Engaging with stakeholders in policymaking:
Continued collaboration with local governments,
NGOs, and businesses is essential for influencing
road safety policy and ensuring that traffic safety
regulations are enforced effectively; and
• Increasing public awareness and engagement:
Ensuring sustained interest and participation in
the programme, regularly updating communities
with results and success of the programme.
Engaging
through
social
media
platforms,
community events, and interactive tools such
as outdoor competitions, or challenges that
encourage road safety knowledge and practices.
AWARDS AND ACCREDITATIONS
The related activities of MHP and its strategic social
partner – Charitable Foundation MHP-Hromadi
were acknowledged by a number of awards and
accreditations in 2024. These included:
• MHP-Hromadi was honoured with the prestigious
International CSR Award in London. This accolade
recognised the fund's consistent and impactful
support for Ukrainians, particularly through its
“MHP standing Together” programme, which aids
military personnel, veterans, and their families;
• MHP received a gold award for its military personnel,
veteran and family support programmes from
the UN Global Compact;
• MHP-Hromadi won a silver award at the
Partnership for Sustainability Award competition
for its project to restore 5 museums in Ukraine;
and
• MHP-Hromadi was ranked the 16th largest
charitable foundation in Ukraine by Forbes.
166 REINTEGRATION EVENTS
WERE HELD FOR 8,000 MILITARY
PERSONNEL, VETERANS AND
THEIR FAMILIES (2022-2024)
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Alternative Performance
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MHP’s Growth Pillars
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FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GROWTH PILLAR 4
RESPONSIBLE FOOD PRODUCTION
OUR COMMITMENT
MHP is a global industry leader in food quality,
safety and hygiene and maintains consistently
high animal welfare standards: these are a top
priority at all its production sites.
POLICY HIGHLIGHTS
MHP’s approach to quality and safety and
animal welfare is governed by separate
policies for MHP in Ukraine and for
Perutnina Ptuj Group. The MHP Ukraine
Quality and Safety Policy and Animal
Welfare Policy are available for download
from the MHP Ukraine website. These
policies are developed in accordance
with local legislation and international
standards, they apply to all employees
and ensure the production of high-quality,
safe, legal, authentic, and competitive
products. They are also focused on meeting
customer requirements and provide for
compliance with the principle of continuous
improvement. In Ukraine the Policies are
available electronically and are posted on
information boards at the enterprises for
the personnel to read.
PRODUCT QUALITY AND SAFETY POLICY
HIGHLIGHTS
• MHP will adhere to all applicable laws and
regulations, mutually agreed guidelines
with customers and consumers, and
global best practice;
• MHP will conduct continuous analysis of
the quality and safety of its products;
• MHP will conduct regular training and
education activities with its employees
to ensure that they are fully conversant
with the Company’s product quality and
safety standards;
• MHP will regularly review and develop its
product quality and safety procedures in
line with leading industry developments;
• MHP will regularly engage with interested
material stakeholders about product
quality and safety; and
• MHP will conduct a product quality and
safety strategy review as part of each
annual planning process.
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FINANCIAL
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SHAREHOLDER
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GOVERNANCE
ANIMAL WELFARE POLICY
• Antibiotics will only be used under the stewardship
of the state veterinarians;
• Flocks will be reared on the floor with no use of
caged systems;
• MHP’s sites will always provide an environment
that meets the natural needs of animals;
• MHP will not use equipment that may injure
animals when handling them;
• Stocking densities will meet EU animal welfare
standards;
• Veterinary care will be provided only by personnel
holding the relevant professional qualifications;
• MHP’s sites will not use anaesthetics or analgesics;
• MHP will ensure animals are protected from harm
and stress during transportation;
• MHP prohibits all surgical intervention;
• Slaughter will be carried out using only methods
that do not cause pain or stress to animals;
• Poultry rearing will always be carried out in an
environment that meets industry best practice
and regulatory requirements relating to matters
such as space, light, heat, food, and water
availability;
• MHP will pursue a strategy of reducing the use of
antimicrobial agents;
• MHP prohibits the use of any growth promoters; and
• MHP will use the best available technology to
monitor animals and their rearing conditions.
MANAGEMENT APPROACH
GRI 2-23
To implement the Quality and Safety Policy, MHP
enterprises have developed a production quality
and safety management system. These address
matters such as individual responsibilities, the
requirements of applicable regulations and ensure
that the procedures, processes and resources are
in place for a world-leading standard of quality and
safety management.
The methodology for identifying and analysing
hazards is carried out in accordance with the
HACCP concept.
An important element of MHP’s approach to
quality and safety across the Group is its network
of laboratories and its robust quality and safety
management system that maintains a high hygiene
level. Further information about MHP Ukraine’s
laboratories can be found on page 96.
ACCESS CONTROL AND HYGIENE
A key aspect of MHP’s approach to product quality
and safety is the control of access to its sites and
production facilities and hygiene maintenance. All
of MHP’s sites in Ukraine and those managed by
PP Group maintain a rigorous approach to hygiene
in line with international best practice industry
standards to maintain product safety and to avoid
the risks presented by pathogens.
At MHP Group rigorous product safety systems are
maintained to international standards, regularly
reviewed and maintained; performance monitored
and
measured.
A
continuous
programme
of
digitisation and automation has been conducted
in recent years. Access is strictly controlled and is
only available to authorised persons.
Company vehicles are closely monitored using
satellite and digital technology and MHP’s sites
are monitored around the clock applying security
systems maintained to international standards.
This approach extends to the supply chain of
MHP Group and the standards that suppliers are
expected to maintain.
INTERNAL AND EXTERNAL AUDIT
MHP Group’s production facilities regularly
participate in internal and external audits of
the quality and safety management system to
ensure full compliance with the appropriate
internal standards and those required by the
applicable regulations and certifications.
External audits are conducted by third-party
certification organisations. At least annually,
each MHP production site conducts its own
internal inspection process.
EMPLOYEE TRAINING ON PRODUCT QUALITY
AND SAFETY MATTERS
Regular
training
and
development
for
all
involved employees is a feature of the MHP
Group
production
process.
These
activities
include ensuring that everyone understands the
requirements of regulatory and international
best practice standards and MHP Group’s own
standards and guidelines.
PRODUCT LABELLING
GRI 417-1
Food production is carefully regulated in the
countries where MHP operates and exports to. The
entire Group has rigorous controls to ensure that
these requirements are always adhered to. MHP’s
products are carefully and transparently labelled
to ensure that they record the relevant information
for consumers and customers. This includes source
of origin, ingredients and instructions for safe
use. No major incidents of non-compliance were
recorded in 2024.
BIOSECURITY
All livestock in Ukraine is vaccinated to prevent the
presence of pathogens in poultry.
All MHP Group’s production facilities have rigorous
and robust controls to prevent avian influenza
infection and exclude other harmful pathogens.
The maintenance of biosecurity at MHP Group’s
production sites is supervised by qualified MHP
veterinary professionals at each location.
93
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MANAGEMENT SYSTEM CERTIFICATIONS
MHP UKRAINE CERTIFICATIONS
ALO1
• LLC “Katerinopolskiy Elevator” (fodder complex)
• PrJSC “Myronivska Ptakhofabryka”
(poultry complex)
• PrJSC “Myronivska Ptakhofabryka”
(processing complex)
GLOBAL G.A.P. CFM
• LLC “Katerinopolskiy Elevator” (fodder complex)
• PrJSC “Myronivsky Plant of Manufacturing Feeds
and Groats” (fodder complex)
• LLC “Vinnytska Ptakhofabryka” (fodder complex)
GMP + FSA (trade in feed materials)
• LLC “MHP Food Trading”
• LLC “Katerinopolskiy Elevator” (production of oil)
HALAL
• PrJSC “Myronivsky Plant of Manufacturing Feeds
and Groats” (production of oil)
• LLC “Katerinopolskiy Elevator” (production of oil)
• LLC “Vinnytska Ptakhofabryka” (production of oil)
• PrJSC “Myronivska Ptakhofabryka”
(processing complex)
• Myronovskiy MPP “Legko” SD of PrJSC “MPMFG”
• LLC “Lubnym'yaso” (processing complex)
• LLC “Vinnytska Ptakhofabryka”
(processing complex)
ISO 22000
• PrJSC “Oril-leader” (processing complex)
• LLC “Lubnym'yaso” (processing complex)
KOSHER
• LLC “Vinnytska Ptakhofabryka” (production of oil)
• PrJSC “Myronivsky Plant of Manufacturing Feeds
and Groats” (production of oil)
• LLC “Katerinopolskiy Elevator”
(processing complex)
BRCGS Global Food Safety Standard
• LLC “MHP Foodservice” (culinary branch)
• LLC “Katerinopolskiy Elevator” (production of oil)
• LLC “Vinnytska Ptakhofabryka” (production of oil)
• PrJSC “Myronivsky Plant of Manufacturing Feeds
and Groats” (production of oil)
• PrJSC “Myronivska Ptakhofabryka”
(processing complex)
• Myronovskiy MPP “Legko” SD of PrJSC “MPMFG”
(convenience food)
• LLC “Vinnytska Ptakhofabryka”
(processing complex)
GLOBAL S.L.P. IFM
• PrJSC “Myronivska Ptakhofabryka”
(poultry complex)
• LLC “Vinnytska Ptakhofabryka”
(poultry complex)
GMP + FSA (production of feed materials)
• LLC “Vinnytska Ptakhofabryka” (production of oil)
• LLC “Vinnytska Ptakhofabryka” (technical
products workshop)
• PrJSC “Myronivska Ptakhofabryka” (technical
products workshop)
• LLC “Katerinopolskiy Elevator” (production of oil)
1 Switzerland food standard.
94
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MANAGEMENT SYSTEM CERTIFICATIONS
PP Group CERTIFICATIONS
STP-080 rev.1
• PP Slovenia
• PP Croatia
BRCGS Global Food Safety
Standard
• PP Slovenia
Croatian National Food
Quality
• PP Croatia
GLOBAL S.L.P. IFM
• PP Slovenia
GLUTEN AND LACTOSE
FREE
• PP Slovenia
ISO 9001
• PP Slovenia
• PP Croatia
• PP Bosnia-Herzegovina
(Breza)
ISO 22000
• PP Serbia
GMO-free Production
• PP AGRO Slovenia
HACCP
• PP Slovenia
• PP AGRO Slovenia
• PP Croatia
• PP Bosnia-Herzegovna
(Breza)
• PP Bosnia-Herzergovina
(Srbac)
• PP Serbia
HALAL
• PP Slovenia
• PP Croatia
• PP Bosnia-Herzegovna
(Breza)
• PP Bosnia-Herzergovina
(Srbac)
• PP Serbia
IFS Food
• PP Slovenia
• PP Croatia
• PP Serbia
Premium Nature Breeding
• PP Slovenia
Selected Quality Slovenia
• PP Slovenia
95
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
AREAS OF FOCUS
Laboratory activities are grouped into four areas
of focus.
MHP’S PRODUCTION AND TECHNOLOGY CENTRE
This
performs
routine
laboratory
research,
implements
and
develops
new
laboratory
methods and designs scientific solutions that
minimise routine tasks for laboratories and
production facilities. It also hosts training sessions
for laboratory staff.
LABORATORY CONTROL OF FEED PRODUCTION
AND AGRO
This is responsible for monitoring the quality of
grain and oil seeds during cultivation, harvesting,
cleaning and drying, storage and transportation.
This department is also responsible for assessing
the quality of feed raw materials. It also analyses
sunflower and soybean cake and oil at all stages of
production and shipment.
TESTS IN 2024
2,755,000
Laboratory activities in
Ukraine are managed by the
Laboratory Control Department
which controls 37 facilities
and is part of the Quality
and Product Development
Department. Laboratory
employees are regularly
trained to ensure best practice
international standards are
always maintained.
MHP LABORATORIES IN UKRAINE
ELEVATORS
Elevators are responsible for monitoring the quality
of grain and oil seeds at the stage of elevator
acceptance.
HYGIENE AND SANITATION LABORATORIES
These laboratories monitor the performance of
hygiene and sanitation controls and perform
microbiological
and
other
sanitary
testing.
The scope of the analysis performed includes
examinations
of
premises,
production
lines,
personnel, equipment, broiler flocks, incubators,
slaughterhouses and cooking production output.
MHP LABORATORIES
PERFORMED
96
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
COMPANY /
BRANCH
LABORATORY
CURRENT CERTIFICATES
EXPIRY DATE
PLANNED FOR 2025
CURRENT CERTIFICATIONS
PJSC MHP
Production and technological
centre for quality and safety control
of food, feed and feed raw materials
Accreditation Certificate No. 201033 dated
19.09.2024 issued by the National Accreditation
Agency of Ukraine, compliance with the
requirements of DSTU EN ISO/IEC 17025:2019 (EN
ISO/IEC 17025:2017, IDT; ISO/IEC 17025:2017, IDT)
18/9/2029
Not applicable
PJSC MHP
Production and technological
centre for quality and safety control
of food, feed and feed raw materials
SGS Product & Process Certification, Certificate
no. NL21/819944289 GMP+ International
registration number certification body: SY000031
12/3/2028
Re-certification
LLC “Vinnytska
Ptakhofabryka”
(processing
complex)
Production and technical laboratory Accreditation certificate No. 202376 dated
11.07.2023 issued by the National Accreditation
Agency of Ukraine, compliance with the
requirements of DSTU EN ISO/IEC 17025:2019 (EN
ISO/IEC 17025:2017, IDT; ISO/IEC 17025:2017, IDT)
10/7/2028
Not applicable
PrJSC “Myronivska
Ptakhofabryka”
Production and technical laboratory Accreditation certificate No. 202387 dated
28.02.2024 issued by the National Accreditation
Agency of Ukraine, compliance with the
requirements of DSTU EN ISO/IEC 17025:2019 (EN
ISO/IEC 17025:2017, IDT; ISO/IEC 17025:2017, IDT)
27/2/2029
Re-accreditation, expansion of the scope of
activities in accordance with the requirements
of DSTU EN ISO/IEC 17025:2019 (EN ISO/IEC
17025:2017, IDT; ISO/IEC 17025:2017, IDT)
PJSC MHP
Production and technical laboratory Accreditation certificate No. 201763 dated
29.11.2024 issued by the National Accreditation
Agency of Ukraine, compliance with the
requirements of DSTU EN ISO/IEC 17025:2019 (EN
ISO/IEC 17025:2017, IDT; ISO/IEC 17025:2017, IDT)
28/11/2029
Not applicable
PLANNED CERTIFICATIONS
PJSC MHP
Production and technological
centre for quality and safety control
of food, feed and feed raw material
NONE
Initial accreditation in accordance with the
requirements of DSTU EN ISO/IEC 17043:2017
Conformity assessment. General requirements
for professional level verification (EN ISO/IEC
17043:2010; ISO/IEC 17043:2010, IDT)
LLC “MHP
Foodservice”
Sensory analysis laboratory
NONE
Initial accreditation in accordance with the
requirements of DSTU EN ISO/IEC 17025:2019 (EN
ISO/IEC 17025:2017, IDT; ISO/IEC 17025:2017, IDT)
PJSC MHP
Calibration laboratory
NONE
Initial accreditation in accordance with the
requirements of DSTU EN ISO/IEC 17025:2019 (EN
ISO/IEC 17025:2017, IDT; ISO/IEC 17025:2017, IDT)
97
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
PLANS FOR 2025
KEY ACHIEVEMENTS IN 2024
ANIMAL REARING
Approximately 67% of MHP’s Ukrainian broilers
are COBB chickens. Their features include low-
feed conversion, a welfare-friendly growth rate
and an ability to thrive on low-density nutrition.
The remaining 33% are ROSS chickens, the
world’s most popular broiler. Their characteristics
also include a welfare-friendly growth rate and
feed efficiency. PP rears broilers that comprise
approximately 96% ROSS and 4% COBB.
Turkeys are also reared in the European Operating
Segment (93% BUT Big 6 breed and 7%
Converter breed).
POULTRY-REARING DATA
UKRAINE
2024
2023
2022
Total placed
(heads)
456,332,667
457,092,113
439,839,157
Liveability (%)
95.9
95.9
96.3
Total
slaughtered
(heads)
435,086,059 438,443,556 423,680,615
Slaughtered
weight
(tonnes)
1,046,302
1,042,944
999,591
EUROPEAN OPERATING SEGMENT
2024
Total placed (heads)
81,265,837
Liveability (%)
95.8
Total slaughtered (heads)
74,979,453
Slaughtered weight (tonnes)
181,200
In 2024, particular emphasis was placed on training
for MHP's Quality and Product Development
Department in Ukraine in relation to the prevention
of
pathogens
and
the
related
certification
requirements of GMP + FSA, GLOBAL G.A.P. CFM,
GLOBAL S.L.P. IFM and the BRCGS Global Food
Safety Standard.
PP has successfully renewed all its existing
certificates, for the first time received the
certificate of Global S.L.P. IFM in Slovenia, created
to replace GLOBAL G.A.P. IFA; received the Green
Star (3 stars) certificate from McDonald's. In Serbia,
PP Group implemented the quality management
module S4/H.
In Ukraine we plan to obtain the BRCGS Global
Food Safety Standard certification for Branch “Meat
Multicomplex MHP” of PJSC MHP.
In 2024, MHP Food Trading was certified in
accordance with the requirements of the GMP +
FSA standard. Other enterprises of MHP in Ukraine,
maintained their GMP + FSA certification (see page
94) and are subject to independent third-party
audits annually.
We plan to conduct further training for MHP's Quality
and Product Development Department in Ukraine to
address specific aspects of the quality management
system, including impact mapping and risk analysis
in accordance with Codex Alimentarius and the
requirements of the HACCP plan.
We will launch a new business line which is the
production of wet pet food at a new factory in
Croatia. PP Group’s nearby facilities will provide
raw materials for the new facility which will focus
on European markets.
PP Group plans to maintain all existing certificates
in 2025. In Slovenia, PP will implement the Beter
Leven standard for slower-growing broilers, and
the GMP + FSA standard for fodder. In Bosnia-
Herzegovina (Breza) IFS certification is planned.
In Serbia, PP will also implement the GMP + FSA
standard for fodder.
98
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MHP FOOD SERVICE
MHP in Ukraine began testing a new
business model in 2024 called MHP Food
Service. The aim is to provide culinary
solutions for corporate staff catering which
are produced at the culinary production
facility in the Kyiv region. This has been
recently enlarged to cover over 6,000 m2
enabling around 300 tonnes of culinary
production each month.
Solutions can be supplied in three different
ways. These are:
• Vending machines with ready-to-eat
meals for offices and business centres;
• HoReCa packages of ready-to-eat meals
for catering; and
• Staff canteen solutions and the delivery
of
individually
portioned
meals
to
employers.
EXPERIMENTAL KITCHENS AND THE SENSORY
ANALYSIS LABORATORY
Experimental Kitchens are open work areas
within the Culinary Centre that are equipped with
the latest culinary technology and can be viewed
using an online 3D tour. There are five areas,
each of which meets certain requirements for the
preparation of ready-to-eat products and dishes,
for the needs of HoReCa and Retail. There is also a
Kitchen-Studio, which is a hardware and software
complex for culinary events.
During the year, the following were carried out: 40
validations of raw products, 78 content shootings,
126 internal degustations, 106 training events, 1230
events of internal customers (for the research and
development of new products).
The Sensory Analysis Laboratory is a specialised
unit that conducts impartial tastings and studies
consumer and expert reactions to products by
evaluating their properties through organoleptic
testing, including shelf-life research. In 2024, the
Sensory Analysis Laboratory became the first of
its kind in Ukraine to join the European Sensory
Network. Over the course of the year, the laboratory
conducted 185 consumer tastings, 192 expert
assessments, and 4 brand image-related tastings.
The MHP Culinary Centre in Ukraine is
a food expertise hub that aims to be the
driving force in shaping the gastronomic
culture of Ukraine. It plans to achieve this
in a variety of ways applying innovation,
modern technologies, and collaboration
with
leading
industry
professionals
through several development initiatives.
These include:
• The Culinary School
• The Sensory Analysis Laboratory
• Experimental Kitchens
• The
Producer
Centre
“MHP
Food
Production Studio”
CULINARY SCHOOL
The Culinary School provides training
to MHP employees from non-culinary
professions, offering programmes that
cover practical, theoretical, and other
aspects of the culinary field. In addition,
the
Culinary
School
team
organises
masterclasses and themed events, and
also acts as a culinary partner at events
held by other MHP divisions.
During 2024 highlights of the many activities
it conducted included:
• 12 masterclasses, 17 specialised training
sessions and 1 general course for over
160 employees; and
• One large-scale training program that
lasted five months was completed: 18
sessions of a unique training program for
meat sommeliers. Among the students
were specialists from the Procurement
Department, QPD, HR, CLC.
MHP’S CULINARY CENTRE
CASE STUDY
PRODUCER CENTRE
In 2024, a Producer Centre was launched to create
high quality video content including culinary
shows, masterclasses and advertisements. The
Centre showcases the culinary achievements
and professional skills of chefs, emphasizing
their creativity and expertise. In 2024 the Centre
produced three photo shoots for TM Bashchynsky,
TM Legko! and TM Qualiko and three video shoots
for TM Nasha Ryaba, TM Doner Market and TM
Skott Smeat.
CASE STUDY
Another achievement of the Culinary School
team, in collaboration with a gastronomic culture
researcher, was the exploration and compilation of
12 traditional yet forgotten dishes from Ukraine’s
culinary heritage. These were once prepared in
Ukrainian households several decades ago, across
regions such as Slobozhanshchyna, Sivershchyna,
Bukovina, and Prykarpattia. The team updated the
recipes in line with current ingredients and cooking
techniques, breathing new life into these dishes.
99
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GROWTH PILLAR 5
OUR COMMITMENT
MHP
strives
to
conduct
its
business
responsibly with all its stakeholders across
all its Group activities.
MANAGEMENT APPROACH
MHP’s Group-wide approach is governed
by a suite of Group-wide compliance
policies and statements which it has
designed in line with the appropriate laws
and international standards. These include
the Anti-Corruption Policy, Charity Policy,
Conflicts of Interest Management Policy
and the Gifts and Hospitality Policy.
MHP consistently conducts its operations
responsibly,
adhering
to
the
legal
requirements
and
regulations
of
the
countries in which it conducts business. In
practice, this means that all employees are
educated to be aware of and are mindful of
these requirements as they conduct their
BUSINESS CONDUCT
responsibilities, and of the impact that non-
compliance will have on MHP’s reputation
and ability to conduct its business. Any
breach of applicable laws, codes of conduct,
or internal regulations is strictly prohibited,
and a zero-tolerance approach is taken
towards instances of bribery and corruption.
MHP’s Board of Directors closely monitors
the Company’s business conduct progress
and performance. The MHP Code of
Ethics is approved and regularly updated
by the Compliance Officer in cooperation
with Top Management and the Board. All
staff members must promptly report any
breaches of the Company’s Code of Ethics
and compliance policies.
MHP CONSISTENTLY
CONDUCTS ITS OPERATIONS
RESPONSIBLY, ADHERING TO
THE LEGAL REQUIREMENTS
AND REGULATIONS OF THE
COUNTRIES IN WHICH IT
CONDUCTS BUSINESS
100
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
In 2024, a new Compliance Committee was
established comprising four committee members
and a Secretary with competencies in compliance,
risk management, audit and control, finance, anti-
corruption, human resources and rights, business
development and security. It has been tasked
with maintaining a compliance control system,
managing compliance risks and further developing
the compliance management system. It is also
required to settle conflict of interest matters if they
arise, set policies and procedures, approve the
annual plan of the Compliance Department and
its annual report and address any other matters
assigned to it by senior management.
Employee remuneration and promotion takes
into account compliance performance and any
severe contraventions, particularly amongst senior
management, are liable to result in disciplinary
action and dismissal.
MHP’s central compliance team oversees the
global compliance management system and
collaborates with all MHP’s businesses to identify
potential compliance risks and ensure systematic
and proactive risk detection and assessment.
This information is applied to formulate tailored
measures. Business partners are also assessed to
ensure that potential compliance risks are identified
and addressed.
MHP’s CODE OF ETHICS
GRI 2-23, GRI 415-1
The Group Code of Ethics is available for download
from MHP’s website. It is built around three strategic
priorities: protection; security; and trust.
PROTECTION
MHP believes that every member of its workforce
has the right to be supported if protection and
justice are required. MHP provides the TrustLine for
this purpose. The facility is always available and
can be accessed by telephone, by email or through
the MHP website. MHP guarantees the anonymity
and confidentiality of all complaints received,
ensuring that no individual faces prosecution or
any other restriction for reporting a violation to
the TrustLine, with the option to submit reports
anonymously or provide a name for follow-up on
actions taken.
Submitted
reports
are
considered
by
an
independent supervisor and a formal response
is always provided. Major violations of MHP’s
compliance requirements are always reported to
the Audit & Risk Committee.
SECURITY
MHP commits to the creation and maintenance of a
secure environment for every workforce member to
enable the conduct of transparent and responsible
business at MHP. This priority has become even
more important during the War in Ukraine and
has required significant focus and innovation to
address, for example, the increased cyber-security
threats which it has brought to the business.
TRUST
Many multiple family generations and relatives
work at MHP, and the business plays an
important role in society in the areas where it is
based. It is clearly important that MHP is viewed
as a responsible business partner and a good
neighbour by all its stakeholders. An important
element of this approach is MHP’s management
of potential conflicts of interest.
MHP has a detailed set of policies to address
responsible business matters, including the Code
of Ethics. These policies are regularly reviewed,
receive authorisation from the Board, and are
communicated to all employees. They are available
for download from MHP’s website and can be
summarised as including:
A commitment to promote a zero-tolerance
culture towards bribery, corruption, and unethical
business behaviour.
MHP’s leadership promotes a culture of adherence
to the applicable laws and regulations and ensures
that the workforce has sufficient knowledge of
these requirements.
MHP provides the appropriate level of workforce
training about its approach and requirements
in relation to business conduct matters, and the
requirements of its policies.
Workforce members receive regular communications
about their obligation to inform the Company about
actual or imminent breaches of laws, regulations, or
Company policies.
Workforce members are required to inform the
Company immediately if they become aware of
actual or impending personal conflicts of interest.
The
acceptance
or
provision
of
gifts
and
entertainment is prohibited except where they fall
within generally accepted notions of hospitality.
MHP provides reporting facilities to enable matters
of concern to be reported to senior management
in confidence.
MHP does not conduct business with or provide
benefits to states, entities or individuals that are
subject to sanctions, and does not provide assistance
or facilitate sanctions avoidance.
MHP selects suppliers that comply with its
responsible business approach in relation to matters
such as environment, climate change, workforce,
communities, health and safety, business conduct
and human rights.
101
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MHP TRUSTLINE
GRI 2-26, GRI 406-1
The TrustLine can be accessed by telephone, email,
or via the TrustLine section on MHP’s website
and is available for the use of internal and external
stakeholders across the Group.
All stakeholders are encouraged to use the facility if:
• They need protection or support;
• They have been exposed to poor treatment such
as harassment or bullying within the workplace;
• They suspect wrongful behaviour, such as
corruption or fraud, has been committed or is
about to occur; or
• They have suggestions or recommendations about
how MHP can improve its business conduct.
MHP Trust Line is a confidential communication
channel for employees, partners, and stakeholders
to report misconduct, corruption, fraud, harassment,
or suggest improvements.
MHP guarantees anonymity and prohibits retaliation.
Reports can be submitted via a toll-free number,
email, website, letter, social networks, public
hearings, or designated drop boxes. Employees
may also contact managers, HR, psychologists, or
compliance teams direct.
MHP aims to address all submitted reports within
30 days.
During 2024, 593 matters were registered via the
TrustLine by MHP in Ukraine and 10 by PP Group
following the introduction of the facility to this
part of the MHP Group in the final quarter of 2024.
Further information about complaint
categories and numbers is available
at the MHP website on the page
МHP TrustLine.
All were successfully addressed with corrective
actions taken where necessary.
COMPLIANCE TRAINING AND
COMMUNICATIONS ACTIVITIES
MHP assists all employees in upholding integrity and
preventing potential violations by implementing
targeted training measures and communication
campaigns based on identified needs. The Code
of Ethics forms the basis of all compliance training
activities and communication. All new MHP
employees are required to participate in at least
one mandatory compliance training program.
Training activity conducted in 2024 included the
Annual General Compliance Course which was
attended by staff drawn from around the MHP
Group who are responsible for compliance and
ethical behavior. The sessions were conducted
online and attended by approximately 4,000
employees in Ukraine. Additionally, a total of 864
employees from PP Group took part as well.
Face-to-face
training
on
MHP’s
compliance
requirements was also held for relevant team
members from companies acquired by MHP such
as KTL.
Additionally, two days of training on preventing
and addressing harassment was arranged for over
50 employees with relevant responsibilities within
the Security, Compliance and HR departments.
PP Group’s compliance training procedures were
further developed in 2024 to ensure that they
address all staff within the business.
GROUP BUSINESS PARTNER CODE OF CONDUCT
GRI 2-23
This Code was revised and updated in 2021. It
outlines MHP’s expectations in relation to business
partner conduct and explains what business
partners can expect from MHP.
Key principles outlined in the Business Partner
Code of Conduct include:
• MHP’s willingness to listen to its partners, to
learn, and to progress and improve together;
• MHP’s support for local manufacturers, particularly
in the agricultural sector, and support for their
further development;
• MHP’s desire for mutual co-operation to develop
strengths and opportunities and, in particular,
for exploring and expanding opportunities to
export to countries where MHP operates and
intends to operate;
• MHP’s requirement for business partners to be
open to ongoing innovation and the use of state-
of-the-art new technologies;
• MHP’s requirement for business partners to work
as a team to achieve joint success and improve
product quality;
• Fairness and strict compliance with the highest
standards of ethics and integrity; and
• The importance of continuous improvement in
relation to the Sustainable Development Goals,
minimising environmental impact, adopting
a proactive social stance, and implementing
international standards established within the
framework of the European Green Deal and other
important global and regional agreements.
ANTI-CORRUPTION
GRI 205-1, GRI 205-2
MHP routinely assesses all its operations for
potential corruption or conflict of interest risks.
Managers and specialists are required to disclose
any conflicts of interest, while employees receive
information about situations where conflicts of
interest may arise. During the hiring process, the
Company conducts a corruption risk screening,
This is available for download from
the MHP website on the page MHP
Business Partner Code of Conduct
and is an important element of the
responsible business approach.
102
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and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
with a specific emphasis on candidates with prior
experience in governmental institutions.
To
identify
corruption
incidents
involving
counterparties, MHP conducts a comprehensive
Know Your Customer (“KYC”) procedure before
any interactions. In Ukraine in 2023, taking into
account the War, we enhanced our counterparty
screening procedure to generate notifications and
suspend processes when current or potential issues
are identified. This process facilitates further risk
assessment and evaluation. This KYC procedure was
further updated in 2024 and adopted by PP Group.
MHP also applies dedicated channels, including
anonymous ones, for the identification of corruption
risks and potential misconduct. These channels
are open to MHP employees, suppliers, and third
parties, with all submissions thoroughly reviewed
and addressed with the relevant MHP department
and
retaliatory
action
prohibited.
Mandatory
education,
awareness-raising,
and
continuous
improvement of an ethically-sound corporate
culture are fundamental elements of our strategy
to prevent unethical behaviour among employees.
Our Executive Management team ensures that
it stays regularly informed about changes in
anti-corruption legislation, the introduction of
new sanctions, and key compliance measures
integrated
into
the
Company's
operational
activities. Our anti-corruption practices and efforts
to enhance a culture of transparency and integrity
are yielding strong positive results.
CONFLICT OF INTEREST MANAGEMENT
GRI 2-23
MHP’s Compliance Office works closely with
Management to ensure that the requirements of
MHP’s Conflict of Interest Management Policy (“the
Policy”) are maintained across the Group.
The Policy applies to all employees of the
Company and requires each employee to declare
the presence or absence of any conflict of interest
during the annual declaration process, as well as
to immediately declare any conflict of interest
that arises during their work.
The declaration encompasses personal interests
and those of family members and close associates.
It requires the submission of information
about relationships with other companies and
organisations, the role of the employee in making
business decisions in relation to third-party goods
and services, and any agricultural land interests
held or maintained. All cases of high-risk conflicts
of interest are reviewed by the Compliance
Committee, which approves decisions on control
measures or the need for management decisions.
An updated Conflict of Interest Management
Procedure was implemented in 2024. This included
a matrix which identifies where conflicts of interest
may arise and the main participants in these areas.
ADDRESSING FORCED AND CHILD LABOUR RISKS
GRI 408-1
MHP operates within the law in the countries where
it operates and commits to operating under related
international guidelines including the Universal
Declaration of Human Rights, the ILO Declaration
of Fundamental Principles and Rights at Work
and the UN Guiding Principles on Business and
Human Rights. MHP specifically prohibits the use
of forced and child labour within its own operations
across the Group and those of its suppliers. This is
highlighted in Group’s Code of Ethics. It is in the
process of examining its supply chain for these
types of risks and will not work with any third-party
where forced or child labour is used.
In 2024 MHP uncovered no instances of forced or
child labour being applied within its own operations
or those of its suppliers.
TAXATION
GRI 207-1, GRI 207-2
In common with many multi-national enterprises,
MHP’s activities are subject to the jurisdiction of
several different taxation regimes. These matters
are addressed by the Finance and Tax Departments
supported by experienced professional advisors.
During 2024 MHP further developed its tax control
framework to ensure compliance with its internal
policies and the applicable regulatory frameworks
across the Group.
MHP’s tax approach is built around the following
key principles:
• Zero tolerance for rule violations or tax fraud;
• Alignment of tax payments with value creation
in each respective country in which it operates;
• Collaborative engagement with tax authorities;
• Emphasis on transparency, adhering to verifiable
compliance and reporting standards; and
• Consistency of tax considerations with business
activities, processes, and requirements.
MHP adheres to the principle of paying owed
taxes in every country in which it operates based
on the statutory requirements established by
respective governments. The payment of taxes in
an appropriate amount is a fundamental aspect
of our responsible business approach.
MHP's tax payments contribute significantly to
funding social and economic activities where it
operates. MHP always adheres to the relevant
tax regulations of the countries where it operates
and complies with the necessary requirements
relating to payment, documentation, disclosure,
and auditing.
MHP is a significant contributor to the economy
of Ukraine. In 2024, MHP made UAH 7.56bn (2023:
UAH 6.03bn) of tax payments. UAH 1.900bn (2023:
1.544bn) was transferred to the state budget and
UAH 3.147bn (2023: 2.531bn) to local budgets. The
amount of the single social contribution for the
mandatory state social insurance of the Company’s
employees was UAH 2.518bn (2023: 1.952bn).
103
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
SUPPLY CHAIN MANAGEMENT
GRI 204-1
MHP’s business partners are essential to the delivery
of quality and value to its customers. MHP focuses
on local business partnerships to provide an equitable
share of economic benefits. In 2024 MHP revised
its approach to the disclosure of this information to
improve clarity and transparency.
UKRAINE
SUPPLIER TYPE
SUPPLIERS
Large %
Medium %
Small %
Domestic
(Ukraine)
Non-Domestic
(imported)
Domestic
(Ukraine)
Non-Domestic
(imported)
Domestic
(Ukraine)
Non-Domestic
(imported)
Services
83
2
10
0
5
0
Equipment
48
37
9
1
5
0
Energy sources
83
0
11
0
6
0
Non-grain components for compound feed
42
43
8
2
4
1
Packaging materials
83
2
10
0
5
0
Spare parts
62
23
8
2
5
0
Plant protection materials
84
0
10
0
6
0
Spices and additives
58
26
9
1
5
1
Fertilisers
83
0
11
0
6
0
Veterinary products (medicines and vaccines)
38
47
9
1
5
0
Seeds
83
0
12
0
5
0
Consumables/low-cost durables
79
6
10
0
5
0
Construction materials
84
1
10
0
5
0
Disinfectants, detergents and chemical products
78
6
11
0
5
0
Culinary
84
0
11
0
5
0
Feeds for husbandry
83
0
11
0
6
0
Overalls and PPE
85
0
10
0
5
0
Grain sleeves
0
0
91
0
9
0
Laboratory materials
67
19
8
1
5
0
104
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
EUROPEAN OPERATING SEGMENT1
SUPPLIER TYPE
SUPPLIERS
Large %
Medium %
Small %
Domestic
(PP Group)
Non-Domestic
(imported)
Domestic
(PP Group)
Non-Domestic
(imported)
Domestic
(PP Group)
Non-Domestic
(imported)
Fertilisers
31
8
38
0
23
0
Seeds
33
0
17
0
50
0
Plant protection materials
43
0
14
0
43
0
Fuels and lubricants
3
1
1
3
59
33
Gas
17
8
17
0
41
17
Laboratory materials
0
0
0
3
87
10
Veterinary products (medicines and vaccines)
19
0
22
11
26
22
Disinfectants and detergents
3
0
10
1
61
25
Spices and additives
10
3
11
8
51
17
Packaging materials
11
9
15
8
40
17
Day-old chicks
39
15
8
15
0
23
Work protection
2
3
4
2
54
35
Corn
7
1
10
0
82
0
Wheat
6
2
8
1
83
0
Soya (meal, bean, cake)
14
30
19
5
30
2
Soya oil
9
55
9
18
9
0
Corn oil
0
50
0
50
0
0
Sunflower oil
0
50
50
0
0
0
Premixes
0
67
33
0
0
0
MCP (monocalcium phosphate)
16
16
36
11
16
5
Other additives
15
20
32
8
20
5
Amino acids (lysine, choline, threonine)
3
14
6
38
14
25
1 European Operating Segment refers to the business activities conducted by Perutnina Ptuj (PP) Group in Slovenia, Croatia, Bosnia-Herzegovina and Serbia.
105
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
RESPONSIBLE SUPPLY CHAIN
GRI 407-1, GRI 308-2, GRI 414-2
In 2024, MHP developed its supply chain
management approach by launching a
comprehensive assessment of suppliers
based on key environmental, social and
governance (“ESG”) criteria.
The main goal was to determine the
level of compliance of suppliers with the
requirements of the Business Partner
Code of Conduct and responsible business
behaviour and to determine related ESG
business risks.
MHP
has
also
developed
an
artificial
intelligence tool to analyse the received
information and streamline the analysis
process.
At
MHP
Ukraine
the
pilot
project
assessed
104
suppliers
including
67
from the Agro Department (farmers),
of which 30 responded, and 37 from
General Procurement, 33 provided us
with responses. The pilot project in
2024 addressed 4.1% of critical suppliers
in the Ukraine Agro Department and
88% of critical suppliers in the Ukraine
Procurement Department. It highlighted a
particularly low level of compliance within
Agro Department suppliers (farmers) and
a higher level within the Procurement
Department although significant gaps
were also highlighted.
At PP Group the pilot project assessed
35 suppliers across different categories
including 22 general suppliers, 8 large and
5 small grain suppliers (farmers). 14 out
the 35 responded. Additionally, 13 critical
Agro suppliers were assessed along with
22 critical suppliers from Procurement.
They were also in compliance although the
response rate was low (15% and 54%).
Consequently, going forward the Group
plans to:
• Introduce a systematic approach to
monitoring
the
implementation
of
corrective plans;
• Conduct training for suppliers aimed at
developing an ESG focused culture; and
• Expand the use of the analytical platform
to assess overall compliance with MHP’s
ESG requirements.
Development of methodology
and tools – creation of an
ESG questionnaire based
on ISO 20400 Sustainable
Procurement and best ESG
practices.
Full scale implementation –
launching the questionnaire
for a wide range of suppliers,
integrating the results into
the Group’s risk management
processes.
Pilot project – testing the
questionnaire on a selected
sample of suppliers across the
Group, analysing the responses,
identifying challenges and
making revisions.
Development of corrective
action plans –
recommendations for
improving ESG practice for
suppliers with a low level of
compliance.
1
2
3
4
CASE STUDY
IN 2024, MHP DEVELOPED
ITS SUPPLY CHAIN
MANAGEMENT
APPROACH BY LAUNCHING
A COMPREHENSIVE
ASSESSMENT OF
SUPPLIERS BASED ON KEY
ENVIRONMENTAL, SOCIAL
AND GOVERNANCE
(“ESG”) CRITERIA.
The project has four stages as set out below. Stages 1 and 2 were conducted in 2024.
106
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MARKETING APPROACH
GRI 2-23
MHP strives for responsible marketing of
all products and brands in both domestic and
international markets.
The Group has a history of aligning its business
strategy with the Sustainable Development Goals,
its business goals, and MHP’s values.
This approach is the basis for creating marketing
strategies that meet marketing goals and support
the Group’s reputation. MHP encourages and
supports moderate food consumption as part of a
healthy, active, and balanced lifestyle, focusing on
family values.
MHP's approach to marketing, as a global company
operating in more than 80 countries, is consistent
with the International Chamber of Commerce's
Marketing and Advertising Code and its framework
for responsible food marketing communications.
The Group adheres to these guidelines in its
marketing communications.
IT INFRASTRUCTURE AND CYBER-SECURITY
MHP has, over several years, prioritised the
digitisation of its business across the Group’s
activities. This process continued in 2024 and will
continue in 2025 and beyond. Notable recent and
planned developments include the introduction
of SAP management systems in PP Serbia in 2024
and the planned introduction in PP Croatia and PP
Bosnia-Herzegovina in 2025.
In Ukraine, MHP was the first organisation to
achieve the ISO 22301:2019 certification. This
highlights that MHP’s systems are robust and
will maintain stability in challenging conditions.
CYBER-SECURITY
The conditions created by the War in Ukraine
clearly made robust cyber-security an essential
aspect of MHP’s business activities and this has
been addressed in a variety of evolving ways.
In 2023, MHP deployed Fortinet firewalls on all
its large sites to increase network security and
ensure reliability and availability. Other steps
included moving computer resources to locations
that are closer to the source of information
generation
such
as
MHP’s
manufacturing
facilities. This facilitated more effective data
leverage, operational efficiency, and enabled
the business to respond quickly to sudden and
unexpected changes in circumstances.
Maintenance of data privacy and security is a
priority of MHP’s management team. MHP did
not find evidence of data leaks during 2024 and
did not receive information from third parties
including customers and regulators that this had
taken place.
107
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MEMBERSHIP OF ASSOCIATIONS
GRI 2-28
At Group level, MHP has been a participant in the
UN Global Compact since July 2021.
MHP Ukraine
• The European Business Association – represents
over 900 European, Ukrainian, and international
companies;
• The League of Food Producers – adaptation of
Ukrainian legislation in the field of food safety
and quality to European standards;
• The British-Ukrainian Chamber of Commerce –
represents British, Ukrainian, and international
companies and individuals doing business in
Ukraine or the UK;
• The Federation of Employers of Ukraine (“FRU”) –
the largest business association in Ukraine;
• The Ukrainian Chamber of Commerce and
Industry – unites over 8,000 legal entities and
entrepreneurs from various sectors of the
economy;
• The Kyiv Chamber of Commerce and Industry –
represents over a thousand enterprises from
various sectors of the economy in Kyiv and the
Kyiv region; and
• The American Chamber of Commerce in
Ukraine (“AmCham Ukraine”) – represents the
American, Ukrainian and other international
companies that have invested over US$ 50
billion in Ukraine’s economy.
Serbia
• Association of Poultry Producers of
Serbia, Chamber of Commerce of Serbia,
Slovenian Business Club; and
• NALED – National Alliance for Local
Economic Development.
Bosnia and Herzegovina
• Chamber of Economy of Zenica –
Doboj Canton, part of the Chamber of
Economy of the Federation of Bosnia and
Herzegovina;
• Chamber of Commerce and Industry of
the Republic of Srpska; and
• Community of Poultry Producers of the
Republic of Srpska.
Croatia
• Croatian Employers’ Association;
• Croatian Chamber of Commerce; and
• The
Association
of
Livestock
and
Associated Industry.
Slovenia
• Chamber of Commerce and Industry of
Slovenia (General membership; Biogas
Section; Section of Feed Manufacturers);
• Chamber of Agriculture and Forestry of
Slovenia;
• Chamber of Craft and Small Business;
• The Slovenian Chamber of Engineers;
• Economic Interest Association of the
Meat Industry of Slovenia;
• AVEC;
• Austria-Slovenian Chamber of Commerce;
• Slovenia’s Association of Employers;
• Chamber of Safety and Health at Work;
• Slovenian Association for Quality and
Excellence;
• Economic Law Institute;
• Slovenian Chamber of Advertising;
• EFPRA; and
• CER (Green star).
LEGAL AND RELATED MATTERS
GRI 418-1
In 2024, the Group did not receive any complaints from third parties (counterparties) or government
agencies about breaches of client privacy or information. No material breaches of the Company’s
approach to anti-bribery and corruption policies were noted during 2024.
PP is a member of the following industry
associations in the countries stated.
108
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
MHP WILL CONTINUE ITS
PROCESS OF CONTINUOUS
REVIEW OF ITS COMPLIANCE
MANAGEMENT SYSTEMS
AND TRAINING
PLANS FOR 2025
• MHP plans to further update its
compliance documentation in line
with best practice and conduct further
digitisation of its systems;
• MHP
will
continue
its
process
of
continuous review of its compliance
management systems and training to
ensure best practice is maintained and
the existing rigorous compliance culture
is maintained;
• MHP plans to update its Anti-Corruption
Policy, the Code of Ethics and the
Whistleblower Policy;
• MHP will promote its compliance culture
through greater use of social media; and
• MHP plans to sign the UN Global
Compact’s Memorandum of Joint Action
on Anti-Corruption in Ukraine.
OTHER HIGHLIGHTS IN 2024
• KPMG were appointed to conduct a
comprehensive audit of the compliance
function. The audit concluded that MHP’s
compliance procedures are in line with
best international practices;
• MHP’s
existing
electronic
document
management
system
was
expanded
in 2024 to include the international
platform DocuSign to sign agreements
with foreign partners. We also created
and implemented an electronic archive
for storing documents and a system for
issuing qualified electronic signatures;
• PP Group adopted the MHP TrustLine
facility in the final quarter of 2024;
• MHP’s Procurement Conference "Big
Business About Procurement" brought
together over 150 industry leaders to
set new procurement trends, enhance
efficiency,
and
support
Ukraine’s
economic stability – all while raising funds
for charitable causes; and
• There were no instances of bribery or
corruption recorded across the Group
in 2024.
KPMG CONCLUDED THAT
MHP’S COMPLIANCE
PROCEDURES ARE IN LINE
WITH BEST INTERNATIONAL
PRACTICES
109
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GROWTH PILLAR 6
OUR COMMITMENT
The Group believes that it has a responsibility
to address climate change and the
impacts of its activities on the environment.
It commits to achieving this through
the development of a comprehensive
and robust Sustainability Strategy that
incorporates a programme of actions that
meet stakeholder expectations.
MANAGEMENT APPROACH
GRI 2-23
MHP’s Board of Directors is responsible for
ensuring compliance with the requirements
of
its
environmental
and
climate
change commitments. It is supported
in the management of its approach
to environmental and climate change
matters by the Board’s Sustainability and
International Affairs (“S&IA”) Committee.
The S&IA Committee is supported by the
Operational ESG Committee in setting the
Group’s Sustainability Strategy, goals and
targets. It meets at least semi-annually
and reports to the S&IA Committee about
the progress in meeting the Group’s
THE PLANET
aims and objectives. It comprises Top
Management representatives from a wide
range of departments including ESG, Agri
& Poultry production, Finance, Logistics
and Procurement.
A key task performed by the Operational
ESG Committee in 2024 was overseeing and
supervising the performance of the climate
change risk assessment project. This was
successfully completed by the end of 2024
and the findings were presented to both
S&IA Committee members and the Top
Management team of MHP Ukraine.
MHP’S BOARD OF DIRECTORS
IS RESPONSIBLE FOR
ENSURING COMPLIANCE
WITH THE REQUIREMENTS
OF ITS ENVIRONMENTAL
AND CLIMATE CHANGE
COMMITMENTS
110
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
POLICY HIGHLIGHTS
MHP’s Environmental Policy in Ukraine was
authorised by the Board and Top Management of
the Company (formalised in September 2020). PP
Group has its own Environmental Policy, which is
available on request.
The Group’s Environmental Policies include the
following commitments:
• MHP will conduct regular dialogue with its
stakeholders about its environmental approach,
management and performance, and climate
change considerations will be integrated into
all major business decisions;
• MHP will deliver environmental programmes
which will aim to consistently reduce waste
generation;
• MHP will design and maintain programmes
which will preserve and conserve biodiversity in
the areas in which it operates;
• MHP will deliver a plan to reduce the use of
energy from non-renewable sources through
increasing its use of renewable energy;
• MHP
will
comply
with
the
applicable
environmental legislation and global industry
environmental best practice at all times;
• MHP will deliver a plan that reduces freshwater
consumption and discharges to water and
ensure that any discharges are free of harmful
polluting substances;
• MHP
will
maintain
comprehensive
environmental
performance
data
records
that address matters such as waste, water use
and discharges, emissions, energy use and
environmental incidents; and
• MHP will provide regular training and education
to its employees about MHP’s expectations and
requirements relating to environmental and
climate change matters.
CARBON TRUST, ISCC and ISO ACCREDITATIONS
The Carbon Trust Standard (“the Standard”)
is a world-leading, independent international
certification which recognises best practice and
achievements in carbon reduction.
Companies that achieve the Standard must be
able to provide an accurate assessment of their
carbon footprint, supported by robust data. They
must be able to evidence that they have strong
carbon management processes and demonstrate
continuous improvement.
In September 2023, MHP Ukraine was awarded a
certificate of assurance from Carbon Trust which
remains valid for two years. It evidences that MHP’s
greenhouse gas emissions data in relation to its
poultry production and marketing activities in
Ukraine is in line with the following requirements:
• PAS 2050:2011 Specification for the assessment
of the life-cycle greenhouse gas emissions and
services;
• ISO 14067:2018 Greenhouse gases, carbon footprint
of products, requirements and guidelines for
quantification and communication;
• Product carbon footprints: Requirements for
Certification v2.0; and
• Product consistency criteria.
In Ukraine six of MHP’s enterprises and three
suppliers also hold the International Sustainability
and Carbon certification. This addresses the
production
of
corn,
rapeseed,
sunflowers,
sunflower oil, sunflower husks, soybean, soybean
oil, soybean husks and biogas.
ISO 14001 AND ISO 50001
CERTIFICATIONS
The MHP Ukraine biogas plant at
Ladyzhyn town achieved ISO 14001
certification in 2024.
In 2024, the following MHP Ukraine
enterprises
obtained
ISO
50001
certification.
• Myronivsky Meat Processing Plant
Legko
• Oril-Leader
• Peremoha Nova
• Starynska Poultry Farm
• Vinnytsia
Poultry
Farm
(feed
production complex)
• Myronivsky Plant of Manufacturing
Feeds and Groats
• Katerynopilsky Elevator
IN SEPTEMBER 2023,
MHP UKRAINE WAS AWARDED
A CERTIFICATE OF ASSURANCE
FROM CARBON TRUST
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FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
SOURCES AND METHOD OF CALCULATION
GRI 305-1, GRI 305-2
MHP Ukraine calculates its greenhouse gas
emissions applying the emission factors and the
Global Warming Potential (“GWP”) indicators from
IEA - CO2 EMISSIONS FROM FUEL COMBUSTION
Highlights (2013 Edition), IPCC Fifth Assessment
Report (Intergovernmental Panel on Climate
Change) and IFC Carbon Emissions Estimation
Tool (CEET).
PP Group calculates its Scope 1 Greenhouse Gas
emissions using the net calorific values and emission
factors published by the Republic of Slovenia in its
national greenhouse gas inventory. These values
are provided in the tables from the Ministry of the
Environment, which are updated annually.
MHP Ukraine expanded the list of sites from four
to seven that monitor greenhouse gas emissions
related to fuel combustion at sites with a total rated
heat capacity of more than 20 MW. The data has
received the appropriate third-party verification
from professional advisors.
UKRAINE
METRIC TONNES OF CO2
2024
2023
2022
Combustion
of natural gas
208,998
201,182
195,883
Diesel fuel use
150,685
149,315
145,529
Gasoline fuel use
6,885
7,757
7,820
Use of compressed /
liquefied gas, propane,
butane, methane, and
mixtures
1,443
4,069
4,181
TOTAL
368,011 362,232 353,413
UKRAINE
METRIC TONNES OF CO2
2024
2023
2022
Combustion of biogas
123,081
105,079
111,954
Combustion of sunflower
husk and pellets
57,018
60,246
53,099
TOTAL
180,099 165,325 165,053
UKRAINE
TONNES of CO2e
2024
2023
2022
Scope 2 emissions
223,024
227,656
220,985
TOTAL
223,024 227,656 220,985
EUROPEAN OPERATING
SEGMENT
METRIC TONNES OF CO2
2024
2023
2022
Combustion of natural gas
23,167
20,246
17,839
Diesel fuel consumption
3,672
5,964
6,752
Gasoline fuel use
119
372
303
Use of compressed/
liquefied gas, propane,
butane, methane and
mixtures
1,441
4,160
1,878
Coal combustion
1,987
1,021
2,726
Fuel oil combustion
38
950
1,754
Total
30,424
32,713
31,252
The increase of 1.6% was due to increased
consumption of natural gas because of lower
temperatures during the winter and changes in
the poultry production process.
SCOPE 1 – DIRECT GREENHOUSE GAS
EMISSIONS FROM COMBUSTION OF BIOGAS
SCOPE 1 – DIRECT GREENHOUSE GAS EMISSIONS
SCOPE 2 – INDIRECT GREENHOUSE GAS
EMISSIONS – USE OF ELECTRICITY
The location-based method was chosen to calculate
Scope 2 emissions. Ukraine does not provide the
electricity consumer with a choice of differentiated
electricity by origin.
The fall in emissions was due to energy savings
following the adoption of ISO 50001 certified
management systems at various sites in Ukraine.
GREENHOUSE GAS EMISSIONS
SCOPE 1 – DIRECT GREENHOUSE GAS EMISSIONS
The financial control method was applied in
compiling this data.
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Risk Management
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Non-Financial and
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Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
ENERGY STORAGE
In 2024, the Group continued its work on
implementing energy storage technologies, which
are a key component of the Company’s energy
independence strategy. Approximately 20 projects
were implemented at different MHP sites in Ukraine.
One of the key achievements was the completion
of the installation of an industrial energy storage
system at a vertically integrated poultry meat
production complex. This system has a capacity of
2 MW and provides 4 MWh of energy storage. It is
integrated with a 10 MW solar generation project,
allowing the Company to effectively use renewable
energy sources for its production needs.
MHP plans to continue integrating energy storage
systems across the business in Ukraine. Particular
attention will be paid to scaling the capacities of
energy storage systems to support energy supply
stability in combination with other types of electrical
energy generation.
WIND AND SOLAR
In February 2024, the Company initiated a project
to assess the wind potential for creating a wind
farm with a capacity of 60 MW at one of MHP
Ukraine’s operational locations.
The project involves the potential installation of
10 wind turbines, each with a capacity of 6 MW.
It is expected to be completed in 2025 when the
feasibility will be evaluated.
In 2024 MHP Ukraine generated over 10 GWh of
solar energy for its own needs. Solar panels are
installed on poultry houses and offices.
MHP Ukraine plans to continue to implement new
renewable energy projects (solar and wind) and
to integrate these sources with energy storage
systems to enhance the stability and efficiency of
energy consumption.
Moreover, PP Group constructed a solar farm at
Sela in Slovenia (414 kWp) and Letaliska in Slovenia
(140 kWP).
UKRAINE
ENERGY CONSUMPTION TJ
2024
2023
2022
Natural gas
3,739
3,599
3,504
Diesel
2,048
2,030
1,978
Petroleum
98
111
112
Compressed / liquefied gas
24
69
71
Electricity
1,898
1,937
1,768
TOTAL FROM NON-RENEWABLE SOURCES
7,807
7,746
7,433
Biogas
1,636
1,934
1,483
Sunflower husk combustion
638
687
676
TOTAL FROM RENEWABLE SOURCES
2,274
2,081
2,159
TOTAL ENERGY CONSUMPTION
10,081
9,827
9,592
% FROM RENEWABLE SOURCES
23
21
23
EUROPEAN OPERATING SEGMENT
ENERGY CONSUMPTION TJ
2024
Natural gas
411
Diesel
50
Petroleum
2
Compressed / liquefied gas
22
Electricity
278
TOTAL FROM NON-RENEWABLE SOURCES
763
Biogas
80
Sunflower husk combustion
-
Solar power
1
SPTE
4
TOTAL FROM RENEWABLE SOURCES
85
TOTAL ENERGY CONSUMPTION
848
% FROM RENEWABLE SOURCES
10
INTEGRATING ENERGY STORAGE, WIND AND
SOLAR TECHNOLOGIES
GRI 302-1, GRI 302-2, GRI 302-4
MHP in Ukraine has demonstrated significant
energy security resilience during the War. This
was made possible by a managerial focus on this
important area which ensured that operations
were maintained.
In 2024, MHP in Ukraine focused on implementing
a series of strategic projects aimed at increasing
energy independence. Important elements are
energy storage developments, renewable energy
projects and the integration of these activities
achieving energy security.
MHP IN UKRAINE HAS
DEMONSTRATED SIGNIFICANT
ENERGY SECURITY RESILIENCE
DURING THE WAR
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FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
BIOGAS AND BIO-LNG
In Ukraine a number of important developments
were achieved during 2024 in the production
of biogas and bio-LNG. These included the
completion of construction and commissioning
of new biomethane and bio-LNG production units
at the Ladyzhyn biogas plant (capacity – 12,600
tonnes). At the Oril-Leader biogas plant (Dnipro
region) the construction and commissioning of a
new biomethane production unit was completed.
Additionally, the preliminary design of the greenfield
biogas/biomethane project at Kaniv town (Cherkasy
region) was conducted. These sites sell and will sell
green transport fuel to the EU.
Alignment of MHP Ukraine’s biomethane with the
EU Directive 2018/2001 (RED II) was also achieved
in 2024. In 2025 MHP Ukraine will launch a
combined heat and power generation unit which
also uses natural gas and will have a capacity of
13.4 MW of electricity. This project will increase
energy security at the Myronivka poultry complex
(due Q3 2025).
In Ukraine, future planned projects include the
commencement of the biogas/biomethane project
at Kaniv town (due to be commissioned in 2027).
The preliminary design of a biogas/biomethane
project at Vinnytsia has also commenced (due to
be commissioned in 2028).
BIOGAS PRODUCTION PERFORMANCE
SALE OF ENERGY
UKRAINE
kWh
2024
2023
2022
Biogas
produced
309,578,978
311,971,097
294,944,656
Electricity
produced
125,716,068
115,352,217
120,927,309
Heat
produced
84,448,981
123,862,185
123,829,564
EUROPEAN
OPERATING
SEGMENT
kWh
2024
2023
2022
Biogas
produced
22,281,300
25,476,574
22,332,478
Electricity
produced
8,660,400
8,841,000
8,420,700
Heat
produced
4,306,500
5,215,699
5,074,247
UKRAINE
TJ
2024
2023
2022
Total Energy sales
458
382
398
EUROPEAN OPERATING SEGMENT
TJ
2024
Total Energy sales
27
CONVERSION RATES APPLIED:
4.184 joules = 1kWh = 3.6 megajoules (“MJ”) 1 tonne
(steam) = 2.256 MJ
1 tonne (liquefied gas) = 45.980 MJ
GREEN ENERGY LABORATORY
In 2024 a green energy laboratory was opened
in Kyiv, focusing on research and the integration
of new types of green energy generation. These
initiatives are part of the Group’s ongoing
commitment to sustainable energy practices and
innovation in energy generation, supporting its
goal of becoming a leader in green energy within
its sector.
The main activities of the laboratory include:
• Research into the potential use of green hydrogen;
and
• Integration of green hydrogen with biogas and
biomethane production technologies, which
will help expand the range of environmentally
friendly energy solutions.
IN 2024 A GREEN
ENERGY LABORATORY
WAS OPENED IN
KYIV, FOCUSING ON
RESEARCH AND THE
INTEGRATION OF NEW
TYPES OF GREEN
ENERGY GENERATION
114
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Our Values: Dilosophy
Key Performance
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Review
Alternative Performance
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Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GRI 303-1, GRI 303-2, GRI 303-3, GRI 303-4
One of the Group’s main environmental priorities is the reduction of water
consumption. Water use is regularly monitored, and metering units are subject
to regular inspection and maintenance.
WATER MANAGEMENT
WATER USE
UKRAINE
CUBIC METRES
2024
2023
2022
Surface water
9,186,506
7,906,287
7,056,687
Ground water
7,059,099
7,026,945
6,301,030
Wastewater from third-party organisations
-
-
439,820
Municipal and other water supply systems
292,000
201,299
254,576
TOTAL
16,537,605
15,134,531
14,052,113
EUROPEAN OPERATING SEGMENT
CUBIC METRES
2024
2023
2022
Subterranean water
1,512,057
1,384,545
1,305,125
Municipal and other wastewater systems
700,206
640,755
714,675
Total
2,212,263
2,025,300
2,019,800
WASTEWATER DISCHARGES
UKRAINE
CUBIC METRES
2024
2023
2022
Discharged by pipes to municipal treatment
plants
737,939
642,445
312,421
Discharged to waste pits with removal to
municipal wastewater plants
99,671
19,210
72,213
Released to surface water after treatment at
MHP plants
4,602,246
4,659,003
4,506,253
Discharged to filtration fields
388,608
406,920
327,961
Taken to manure storage facilities
236,678
172,956
-
TOTAL
6,065,142
5,900,534
5,218,848
EUROPEAN OPERATING SEGMENT
CUBIC METRES
2024
2023
2022
Discharged from pipes to own wastewater
plants
1,246,223
1,117,066
1,143,383
Discharged to public sewage systems
109,243
88,625
126,275
Discharged to a non-flow through septic tank
17,755
33,946
17,027
Discharged to lagoons
369,767
302,621
167,170
Discharged to subterranean water
178,214
166,973
213,993
TOTAL
1,921,202
1,709,231
1,667,848
None of the operations of the Group’s businesses affect the water balance
in the regions where they operate. Each enterprise strictly adheres to the
appropriate regulations including the restrictions on the use of land plots
adjacent to coastal strips.
115
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MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
GRI 306-1, GRI 306-2, GRI 306-4, GRI 306-5
All of the Group’s enterprises comply with the
appropriate environmental policies and with the
relevant waste management regulations. They have
all implemented an effective waste management
accounting system including for the disposal of
hazardous waste.
WASTE MANAGEMENT
Contractors involved in the disposal of hazardous
waste are regularly checked to ensure that they have
the appropriate regulatory certifications. The Group
is focused on developing its waste management
processes to prioritise reuse and participate in the
circular economy (please find more information on
circular economy on pages 25 to 26).
UKRAINE
CUBIC METRES
2024
2023
2022
Reuse
-
25
47,579
Composting
345,163
2,680
1,947
Recovery, including
energy recovery
600,636 536,868
41
Combustion
-
-
13,469
Disposal to landfill
13,852
25,002
7,663
Storage at MHP
enterprises
951
3,905
3,691
Transferred to contracted
third parties
20,825
33,364
26,471
TOTAL
981,427 601,844 100,861
EUROPEAN OPERATING
SEGMENT
CUBIC METRES
2024
2023
2022
Reuse
2,209
1,536
1,736
Composting
15,853
14,744
13,967
Recovery, including
energy recovery
32,168
22,219
25,754
Combustion
-
-
-
Disposal to landfill
-
-
-
Storage at MHP
enterprises
11,000
11,000
11,000
Transferred to contracted
third parties
12,102
6,190
9,602
TOTAL
73,332
55,689
62,059
In 2023 waste management regulations changed
significantly in Ukraine. This required certain animal
by-products not intended for human consumption
to be categorised as waste.
PLANS FOR 2025
• MHP Ukraine will expand the
landbank with reduced tillage and
other sustainable crop production
practices
in
partnership
with
Agreena (38.8 thousand hectares)
and Cargill (2.0 thousand hectares);
• MHP Ukraine plans to obtain ISO
14001 certification for the Oril-
Leader biogas plant; and
• PP Group will construct five new
solar farms in Slovenia at PP
Formin (123.28 kWp), PP Mamita
(331.2 kWp), PP Zalog (626.52 kWp),
PP Servis (150 kWp) and PP AGRO
(81.42 kWp).
116
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Non-Financial and
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Statement
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
TASKFORCE ON CLIMATE-
RELATED FINANCIAL
DISCLOSURES ("TCFD")
PURPOSE OF THIS STATEMENT AND
APPROACH
This statement outlines MHP’s alignment
with the TCFD reporting recommendations,
and how the Group intends to extend its
alignment in the future. The inclusion of
this statement within this Report addresses
the compliance requirements of UK Listing
Rule 22.2.24(R).
As part of the preparation process for
this statement, MHP has reviewed and
considered TCFD’s All Sector Guidance (2021
TCFD Annex). MHP has also considered the
recommendations for agriculture, food,
and forest product organisations that are
explained within the Guidance.
The emphasis of the additional Guidance
is to provide more granular and explicit
disclosures. This is aligned with MHP’s aim
of progressing its transparency concerning
climate change over time.
MHP’S APPROACH TO CLIMATE CHANGE
Over the last few years, MHP has been
working diligently to understand and
address its environmental footprint, and
develop its related disclosures. These
steps have been guided by the activities of
initiatives such as the Intergovernmental
Panel
on
Climate
Change,
the
UN
Framework
Convention
on
Climate
Change, and the UN Global Compact.
MHP is supportive of the activities of the
IFRS Foundation and the International
Sustainability Standards Board and notes
that the requirements of IFRS S2, Climate-
related Disclosures, are consistent with
the four core recommendations and 11
recommended disclosures that have been
published by TCFD.
MHP’s ongoing activities to address and
improve the monitoring of its environmental
footprint are outlined on pages 110 to 116 of
this Report.
MHP’s activities also create significant
Scope 3 emissions (such as those created
by purchased goods and services). These
are not currently reported. In 2025, MHP
Ukraine and PP will work with suppliers to
enable Scope 3 data to be reported for the
first time in the next annual report.
117
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We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
ALIGNMENT WITH THE TCFD RECOMMENDATIONS
MHP has considered its “consistent or not
consistent” obligation under the UK Financial
Conduct Authority Listing Rules, and has detailed
in the table on the right its position at the end of
2024 in relation to the 11 TCFD recommendations.
Where sections are marked “not consistent”, further
explanation is provided.
11 TCFD RECOMMENDATIONS – MHP’S POSITION AT THE END OF 2024
PROGRESS
GOVERNANCE
Describe the Board’s oversight of climate-related risks and opportunities
Consistent
Describe management’s role in assessing and managing climate-related risks and
opportunities
Consistent
STRATEGY
Describe the climate change risks and opportunities the organisation has identified over
the short, medium and long term
Not consistent
Describe the impact of climate-related risks and opportunities on the organisation’s
business, strategy and financial planning
Consistent
Describe the resilience of the organisation’s strategy, taking into consideration different
climate-related scenarios, including a 2-degree centigrade or lower scenario
Not consistent
RISK MANAGEMENT
Describe the organisation’s processes for identifying and assessing climate-related risks
Consistent
Describe the organisation’s processes for managing climate-related risks
Not consistent
Describe how processes for identifying, assessing and managing climate-related risks are
integrated into the organisation’s overall risk management
Not consistent
METRICS AND TARGETS
Disclose the metrics used by the organisation to assess climate-related risks and
opportunities in line with its strategy and risk management process
Not consistent
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas emissions and the
related risks
Not consistent
Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets
Not consistent
GOVERNANCE
MHP’s governance systems include regular review
of the Board and committee composition to ensure
that they have the necessary combination of skills,
experience, and knowledge. More information is
included in the Corporate Governance Report on
pages 127 to 129.
MHP’s Chief Executive Officer is responsible for
the executive management of MHP’s businesses
including its approach to climate change, strategy
implementation and delivering performance
against plans. MHP’s Board of Directors is
responsible for the Group’s approach to climate
change and the management of related risks and
opportunities. It is supported in the management
of its approach by the Board’s Sustainability and
International Affairs (“S&IA”) Committee and
the Operational ESG Committee comprising
senior management team members drawn from
across the Group. These activities include regular
discussion of climate change matters.
The Group is rapidly progressing the integration of
climate change into its management procedures,
and, in 2024, a climate risk assessment team was
formed to contribute to the progression of MHP’s
sustainability goals and target setting including
those relating to climate change. MHP has also
established a series of ESG-related OKRs which
have been in place since 2023.
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Model
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MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
STRATEGY
MHP’s previous announcement of a target to
become carbon neutral by 2030 will be reviewed
at the end of the War in Ukraine. MHP will also
examine
the
introduction
of
other
targets
including those relating to emissions intensity as
part of the post-War development of its approach
to climate change.
The Group will put in place a Sustainability Strategy
in 2025 which will include a climate change
transition plan 2030 and strategy which extends
to 2050.
In 2024, MHP Ukraine focused on implementing
a series of strategic projects aimed at increasing
energy independence. Important elements are
energy storage developments, renewable energy
projects, and the integration of these activities to
achieve energy security.
In 2023, the Group achieved certification with the
Carbon Trust for its poultry production in Ukraine.
During 2024, one of MHP’s enterprises in Ukraine
achieved ISO 14001 and the Group also continued
to invest in solar power. More information can be
found in Growth Pillar 6: The Planet.
The Group also plans to continue engaging with
stakeholders, including employees, customers,
and suppliers, to raise awareness about climate
change and promote sustainable practices.
RISK MANAGEMENT
During 2024, supported by independent external
professional advisors, MHP conducted an extensive
qualitative
and
quantitative
climate
change
scenario analysis of its operations in Ukraine with
the aim of obtaining an improved understanding
of the risks and opportunities that climate change
presents to the business in Ukraine. The five-step
process that was applied is recorded below.
1. RISK AND OPPORTUNITY IDENTIFICATION
Interviews
with
a
wide
variety
of
MHP
stakeholders were held in order to understand
which activities and parts of the value chain are
potentially exposed.
2. RISK AND OPPORTUNITY PRIORITISATION
A materiality scoring framework was applied to
identify the materiality of the highlighted risks
and opportunities.
Scenario
Temperature increase by
2050 in comparison to
pre-industrial levels
SSP and RCP
applied within
the modelling1
Comment
Lower temperature rise
1.6°C
SSP1
RCP 2.6
This scenario is optimistic about
decarbonisation and assumes that
there is a globally coordinated
effort to reach net-zero by 2050
Very high temperature rise
4.3°C
SSP5
RCP 8.5
This scenario explores limited
action on climate change with an
energy-intensive, fossil-fuel based
economy
3. SCENARIO STRESS-TESTING
The scenarios applied are recorded in the table
below. Both physical and transition risks and
opportunities were considered within the analysis.
4. FINANCIAL QUANTIFICATION
For the most material risks and opportunities,
the potential financial impact was considered
under the very high temperature rise scenario.
5. ADAPTATION MEASURES
For the most material risks and locations
(estimated costs in excess of US$ 100,000 per
year of climate event), adaptation measures
were considered including mitigation potential,
projected cost and timeline.
1 Shared Socioeconomic Pathway (SSP) and Representative Concentration Pathway (RCP)
119
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
RISK AND OPPORTUNITIES MATRIX ARISING
FROM THE ANALYSIS
The following risk and opportunity matrix resulted
from the analysis and will be applied by MHP
in Ukraine in its strategic planning to address
climate change.
Climate risks are also evaluated using MHP’s
common
risk
assessment
approach
which
includes consideration of qualitative criteria and
likelihood of occurrence. These outcomes are
incorporated into the risk assessment procedures
which are performed regularly at each of MHP’s
enterprises. Climate change has been identified
as a principal risk. See Risk Management on page
54 for more information.
METRICS AND TARGETS
MHP’s greenhouse gas emissions calculations
are conducted annually. The emissions data and
methodology applied is recorded in Growth Pillar 6
on pages 110 to 116 of this Report.
As stated earlier, MHP does not currently collect
Scope 3 data. In 2025 MHP Ukraine and PP will work
with suppliers to enable Scope 3 data to be reported
for the first time in the next annual report. MHP
will also consider the use of appropriate intensity
metrics to monitor emissions performance and
enable robust target setting in the future.
High materiality
Moderate materiality
Low materiality
Risks
Physical
Acute
• Extreme temperatures
• Extreme storms
• Floods
• Wildfires
Chronic
• Drought/water stress
• Soil health
• Changes in climate patterns
• Surface and groundwater
levels and quality
Transitional
Market
• Increase in costs of raw
materials
• Resource availability
• Global commodity price
fluctuations
Policy &
legal
• Exposure to litigation
• Regulatory changes in
emissions and standards
• Agricultural policy change
Reputation
• Stakeholder relations risk
• Animal welfare concerns
Opportunities
• Expansion of market share
(market)
• Employment of
technological solutions
(resource efficiency)
• Use of supportive policy
incentives (products and
services)
• Shift in consumer
preferences (products and
services)
• Regenerative Agriculture
Practices (resilience)
• Energy source
diversification (energy
source)
• Investment in sustainable
technologies (technology)
• Building Resilent Supply
Chains (resilience)
• Changes in climate
patterns
• Surface and groundwater
levels and quality
120
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial and
Sustainability Information
Statement
NON-FINANCIAL AND
SUSTAINABILITY
INFORMATION STATEMENT
COMMITMENT TO TRANSPARENCY
MHP Group is committed to transparent
reporting and disclosure of its financial
and non-financial performance, risks and
opportunities
where
this
information
is relevant to shareholders and other
key stakeholders. MHP has supplied
this information in alignment with the
reporting
requirements
contained
in
Sections 414, 414CA and 414CB of the UK
Companies Act 2006.
The information in the table that follows
is provided to aid understanding of the
Group’s approach, policies and performance
relating to non-financial and sustainability
matters. No material breaches of policy
were identified during 2024.
Page
32 to 38
PERFORMANCE
HIGHLIGHTS
Page
21 to 29
VALUE CREATION AND
BUSINESS MODEL
An explanation of MHP’s
business model and how
the Group creates value
Page
61 to 116
SUSTAINABILITY
Information about MHP’s
sustainability approach,
policies, management
systems and performance
Page
54 to 60
RISK MANAGEMENT
A description of the principal
risks, their potential impacts
on the business and how they
are managed
It also highlights where further information,
other than that disclosed within this Report,
can be accessed.
MHP regularly conducts dialogue with
investors and other stakeholders about non-
financial and sustainability matters. More
information can be found in the Stakeholder
Engagement section of this Report.
121
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial
and Sustainability
Information Statement
REPORTING REQUIREMENT
POLICIES AND STANDARDS WHICH
GOVERN MHP’S APPROACH
WHERE TO READ MORE IN THE REPORT
ABOUT MHP’S IMPACT INCLUDING THE
PRINCIPAL RISKS RELATING TO THESE
MATTERS
WHERE TO FIND FURTHER INFORMATION
Environmental Matters
• Corporate Sustainable Environmental Policy
• PP Group’s Quality, food safety and
environmental policy
• Risk Management pages 54 to 60
• MHP’s Growth Pillars introduction section
pages 61 to 63
• Growth Pillar 6 pages 110 to 116
• ESG compliance | MHP
Employees
• MHP’s Values page 21
• MHP’s Code of Ethics
• Conflict of Interest Management Policy
• HR Policy and Procedures
• Corporate Occupational Health and Safety
Policy
• TrustLine
• CEO’s Statement pages 11 to 12
• Chair’s Statement pages 7 to 10
• MHP’s Growth Pillars introduction section
pages 61 to 63
• Growth Pillar 1 pages 64 to 69
• Growth Pillar 2 pages 70 to 85
• Growth Pillar 5 pages 100 to 109
• MHP Code of Ethics
• ESG compliance | MHP
• МHP TrustLine | MHP
Social Matters
• MHP’s Values page 21
• MHP’s Code of Ethics
• Stakeholder Engagement Plan
• Strategy of social sustainability
• TrustLine
• Chair’s Statement pages 7 to 10
• MHP’s Growth Pillars introduction section
pages 61 to 63
• Growth Pillar 5 pages 100 to 109
• MHP Code of Ethics
• ESG compliance | MHP
• Corporate social responsibility | MHP
• МHP TrustLine | MHP
Human Rights
• MHP’s Code of Ethics
• MHP Business Partner Code of Conduct
• MHP’s Growth Pillars introduction section
pages 61 to 63
• Growth Pillar 5 pages 100 to 109
• MHP Code of Ethics
• MHP Business Partner Code of Conduct
Anti-Corruption And Anti-Bribery
• MHP’s Code of Ethics
• Conflict of Interest Management Policy
• MHP Business Partner Code of Conduct
• MHP’s Growth Pillars introduction section
pages 61 to 63
• Growth Pillar 5 pages 100 to 109
• MHP Code of Ethics
• MHP Business Partner Code of Conduct
Description Of The Business
Model
• Value Creation | Business Model
pages 21 to 29
• About MHP
Description Of Principal Risks
And Impact Of Business Activity
• Risk Management pages 54 to 60
Non-Financial Key Performance
Indicators
• Growth Pillars 1 to 6 pages 64 to 116
Climate-Related Disclosures
• Corporate Sustainable Environmental Policy
• MHP Business Partner Code of Conduct
• MHP’s Growth Pillars introduction section
pages 61 to 63
• Growth Pillar 6 pages 110 to 116
• TCFD Disclosures pages 117 to 120
• ESG compliance | MHP
• MHP Business Partner Code of Conduct
122
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
GOVERNANCE
Measuring our Success
and Progress
Chair’s Statement
CEO’s Statement
We are MHP
Strategy & Purpose
Value Creation | Business
Model
Our Values: Dilosophy
Key Performance
Indicators
Financial & Operational
Review
Alternative Performance
Measures
Risk Management
MHP’s Growth Pillars
TCFD Disclosures
Non-Financial
and Sustainability
Information Statement
GOVERNANCE
Chair’s Introduction
to Corporate Governance
Corporate Governance Report
Board of Directors
Audit & Risk Committee Report
Nominations and Remuneration
Committee Report
Sustainability & International Affairs
Committee Report
Management Report
123
2024
I
N
T
E
G
R
A
T
E
D
G
R
O
U
P
A
N
N
U
A
L
R
E
P
O
R
T
A
N
D
A
C
C
O
U
N
T
S
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
124
CHAIR’S INTRODUCTION TO
CORPORATE GOVERNANCE
ON BEHALF OF THE BOARD, I AM PLEASED TO PRESENT OUR CORPORATE GOVERNANCE
REPORT FOR THE YEAR ENDED 31 DECEMBER 2024. THIS SETS OUT OUR APPROACH TO
GOVERNANCE, HIGHLIGHTS BOARD ACTIVITIES DURING THE YEAR, AND DESCRIBES HOW
THE BOARD AND ITS COMMITTEES OPERATE.
DURING 2024, THE BOARD’S MAIN AREAS OF FOCUS HAVE BEEN:
To support the Management Team
in pursuing MHP’s international
business development and
transformation to an international
food group.
To support and advise the
Management Team in meeting
the ESAP (Environment and Social
Action Plan) requirements.
To support the Management Team
as it continues to successfully
adapt with resilience to the
operational realities and challenges
imposed by the War in Ukraine.
To ensure the continuing safety,
security and wellbeing of all MHP’s
employees and their families,
and ongoing food security for the
population of Ukraine.
To provide broader advice, counsel,
support and guidance to the
Executive Management Team
across the Group to enable them to
conduct their day-to-day activities as
effectively as possible.
Chair’s Introduction to
Corporate Governance
Corporate Governance
Report
Board of Directors
Audit & Risk Committee
Report
Nominations and
Remuneration Committee
Report
Sustainability &
International Affairs
Committee Report
Management Report
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
125
GOVERNANCE AND BOARD
PERFORMANCE
MHP
has
a
long-standing
commitment to strong governance
processes and procedures, and
continues to look for opportunities
to develop its approach in line
with international best practice.
This facilitates optimal, thoughtful
and robust decision-making, and
has been key to MHP’s continuing
business success. This approach
continued during 2024 and will
continue in the future.
BOARD COMPOSITION AND SUCCESSION
PLANNING
Following John Grant’s retirement from the Board
in June 2024, the Board and Senior Management
Team would like to thank him for his invaluable
and thoughtful contribution to the growth of MHP
during his distinguished tenure with the Company
(around 18 years). Christakis Taoushanis became
MHP’s Senior Independent Director when John
Grant’s retirement took effect.
There were no further changes to the Board in 2024.
Executing on our strategy of
international diversification
and expansion by supporting
the Group’s planned
acquisition of UVESA Group
in Spain, and developing the
Group’s business growth
with its partners in the
Middle East (principally KSA).
Supporting MHP’s
approach to addressing
the challenges presented
by climate change, and
meeting its environmental
responsibilities including
forthcoming EU regulatory
and reporting requirements.
Supervising the
Management Team’s
comprehensive drive to
maintain the health, safety
and security of MHP’s
workforce and their families.
Continuing MHP’s successful
transformation into an
international food group.
Overseeing MHP’s role in
maintaining food security
in Ukraine during Wartime.
Addressing energy security
and logistical challenges
caused by the ongoing War
in Ukraine.
DURING 2024, THE
BOARD AND THE
SENIOR MANAGEMENT
TEAM CONTINUED TO
SUCCESSFULLY LEAD
THE BUSINESS IN
ADDRESSING ITS KEY
AIMS. IN PARTICULAR,
THE BOARD PLAYED AN
IMPORTANT ROLE IN:
MHP continues to review and conduct a phased
succession plan to ensure replenishment of the
Board to maintain and enhance its skill levels,
knowledge, and independence, whilst being
mindful of stakeholder expectations concerning
diversity and the relevant guidelines including
the FTSE Women Leaders Review and the Parker
Review. Further information can be found in
my Chair’s Statement on page 7 and in the
Nominations and Remuneration Committee
Report on page 147.
Chair’s Introduction to
Corporate Governance
Corporate Governance
Report
Board of Directors
Audit & Risk Committee
Report
Nominations and
Remuneration Committee
Report
Sustainability &
International Affairs
Committee Report
Management Report
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
126
ENGAGEMENT WITH SHAREHOLDERS,
BONDHOLDERS, FINANCIERS AND OTHER
STAKEHOLDERS
The Board and Senior Management Team
continue to be very grateful for the support,
patience and trust of our stakeholders following
the disruption and destruction caused by Russia’s
full-scale invasion.
The Board continued to play an essential leadership
and advisory role in the conduct of dialogue with
our different stakeholders throughout 2024. See
Growth Pillar 1 on pages 64 to 69 for a list of MHP’s
key stakeholders. An example is the regular
interaction that the Board has been conducting
with MHP’s operational management regarding a
wide variety of operational issues including cyber
security, compliance, human rights and animal
welfare. MHP is committed to maintaining open
and clear lines of communication with all its
material stakeholders.
CONDUCT OF BOARD MEETINGS
The Board continued to adapt its meeting format
due to the challenges presented by the ongoing
War in Ukraine. Meetings were either conducted
in person or virtually to accommodate the varying
circumstances
relating
to
individual
Board
members. This format will continue until the
situation in Ukraine stabilises.
MHP’s ongoing IT infrastructure investment has
facilitated these requirements and ensured security
and confidentiality.
I WOULD LIKE TO TAKE THIS
OPPORTUNITY TO THANK
MY COLLEAGUES ON THE
BOARD AND MHP’S SENIOR
MANAGEMENT TEAM FOR THEIR
TREMENDOUS INDIVIDUAL AND
COLLECTIVE CONTRIBUTIONS TO
THE GROUP DURING 2024.
Dr John Rich
Executive Chair, MHP Board
28 April 2025
NON-EXECUTIVE INDEPENDENCE
The Board continues to take all steps necessary to
safeguard the interests of all stakeholders. Since
the commencement of the War in Ukraine, the
independent stance of the Non-Executive Directors
has been regularly assessed by the Board, applying
the requirement for them to act in the way they
consider that, in good faith, would be most likely to
promote the success of the Group for the benefit of
its members as a whole.
The nature of the activities carried out by the Non-
Executive Directors has needed to evolve over time
to ensure their skills, networks, and expertise are
utilised effectively. Under normal circumstances,
these activities might be seen as compromising
their independence due to the involvement in
significant business relationships. However, the
Board believes that these actions are critical to
maintaining the stability of the Group during the
ongoing War. These activities include, for example,
providing guidance to the Management Team on
financial negotiations and managing important
stakeholder relationships. The involvement of the
Independent Non-Executive Directors in these
activities is rare and required by the Group's
adaptation to the ongoing War in Ukraine. This has
included efforts to ensure liquidity and manage
relationships with key capital providers.
The Group therefore considers that involvement in
this way does not materially affect Non-Executive
Director independence, and that this approach is in
the best interests of the Company, its shareholders,
bondholders and other stakeholders.
The independence information within this
Corporate Governance Report and the UK
Corporate
Governance
Code
compliance
statement has been prepared applying this view
of Non-Executive Director independence.
MOVING FORWARD AND
ACKNOWLEDGEMENTS
MHP extended the Group’s successful track
record in 2024. Whilst the Group delivered a robust
performance in 2024, this must be put into the
context of the significant and deep challenges that
War poses daily meaning that business continues
to be difficult, vulnerable and unpredictable. The
Board will continue to lead and advise the Group
as it adapts to the new realities within Ukraine, and
further develops its markets and activities through
organic market development and through its
business partners in the Kingdom of Saudi Arabia
and Europe.
Chair’s Introduction to
Corporate Governance
Corporate Governance
Report
Board of Directors
Audit & Risk Committee
Report
Nominations and
Remuneration Committee
Report
Sustainability &
International Affairs
Committee Report
Management Report
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
127
Chair’s Introduction to
Corporate Governance
Corporate Governance
Report
Board of Directors
Audit & Risk Committee
Report
Nominations and
Remuneration Committee
Report
Sustainability &
International Affairs
Committee Report
Management Report
DOMICILE AND BACKGROUND INFORMATION
MHP was originally established in 2006 as a company
that was registered in Luxembourg. On 7 August
2017, the Company converted from a public limited
company (“Societe Anonyme”) into a European
company (“Societas Europaea”).
On 27 December 2017, the Company’s registered
office and central administration was transferred to
Cyprus. MHP is currently registered in the Cyprus
Registry of SE Companies under number SE 27. The
registered address of MHP SE is 16-18 Zinas Kanther
Street, Agia Triada, 3035 Limassol, Cyprus.
In December 2017, the Company adopted a new
Memorandum and Articles of Association to comply
with the provisions of company law within Cyprus.
MHP’s GDRs are listed and traded on the London
Stock Exchange.
The Company’s corporate governance structures,
processes and procedures are outlined in
its Corporate Governance Charter which is
also available for download at the Group’s
corporate websites.
MHP aims to uphold and practise the highest
standards of corporate governance. It regularly
consults, and discusses its approach with,
professional advisors, shareholders, bondholders,
investment analysts, its workforce, governments,
and regulators.
STATEMENT OF COMPLIANCE WITH THE UK
CORPORATE GOVERNANCE CODE 2018
MHP’s Board, executive management and advisors
have been steadily developing MHP’s corporate
governance processes and procedures over
recent years. MHP aspires to the achievement of
best practice in line with established international
standards. The Board regards the UK Corporate
Governance Code 2018 as the appropriate
international benchmark for its approach for this
accounting period. For the 2025 calendar year,
MHP will align with the UK Corporate Governance
Code 2024. MHP also complies with the
governance requirements of Cypriot law.
Recent developments include expanding the remit
of one of the Board Committees to specifically
include sustainability. This change underpins the
Board’s commitment to integrate sustainability
robustly within MHP’s corporate governance.
It is the opinion of the Board that, during 2024, MHP
complied with the principles and requirements
of the UK Corporate Governance Code except in
relation to the matters noted below.
MHP CONTINUES TO SEEK WAYS TO STRENGTHEN THE DIVERSITY,
INDEPENDENCE AND EXPERIENCE OF THE BOARD.
CORPORATE GOVERNANCE
REPORT
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
128
PROVISION NUMBER
PROVISION REQUIREMENT
EXPLANATION
9
The Chair should be independent on appointment under the
criteria outlined in Provision 10.
On his appointment in 2017, the Chair had served on the Board as a Non-Executive
Director since 2006. At the time of his appointment, he was also employed by the
International Finance Corporation as a Senior Regional Consulting Agribusiness
Industry Specialist. This role ended over three years ago. After considering the
Chair’s credentials, experience, expertise, and independence of thought, it was the
Board’s view that the Chair was independent at the time of his appointment. In
2018, at the request of the Board, the Chair agreed to support the Chief Executive
Officer with certain specific strategic projects where the Chair’s extensive
knowledge and expertise is particularly helpful. Subsequently, in March 2019, his
role was designated as Executive Chair and no longer independent. The Board
continues to be satisfied that these arrangements are in the best interests of the
Company, its shareholders, and other stakeholders.
10
The Board should identify in the annual report each Non-Executive
Director it considers to be independent. Circumstances which
are likely to impair, or could appear to impair, a Non-Executive
Director’s independence include whether a Director has served
on the Board for more than nine years from the date of their
first appointment. A clear explanation should be provided if
the Board nonetheless considers the Non-Executive Director to
be independent.
John Grant served as a Non-Executive Director of the Company from 2006. The
Board valued his business perspective in view of his extensive experience as
a director of a wide range of major public companies in a variety of business
sectors, and was satisfied that Mr. Grant possessed the necessary independence
of thought to be regarded as independent. Mr. Grant retired from the Board in
June 2024.
11
At least half the Board, excluding the Chair, should be non-
executive directors whom the board considers to be independent.
Until June 2024, the Board comprised four Executive and four Non-Executive
Directors. Following the retirement of John Grant in June 2024, the Board comprises
four Executive and three Non-Executive Directors. The Board will examine possible
new Director appointments when the opportunity to expand the Board arises.
19
The Chair should not remain in post beyond nine years from
the date of their first appointment to the Board. To facilitate
effective succession planning and the development of a diverse
Board, this period can be extended for a limited time, particularly
in those cases where the Chair was an existing Non-Executive
Director on appointment.
The Chair became a Non-Executive Director in 2006 and was appointed Chair in
2017, at which time the Board was satisfied of his independence of thought and
viewed the appointment as in the best interests of the Company, its shareholders,
and other stakeholders. His subsequent adoption of executive responsibilities was
also, and continues to be, viewed as being in the best interests of these parties.
32
The Board should establish a remuneration committee of
independent Non-Executive Directors, with a minimum
membership of three, or in the case of smaller companies, two.
In addition, the Chair of the Board can only be a member if
they were independent on appointment and cannot chair the
committee. Before appointment as Chair of the remuneration
committee, the appointee should have served on the
remuneration committee for twelve months.
John Grant was a member of the Nominations and Remuneration Committee
until his retirement in June 2024 when he was replaced on the Committee by
Christakis Taoushanis. The Executive Chair, Dr John Rich, was a member of this
Committee until he stood down on 23 August 2024. The Committee currently
comprises Philip J Wilkinson OBE, and Christakis Taoushanis. Philip J Wilkinson
OBE is the Committee Chair. These arrangements are considered by the Board to
be in the best interests of the Company and its material stakeholders.
Chair’s Introduction to
Corporate Governance
Corporate Governance
Report
Board of Directors
Audit & Risk Committee
Report
Nominations and
Remuneration Committee
Report
Sustainability &
International Affairs
Committee Report
Management Report
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
129
PROVISION NUMBER
PROVISION REQUIREMENT
EXPLANATION
36
Remuneration
schemes
should
promote
long-term
shareholdings by Executive Directors that support alignment
with long-term shareholder interests. Share awards granted
for this purpose should be released for sale on a phased basis
and be subject to a total vesting and holding period of five
years or more. The remuneration committee should develop a
formal policy for post-employment shareholding requirements
encompassing both unvested and vested shares.
At the EGM on 10 December 2024, MHP’s shareholders approved a new Directors’
Remuneration Policy which further aligned the interests of the Executive Directors
with those of shareholders. This document defers the setting of a Company policy
in relation to long-term incentives, including share awards, until a later date. See
also the NRC Report on page 147.
38
Only basic salary should be pensionable. The pension contribution
rates for Executive Directors, or payments in lieu, should be aligned
with those available to the workforce. The pension consequences
and associated costs of basic salary increases and any other
changes in pensionable remuneration, or contribution rates,
particularly for Directors close to retirement, should be carefully
considered when compared with workforce arrangements.
Directors’ pensionable salaries are calculated on the basis of salary plus
performance-related bonuses in line with local legislation, and are in line with
general workforce arrangements. See also the NRC Report on page 147.
40
When determining executive remuneration policy and practices,
the remuneration committee should address the following:
• Clarity – remuneration arrangements should be transparent
and promote effective engagement with shareholders and the
workforce;
• Simplicity – remuneration structures should avoid complexity
and their rationale and operation should be easy to understand;
• Risk – remuneration arrangements should ensure reputational
and other risks from excessive rewards, and behavioural risks
that can arise from target-based incentive plans, are identified
and mitigated;
• Predictability – the range of possible values of rewards to
individual Directors and any other limits or discretions should
be identified and explained at the time of approving the policy;
• Proportionality – the link between individual awards, the
delivery of strategy and the long-term performance of the
company should be clear. Outcomes should not reward poor
performance; and
• Alignment to culture – incentive schemes should drive behaviours
consistent with company purpose, values, and strategy.
At the EGM on 10 December 2024, the Company’s shareholders approved a
new Directors’ Remuneration Policy. In common with many companies from
the region, MHP does not currently disclose individual Executive Director
remuneration data. This Policy is regularly reviewed and discussed with
MHP’s shareholders.
Chair’s Introduction to
Corporate Governance
Corporate Governance
Report
Board of Directors
Audit & Risk Committee
Report
Nominations and
Remuneration Committee
Report
Sustainability &
International Affairs
Committee Report
Management Report
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
130
Chair’s Introduction to
Corporate Governance
Corporate Governance
Report
Board of Directors
Audit & Risk Committee
Report
Nominations and
Remuneration Committee
Report
Sustainability &
International Affairs
Committee Report
Management Report
BOARD OF DIRECTORS
THE MEMBERS OF THE BOARD OF DIRECTORS AT 31 DECEMBER 2024 ARE
RECORDED BELOW TOGETHER WITH INFORMATION ABOUT EACH MEMBER,
INCLUDING CAREER HIGHLIGHTS AND AN OVERVIEW OF THEIR SKILLS AND
EXPERIENCE. AS PART OF OUR CONTINUED COMMITMENT TO TRANSPARENCY, WE
HAVE SUPPLEMENTED THIS INFORMATION WITH A SKILLS AND DIVERSITY MATRIX.
Committee member key
AR
Audit & Risk Committee
NR
Nominations and Remuneration
Committee
SI
Sustainability and International
Affairs Committee
Chair of Committee
Member of Committee
Dr John C Rich
Executive Chair
Oscar Chemerinski
Independent
Non-Executive Director
Viktoriia Kapeliushna
Chief Financial Officer
Philip J Wilkinson OBE
Independent
Non-Executive Director
Christakis Taoushanis
Senior Independent
Director
Yuriy Kosyuk
Chief Executive Officer
Andriy Bulakh
Deputy Chief Executive
Officer, People
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
131
DR JOHN C RICH
Executive Chairman
John Rich is a highly experienced senior business
executive with a strong background in agribusiness
operations, development banking and investment.
He also contributes to MHP considerable experience
in animal production, and in the development of
animal welfare and sustainable agriculture.
Nationality: Australian
Appointed to the Board: 2006
Career and prior experience:
• Member of the Australian College of Veterinary
Science and a registered financial member of the
Royal College of Veterinary Surgeons;
• 1990-2003: Executive Director, Austasia Pty Ltd
(agribusiness conglomerate SE Asia);
• 1995-2002: Director AN-OSI Pty Ltd (supply chain
management for feedlot beef, poultry and dairy
operations SE Asia/China);
• 2006-2019:
Senior
Consulting
Agribusiness
Industry Specialist IFC (World Bank Group), and
Agribusiness consultant to IFC invested clients
until 2020; and
• 2017-2021: Financial Board Advisor to ADM Capital
and Independent Non-Executive Director at three
other poultry-related companies.
Current roles:
• Director of Australian Agricultural Nutrition and
Consulting Pty Ltd (AANC);
• Member of the Food and Agribusiness Advisory
Council of London-based finance institution, British
International Investment (BII) (formerly CDC);
• Non-Executive director of Zambeef Product
Limited (Zambia); and
• Non-Executive Director of Zalar Holdings (Morocco).
CHRISTAKIS TAOUSHANIS
Senior Independent Director
Christakis
Taoushanis
contributes
to
MHP
over 35 years of finance, capital markets and
management experience.
Nationality: Cypriot
Appointed to the Board: 2018
Career and prior experience:
• 35 years of banking and finance experience
including four years at Continental Illinois
National Bank of Chicago, 18 years at HSBC
Group in Cyprus and Hong Kong, and 8 years as
Chief Executive Officer at Cyprus Development
Bank; and
• Independent
Non-Executive
Director
with
significant (over 20 years) experience, including
regulated and listed companies.
Current roles:
• Advisor through his private firm, TTEG & Associates;
• Non-Executive Director of various regulated and
listed companies.
OSCAR CHEMERINSKI
Independent Non-Executive Director
Oscar Chemerinski contributes to MHP significant
experience in finance, business leadership, and
strategic thinking, with a strong background in the
food production and agribusiness sectors, and in
international development.
Nationality: Argentinian
Appointed to the Board: 2023
Career and prior experience:
• A graduate of the Universidad de Belgrano
with a Master’s in Economics and Accounting
(CPA), and of the University of Chicago with an
MBA in Finance;
• Over 30 years of global exposure to the private
sector, through project finance and advisory
services working with boards, NGOs, CSOs,
governments, MFIs, and banks, and including
over 20 years with IFC;
• Board member of Cofco International (Hong
Kong); and
• Board member of Bridge Academies (Kenya).
Current roles:
• Board member of Hans Merensky Holdings
(South Africa);
• Board member of Westfalia Fruit (UK);
• Board member of Copeval (Chile);
• Board member of Merensky Timber (South
Africa); and
• Co-Managing Partner, Ballard Partners.
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132
ANDRIY BULAKH
Deputy Chief Executive Officer,
People
Andriy
Bulakh
contributes
to
MHP more than 20 years’ broad
management,
auditing,
and
consulting experience. Since joining
the Group, Mr. Bulakh has initiated
and actively implemented a goal-
setting system for MHP. He is also
in the process of transforming the
HR function and increasing the
efficiency of the Group’s processes.
Nationality: Ukrainian
Appointed to the Board: 2021 (joined
MHP in 2020)
Career and prior experience:
• Managing Partner and Head of
Consulting (Deloitte Ukraine); and
• Master's Degree in International
Economic
Relations,
Taras
Shevchenko National University
of Kyiv.
VIKTORIIA KAPELIUSHNA
Chief Financial Officer
Viktoriia Kapeliushna contributes to
MHP extensive financial experience
and business acumen gained from
over 30 years in the agribusiness and
food production industries.
Nationality: Ukrainian
Appointed to the Board: 2006
(joined MHP in 1998)
Career and prior experience:
• Deputy and Chief Accountant at
the Ukraine Business Centre for
the Food Industry (BCFI); and
• Diplomas
in
Processing
Engineering (1992) and Financial
Auditing (1998) from the National
University of Food Technologies.
YURIY KOSYUK
Chief Executive Officer
Yuriy Kosyuk has been Chief
Executive Officer of MHP since
he founded the Company in 1998.
He contributes over 30 years’
experience in the agribusiness
and food production industries.
Nationality: Ukrainian
Appointed to the Board: 2006
(founded MHP in 1998)
Career and prior experience:
• 1992: graduated as a process
engineer in meat and milk
production from the National
University of Food Technologies
in Kyiv; and
• 1995: appointed president of the
Scientific and Technical Business
Centre of Food Industry.
PHILIP J WILKINSON OBE
Independent Non-Executive
Director
Philip Wilkinson contributes to
MHP
extensive
experience
in
the
strategic
and
commercial
leadership
of
international
agribusinesses, in particular in the
international poultry industry.
Nationality: British
Appointed to the Board: 2020
Career and prior experience:
• Commercial Director of Arla Foods;
• Poultry
industry:
Managing
Director of Grampian Country
Food Group, in 2006 joined 2
Sisters Food Group; in 2015 joined
Inghams, Australia; and
• Dairy industry: awarded an OBE
in 2003 for Services to the Dairy
Industry; Chair of the National Dairy
Council and of the National Dairy
Farm Assured Ltd.
Current roles:
• Director of Red Tractor Poultry
Sector Board;
• Council
Member
of
AVEC,
Association of Poultry Processors
and Poultry Trade in the EU;
• Advisor to the Board of Alltech, USA;
• Advisor to the Board of eggXYt, Israel;
• Board member of the British
Poultry Council; and
• Board member of Paramount 21.
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133
BOARD SKILLS AND DIVERSITY
MATRIX
The skills and diversity matrix reflects the balance
of knowledge, skills, diversity, and experience
required to establish and deliver the Group’s
strategy and business objectives.
SKILLSET AND EXPERIENCE
The skills matrix demonstrates that there are no
substantial gaps in the composition of the Board
and ensures robust Board skills diversity. MHP
will continue to monitor the appropriateness of
Board skills for the dynamic markets in which it
operates, and against a backdrop of an increasing
need for expertise and knowledge in sustainability,
innovation, and technology.
DIVERSITY
Diversity is essential in making the Board of
Directors effective and the diversity matrix details
the gender, nationality, ethnic background, and age
of each Board member.
NAME
DR JOHN
RICH
CHRISTAKIS
TAOUSHANIS
OSCAR
CHEMERINSKI
PHILIP J
WILKINSON OBE
YURIY
KOSYUK
VIKTORIIA
KAPELIUSHNA
ANDRIY
BULAKH
ROLE
Executive
Chair
Senior Independent
Director
Independent Non-
Executive Director
Independent Non-
Executive Director
Chief Executive
Officer
Chief Financial
Officer
Deputy Chief
Executive Officer – People
Audit & Risk
Committee
◆
◆1
◆
Nominations & Remuneration
Committee
◆
◆1
Sustainability & International
Affairs Committee
◆
◆
◆1
SKILLSET & EXPERIENCE
Accounting and finance
◆
◆
◆
◆
◆
◆
◆
Agribusiness
◆
◆
◆
◆
◆
◆
Banking and capital
markets
◆
◆
◆
◆
◆
◆
◆
Business strategy
◆
◆
◆
◆
◆
◆
◆
Corporate governance,
legal and regulatory
◆
◆
◆
◆
Technology and
innovation
◆
◆
◆
◆
Health and safety
◆
◆
◆
◆
1 Committee Chair.
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NAME
DR JOHN
RICH
CHRISTAKIS
TAOUSHANIS
OSCAR
CHEMERINSKI
PHILIP J
WILKINSON OBE
YURIY
KOSYUK
VIKTORIIA
KAPELIUSHNA
ANDRIY
BULAKH
ROLE
Executive
Chair
Senior Independent
Director
Independent Non-
Executive Director
Independent Non-
Executive Director
Chief Executive
Officer
Chief Financial
Officer
Deputy Chief
Executive Officer – People
SKILLSET & EXPERIENCE (CONTINUED)
Human resources, talent,
and remuneration
◆
◆
◆
◆
◆
External quoted
boardroom experience
◆
◆
◆
◆
Retail
◆
◆
◆
Risk oversight and
management
◆
◆
◆
◆
◆
◆
◆
Responsible business and
sustainability
◆
◆
◆
◆
INTERNATIONAL EXPERIENCE
Africa
◆
◆
Asia
◆
◆
◆
◆
CIS
◆
◆
◆
◆
◆
◆
◆
Europe (including UK)
◆
◆
◆
◆
◆
◆
◆
MENA
◆
◆
◆
Other
◆
◆
◆
◆
Chair’s Introduction to
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NAME
DR JOHN
RICH
CHRISTAKIS
TAOUSHANIS
OSCAR
CHEMERINSKI
PHILIP J
WILKINSON OBE
YURIY
KOSYUK
VIKTORIIA
KAPELIUSHNA
ANDRIY
BULAKH
ROLE
Executive
Chair
Senior Independent
Director
Independent Non-
Executive Director
Independent Non-
Executive Director
Chief Executive
Officer
Chief Financial
Officer
Deputy Chief
Executive Officer – People
DIVERSITY
GENDER
Male (86%)
◆
◆
◆
◆
◆
◆
Female (14%)
◆
Not specified (0%)
NATIONALITY
Argentinian
◆
Australian
◆
British
◆
Cypriot
◆
Ukrainian
◆
◆
◆
ETHNIC
White British or other
White (including
minoritywhite groups)
◆
◆
◆
◆
◆
◆
Mixed/Multiple
EthnicGroups
Asian/Asian British
Other ethnic group,
including Arab
◆
AGE
< 55 years
◆
55 to 65 years
◆
◆
◆
> 65 years
◆
◆
◆
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DIRECTORS WHO SERVED DURING THE YEAR:
• Dr John Rich (Executive Chair)
• John Grant (Senior Independent Director - retired
from the Board in June 2024)
• Christakis
Taoushanis
(Independent
Non-
Executive Director and Senior Independent
Director following John Grant’s retirement in
June 2024)
• Oscar Chemerinski (Independent Non-Executive
Director)
• Philip J Wilkinson OBE (Independent Non-
Executive Director)
• Yuriy Kosyuk (Chief Executive Officer)
• Viktoriia Kapeliushna (Chief Financial Officer)
• Andriy Bulakh (Deputy Chief Executive
Officer, People)
Excluding the Executive Chair, there is a balance
on the Board between Executive Directors and
the Directors who the Board considers to be
independent. Further Board details are set out
on pages 131 to 132. This information includes
biographical details of the Directors.
CHANGES TO THE BOARD DURING THE YEAR
On 23 January 2024, Oscar Chemerinski was
appointed Chair of the Audit & Risk Committee,
replacing John Grant who continued as a member
of the Committee until his retirement from the
Board on 30 June 2024.
On 1 July 2024, following the retirement of John
Grant, Christakis Taoushanis became MHP’s
Senior Independent Director, as well as being
appointed a member of the Nominations and
Remuneration Committee.
On 23 August 2024, Dr John Rich stepped down from
the Nominations and Remuneration Committee.
BOARD MEETING ATTENDANCE AND
ARRANGEMENTS DURING THE YEAR
The Board conducted six meetings during 2024.
All the Non-Executive Directors and the Chair
attended these meetings with the exception of
Philip J Wilkinson OBE who did not attend one
meeting. The Chief Executive Officer attended
one of the meetings where the most material
and strategic decisions were discussed. As a
result of the War in Ukraine, the majority of Board
meetings were conducted using a blend of in-
person and conference call facilities. The Board of
Directors also approved certain decisions through
24 circular resolutions.
DIRECTOR
MEETINGS ATTENDED /
INVITED
Dr John Rich
6/6
John Grant
4/41
Christakis Taoushanis
6/6
Oskar Chemerinski
6/6
Philip J Wilkinson OBE
5/6
Yuriy Kosyuk
1/6
Viktoriia Kapeliushna
6/6
Andriy Bulakh
6/6
1 John Grant retired from the Board in June 2024.
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BOARD GOVERNANCE FRAMEWORK
BOARD
BOARD COMMITTEES
CHAIR
The Board is responsible for ensuring there is a robust and transparent governance framework in place.
The Board has established three Committees to support it in fulfilling its oversight responsibilities.
• The Chair is responsible for the proper and efficient
functioning of the Board.
• The Chair determines the calendar of Board meetings
and the agenda of the Board meetings after
consultation with the CEO.
• The Chair will also make sure that there is sufficient
time and debate for making decisions.
• The Chair is also responsible for ensuring that new
Directors receive a complete and tailored induction
to the Company prior to joining the Board, and that
existing Directors continually update their skills and
the knowledge and familiarity with the Company
required to fulfil their role both on the Board and on
the Board Committees.
• The Chair represents the Board to shareholders and
the public and chairs Shareholders’ Meetings.
CHIEF EXECUTIVE OFFICER (CEO)
The CEO is entrusted by the Board
with the day-to-day management
of the Company within the
strategic parameters established
by the Board.
The CEO oversees the organisation
and efficient day-to-day
management of subsidiaries,
affiliates, and joint ventures.
The CEO is responsible for the
execution and management of the
outcome of all Board decisions.
CHIEF FINANCIAL OFFICER
(CFO)
The CFO is responsible for
overseeing financial-related
activities including the
development of financial
strategies, financial reporting,
audit, and risk.
AUDIT & RISK COMMITTEE
The Committee conducts oversight of financial
reporting, audit, and risk.
NOMINATIONS AND REMUNERATION COMMITTEE
The Committee conducts oversight of the composition
of the Board and its Committees, succession planning,
and the link of reward to strategy.
SUSTAINABILITY AND INTERNATIONAL AFFAIRS
COMMITTEE
The Committee is responsible for setting the strategy
and objectives of the Group’s sustainability, responsible
business and international affairs efforts.
SENIOR INDEPENDENT
DIRECTOR (SID)
The SID acts as a sounding
board for the Chair and can be
an intermediary for the other
Directors and shareholders
when required. The SID leads
the other Non-Executive
Directors in the annual
performance evaluation of
the Chair.
NON-EXECUTIVE DIRECTORS
Through their broad range
of skills and experience, the
Non-Executive Directors bring
judgement, oversight, and
constructive challenge to the
Executive Directors, holding their
performance to account against
agreed performance objectives.
They bring an external perspective
to Board discussions as well as
specialist advice and strategic
guidance to the Executive Directors.
COMPANY SECRETARY
The Company Secretary
ensures that the Board
receives appropriate and timely
information and provides advice
and support to the Chair, Board,
and Senior Management on
regulatory and governance
matters.
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PRINCIPAL RESPONSIBILITIES OF THE BOARD
The primary role of the Board is to lead MHP in
a way that promotes its long-term sustainable
success for the benefit of all its stakeholders and
contributes optimally to wider society. It provides
strategic leadership and oversight of MHP’s
operations either directly or through the work of
its principal Committees.
The Board is responsible for the overall conduct
of the Company’s business, and has the powers,
authorities, and duties vested in it by and pursuant
to the relevant Cyprus laws and regulations and
the Articles of Association of the Company.
The Company has a unitary governance structure,
and the Board is the ultimate decision-making
body, except for the powers reserved for the
Shareholders’ Meeting by law or as specified in the
Articles of Association.
The Board has a schedule of matters that are
assigned to it for discussion, debate, and approval
in line with the requirements of the UK Corporate
Governance Code and the applicable laws and
regulations. These include:
• Establishing MHP’s purpose and Values which
underpin the culture of the business;
• MHP’s long-term strategy, aims and objectives,
and review of performance against those goals;
• Conduct of business and support for the Ukrainian
population during the War in Ukraine;
• Mergers and acquisitions strategy;
• Ensuring
that
a
robust
and
transparent
governance framework is in place;
• Sustainability and responsible business (or “ESG”)
strategy and KPIs;
• Budgets, financial and operational targets;
• Annual, half yearly and quarterly financial results;
• Annual Report and Accounts;
• Dividend policy;
• Appointments to the Board and removal of
Board members;
• Remuneration of Directors;
• Senior management appointments, removals
and remuneration arrangements;
• Appointments to Board Committees;
• Board and Senior Management succession
planning;
• Approval of major capital expenditure projects,
acquisitions and divestments;
• Significant
variations
in
borrowings
or
borrowing facilities;
• Financial and risk management policies and
procedures; and
• Appointment and removal of the Company
Secretary.
The Chair serves as the interface between the
Board and major shareholders of the Company on
matters of corporate governance.
DIVISION OF RESPONSIBILITIES
A clear division of responsibilities is maintained
between the Chair and the CEO. The CEO may
not carry out the duties of the Chair and vice versa
except in extraordinary circumstances limited to
no more than 12 months.
The Chair is required to maintain close relations
with the CEO by giving him support and advice
while respecting the executive responsibilities of
the CEO. The CEO provides the Chair with all the
information required to carry out the role.
There is a clear division of responsibilities between
the leadership of the Board and the executive
leadership of the business. The roles of Chair,
Chief Executive Officer, and Senior Independent
Director are clearly separated and set out in
writing. Their division of responsibilities, plus the
matters reserved for the Board and the terms of
reference for each principal Committee, ensure
that no single individual can have unfettered
powers of decision-making.
The Board considers the independence of its
Non-Executive Directors annually, based on the
criteria in the UK Corporate Governance Code and
following consideration by the Nominations and
Remuneration Committee.
The Board considers all Non-Executive Directors to
be independent.
BOARD PROCESSES AND THE ROLE OF THE
COMPANY SECRETARY
The Company Secretary is responsible for ensuring
that Board procedures are complied with and
that the Board receives appropriate and timely
information; and provides advice and support
to the Chair, Board, and Senior Management on
regulatory and governance matters.
Board meetings are scheduled well in advance.
Where it is necessary to call meetings at short
notice, efforts are made to find suitable times when
all Directors can attend. Where this is not possible,
Directors are provided with briefing materials and
can discuss any agenda item with the Chair, Chief
Executive Officer, or relevant Committee Chair.
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APPOINTMENT AND RE-ELECTION OF DIRECTORS
There is a formal and rigorous procedure for the
appointment of new Directors to the Board.
The process for new appointments is led by the
Nominations
and
Remuneration
Committee
which makes a recommendation to the Board.
Any Member of the Board so appointed shall hold
office only until the next following Annual General
Meeting and shall then be eligible for re-election.
In line with the UK Corporate Governance Code,
all members of the Board are subject to annual re-
election by a majority of shareholders at the Annual
General Meeting. Directors may be re-elected an
unlimited number of times.
Shareholders have the power to appoint or
remove any Board Director at a General Meeting
of the Company.
The Board may also revoke or terminate Board
appointments.
BOARD EFFECTIVENESS
At the end of each year, the Board and
Committees undertake an assessment of their
own effectiveness. In parallel, the Non-Executive
Directors meet to discuss and evaluate the
performance of the Executive Chair. The results
are considered by the Board at the first Board
meeting of the following year.
ACCESS TO INFORMATION, ADVICE, AND
PROFESSIONAL DEVELOPMENT
The Board ensures that Directors, especially Non-
Executive Directors, have access to independent
professional advice at the Company’s expense
where they judge it necessary to discharge their
responsibilities as Directors. Board Committees
are also provided with sufficient resources to
undertake their duties.
All Directors have access to the advice and services
of the Company Secretary.
The Chair is responsible for ensuring that the
Directors receive accurate, timely and clear
information.
MHP’s Executive Management Team is obliged to
provide such information, and Directors may seek
clarification or amplification where necessary.
The Chair ensures that Directors continually
update their skills, knowledge and understanding
of the Company’s activities to enable them to fulfil
their role effectively both on the Board and on the
Board Committees.
OTHER PROFESSIONAL COMMITMENTS
Every Director is required to allocate the time and
attention required for the proper fulfilment of his
or her duties. This commitment includes limiting
the number of other professional commitments to
the extent required.
CONFLICTS OF INTEREST AND RELATED PARTY
TRANSACTIONS
The Board has formal procedures in place to manage
conflicts of interest. Each Director is required to
inform the Board of any other directorship, office,
or responsibility, including executive positions that
are taken up outside the Company during their
term of office. If, in the opinion of the Board, a
conflict of interest exists, the relevant Director does
not participate in discussions and will abstain from
a Board vote on the affected matter.
The Company’s Conflict of Interest Policy covers any
transactions involving conflicts of interest (whether
actual or potential) of MHP’s Management Team
members, including Directors of subsidiaries and
branches (“key management”):
• MHP’s line managers who have authority to
authorise transactions on behalf of MHP (“line
managers”); and
• Other MHP employees who are authorised to
internally approve any decisions as significant
transactions based on internal policies and
instructions (“responsible employees”) or who
have power to influence such decisions.
In July 2020, the Board approved a Related Party
Transactions Policy, which tightened controls over
all related party transactions.
INTERNAL CONTROL AND RISK MANAGEMENT
The Board of Directors is ultimately responsible
for the Company’s governance, risk management,
internal control environment, and processes, and
reviews their effectiveness at least annually. Once
identified, risks are evaluated to establish their
potential financial or non-financial impact and the
likelihood of their occurrence.
For risks assessed as significant, a mitigation action
plan is determined by the relevant operational
business management team.
The summary of key risks is regularly discussed
with MHP’s Management Team and reported at
least annually to the Board through the Audit &
Risk Committee. The Company has an independent
risk and process management department whose
activities are overseen by the CFO and reported to
the Audit & Risk Committee.
A summary of the Company’s framework for
managing risks, and the Company’s key business
risks, together with the risks related to the War In
Ukraine, can be found on pages 54 to 60 of this
Report.
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CONFIDENTIAL INFORMATION
All Board Directors are required to keep confidential
information received in their capacity as Directors
and are not permitted to use it for any other purpose
other than for fulfilling their remit to MHP.
MAJORITY SHAREHOLDER AND DIRECTORS’
INTERESTS IN GDRS
The majority shareholder of MHP SE is Mr. Yuriy
Kosyuk (“Principal Shareholder”), who owns 100%
of the shares of WTI Trading Limited (“WTI”). This
company is the majority shareholder of MHP SE,
owning 59.7% of the total outstanding share capital
as at 31 December 2024.
The interests of the other Directors in MHP’s GDRs
are shown in the table below.
DIRECTOR
NUMBER OF GDRS HELD AT
31 DECEMBER 2024
Dr John Rich
25,000
ENGAGEMENT WITH SHAREHOLDERS AND
BONDHOLDERS
The Board recognises the importance of regular,
effective, and constructive communications with
its shareholders and bondholders. It maintains a
dedicated investor relations department to facilitate
this, supported by professional advisors.
The principal opportunity for shareholders to engage
with the Board is at the Annual General Meeting and
at other Shareholder Meetings such as the EGM that
took place on 10 December 2024.
MHP announces its financial results on a quarterly
basis. This information is released through the
appropriate regulatory news services and recorded
on the Company’s corporate websites. Each results
announcement is accompanied by a conference
call with MHP’s finance and investor relations team
during which investors and analysts can discuss and
ask questions about MHP’s performance.
Further information can also be found in the
S172 Statement in Growth Pillar 1: Stakeholder
Engagement on pages 64 to 69.
WORKFORCE ENGAGEMENT
MHP works closely with its workforce who play
an active role in the management of the business
through day-to-day dialogue and engagement with
the Senior Management Team. See also Growth Pillar
2: Our People and their Wellbeing on pages 70 to 85.
Clearly, following the outbreak of the War in Ukraine,
it has become vital that the Company remains in
close contact with, and supports all of, its workforce.
ANNUAL GENERAL MEETING
The next Annual General Meeting is scheduled to
take place on 16 June 2025 at 10 am at 16-18 Zinas
Kanther Street, Agia Triada, 3035 Limassol, Cyprus.
The 2025 AGM notice will be published in due course.
DIRECTORS AND OFFICERS’ LITIGATION
STATEMENT
No member of the Board of Directors or of MHP’s
Senior Management has, for at least five years:
• Any convictions relating to fraud;
• Been a senior manager or a member of the
administrative or supervisory bodies of any
company at the time of, or preceding, any
bankruptcy, receivership or liquidation; or
• Been subject to any official public incrimination
and/or sanction by any statutory or regulatory
authority (including any designated professional
body) nor ever been disqualified by a court
from acting as a member of the administrative,
management or supervisory bodies of a company,
or from acting in the management or conduct of
the affairs of a company.
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AUDIT & RISK
COMMITTEE REPORT
During the year, and as at the date of this Report,
members of the Committee and the number of
meetings they have attended have been as follows:
This Report describes how the Committee carried
out its responsibilities during the year and how it
addressed significant issues relating to the 2024
Financial Statements.
(1) Oscar Chemerinski succeeded John Grant as Committee Chair as of
23 January 2024.
(2) John Grant stood down as Committee Chair on 22 January 2024 and
as a member of the Committee on 30 June 2024.
MEMBER
MEETINGS
ATTENDED
Oscar Chemerinski (Chair) (1)
4/4
John Grant (2)
2/2
Christakis Taoushanis
4/4
Philip Wilkinson
4/4
THE AUDIT & RISK COMMITTEE IS RESPONSIBLE FOR THE
INTEGRITY OF THE GROUP’S FINANCIAL REPORTING AND
OVERSEES ITS INTERNAL FINANCIAL CONTROLS AND RISK
MANAGEMENT PROCESSES. THE COMMITTEE ALSO MAKES
RECOMMENDATIONS TO THE BOARD ON THE APPOINTMENT
OF EXTERNAL AND INTERNAL AUDITORS AND OVERSEES
THEIR ACTIVITIES.
Oscar Chemerinski
Chair, Audit & Risk Committee
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ROLE AND RESPONSIBILITIES
The Committee’s role and responsibilities
are set out in its terms of reference. In line
with best practice, these were last reviewed
in November 2024 and can be viewed on
the Company’s website at Annex C of the
Corporate Governance Charter.
The Committee recognises its responsibility
for protecting the interests of all stakeholders
with respect to the integrity of financial
information published by the Company
and the effectiveness of the audit.
FINANCIAL AND NARRATIVE REPORTING
• reviewing and monitoring the integrity of the
Company’s financial statements, including
its Annual and Interim Reports, and any
other formal announcements relating to its
financial performance;
• reviewing and reporting to the Board on significant
financial reporting issues and judgements;
• ensuring compliance with relevant accounting
standards and consistency and appropriateness
of accounting policies, and challenging the
validity of assumptions underlying accounting
estimates and judgements, taking into account
the views of the external auditors;
• reviewing, challenging and reporting to the
Board on the assumptions underlying the going
concern basis and the longer-term viability
assessment, drawing the Board’s attention to
any qualifications as necessary, and approving
statements to be included in the Annual Report
in relation to going concern and viability; and
• reviewing the Annual Report and Accounts to
ensure they are fair, balanced and understandable,
that they provide the information necessary for
shareholders to assess the Company’s position and
performance, business model and strategy, and
advising the Board accordingly.
INTERNAL CONTROLS AND RISK MANAGEMENT
• overseeing the Group’s processes for monitoring
and managing risk and reporting to the Board on
the effectiveness of those processes, including
the emergence of potential new risks;
• keeping under review the effectiveness of the
Company’s internal financial controls and internal
control and risk management systems; and
• in relation to disclosures required in the
Annual
Report,
reviewing
and
approving
statements concerning internal controls and
risk management.
INTERNAL AUDIT
• approving the appointment and, where
necessary, removal of the Chief Internal
Auditor;
• approving the remit of the internal
audit function, ensuring it has adequate
resources and appropriate access to
information to enable it to perform its
function effectively and in accordance
with the relevant professional standards;
• approving the internal audit plan and
receiving periodic reports on the results
of the internal auditor’s work;
• monitoring Management’s responsiveness
to the internal auditor’s findings and
recommendations; and
• monitoring and reviewing the effectiveness
of the Group’s internal audit function in
the context of the Company’s overall risk
management system.
WHISTLEBLOWING AND FRAUD
• reviewing the adequacy and security
of arrangements for employees and
contractors
to
raise
concerns,
in
confidence, about possible wrongdoing
in financial reporting or other matters,
in
accordance
with
the
Company’s
whistleblowing policy;
• ensuring that arrangements are in place
for the proportionate and independent
investigation of any matters raised by
whistleblowers and appropriate follow-
up action; and
• reviewing the Group’s systems and
controls for ensuring ethical behaviour,
detecting fraud and preventing bribery.
The Committee’s primary responsibilities include:
EXTERNAL AUDIT
• reviewing
and
assessing
annually
the
independence, objectivity, and effectiveness of
the external auditors, making recommendations
to the Board to be put to shareholders for
approval regarding their appointment, re-
appointment and removal, and approving the
terms of their engagement;
• ensuring that, at least once every ten years,
the audit services contract is put out to tender
and, in respect of such tender, overseeing the
selection process;
• reviewing policy and practice regarding the
provision of non-audit services by the external
auditor and, where necessary, challenging the
provision of such services;
• assessing annually the auditor’s independence and
objectivity, taking account of relevant regulatory
requirements and the relationship between fees
for audit and non-audit services; and
• reviewing and approving the annual audit plan,
reviewing the findings of the audit with the auditor,
and informing the Board of the outcome of the audit.
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COMPOSITION
The Committee comprises a minimum of three
non-executive directors, each of whom is deemed
by the Board to be independent. Two members
constitute a quorum.
Until 22 January 2024, the Chair of the Committee
was John Grant, who has significant and relevant
financial experience in a wide range of senior non-
executive roles including chairing audit committees
in a number of major international businesses.
Oscar Chemerinski became the Committee Chair
on 23 January 2024, and he also has significant
and relevant financial experience (see biography
on page 131) including having been a member
of the Committee since 4 April 2023. Christakis
Taoushanis (see biography on page 131) and Philip
J Wilkinson OBE (see biography on page 132) have
been members of the Committee since November
2018 and June 2020 respectively.
The Committee Chair invites the Chief Financial
Officer, the Head of Internal Audit, and senior
representatives of the external auditor to attend
meetings as appropriate. The Committee has the
right to invite any other director or employee to
attend meetings as it considers appropriate.
MEETINGS
The Committee meets at least four times a year.
The scheduling of meetings is intended to align
with the financial reporting timetable, enabling
the Committee to review the annual and quarterly
financial statements, to agree the plan for the full
year audit, and to maintain oversight of the Group’s
internal controls and processes throughout the
year. In 2024, the Committee met four times. The
attendance of members at these meetings is shown
at the beginning of this Committee Report. During
the year, because of ongoing War-related travel
restrictions, a number of members and invitees
necessarily attended meetings by video conference.
The Committee meets with the external auditors at
least once a year in the absence of Management.
The Committee Chair reports the outcome of
meetings to the Board.
PERFORMANCE
The performance of the Committee is assessed
annually as part of a formal internal Board evaluation
process. The 2024 evaluation, undertaken in early
2025, revealed that Committee members came to
meetings well-prepared and offered robust challenge
to Management and the auditors. The evaluation also
confirmed that meeting agendas were structured so
as to enable the Committee to cover effectively all
the matters in its terms of reference, in addition to
considering and responding to the additional risks
resulting from the ongoing War.
KEY ACTIVITIES DURING THE YEAR
In addition to matters relating to the 2024 financial
statements, other key activities addressed by the
Committee during the year included:
• considering the ongoing financial implications
for the Group of the Russian invasion of Ukraine in
February 2022 and the associated risks, ensuring
appropriate and accurate communication to
the financial markets throughout the year, and
advising the Board accordingly;
• supporting the Board in considering how best to
preserve liquidity for the Group while continuing
to supply food within Ukraine and maintaining
positive relationships with bondholders, banks
and other stakeholders;
• supporting the Board on the identification and
mitigation of IT Security and Cyber Risk to the
confidentiality, integrity and availability of the Group’s
data and systems, and on actions to safeguard the
Group’s assets, information and reputation;
• considering potential further development of
the Group’s reporting of the potential impacts of
climate change in line with the recommendations
and recommended disclosures of the Task Force
on Climate-related Financial Disclosures (“TCFD”)
and other evolving requirements; and
• monitoring the Group’s progress towards aligning
with the requirements of the EU Corporate
Sustainability Reporting Directive (“CSRD”). We are
working alongside Senior Management and the
Sustainability & International Affairs Committee
to ensure that the necessary systems, processes,
and data collection mechanisms are in place
to meet the enhanced reporting standards on
environmental, social, and governance matters.
The Company is committed to transparency and
will update shareholders on the implementation
of CSRD-related disclosures in the upcoming
fiscal year. For further information on this and
the previous bullet, please refer to the TCFD and
Growth Pillar sections of this Annual Report.
SIGNIFICANT ISSUES RELATING TO THE
FINANCIAL STATEMENTS
The Committee undertook the following recurring
activities in relation to the financial statements:
• considered
and
approved
the
auditor’s
independence and fee;
• reviewed and agreed the scope of work to be
undertaken by the external auditor;
• considered the external auditor’s review of the
interim financial report and their report on the
audit of the full year results;
• reviewed the annual and quarterly financial
statements and Annual Report to ensure they were
fair, balanced and understandable, and provided
the information necessary for shareholders to
assess the Company’s position and performance,
business model and strategy, and advised the
Board accordingly;
• considered the processes in place for the
valuation of assets, including the reasonableness
and consistency of assumptions; and
• reviewed the effectiveness of the Company’s risk
management and internal controls.
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SIGNIFICANT ISSUE OR RISK CONSIDERED
HOW THIS WAS ADDRESSED BY THE COMMITTEE
GOING CONCERN
The Russian invasion of Ukraine in February 2022 resulted
in serious disruption throughout Ukraine, with devastating
consequences which continue to the date of this Report.
This has created a highly unusual degree of uncertainty,
not just in Ukraine but also in global markets, making it
more-than-usually difficult to predict the future. In addition,
financial markets are effectively closed to Ukrainian entities,
at least until the situation stabilises. This necessitates a
particular focus on MHP’s ability to maintain operations and
to continue to meet its liabilities as they fall due.
Throughout 2024, the Committee was kept informed by Management of the likely impact of the War on financial
forecasts, taking account of various War scenarios, the associated risks, and the actions taken to mitigate them.
Actions taken by the Company enabled it to maintain full utilisation of production capacity throughout the year,
and to continue to deliver adequate profitability and cash generation.
In October 2023, the Company signed agreements with three international financial institutions to provide
up to US$ 480 million of long-term loans (including US$ 80 million for CAPEX) to facilitate refinancing of the
US$ 500 million of Eurobonds maturing in May 2024 and to fund certain essential capital expenditures. On 10
November 2023, following a tender offer, the Group purchased for US$ 128 million bonds with a principal value
of US$ 151 million. In May 2024, the Group completed the scheduled redemption of all outstanding Eurobonds
due in 2024 with a total nominal value of US$ 500 million. The redemption of the initial Eurobond transaction
and coupon payments was made in full as per the Eurobond Prospectus. As a result, the Company's obligations
towards 2024 bondholders have been fully discharged. In view of the continuing War, there remains some
uncertainty over the ability of MHP to continue to service its debts in full, either because of restrictions that may
be imposed by the National Bank of Ukraine or further adverse war developments.
The Committee agrees with Management’s view that, if necessary, the Company will continue to be able to
negotiate acceptable arrangements with bondholders, banks and other lenders to enable it to continue to meet
its liabilities as they fall due at least for the next 12 months from the date of this Report. Accordingly, it accepted
Management’s recommendation, and recommended to the Board, that the financial statements should be
prepared on a going concern basis, while acknowledging a material uncertainty. The Committee also agreed
that there had been full and proper disclosure of the going concern matter in the Report and Accounts.
EY concluded that the going concern assumption and the related disclosure were appropriate but, in view of
War-related uncertainties, and as required by ISA 570 (revised), they would add to their report a separate section
to emphasise a material uncertainty relating to an event or condition that may cast significant doubt on the
entity’s ability to continue as a going concern.
REVENUE RECOGNITION
There is а presumed risk of overstatement of revenue due
to fraud.
The Committee, having discussed revenue recognition processes with Management and discussed the tests
and analyses conducted by EY, was satisfied that adequate processes and controls were in place to manage
the risk of overstatement of revenue.
In addition, the Committee gave particular consideration to the following significant issues and risks relating to the 2024 financial statements:
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SIGNIFICANT ISSUE OR RISK CONSIDERED
HOW THIS WAS ADDRESSED BY THE COMMITTEE
VALUATION OF BIOLOGICAL ASSETS AND AGRICULTURAL PRODUCE
Forecasting models used to determine the fair value of
biological assets and agricultural produce require extensive
Management judgements and the use of complex models.
There is a risk of misstatement due to incorrect assumptions
or estimates.
The Committee reviewed the assumptions and judgements applied by Management and discussed with EY the
adequacy of internal controls around the valuation process and the tests and analyses they had performed to
assess the reasonableness of input data and the accuracy of calculations.
VALUATION AND IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIFE
Testing of impairment of goodwill is inherently subjective
as calculation of value in use of the relevant asset or
cash
generating
unit
(“CGU”)
requires
judgements
and assumptions regarding future cashflows and the
appropriate discount rate.
The Committee challenged Management’s assumptions and analysis underlying their review of potential
impairment in respect of goodwill and intangible assets of Perutnina Ptuj and discussed the audit work
undertaken by EY. The Committee was satisfied that no impairment of goodwill or intangible assets with
indefinite useful life was required.
VALUATION OF PROPERTY, PLANT AND EQUIPMENT
The Group applies the revaluation model for property, plant
and equipment. This requires revaluations to be performed
with sufficient regularity to demonstrate that the carrying
values do not differ materially from fair values. The Group
uses an independent external appraiser to undertake
valuations when required.
The Committee considered and approved Management’s recommendation to perform revaluations across
all classes of fixed assets measured at revalued amounts. It reviewed the valuation methodologies and
key assumptions applied by Management and independent appraisal experts in determining fair values.
The Committee also assessed the audit procedures carried out by EY. It further ensured that the related
disclosures in the financial statements were complete, transparent, and in compliance with applicable
financial reporting standards.
COMPLIANCE WITH BOND AND BANK COVENANTS
Compliance with covenants included in bond and bank
debt agreements is an important ongoing focus for the
Committee. If the Consolidated Leverage Ratio of Net Debt
to LTM-adjusted EBITDA (as defined in Eurobond indenture
agreements) exceeds 3.0 to 1 the Group is not permitted
to make certain restricted payments or to pay dividends in
excess of US$ 30 million.
The Committee noted that as of 31 December 2024 the Group has complied with all covenants. As of 31 December
2024, the Group’s leverage ratio decreased to 2.08 to 1, below the defined limit of 3.0 to 1, compared with 2.47 to 1
as at 31 December 2023 respectively.
The Committee confirmed that full and proper disclosure had been made in the Financial Statements in respect
of the covenants.
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EXTERNAL AUDIT
APPOINTMENT OF EXTERNAL AUDITOR AND
ASSESSMENT OF EFFECTIVENESS
EY was appointed as the external auditor of the
Company with effect from the 2020 financial year,
replacing the previous auditor Deloitte, following a
comprehensive tender and selection process in Q4
2019. The Committee assessed the effectiveness of EY
following completion of their audit of the 2022, 2023 and
2024 accounts and concluded that it was satisfied with
the quality, integrity and effectiveness of their work.
NON-AUDIT SERVICES
A policy is in place covering engagement of the external
auditor for the supply of non-audit services to ensure
that its independence and objectivity are not impaired.
This requires the Audit & Risk Committee to approve
all non-audit services in advance of the service being
provided. Cumulative non-audit fees are reviewed
periodically at scheduled meetings of the Committee.
A breakdown of fees earned by the external auditor for
audit and non-audit services can be found in Note 9 to
the financial statements.
It is the Committee’s intention to ensure that non-
audit services are provided by a number of different
firms, both to protect independence of the external
audit and ensure best quality and best value provision
of non-audit services.
AUDITOR INDEPENDENCE AND OBJECTIVITY
The Committee has a policy and procedures in place
to ensure that auditor independence and objectivity
are never compromised. These include approval
requirements for engagement of the external auditor
for non-audit services, periodic review of the cost of
non-audit services provided by the external auditor, and
requirements for rotation of the audit partner every 7
years. Each year, the auditor is required to provide to the
Committee evidence of how it believes its independence
and objectivity have been maintained. Based on these
requirements and procedures, the Committee remains
confident that auditor independence and objectivity
have been and will be maintained.
INTERNAL AUDIT
The Company has an in-house Internal Audit
function whose primary purpose is to provide
independent assurance to Management and the
Committee, and hence the Board, on the Company’s
risk
management
and
control
environment.
Internal Audit coverage includes all the Company’s
operations, resources, services and responsibilities
to other bodies, with no department or business
unit of the Company being exempt from review.
Internal Audit responsibilities include:
• examining and evaluating the adequacy of the
Company’s system of internal control;
• assessing
the
reliability
and
accuracy
of
information provided to stakeholders;
• assessing
compliance
with
statutory
and
regulatory requirements;
• assessing compliance with Company policies
and procedures;
• ensuring that the Company’s assets are properly
accounted for and safeguarded;
• assessing the efficiency and effectiveness with
which resources are employed;
• liaising with external auditors in audit planning and
assisting the external auditors as required; and
• investigating any instances of fraud, irregularity
or corruption.
The Internal Audit programme is approved annually
by the Committee and the Head of Internal Audit
reports findings periodically to the Committee.
At least annually, the Committee considers the role
and effectiveness of the Internal Audit function,
taking account of the resources available and
required, the experience and expertise of personnel,
and the quality of service delivered. The Committee
concluded that during 2024, the Internal Audit
function was continuing to deliver the level of
service required, notwithstanding the operational
challenges resulting from the War.
RISK MANAGEMENT AND INTERNAL CONTROL
The Committee monitors the effectiveness of the
Company’s risk management and control systems
through regular updates from Management,
reviews of the key findings of the external and
internal auditors, and an annual review of the risk
management process and risk matrix. Results are
reported regularly to the Board, which has overall
responsibility for risk management.
The annual review covers key risks that could
potentially impact the achievement of the Group’s
strategic and financial objectives. New risks
and changes to existing risks are identified on a
continuous basis. A risk scoring system is used to
help quantify both the probability and potential
impact of each major risk after the effect of
mitigating actions, to assess residual risks against
the Company’s risk appetite, and to prioritise
further risk management actions. The Company’s
approach to the identification and assessment
of risks, and the response to risks, is based on
best business practices and international COSO
Enterprise Risk Management standards.
As a result of the operational disruptions since
the Russian invasion of Ukraine in February 2022,
there has been a necessary shift in emphasis
to prioritise management of War-related risks.
Specific priorities included the safety of personnel,
protection of Company facilities, and resolving
supply chain challenges affecting both delivery of
essential supplies and distribution of production.
In spite of the ongoing disruption and dislocation
of personnel, no incidents of significant control
weaknesses or failures were identified at any time
during the year.
Oscar Chemerinski
Chair, Audit & Risk Committee
28 April 2025
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THE NOMINATIONS AND REMUNERATION COMMITTEE (“NRC” OR “THE
COMMITTEE”) IS RESPONSIBLE FOR MAKING RECOMMENDATIONS
TO THE BOARD ON THE APPOINTMENT OF DIRECTORS AND FOR
DETERMINING THE REMUNERATION OF EXECUTIVE DIRECTORS.
NOMINATIONS AND
REMUNERATION
COMMITTEE REPORT
MEMBER
PHILIP J WILKINSON
OBE (CHAIR)
DR JOHN
RICH(1)
CHRISTAKIS
TAOUSHANIS
JOHN
GRANT(2)
No of meetings
6/6
5/5
3/3
3/3
ROLE AND RESPONSIBILITIES
The Committee’s role and responsibilities are set
out in its Terms of Reference, which can be viewed
on the Company’s website in the Corporate
Governance Charter (Annex E). Further details
regarding the Committee’s composition, areas of
focus in 2024, and its approach to diversity and
inclusion are set out below.
COMPOSITION
The members of the Committee changed during
the year following a retirement from the Board and
steps taken to further increase its independence.
The Chair throughout the year was Philip J
Wilkinson OBE who is an Independent Non-
Executive Director. John Grant, an Independent
Non-Executive Director, served as a member until
30 June 2024 when he retired from the Board.
Christakis Taoushanis, an Independent Non-
Executive Director, joined the Committee on 1
July 2024. John Rich, Executive Chairman, served
as a Committee member until 23 August 2024.
Other Board members contribute to Committee
discussions when invited to do so by the members.
The biographies of the Committee members can
be found on pages 131 to 132.
MEETINGS IN THE YEAR
The Committee meets not less than twice a year.
During 2024 the Committee met six times and
members’ attendance is shown in the table above.
(1) John Rich stood down as a member of the Committee on 23 August 2024.
(2) John Grant stood down as a member of the Committee on 30 June 2024.
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AREAS OF FOCUS IN 2024
The focus of the Committee continued to be
impacted by the War. In practice, this means that
over and above the corporate governance points
referenced by the NRC, the Committee has been
kept informed of, and supports, certain workforce-
related initiatives established in response to the
War. The principal matters considered by the
Committee in 2024 are set out below.
BOARD COMPOSITION AND
SUCCESSION PLANNING
MHP continues to conduct a phased succession
plan to ensure replenishment of the Board to
maintain and enhance the levels of skills, knowledge
and independence whilst also being mindful of
stakeholder expectations concerning diversity and
the relevant guidelines. The scheduled retirement of
John Grant from the Board has resulted in a number
of these succession plans being activated. Christakis
Taoushanis has been appointed as MHP’s Senior
Independent Director and, as mentioned above,
has been appointed as a member of the NRC. In
addition, John Rich stood down from membership
of the NRC and Oscar Chemerinski was appointed
Chair of the Audit & Risk Committee.
The Board recognises the significant benefits that
diversity in gender, social, and ethnic backgrounds
brings to its effectiveness. Whilst the Board has
decided not to set specific diversity targets, it remains
committed to fostering diversity at both Board level
and more broadly throughout the Group.
The Company values its unique culture and actively
promotes senior management and development
opportunities
for
women,
recognising
that
diversity and inclusion drive innovation, continuous
improvement, and efficiency. The Board remains
mindful of the FTSE Women Leaders Review and
Parker Review recommendations and notes that
the Group’s Chief Financial Officer is female.
Diversity is reviewed regularly to ensure the
Board continues to benefit from a broad range
of
knowledge,
skills,
and
experience.
With
Directors drawn from multiple nationalities and
backgrounds, the Board remains committed
to further enhancing its diversity in alignment
with the evolving skills and expertise required.
More details can be found in the Board Skills and
Diversity Matrix on page 133.
ETHNIC BACKGROUND REPORTING UNDER LR9.8.6R(10)
DIVERSITY AND INCLUSION
The following table provides an overview of the ethnic diversity of the Board and executive management at 31
December 2024.
NUMBER
OF BOARD
MEMBERS
PERCENTAGE
OF THE
BOARD
NUMBER OF
SENIOR POSITIONS
ON THE BOARD
(CEO, CFO, SID, AND CHAIR)
NUMBER IN
EXECUTIVE
MANAGEMENT
PERCENTAGE
OF EXECUTIVE
MANAGEMENT
White British or other
White (including
minoritywhite groups)
6
86
4
17
100
Mixed/Multiple
EthnicGroups
-
-
-
-
-
Asian/Asian British
-
-
-
-
-
Black/African/ Caribbean/
Black British
-
-
-
Other ethnic group,
including Arab
1
14
-
-
-
Not specified / prefer not
to say
-
-
-
-
-
The following table provides a gender identity overview of the Board and executive management at
31 December 2024.
NUMBER
OF BOARD
MEMBERS
PERCENTAGE
OF THE
BOARD
NUMBER OF
SENIOR POSITIONS
ON THE BOARD
(CEO, CFO, SID, AND CHAIR)
NUMBER IN
EXECUTIVE
MANAGEMENT1
PERCENTAGE
OF EXECUTIVE
MANAGEMENT
Men
6
86
3
15
88
Women
1
14
1
2
12
Not specified / prefer not
to say
-
-
-
-
-
GENDER IDENTITY REPORTING UNDER LR9.8.6R(10)
1 To give a more accurate representation of the executive management team, “executive management” includes executive members of the Board of Directors.
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International Affairs
Committee Report
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REMUNERATION
During 2024, the NRC reviewed the Remuneration
Policy adopted in 2021. Subject to the notes in the
following paragraph, as the Committee considers
that the existing approach to Directors’ remuneration
remains appropriate for MHP, the NRC proposed only
minor changes and this revised Policy was approved at
the EGM in December 2024.
At the EGM at the end of 2021, shareholders
approved a Remuneration Policy stating that
long-term incentives would be decided “at a later
date but no later than the end of 2023”. Given the
continuation of the War throughout 2024 and
into 2025, and the Group’s need to focus on War-
related considerations, the long-term incentives
policy and the calculation of directors’ pensionable
salaries will remain as approved in 2021.
Given that the Policy is reviewed every three years,
to avoid in future having to convene a separate
EGM, the NRC recommended that the Board
finalise future Policy review changes in time for
incorporation into the AGM agenda.
See also the Corporate Governance Report
exceptions 36 and 38 on page 129.
IMPACT OF WAR ON WORKFORCE
Throughout the year, the NRC has proactively
stayed informed about workforce challenges
arising from the War. Recruiting labour for the
Group’s operations in Ukraine remains difficult
while a significant number of men aged 25 to 60 are
being mobilised for the War effort. This represents a
lowering from the previous year's 27-year age limit,
further impacting the availability of both current
and potential Ukrainian workers.
I advised in last year’s Report that a Post Traumatic
Stress Disorder Programme had been established
to provide psychological and medical assessments
together with treatments for colleagues returning
from mobilisation. The Group has also formed a
Rehabilitation Programme for our War veterans.
These programmes have been inundated with
patients throughout the year. MHP continues
to be recognised by third-party companies and
authorities, both domestically and internationally,
for its best-in-class initiatives in this unfortunate
and but critical arena. For further information
please see Growth Pillar 2: Our People and their
Wellbeing on page 70 and Growth Pillar 3: Our Role
in Society and our Licence to Operate on page 86.
The Committee recognises the need to balance
staying informed on workforce matters with
ensuring its focus falls within the NRC’s Terms of
Reference. Going forward from 2025, these issues
will therefore be reported to the S&IA Committee
and will be included as a dedicated Board agenda
item under the heading People Issues.
Philip J Wilkinson OBE
Chair, Nominations and
Remuneration Committee
28 April 2025
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SUSTAINABILITY AND
INTERNATIONAL AFFAIRS
COMMITTEE REPORT
ROLES AND RESPONSIBILITIES
The Committee’s role and responsibilities are
set out in its Terms of Reference which can be
viewed on the Company’s website in the Corporate
Governance Charter (Annex F). These Terms of
Reference were adopted in September 2023 to
reflect the Board’s increasing focus on the Group’s
approach to sustainability, responsible business
and international affairs.
The
Committee
supervises
strategy,
policy,
governance, management systems, performance
and performance measurement, target setting,
reporting,
and
communications
relating
to
sustainability,
responsible
business
and
international affairs matters. These responsibilities
include overseeing the development of the Group’s
approach to sustainability which aligns with the
United Nations Sustainable Development Goals
and is managed by applying six Growth Pillars:
Stakeholder Engagement; Our People and their
Wellbeing; Our Role in Society and Our Licence to
Operate; Responsible Food Production; Business
Conduct; and The Planet.
The Committee is also responsible for overseeing
the Group’s approach to international affairs.
This encompasses MHP’s relationships with
MEMBER
PHILIP J WILKINSON
OBE (CHAIR)
DR JOHN
RICH
OSCAR
CHEMERINSKI
No of meetings
4/4
4/4
4/4
THE SUSTAINABILITY AND INTERNATIONAL AFFAIRS COMMITTEE (“S&IA” OR “THE COMMITTEE”)
IS RESPONSIBLE FOR SUPERVISING AND MONITORING THE STRATEGY AND OBJECTIVES OF THE
GROUP’S SUSTAINABILITY, RESPONSIBLE BUSINESS AND INTERNATIONAL AFFAIRS EFFORTS
key
international
stakeholders
including
governments, regulators, industry organisations,
peer group companies, capital providers, suppliers,
and customers.
COMPOSITION
The Committee comprises the Chair of the Board
of MHP and at least two other Non-Executive
Directors. The Chair of the Committee is Philip J
Wilkinson OBE. Philip J Wilkinson has significant
and
relevant
experience
in
international
agricultural
politics,
has
historically
chaired
agricultural sector boards, and holds several non-
executive directorships and advisory positions
in global agribusinesses (see biography on page
132). The other members of the Committee are Dr
John Rich (see biography on page 131) and Oscar
Chemerinski (see biography on page 131).
The Committee has the right to invite any other
director or employee to attend meetings as it
considers appropriate. Andriy Bulakh, Deputy
CEO – People, is often invited to attend.
MEETINGS IN THE YEAR
The Committee meets at least quarterly each year.
Four meetings were held during 2024.
OUR APPROACH TO SUSTAINABILITY AND
RESPONSIBLE BUSINESS
The
Group’s
approach
to
sustainability
and
responsible business is a key tenet of its strategy
and of the Group’s transformation to a world-
leading sustainable food producer. Whilst never
welcomed, adversity often presents opportunities,
and the Group has capitalised upon these to
make rapid advances over the past year and a
half in a broad range of areas including energy
usage,
environmental
performance,
and
the
transformation of waste into further processed
stages of biofuel. The Committee is also proud of
the continued evolution and expansion of support
provided to our workforce and their families which
reflects our responsible business culture.
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AREAS OF FOCUS IN 2024 AND ACHIEVEMENTS
SUSTAINABILITY AND RESPONSIBLE BUSINESS
We continue to proactively and energetically
embed these important areas into our operations.
These important steps highlight the Group’s
steadfast
commitment
to
sustainability
and
responsible business and are enthusiastically
supported by our MHP colleagues, all of whom fully
embrace this approach to doing business, even
during such difficult times. I would like to thank
our MHP colleagues who have helped to make
these changes happen.
Key areas of focus have included:
• Working with suppliers to improve their approach
to sustainability and responsible business;
• Maintaining MHP’s world-class animal welfare record;
• Progressing the Group’s aim of embedding
sustainability and responsible business across
the Group’s management structures;
• Continuing to support MHP’s communities and
workforce in addressing the difficult challenges
presented by the War; and
• Preparing MHP for the requirements of
EU regulations.
Further information about sustainability and
responsible business can also be found within the
Growth Pillar Sections on pages 61 to 116 of this
report and within the TCFD statement on pages
117 to 120.
RESPONSIBLE FOOD PRODUCTION –
COMPLIANCE WITH DOMESTIC AND
INTERNATIONAL STANDARDS
Internationally, in the UAE, MHP achieved
certification in accordance with the requirements
of the FSA GMP+ standard. During the year MHP
has been monitoring its poultry operations
for compliance with EU Directives concerning
growing,
transportation
and
processing.
Moreover, in the second half of the year, we
achieved a Global S.L.P. recertification at two
poultry production complexes.
In 2025, MHP plans to certify other facilities in
Ukraine in accordance with the requirements of
the BRCGS Food Safety standard.
For more information on our approach to
responsible food production see Growth Pillar 4
on page 92.
SUPPLY CHAIN
In 2024, MHP Group continued to implement a
systematic approach to managing ESG risks in the
supply chain by launching a large-scale assessment
of its suppliers based on key environmental, social
and governance criteria. This initiative is aimed at
ensuring that the partners' activities comply with
the principles of sustainable development, as well
as at increasing the transparency and responsibility
of suppliers within the Company's ecosystem.
This project is one of the fundamental aspects of
MHP's sustainable development, with a target to
cover all upstream and downstream suppliers of
MHP Group. MHP believes that systematic analysis
and management of ESG risks in the supply
chain helps to achieve our sustainability goals,
meet stakeholder expectations, increase MHP's
competitiveness and improve the ESG practices of
our suppliers.
Please see Growth Pillar 5 on page 100 for more
detailed information about how we engage with
suppliers and assess ESG risk.
PREPARING MHP FOR THE REQUIREMENTS OF
EU REGULATIONS
MHP has been preparing to disclose under the
original 2023 CSRD rules and the ESRS and to
publish its Annual Report in 2025 in compliance
with these regulations. However the EU is now
proposing to simplify these rules to provide limited
assurance and a reduced scope. At present, as
a company registered in the EU and listed in
London, MHP understands that, if adopted by the
end of 2025, the revised rules will mean that MHP
is in the second wave of companies expected to
report and that will mean reporting in 2028 based
on the accounts to 31 December 2027.
In the meantime, MHP has been preparing for these
regulations including by the completion of a double
materiality assessment exercise in 2025 and the
performance of a gap analysis supported by
professional advisers to ensure that MHP will meet
these in good time. For further information, please
refer to Growth Pillar 4 on pages 92 to 99.
CLIMATE RISK ASSESSMENT
In 2024 MHP commissioned external experts
to complete a climate risk assessment that was
presented to Top Management, the S&IA Committee
and the ESG Committee. The outcomes of this
exercise and the next steps can be found in Growth
Pillar 6 on pages 110 to 116.
ANIMAL WELFARE AND AVIAN INFLUENZA
Animal welfare remains a top priority.
While MHP has not been directly affected,
outbreaks of Avian Influenza remain a clear and
present danger for the global poultry industry.
Coordinated inter-governmental management of
these outbreaks remains critical.
EMBEDDING SUSTAINABILITY AND
RESPONSIBLE BUSINESS WITHIN OUR
OPERATIONS
To date the sustainability and responsible business
risks and opportunities for MHP have been
embraced by all involved. This is very encouraging
in the current difficult climate.
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Sustainability &
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Committee Report
Management Report
An Operational ESG Committee was established
in 2024 comprising seven Top Management
colleagues. Going forward, the Operational ESG
Committee will report into the S&IA at least
twice a year. The purpose of the Operational ESG
Committee is to set up ESG goals, KPIs, measures
and to formulate the operational actions that need
to be prioritised and taken to supervise and drive
the ESG vision and strategy that will be established
in 2025 and delivered by 2050. We anticipate that
the Transition Plan will be delivered by 2030. This
will involve the increasing incorporation of ESG-
related OKRs into management performance
targets once the strategy is delivered and they will
be measured at annual performance reviews.
The work of the Operational ESG Committee and
the commitment of Top Management are already
having a positive impact on the culture at MHP with
ESG considerations being proactively brought into
business decisions.
TRAINING AND DEVELOPMENT
All Board members (including Non-Executive
Directors), Top Management who are part of
the Operational ESG Committee and middle
management have received the appropriate
training from an external specialist with
expertise in the fields of sustainability and
responsible business.
INTERNATIONAL AFFAIRS
Since the invasion of Ukraine, the Group
has
faced
operational
disruptions
to
doing business that could not have been
foreseen and which continue to create
new challenges and opportunities. Our
main objective in international affairs is to
maintain existing sales markets as well as
to work to find and capitalise upon new
opportunities for the sustainable future of
the Group. We are focusing our attention
on strengthening the Group’s position and
relationships in both the domestic market
and in the international arena.
In international markets, the UK has been
supportive of Ukraine throughout the War,
awarding Autonomous Trade Measures
(“ATMs”) to preserve preferential trade,
meaning that customs duties, quotas and
trade defence mechanisms are suspended
on Ukrainian exports to the UK. This
agreement is a powerful tool for enhancing
the resilience of the Ukrainian economy and
is due to be reviewed by the UK government
by the end of May 2026. Every indication
from the new UK government, formed in
the summer of 2024, gives grounds for
optimism for continued support.
Within the EU, support for Ukraine
and its people remains steadfast, and
we continue to be extremely grateful
for the recognition that maintaining
Ukraine’s macro-economic stability is
essential to fight Russian aggression.
However, concerns expressed by some
parties within the EU’s agricultural sector
regarding agricultural imports and their
alleged impact on the profitability of
the sector have continued, often taking
the form of vociferous demonstrations
by farmers in Brussels and elsewhere in
Philip J Wilkinson OBE
Chair, Sustainability and
International Affairs Committee
28 April 2025
Europe. A review of the EU’s ATMs will be
undertaken during 2025, and uncertainty
remains over the further development
of poultry imports from Ukraine into the
EU after 5 June 2025. MHP will continue
to provide supportive justification for
the continuation of ATMs as an essential
lifeline
to
Ukraine,
its
people
and
industries, particularly in light of the
Russian invasion.
I am pleased to report that relations with
the Kingdom of Saudi Arabia as a strategic
partner continue to be strong. In June 2024,
the Group and Desert Hills Veterinary Services
Company Limited (DHV), a wholly-owned
subsidiary of Tanmiah Food Company,
completed the incorporation of MHP Desert
Hills for Poultry Company. This new entity
is established for poultry farming in the
Kingdom of Saudi Arabia. The Group holds
a 45% interest, exercising the significant
influence over the entity, and DHV holds the
remaining 55%. The first chicks hatched in
2024, followed by new facilities coming on
stream throughout the year. A year down
the track we continue to be optimistic for
the future of this commercial initiative.
Ukraine was granted EU Candidate Status
in June 2022. This was followed in late
2023 by a decision to start membership
Accession
negotiations,
with
talks
beginning in June 2024. A thriving
Ukrainian sector must be seen as part of
the solution to the multitude of challenges
faced by the European Union and other
agricultural sectors.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
153
Chair’s Introduction to
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Corporate Governance
Report
Board of Directors
Audit & Risk Committee
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Nominations and
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Report
Sustainability &
International Affairs
Committee Report
Management Report
THE INFORMATION WITHIN THIS REPORT IS ALIGNED WITH THE
REPORTING REQUIREMENTS OF THE UK COMPANIES ACT 2006, THE UK
DISCLOSURE AND TRANSPARENCY RULES, THE UK LISTING RULES, AND
CYPRUS COMPANIES LAW (CHAPTER 113).
MHP’S PURPOSE, PRINCIPAL ACTIVITIES, AND
REVIEW OF THE BUSINESS
MHP aims to be a world-leading sustainable
food producer. The Group provides high-quality,
affordable,
and
responsibly-produced
food
products and culinary solutions which improve the
lives of its customers across the world.
We are a leading international food group. We export
our products and solutions to over 70 countries
located all over the world. We are also the largest
producer of poultry, top-10 producer of culinary and
processed-meat products, and one of the biggest
producers of grains and vegetable oils in Ukraine.
We are driving long-term growth and value
creation by focusing on our four strategic pillars.
These are international diversification, culinary
transformation, leadership and innovation, and our
focus on responsible business.
Our production facilities are located principally in
Ukraine and southeastern Europe. Other operations
include a cutting facility in the Netherlands, an
associate company in the Kingdom of Saudi Arabia,
and sales and distribution offices in the United
Arab Emirates, the Kingdom of Saudi Arabia, and
the United Kingdom.
We operate vertically-integrated business models,
owning and operating each of the key stages of the
chicken production process. The business models
support the circular economy with the processing
of biological production waste into clean energy/
fuel, oils and organic fertiliser.
Further information can be found within the We are
MHP section on page 13, Our Business Model section
on page 23, and the Strategy and Purpose section
on page 15.
Detailed information on the Group’s performance
during the year can be found in the KPIs section
and the Financial and Operational Review on pages
32 and 39 respectively.
MANAGEMENT
REPORT
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
154
SUBSEQUENT EVENTS
As a result of the ongoing War, MHP continued to
experience disruptions and operational issues in
its Ukraine-based businesses which continued in
2024.
The Executive Management team believes that,
following the cessation of the War, there will be
ample opportunities for growth in Ukraine along
with international opportunities for the Group.
Perutnina Ptuj, which is based in southeastern
Europe and is largely independent from a supply
chain perspective, has been relatively unaffected
by the War, and continues to operate in accordance
with its strategy, growth and expansion plans.
Information on the Group’s strategy and outlook
can be found in the Chair’s Statement and the
Strategy and Purpose section on pages 7 and 15
respectively.
All subsequent events are disclosed in the Financial
and Operational Review on page 39 and in Note 41
on page 225 of this Report.
DIVIDEND POLICY
In March 2013, the Board of Directors approved
the adoption of a dividend policy that maintains
a balance between the need to invest in further
development and the right of shareholders to share
the net profits of the Company.
No dividend is likely to be paid whilst the War in
Ukraine continues. This is due to the risks and
uncertainties the War has created, the resulting
need to preserve liquidity to support MHP’s ongoing
business operations, and MHP’s obligations in
connection with supporting and sustaining the
population of Ukraine.
RESEARCH AND DEVELOPMENT
Sustaining significant investment in R&D and
innovation is fundamental to the Group’s long-
term growth strategy, including its transformation
to a food company and the development of a
culinary ecosystem to create customer value.
During the year, MHP continued to invest in R&D,
driven by our innovative spirit and integrated
approach which sees innovation embedded across
all functions. MHP’s focus on innovation spans
four broad categories: product development;
services; new technology; and business models
and partnerships.
Many initiatives are being developed, and
a
small
selection
includes
ECO
Energy
(alternative energy projects), the Culinary Centre
(new product development), and a number of
precision-farming projects.
Investment also underpins the development of the
Group’s responsible business approach, including
climate change, environmental and sustainability
commitments, the workforce, and animal welfare.
BUSINESS REVIEW AND RISKS
A review of the Group’s performance and the key
risks and uncertainties which face the business,
as well as details on likely developments, can be
found in the Financial and Operational Review on
page 39, the Risk Management section on page
54, and the Audit & Risk Committee Report on
page 141.
INTEGRATED REPORTING AND
ADDRESSING EU CSRD
MHP
initiated
corporate
responsibility
or
non-financial
reporting
in
2015
and
issued
a
separate
Non-Financial
Report
annually
until 2021. This Report is MHP’s third integrated
report and includes information for all MHP’s
material stakeholders.
This Report applies the latest applicable Global
Reporting Initiative’s (“GRI”) reporting framework
(Core
Compliance).
MHP
has
historically
participated in a variety of ESG research exercises
conducted
by
specialist
investor
research
agencies and readily responds to questions
and information requests from shareholders
concerning this aspect of its activities.
MHP is in ongoing dialogue with its professional
advisors
about
the
EU
CSRD
reporting
requirements, and is preparing to comply with its
related disclosure obligations through completion
of a double materiality assessment and a gap
analysis to facilitate full compliance.
MHP is listed on the Main Market of the London
Stock Exchange (a non-EU regulated market)
and domiciled in Cyprus which is part of the
EU. MHP will therefore be required to adhere
to the forthcoming EU CSRD data collection,
assurance and audit requirements. At the
time of publication of this Report, the recently
amended draft legislation indicates that MHP
will be required to adopt the new reporting
requirements in the 2027 Annual Report that will
be published in 2028. The amended legislation
is expected to be fully adopted by the EU later
in 2025. For further information please see the
S&IA Report on page 150.
FINANCIAL REPORTING PROCESS
MHP has a comprehensive and integrated financial
reporting
framework
that
ensures
accurate,
consistent,
and
timely
financial
information
across the Group. Financial results are reported
monthly, with regular forecasting updates and
performance reviews presented to the Board of
Directors. Reporting is conducted in accordance
with unified Group-wide accounting policies and
closing procedures, ensuring consistency and
control throughout the organisation.
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FINANCIAL
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SHAREHOLDER
INFORMATION
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155
SHARE OPTIONS
At the date of this Report, the Company does not
have a share option plan and no share options have
been granted to Directors, members of MHP’s Senior
Management, or employees.
AUDITOR APPOINTMENTS
EY was appointed as the auditor of the Company
with effect from the 2020 financial year, replacing
the
previous
auditor
Deloitte,
following
a
comprehensive tender and selection process in
the fourth quarter of 2019. The auditor position is
regularly reviewed by the Audit & Risk Committee.
The financial reporting process is underpinned by
clearly defined roles and responsibilities, regular
reconciliations,
management
oversight,
and
automated systems that support data capture,
consolidation, and analysis. These elements form
part of the Group’s internal control system over
financial reporting, which is designed to provide
reasonable assurance regarding the reliability
of financial statements and compliance with
applicable financial reporting standards.
Budgeting is a key component of the financial
control environment and is closely integrated
with the reporting process. Each year, a detailed
budget is prepared based on the Group’s strategic
and operational plans. The budget, along with the
underlying business plan, is reviewed and approved
by the Board of Directors. As part of this process,
major financial and commercial risks are identified,
assessed, and considered when setting financial
targets and resource allocations.
MHP also actively monitors changes in financial
reporting standards. Management collaborates
with external auditors to assess the potential impact
of new or revised standards and ensures that the
Group’s accounting policies and disclosures remain
up to date and compliant.
At Group level, MHP has in place common
accounting procedures on financial reporting and
closing. Management monitors the publication of
new reporting standards and works closely with
the external auditors in evaluating in advance the
potential impact of changes in these standards.
BRANCHES
MHP does not have any branches.
SHARE CAPITAL
The authorised share capital as at 31 December
2024 and 2023 was EUR 221,540,000 represented by
110,770,000 shares with a par value of EUR 2 each.
As at 31 December 2024, the Group had a direct
holding of 3,731,792 treasury shares represented by
an equal number of GDRs.
All shares have equal voting rights and rights
to receive dividends, which are payable at
the discretion of the Company. There was no
change in share capital during the year ended
31 December 2024 (Note 28, page 210).
DIRECTORS AND THEIR INTERESTS
Biographies for the Directors of the Board as at 31
December 2024 are set out on page 131.
For details of Directors’ Interests in the Company’s
GDRs, see page 140 of the Corporate Governance
Report. Note 1 to the Financial Statements on page
170 reports the details of the controlling interest
and other major interests in the Company’s
ordinary shares.
POWERS OF DIRECTORS
The Directors are responsible for managing the
business of the Company and may exercise all the
powers of the Company, subject to the provisions
of the Company’s Articles of Association. Powers
relating to the issuing of shares are also included in
the Articles of Association.
CHANGES TO THE BOARD
Following the retirement of John Grant from
the Board of Directors in June 2024, Christakis
Taoushanis became MHP’s Senior Independent
Director. There were no other changes to the Board
during 2024.
COMPENSATION OF KEY MANAGEMENT
PERSONNEL
Total
compensation
of
the
Group’s
key
management personnel, included primarily in
selling, general and administrative expenses in
the accompanying consolidated statements of
profit and loss and other comprehensive income,
amounted to US$ 24.7 million and US$ 23.6 million
for the years ended 31 December 2024 and 2023
respectively. Compensation of key management
personnel consists of contractual salary and
performance bonuses paid.
Key
management
personnel
totalled
22
and 21 individuals at 31 December 2024 and
2023
respectively,
including
three
and
four
independent
non-executive
directors
at
31 December 2024 and 2023 respectively. The
table
below
shows
the
total
remuneration
of Board members.
DIRECTORS
2024
US$000
2023
US$000
Executive Chair
654
588
NEDs
829
771
Executive Directors
9,168
8,249
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Board of Directors
Audit & Risk Committee
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Nominations and
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International Affairs
Committee Report
Management Report
FINANCIAL
STATEMENTS
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial Statements
Notes to Financial Statements
156
2024
I
N
T
E
G
R
A
T
E
D
G
R
O
U
P
A
N
N
U
A
L
R
E
P
O
R
T
A
N
D
A
C
C
O
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STATEMENT OF THE BOARD OF DIRECTORS’ RESPONSIBILITIES FOR
THE PREPARATION AND APPROVAL OF THE CONSOLIDATED FINANCIAL
STATEMENTS AS OF AND FOR THE YEAR ENDED 31 DECEMBER 2024.................. 158
INDEPENDENT AUDITOR’S REPORT.................................................................................................. 159
CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEAR ENDED 31 December 2024
Consolidated statement of profit or loss and other comprehensive income................ 165
Consolidated statement of financial position.................................................................................. 166
Consolidated statement of changes in equity................................................................................. 167
Consolidated statement of cash flows.................................................................................................. 168
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.............................................. 170
1.
Corporate information............................................................................................................................ 170
2.
Summary of material accounting policies................................................................................. 171
3.
Changes in the group structure....................................................................................................... 184
4. Investments in associates.................................................................................................................... 185
5.
Critical accounting judgments and key sources of estimation uncertainty....... 186
6.
Segment information.............................................................................................................................. 189
7.
Revenue........................................................................................................................................................... 191
8.
Cost of sales................................................................................................................................................... 192
9.
Selling, general and administrative expenses......................................................................... 192
10. Other operating income....................................................................................................................... 192
11. Other operating expenses................................................................................................................... 193
12. Deferred income........................................................................................................................................ 193
13. Finance income........................................................................................................................................... 193
14. Finance costs................................................................................................................................................ 193
15. Income tax...................................................................................................................................................... 194
16. Property, plant and equipment........................................................................................................ 196
17. Right-of-use assets.................................................................................................................................... 200
18. Intangible assets......................................................................................................................................... 201
19. Goodwill............................................................................................................................................................ 202
20. Non-current financial assets............................................................................................................... 203
21. Biological assets......................................................................................................................................... 204
22. Inventories...................................................................................................................................................... 207
23. Agricultural produce................................................................................................................................ 207
24. Taxes recoverable and prepaid.......................................................................................................... 207
25. Trade accounts receivable.................................................................................................................... 207
26. Other current financial assets........................................................................................................... 210
27. Cash and cash equivalents.................................................................................................................. 210
28. Shareholders’ equity................................................................................................................................ 210
29. Non-controlling interests...................................................................................................................... 211
30. Bank borrowings........................................................................................................................................ 213
31. Bonds issued................................................................................................................................................. 215
32. Lease liabilities............................................................................................................................................. 216
33. Other current liabilities .......................................................................................................................... 216
34. Related party balances and transactions................................................................................... 216
35. Operating environment in Ukraine................................................................................................ 217
36. Contingencies and contractual commitments...................................................................... 218
37. Fair value of financial instruments................................................................................................. 219
38. Risk management policies.................................................................................................................. 221
39. Pensions and retirement plans......................................................................................................... 224
40. Earnings per share.................................................................................................................................... 224
41. Subsequent events................................................................................................................................... 225
42. Authorization of the consolidated financial statements.................................................. 225
CONTENTS
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
157
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
The Board of Directors is responsible for the
preparation of the consolidated financial statements
that give a true and fair view of the consolidated
financial position of MHP SE (the “Company”) and
its subsidiaries (the “Group”) as of 31 December 2024
and of the consolidated statements of profit or loss
and other comprehensive income, changes in equity
and cash flows for the year then ended, and notes
to the consolidated financial statements, including a
summary of material accounting policies.
In preparing the consolidated financial statements, the
Board of Directors is responsible for:
• properly selecting and consistently applying
accounting policies;
• presenting information, including accounting
policies, in a manner that provides relevant, reliable,
comparable and understandable information;
• providing additional disclosures when compliance
with the specific requirements in the International
Financial Reporting Standards (“IFRS”) are insufficient
to enable users to understand the impact of
particular transactions, other events and conditions
on the Group’s consolidated financial position and
financial performance;
• making an assessment of the Group’s ability to
continue as a going concern.
The Board of Directors, within its competencies, is also
responsible for:
• designing, implementing and maintaining an
effective and sound system of internal controls over
financial reporting, throughout the Group;
• maintaining adequate accounting records that are
sufficient to show and explain the Group’s transactions
and disclose with reasonable accuracy at any time
the consolidated financial position of the Group, and
which enable them to ensure that the consolidated
financial statements of the Group comply with IFRS;
• maintaining statutory accounting records in
compliance with local legislation and accounting
standards in the respective jurisdictions;
• taking such steps as are reasonably available to them
to safeguard the assets of the Group; and
• preventing and detecting fraud and other
irregularities.
The consolidated financial statements of the Group
as of and for the year ended 31 December 2024 were
authorized for issue by the Board of Directors on 28
April 2025.
Board of Directors' responsibility statement
In accordance with DTR4.1 on Annual Financial
Reporting, providing for the disclosure and transparency
requirements for issuers whose transferable securities
are admitted to trading on a UK Recognised Investment
Exchange, we, the members of the Board of Directors,
responsible for the preparation of the annual
consolidated financial statements of MHP SE for year
ended 31 December 2024, hereby declare that to the
best of our knowledge:
a) the consolidated financial statements, prepared
in accordance with International Financial Reporting
Standards (IFRS) adopted by the EU, give a true and
fair view of the assets, liabilities, financial position and
profit of the Company and the undertakings included
in the consolidation taken as a whole; and
b) the management report includes a fair review of the
development and performance of the business and
STATEMENT OF THE BOARD OF DIRECTORS’ RESPONSIBILITIES FOR
THE PREPARATION AND APPROVAL OF THE CONSOLIDATED FINANCIAL
STATEMENTS AS OF AND FOR THE YEAR ENDED 31 DECEMBER 2024
the position of the Company, and the undertakings
included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face.
On behalf of the Board:
Yuriy Kosyuk
Director
Viktoriia Kapeliushna
Director
John Clifford Rich
Director
Philip J Wilkinson
Director
Andriy Bulakh
Director
Christakis Taoushianis
Director
Oscar Chemerinski
Director
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
158
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
INDEPENDENT AUDITOR’S REPORT
Ernst & Young Cyprus Ltd
10 Esperidon Street
1087 Nicosia
P.O. Box 21656
1511 Nicosia, Cyprus
Tel: +357 22209999
Fax: +357 22209998
ey.com
TO THE MEMBERS OF MHP SE
REPORT ON THE AUDIT OF THE
CONSOLIDATED FINANCIAL STATEMENTS
OPINION
We have audited the consolidated financial statements
of MHP SE (the “Company”), and its subsidiaries (the
“Group”), which comprise the consolidated statement
of financial position as at 31 December 2024, and
the consolidated statements of profit or loss and
other comprehensive income, changes in equity and
cash flows for the year then ended, and notes to the
consolidated financial statements, including material
accounting policy information.
In our opinion, the accompanying consolidated financial
statements give a true and fair view of the consolidated
financial position of the Group as at 31 December 2024,
and of its consolidated financial performance and its
consolidated cash flows for the year then ended in
accordance with IFRS Accounting Standards as adopted
by the European Union and the requirements of the
Cyprus Companies Law, Cap. 113.
BASIS FOR OPINION
We conducted our audit in accordance with
International Standards on Auditing (ISAs). Our
responsibilities under those standards are further
described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements
section of our report. We are independent of the
Group in accordance with the International Ethics
Standards Board for Accountants’ International
Code of Ethics for Professional Accountants
(including International Independence Standards)
(IESBA Code) together with the ethical requirements
that are relevant to our audit of the consolidated
financial statements in Cyprus, and we have fulfilled
our other ethical responsibilities in accordance
with these requirements and the IESBA Code. We
believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion.
MATERIAL UNCERTAINTY RELATED
TO GOING CONCERN
We draw attention to Note 2 to the consolidated
financial statements, which indicates that the Group’s
operations are negatively affected by the Russian
Federation`s military invasion of Ukraine, with the
magnitude of further developments or the timing
of their cessation being uncertain. These conditions,
along with other matters as set forth in Notes 2 and
35 indicate the existence of a material uncertainty
that may cast significant doubt on the Group’s ability
to continue as a going concern. Our opinion is not
modified in respect of this matter.
KEY AUDIT MATTERS INCORPORATING
THE MOST SIGNIFICANT RISKS OF MATERIAL
MISSTATEMENTS, INCLUDING ASSESSED RISK
OF MATERIAL MISSTATEMENTS DUE TO FRAUD
Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the consolidated financial statements of
the current period. In addition to the matter described
in the Material Uncertainty Related to Going Concern
section of our report, we have determined the matters
described below to be the key audit matters to be
communicated in our report. These matters were
addressed in the context of our audit of the consolidated
financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate
opinion on these matters. For each matter below, our
description of how our audit addressed the matter is
provided in that context.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report, including in
relation to these matters. Accordingly, our audit included
the performance of procedures designed to respond to
our assessment of the risks of material misstatement of
the consolidated financial statements. The results of our
audit procedures, including the procedures performed
to address the matters below, provide the basis for
our audit opinion on the accompanying consolidated
financial statements.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
159
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
INDEPENDENT AUDITOR’S REPORT
KEY AUDIT MATTER
HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
REVENUE RECOGNITION
The total amount of revenue recognised in 2024 was USD 3,046 million. Revenue
recognition was one of the matters of most significance in our audit since the
amount of revenue is material to the consolidated financial statements and
management judgment is involved in the interpretation of contract terms and
timing of revenue recognition, in particular, close to the end of the reporting period.
Additionally, revenue is one of the key performance measures of the Group, giving
rise to a potential incentive for revenue to be recognized prior to control over goods
and services been transferred, to achieve performance targets.
Information on the accounting policy for revenue recognition is disclosed in Note
2 of the consolidated financial statements and disclosures related to revenue are
included in Note 7 of the consolidated financial statements.
In this area, our audit procedures included, among others:
• We considered the Group’s accounting policy in respect of revenue recognition.
• We assessed the design and operating effectiveness of relevant internal controls
over the revenue recognition process.
• We analysed sales contracts terms and assessed the moment of transfer of control
over goods and services. On a sample basis, we compared the date of transfer
of control over goods and services with the date of revenue recognition. We
also tested, on a sample basis, data of transaction records in the system to their
respective customer contracts, underlying invoices and cash receipts.
• On a sample basis, we obtained confirmations of sales and accounts receivable
balances from customers.
• We tested a sample of revenue transactions recognised shortly before and after the
year end and assessed the period these transactions relate to.
• We performed analytical procedures in respect of revenue that included,
among others, the analysis of monthly sales to detect unusual fluctuations and
reconciliation with comparative information for prior periods.
• We assessed disclosures in respect of revenue included in the notes to the
consolidated financial statements
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
160
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
INDEPENDENT AUDITOR’S REPORT
KEY AUDIT MATTER
HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
VALUATION OF BIOLOGICAL ASSETS AND AGRICULTURAL PRODUCE
The Group measures biological assets at fair value less costs to sell in accordance
with IAS 41 Agriculture and IFRS 13 Fair Value Measurement. As at 31 December 2024,
the carrying value of biological assets was USD 200 million, out of which USD 169
million was classified as current assets and USD 31 million as non-current assets.
Agricultural produce harvested from biological assets is measured at fair value less
costs to sell at the point of harvest in accordance with IAS 41 Agriculture and IFRS 13
Fair Value Measurement. As at 31 December 2024, the carrying value of agricultural
produce was USD 437 million.
The Group assesses the fair value of the biological assets based on the discounted
cash flow technique. The key assumptions and inputs used in the measurement
are average meat output, average productive life, expected yields, expected market
prices, estimated future production costs and costs to sell and discount rates.
The fair value of agricultural produce is determined by reference to market prices at
the point of harvest.
The valuation of biological assets and agricultural produce is one of the matters
of most significance in our audit since the assessment of fair value requires
assumptions as described above, including those based on the unobservable inputs,
and significant level of management judgement, and, therefore, is inherently
susceptible to the risk of material misstatement.
Information on the accounting policy and key judgements and estimates for
biological assets and agricultural produce is disclosed in Note 2 and 5 of the
consolidated financial statements and disclosures related to the biological assets
and agricultural produce are included in Notes 21 and 23 of the consolidated
financial statements.
In this area, our audit procedures included, among others:
• We analysed the Group’s accounting policy in respect of biological assets and
agricultural produce in accordance with the requirements of IAS 41 and IFRS 13.
• We obtained an understanding of the internal controls surrounding the valuation
process for biological assets and agricultural produce and assessed their design and
implementation.
• For biological assets, we analysed the valuation methods used by management.
Further, we compared management’s assumptions to the Group’s historical data
and, where applicable, to market data and external benchmarks. We analysed costs
required to sell biological assets and how they are taken into consideration in the
calculation of fair value less cost to sell. We considered the discount rate used, with
the support of our internal valuation specialists.
• For agricultural produce, we analysed management’s identification of the principal
market, we compared the prices used by management to the market data. We
analysed costs required to sell agricultural produce and analysed how they are
taken into consideration in the calculation of fair value less cost to sell.
• We tested the mathematical accuracy of the models prepared by management.
We also tested completeness and accuracy of input data, including the physical
quantities and crop areas, where applicable, used in the valuation.
• We assessed the disclosures in respect of biological assets and agricultural produce
made in the consolidated financial statements.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
161
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
INDEPENDENT AUDITOR’S REPORT
KEY AUDIT MATTER
HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
FAIR VALUE OF PROPERTY, PLANT AND EQUIPMENT
The Group applies the revaluation model to measure the carrying value of all
classes of property, plant and equipment, except for land, other fixed assets and
construction in progress. In 2024, the Group conducted the valuation of property,
plant and equipment with the engagement of an independent external appraiser.
This resulted in a net increase of the carrying amount of property, plant and
equipment by USD 427 million. Due to the high level of subjectivity in respect of
assumptions underlying the assessment of the fair value of property, plant and
equipment this matter was one of the most significance in our audit.
Information about property, plant and equipment is disclosed in Note 16 to the
consolidated financial statements. Description of the accounting policy and key
judgements and estimates is included in Notes 2 and 5 to the consolidated financial
statements.
In this area, our audit procedures included, among others:
• We assessed the competence, capabilities and objectivity of the external appraiser.
• We engaged our internal valuation specialists in the assessment of the valuation
methodology used and the assumptions made by the appraiser and management.
• We compared input data used by the external appraiser with internal sources of
data and available industry data.
• We analyzed the underlying assumptions by inspecting historical data, available
market data and other evidence provided by management.
• We tested the mathematical accuracy of the calculations performed by the external
appraiser and the Group.
• We compared the amount of revaluation results recognized in the consolidated
financial statements with the valuation report.
• We assessed the disclosures in the consolidated financial statements related to fair
value measurement of the property, plant and equipment.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
162
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
INDEPENDENT AUDITOR’S REPORT
OTHER INFORMATION
The Board of Directors is responsible for the other
information. The other information comprises
information included in the Group’s 2024 Annual
Report, but does not include the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the consolidated financial statements, or our
knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the
work we have performed, we conclude that there is
a material misstatement of this other information, we
are required to report that fact. We have nothing to
report in this regard.
RESPONSIBILITIES OF THE BOARD OF DIRECTORS
AND THOSE CHARGED WITH GOVERNANCE FOR
THE CONSOLIDATED FINANCIAL STATEMENTS
The Board of Directors is responsible for the
preparation of consolidated financial statements
that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the European
Union and the requirements of the Cyprus Companies
Law, Cap. 113, and for such internal control as the
Board of Directors determines is necessary to enable
the preparation of consolidated financial statements
that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial statements,
the Board of Directors is responsible for assessing
the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going
concern and using the going concern basis of
accounting unless the Board of Directors either
intends to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for
overseeing the Group’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT
OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance
about
whether
the
consolidated
financial
statements as a whole are free from material
misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material
misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they
could reasonably be expected to influence the
economic decisions of users taken on the basis of
these consolidated financial statements.
As part of an audit in accordance with ISAs, we
exercise professional judgment and maintain
professional scepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement
of the consolidated financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by the Board
of Directors.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
163
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
INDEPENDENT AUDITOR’S REPORT
• Conclude on the appropriateness of the Board
of Directors’ use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Group’s ability to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in
the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report.
However, future events or conditions may cause
the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and
content of the consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent the
underlying transactions and events in a manner
that achieves a true and fair view.
• Plan and perform the group audit to obtain
sufficient appropriate audit evidence regarding
the financial information of the entities or business
units within the Group as a basis for forming an
opinion on the consolidated financial statements.
We are responsible for the direction, supervision
and review of the audit work performed for the
purposes of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the consolidated financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
REPORT ON OTHER LEGAL REQUIREMENTS
Pursuant to the additional requirements of the Auditors
Law of 2017, we report the following:
• In our opinion, based on the work undertaken in the
course of our audit, the consolidated management
report has been prepared in accordance with the
requirements of the Cyprus Companies Law, Cap. 113, and
the information given is consistent with the consolidated
financial statements.
• In light of the knowledge and understanding of the Group
and its environment obtained in the course of the audit,
we are required to report if we have identified material
misstatements in the consolidated management report.
We have nothing to report in this respect.
OTHER MATTERS
This report, including the opinion, has been prepared for and
only for the Company’s members as a body in accordance
with Section 69 of the Auditors Law of 2017 and for no other
purpose. We do not, in giving this opinion, accept or assume
responsibility for any other purpose or to any other person
to whose knowledge this report may come to.
The engagement partner on the audit resulting in this
independent auditor’s report is Andreas Avraamides.
Andreas Avraamides
Certified Public Accountant and Registered Auditor
for and on behalf of
Ernst & Young Cyprus Limited
Certified Public Accountants and Registered Auditors
Nicosia, 28 April 2025
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
164
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
CONSOLIDATED STATEMENT OF PROFIT
OR LOSS AND OTHER COMPREHENSIVE INCOME
NOTES
2024
2023
Revenue
6, 7
3,046
3,021
Net change in fair value of biological assets
and agricultural produce
6
135
(48)
Cost of sales
8
(2,333)
(2,334)
Gross profit
848
639
Selling, general and administrative
expenses
9
(348)
(270)
Other operating income
10
16
19
Other operating expenses
11
(76)
(49)
Loss on impairment of goodwill and
property, plant and equipment
6
(27)
-
Operating profit
413
339
Finance income
13
21
37
Finance costs
14
(160)
(163)
Foreign exchange loss
38
(125)
(40)
Profit before tax
149
173
Income tax expense
15
(5)
(31)
Profit for the year
144
142
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified
to profit or loss:
Increase in revaluation reserve of property,
plant and equipment
16
454
-
Deferred tax on revaluation of property,
plant and equipment
15
(69)
-
NOTES
2024
2023
Items that may be reclassified
to profit or loss:
Cumulative translation difference
(131)
(20)
Other comprehensive income/(loss)
254
(20)
Total comprehensive income for the year
398
122
Profit attributable to:
Equity holders of the Parent
134
144
Non-controlling interests
29
10
(2)
144
142
Total comprehensive income attributable to:
Equity holders of the Parent
383
125
Non-controlling interests
15
(3)
398
122
Earnings/(loss) per share
Basic and diluted earnings/(loss) per share
(USD per share)
40
1.25
1.35
On behalf of the Board:
Chief Executive Officer
Yuriy Kosyuk
Chief Financial Officer
Viktoriia Kapeliushna
The accompanying notes on the pages 170 to 225 form an integral part of these consolidated financial
statements
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
165
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
NOTES
31 DECEMBER
2024
31 DECEMBER
2023
ASSETS
Non-current assets
Property, plant and equipment
16
2,301
1,885
Right-of-use assets
17
266
248
Intangible assets
18
66
75
Goodwill
19
65
62
Non-current biological assets
21
31
16
Investments in associates
4
21
1
Non-current financial assets
20
10
9
Deferred tax assets
15
1
2
2,761
2,298
Current assets
Inventories
22
381
333
Biological assets
21
169
171
Agricultural produce
23
437
370
Prepayments
47
28
Other current financial assets
26
19
34
Taxes recoverable and prepaid
24
57
30
Trade accounts receivable
25
200
186
Cash and cash equivalents
27
355
436
1,665
1,588
TOTAL ASSETS
4,426
3,886
EQUITY AND LIABILITIES
Equity
Share capital
28
285
285
Treasury shares
(45)
(45)
Additional paid-in capital
174
174
Revaluation reserve
960
706
Retained earnings
2,052
1,793
Translation reserve
(1,486)
(1,356)
NOTES
31 DECEMBER
2024
31 DECEMBER
2023
Equity attributable to equity holders
of the Parent
1,940
1,557
Non-controlling interests
29
26
10
Total equity
1,966
1,567
Non-current liabilities
Bank borrowings
30
492
234
Bonds issued
31
894
891
Lease liabilities
32
197
180
Deferred tax liabilities
15
169
123
Deferred income
12
37
36
Other non-current liabilities
6
5
1,795
1,469
Current liabilities
Bank borrowings
30
271
145
Bonds issued
31
-
348
Lease liabilities
32
79
76
Interest payable
30, 31
24
22
Trade accounts payable
147
142
Contract liabilities
24
18
Other current liabilities
33
120
99
665
850
TOTAL LIABILITIES
2,460
2,319
TOTAL EQUITY AND LIABILITIES
4,426
3,886
On behalf of the Board:
Chief Executive Officer
Yuriy Kosyuk
Chief Financial Officer
Viktoriia Kapeliushna
The accompanying notes on the pages 170 to 225 form an integral part of these consolidated financial
statements
AS OF 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
166
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
SHARE
CAPITAL
TREASURY
SHARES
ADDITIONAL
PAID-IN
CAPITAL
REVALUATION
RESERVE
RETAINED
EARNINGS
TRANSLATION
RESERVE
TOTAL
NON-
CONTROLLING
INTERESTS
TOTAL
EQUITY
Balance at 1 January 2023
285
(45)
174
792
1,559
(1,337)
1,428
18
1,446
Prodit/(loss) for the year
-
-
-
-
144
-
144
(2)
142
Other comprehensive loss
-
-
-
-
-
(19)
(19)
(1)
(20)
Total comprehensive income/(loss) for the
year
-
-
-
-
144
(19)
125
(3)
122
Transfer from revaluation reserve to retained
earnings
-
-
-
(59)
59
-
-
-
-
Acquisition of non-contoling interests (Note 3)
-
-
-
-
4
-
4
(5)
(1)
Translation differences on revaluation reserve
-
-
-
(27)
27
-
-
-
-
Balance at 31 December 2023
285
(45)
174
706
1,793
(1,356)
1,557
10
1,567
Profit for the year
-
-
-
-
134
-
134
10
144
Other comprehensive income/(loss)
-
-
-
379
-
(130)
249
5
254
Total comprehensive income/(loss) for the
year
-
-
-
379
134
(130)
383
15
398
Transfer from revaluation reserve to retained
earnings
-
-
-
(52)
52
-
-
-
-
Non-controlling interests arising in a business
combination (Note 3)
-
-
-
-
-
-
-
1
1
Translation differences on revaluation reserve
-
-
-
(73)
73
-
-
-
-
Balance at 31 December 2024
285
(45)
174
960
2,052
(1,486)
1,940
26
1,966
On behalf of the Board:
Chief Executive Officer
Yuriy Kosyuk
Chief Financial Officer
Viktoriia Kapeliushna
The accompanying notes on the pages 170 to 225 form an integral part of these consolidated financial statements
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
167
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES
2024
2023
OPERATING ACTIVITIES
Profit before tax
149
173
Non-cash adjustments to reconcile profit
before tax to net cash flows
Depreciation and amortization expense
6
192
169
Net change in fair value of biological
assets and agricultural produce
6
(135)
48
Change in allowance for expected credit
losses and direct write-offs
6
10
Loss on impairment of goodwill and
property, plant and equipment
16
27
-
Loss on disposal of property, plant and
equipment and other non-current assets
4
2
Finance income
(21)
(37)
Finance costs
14
160
163
Released deferred income
(4)
(1)
Share of loss of associates
2
-
Foreign exchange loss
125
40
Operating cash flows before movements
in working capital
505
567
Working capital adjustments
Change in inventories
(76)
66
Change in biological assets
(24)
(2)
Change in agricultural produce
22
(55)
Change in prepayments made
(18)
-
Change in other current financial assets
2
4
Change in taxes recoverable and prepaid
(33)
35
Change in trade accounts receivable
(22)
(3)
Change in contract liabilities
9
(13)
Change in other current liabilities
36
(2)
Change in trade accounts payable
7
31
Cash generated by operations
408
628
NOTES
2024
2023
Interest received
10
11
Interest paid
(157)
(178)
Income taxes paid
(15)
(23)
Net cash flows from operating activities
246
438
INVESTING ACTIVITIES
Purchases of property, plant and
equipment
(290)
(212)
Proceeds from disposals of property,
plant and equipment
5
7
Purchases of intangible assets
(7)
(4)
Acquisition of subsidiaries, net of cash
acquired
3
(14)
-
Investments in associates
4
(23)
-
Purchases of non-current biological assets
(2)
(3)
Prepayments and capitalized initial direct
costs under lease contracts
(6)
(6)
Loans provided
(13)
(10)
Loans repaid
2
2
Divestments/(investments) in financial
assets
15
(2)
Net cash flows used in investing activities
(333)
(228)
The accompanying notes on the pages 170 to 225 form an integral part of these consolidated financial
statements
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
168
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
NOTES
2024
2023
FINANCING ACTIVITIES
Proceeds from bank borrowings
589
280
Repayment of bank borrowings
(202)
(208)
Repayment of bonds issued
(342)
(128)
Repayment of lease liabilities
(28)
(28)
Dividends paid by subsidiaries
to non-controlling shareholders
-
(2)
Net cash flows (used in)/from financing
activities
17
(86)
Net (decrease/increase in cash and cash
equivalents
(70)
124
Net foreign exchange difference on cash
and cash equivalents
(11)
12
Cash and cash equivalents at 1 January
26
436
300
Cash and cash equivalents
at 31 December
26
355
436
On behalf of the Board:
Chief Executive Officer
Yuriy Kosyuk
Chief Financial Officer
Viktoriia Kapeliushna
The accompanying notes on the pages 170 to 225 form an integral part of these consolidated financial
statements
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
169
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
1. Corporate information
MHP SE (the “Parent” or “MHP SE”), a limited liability
company (Societas Europaea) registered under the laws
of Cyprus, was formed on 30 May 2006. Hereinafter,
MHP SE and its subsidiaries are referred to as the “MHP
SE Group” or the “Group”. The registered address of
MHP SE is 16-18 Zinas Kanther Street, Agia Triada, 3035
Limassol, Cyprus. The MHP SE shares are listed on the
London Stock Exchange (“LSE”) in the form of global
depositary receipts (“GDRs”).
The controlling shareholder of MHP SE is Mr. Yuriy
Kosyuk (“Principal Shareholder”), who owns 100% of the
shares of WTI Trading Limited (“WTI”), the immediate
majority shareholder of MHP SE, which in turn directly
owns of 59,7% of the total outstanding share capital of
MHP SE.
The principal business activities of the Group are poultry
and related operations, vegetable oil, and agriculture
operations. The Group’s poultry and related operations
integrate all functions related to chicken production,
including hatching, fodder manufacturing, raising
chickens to marketable age (“grow-out”), processing
and sale of frozen and chilled chicken meat, as well
as processed meat products. Agriculture operations
comprise producing and selling grains and cattle
breeding for milk production. Vegetable oil operations
include the production and sale of vegetable oil, cake,
and husk. As of 31 December 2024 the Group employed
36,306 people (31 December 2023: 33,169 people).
The primary subsidiaries, the principal activities of
the companies forming the Group and the Parent’s
effective ownership interest as of 31 December 2024
and 2023 were as follows:
NAME
COUNTRY OF
REGISTRATION
YEAR
ESTABLISHED/
ACQUIRED
PRINCIPAL
ACTIVITIES
31 DECEMBER
2024
31 DECEMBER
2023
MHP Lux S.A.
Luxembourg
2018
Finance Company
100.0%
100.0%
MHP
Ukraine
1998
Management,
marketing and sales
99.9%
99.9%
Myronivsky Plant of
Manufacturing Feeds and
Groats
Ukraine
1998
Fodder and
vegetable oil
production
88.5%
88.5%
Vinnytska Ptakhofabryka
Ukraine
2011
Chicken farm
100.0%
100.0%
Peremoga Nova
Ukraine
1999
Breeder farm
99.9%
99.9%
Oril-Leader
Ukraine
2003
Chicken farm
99.9%
99.9%
Myronivska Pticefabrika
Ukraine
2004
Chicken farm
99.9%
99.9%
Starynska Ptakhofabryka
Ukraine
2003
Breeder farm
100.0%
100.0%
Zernoprodukt MHP
Ukraine
2005
Grain cultivation
99.9%
99.9%
Katerinopilskiy Elevator
Ukraine
2005
Fodder production
and grain storage,
vegetable oil
production
99.9%
99.9%
SPF Urozhay
Ukraine
2006
Grain cultivation
99.9%
99.9%
Agrofort
Ukraine
2006
Grain cultivation
99.9%
99.9%
MHP-Urozhayna Krayina
Ukraine
2010
Grain cultivation
99.9%
99.9%
Ukrainian Bacon
Ukraine
2008
Meat processing
79.9%
79.9%
MHP-AgroKryazh
Ukraine
2013
Grain cultivation
51.0%
51.0%
MHP-Agro-S
Ukraine
2013
Grain cultivation
51.0%
51.0%
Zakhid-Agro MHP
Ukraine
2015
Grain cultivation
100.0%
100.0%
Perutnina Ptuj d.d.
Slovenia
2019
Poultry production
100.0%
100.0%
MHP Food Trading
United Arab
Emirates
2016
Trading in vegetable
oil and poultry meat
100.0%
100.0%
MHP B.V.
Netherlands
2014
Trading in poultry
meat
100.0%
100.0%
MHP Trade B.V.
Netherlands
2018
Trading in poultry
meat
100.0%
100.0%
MHP Saudi Arabia Trading
Saudi Arabia
2018
Trading in poultry
meat
100.0%
100.0%
MHP Food UK Limited
United Kingdom
2021
Trading in poultry
meat
100.0%
100.0%
The Group’s primary operational facilities are located in different regions of Ukraine as well as in Southeast Europe, including
Slovenia, Serbia, Croatia and Bosnia and Herzegovina (represented by Perutnina Ptuj d.d. together with its subsidiaries).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
170
2. Summary of material accounting
policies
BASIS OF PRESENTATION AND ACCOUNTING
The consolidated financial statements have been
prepared in accordance with IFRS Accounting
Standards as adopted by the European Union and the
requirements of the Cyprus Companies Law Cap 113.
The operating subsidiaries of the Group maintain their
accounting records under local accounting standards.
The financial statements of the subsidiaries of the
Group are prepared for the same reporting period
as the parent, using consistent accounting policies.
Adjustments are made to align any dissimilar
accounting policies, that may exist, with the Group`s
accounting policies.
BASIS OF PREPARATION
The consolidated financial statements of the Group
are prepared on the basis of historical cost except for
revalued amounts of buildings and structures, grain
storage facilities, production machinery, vehicles and
agricultural machinery, biological assets, agricultural
produce, and certain financial instruments, which
are carried at fair values. Historical cost is generally
based on the fair value of the consideration given in
exchange for goods and services at the date of initial
recognition of an item.
GOING CONCERN
In 2024, the Group continued its operations amidst
the challenging environment significantly impacted
by the Russian invasion of Ukraine since 24 February
2022. Consequently, when making the going concern
assessment the Group considered the following
significant observable events and conditions,
including those caused by the war, during the year
ended 31 December 2024 and up to the date of
authorization to issue these consolidated financial
statements:
• the Group’s poultry production facilities have
remained undamaged and continued operating at
full capacity throughout the year. The only exception
is the meat processing facilty “Ukrainian bacon” that
was damaged in July 2024. There is no impact from
this damage on the Group profit or loss in 2024, as
the Group recognised full impairment of the affected
assets located in the Donetsk region in 2022;
• production and sales volumes remained stable at
pre-war levels throughout 2024, despite ongoing
logistic challenges and persistent military activity
in certain regions of Ukraine;
• despite challenges in Ukraine's energy infrastructure
in 2024, MHP maintained stable operations in
poultry farming, oilseed processing, and grain
storage,
ensuring
uninterrupted
production
processes and efficient supply chain management;
• in May 2024, a warehouse in the Odesa region, rented
by the Group from a third party for storing frozen
chicken meat products, was completely destroyed.
As a result, poultry products with a carrying value of
approximately USD 6 million were lost, as disclosed
in Note 35 Operating environment;
• as at 31 December 2024, over 2,500 MHP employees
continued to be in active service in Ukrainian
military forces and territorial defence units; and
• the Group’s European operations at Perutnina Ptuj
continued to operate independently without any
direct impact from the Russian invasion of Ukraine,
maintaining full operational and supply chain
capacity throughout 2024.
Between 2022 and 2024, the Group demonstrated
its resilience and ability to operate effectively in a
challenging environment. To ensure the sustainability
of its operations in the future, the Group has
implemented the following measures:
• further optimized production capacity and resource
allocation to effectively meet both domestic and
international demand;
• maintained robust backup power solutions
by expanding diesel generator capacity and
fully operating its biogas facilities, ensuring
uninterrupted electricity, industrial steam, and
heating supply;
• continued a prudent liquidity management
policy due to lingering war-related uncertainties,
refraining from declaring any dividend for the year
ended 31 December 2024;
• proactively managed its debt profile, successfully
refinancing and servicing obligations as they
were becoming due. In particular, as detailed in
Note 30, the Group secured additional refinancing
agreements with international financial institutions,
ensuring comprehensive refinancing of its bonds
that matured in May 2024.
Management has prepared financial forecasts,
including cash flow projections, covering the 2025-
2026 budget cycle. These forecasts reflect expected
economic conditions, considering anticipated
changes in the operating environment, including
the impact of the War and other relevant factors.
The Group ensures financial stability by continuously
monitoring its obligations under existing debt
agreements
and
implementing
necessary
measures to meet its debt servicing requirements
in full and on time.
These forecasts indicate that the Group has adequate
resources to continue in operational existence for
the foreseeable future. The Directors have therefore
concluded that it is appropriate to apply the going
concern basis of accounting in preparing these
consolidated financial statements. However, due to
the currently unpredictable effects of the ongoing
War, the Directors have concluded that a material
uncertainty exists, which may cast significant doubt
on the Group’s ability to continue as a going concern,
in which case the Group may be unable to realize
its assets and discharge its liabilities in the normal
course of business.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
171
2. Summary of material accounting
policies (continued)
ADOPTION OF NEW AND REVISED IFRS
ACCOUNTING STANDARDS
The Group applied for the first time certain standards
and amendments which are effective for annual periods
beginning on or after 1 January 2024. The Group has
not early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective.
The following standards and amendments were
adopted by the Group on 1 January 2024:
• Classification of Liabilities as Current or Non-current
– Amendments to IAS 1 ;
• Lease Liability in a Sale and Leaseback –
Amendments to IFRS 16;
• Supplier Finance Arrangements - Amendments to
IAS 7 and IFRS 7;
•
IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-
current (Amendments)
The amendments are effective for annual reporting
periods beginning on or after 1 January 2024, and
are applied retrospectively. The objective of the
amendments is to clarify the principles in IAS 1 for the
classification of liabilities as either current or non-current.
The amendments clarify the meaning of a right to defer
settlement, the requirement for this right to exist at the
end of the reporting period, that management intent
does not affect current or non-current classification,
that options by the counterparty that could result in
settlement by the transfer of the entity’s own equity
instruments do not affect current or non-current
classification. Also, the amendments specify that only
covenants with which an entity must comply on or before
the reporting date will affect a liability’s classification.
Additional disclosures are also required for non-current
liabilities arising from loan arrangements that are subject
to covenants to be complied within twelve months after
the reporting period.
The amendments have resulted in additional
disclosures in Notes 30 and 31, but have not had an
impact on the classification of the Group’s liabilities.
The other newly adopted amendments to IFRS
Accounting standards did not have a material impact
on the Group’s consolidated financial statements.
STANDARDS AND INTERPRETATIONS IN ISSUE
BUT NOT EFFECTIVE
At the date of authorization of these consolidated
financial statements, the following Standards and
Interpretations, as well as amendments to the
Standards were in issue but not yet effective:
IAS 21 The Effects of Changes in Foreign
Exchange Rates: Lack of Exchangeability
(Amendments)
The amendments are effective for annual reporting
periods beginning on or after January 1, 2025, with
earlier application permitted. The amendments
are not expected to have a material impact on the
Group’s consolidated financial statements.
IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures – Classification
and Measurement of Financial Instruments
(Amendments)
In May 2024, the IASB issued amendments to
the Classification and Measurement of Financial
Instruments which amended IFRS 9 Financial
Instruments and IFRS 7 Financial Instruments:
Disclosures. The amendments are effective for
annual reporting periods beginning on or after
1 January 2026, with earlier application permitted.
The amendments have not yet been endorsed by
the EU. The amendments are not expected to have a
material impact on the Group’s consolidated financial
statements.
IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures – Contracts Referencing
Nature-dependent Electricity (Amendments)
In December 2024, the IASB issued targeted
amendments for a better reflection of Contracts
Referencing Nature-dependent Electricity, which
amended IFRS 9 Financial Instruments and IFRS 7
Financial Instruments: Disclosures. The amendments
are effective for annual reporting periods beginning
on or after 1 January 2026, with earlier application
permitted. The amendments have not yet been
endorsed by the EU. The amendments are not expected
to have a material impact on the Group’s consolidated
financial statements.
IFRS 18 – Presentation and Disclosure in Financial
Statements
On 9 April 2024, the IASB issued the IFRS 18 –
Presentation and Disclosure in Financial Statements
which replaces IAS 1 – Presentation of Financial
Statements. IFRS 18 becomes effective for annual
reporting periods beginning on or after 1 January 2027,
with earlier application permitted. The new standard
has not yet been endorsed by the EU. Management
will analyse the requirements of the new standard
and assess its impact
IFRS 19 Subsidiaries without Public
Accountability: Disclosures
In May 2024, the IASB issued the IFRS 19 - Subsidiaries
without Public Accountability: Disclosures. It becomes
effective for reporting periods beginning on or after
1 January 2027, with early application permitted.
The new standard has not yet been endorsed by the
EU. The amendments are not expected to have a
material impact on the Group’s consolidated financial
statements.
Annual Improvements to IFRS Accounting
Standards – Volume 11
In July 2024, the IASB issued Annual Improvements
to IFRS Accounting Standards – Volume 11. An entity
shall apply those amendments for annual reporting
periods beginning on or after 1 January 2026, with
earlier application permitted. The improvements have
not yet been endorsed by the EU. Management will
analyse the requirements of these new improvements
and assess their impact.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
172
2. Summary of material accounting
policies (continued)
STANDARDS AND INTERPRETATIONS IN ISSUE
BUT NOT EFFECTIVE (continued)
Amendment in IFRS 10 Consolidated Financial
Statements and IAS 28 Investments in Associates
and Joint Ventures: Sale or Contribution of Assets
between an Investor and its Associate or Joint
Venture
In December 2015, the IASB postponed the effective
date of this amendment indefinitely pending the
outcome of its research project on the equity method
of accounting.
FUNCTIONAL AND PRESENTATION CURRENCY
The functional currency of the Ukrainian companies
of the Group is the Ukrainian Hryvnia (“UAH”); the
functional currency of the Cyprus companies and
Luxembourg company of the Group is the US Dollar
(“USD”); the functional currency of the European
companies of the Group is the Euro (“EUR”); the
functional currency of the United Arab Emirates
companies is the Dirham (“AED”); the functional
currency of the UK company is the British Pound
("GBP”); the functional currency of the Saudi Arabia
company is the Saudi Riyal ("SAR”).
Transactions in currencies other than the functional
currency of the entities concerned are treated as
transactions in foreign currencies.
Such transactions are initially recorded at the rates
of exchange ruling at the dates of the transactions.
Monetary assets and liabilities denominated in such
currencies are translated prevailing rates on the
reporting date. All realized and unrealized gains and
losses arising on exchange differences are recognised
in the consolidated statement of profit or loss and
other comprehensive income for the period.
These consolidated financial statements are presented in US Dollars (“USD”), the Group’s presentation currency, and
all values are rounded to the nearest million, except when otherwise indicated.
The results and financial position of the Group are translated into the presentation currency using the following
procedures:
• Assets and liabilities for each consolidated statement of financial position presented are translated at the closing
rate as of the reporting date of that statement of financial position;
• Income and expenses for each consolidated statement of profit or loss are translated at exchange rates at the
dates of the transactions;
• Exchange differences arising on translation for consolidation are recognised in other comprehensive income and
presented as a separate equity component. On disposal of a foreign operation, the component of OCI relating to
that particular foreign operation is reclassified to profit or loss;
• All equity items except the revaluation reserve are translated at the historical exchange rate. The revaluation reserve
is translated at the closing rate as of the statement of financial position date.
For practical reasons, the Group translates items of income and expenses for each period presented in the financial
statements using the quarterly average exchange rates if such translations reasonably approximate the results
translated at exchange rates prevailing at the dates of the transactions.
The relevant exchange rates were:
CURRENCY
CLOSING RATE AS OF
31 DECEMBER 2024
AVERAGE
FOR 2024
CLOSING RATE AS OF
31 DECEMBER 2023
AVERAGE
FOR 2023
UAH/USD
42.0390
40.1590
37.9824
36.5750
UAH/EUR
43.9266
43.4588
42.2079
39.5619
USD/EUR
1.0449
1.0822
1.1112
1.0817
USD/GBP
1.2594
1.2785
1.2766
1.2434
AED/USD
3.67
3.67
3.67
3.67
SAR/USD
3.75
3.75
3.75
3.75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
173
2. Summary of material accounting
policies (continued)
BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the
financial statements of MHP SE and its subsidiaries.
Control is achieved when the Group:
• has power over the investee;
• is exposed, or has rights, to variable returns from its
involvement with the investee; and
• has the ability to use its power to affect its returns.
The Group reassesses whether or not it controls an
investee if facts and circumstances indicate changes
to one or more of the three elements of control listed
above. Consolidation of a subsidiary begins when
the Group obtains control over the subsidiary and
ceases when the Group loses control of the subsidiary.
Specifically, income and expenses of a subsidiary
acquired or disposed of during the year are included in
the consolidated statement of profit or loss and other
comprehensive income from the date the Group gains
control until the date when the Group ceases to control
the subsidiary. Profit or loss and each component of
other comprehensive income are attributed to the
Parent’s owners and to the non-controlling interests.
The total comprehensive income of subsidiaries is
attributed to the owners of the Parent and the non-
controlling interests, even if this results in the non-
controlling interests having a deficit balance.
All significant intercompany transactions, balances,
and unrealized gains or losses on transactions
are eliminated on consolidation, except when the
intragroup losses indicate an impairment that requires
recognition in the consolidated financial statements.
Where necessary, adjustments are made to the
financial statements of subsidiaries to bring the
accounting policies used in line with those adopted
by the Group.
ACQUISITIONS
The acquisitions of subsidiaries from third parties
are accounted for using the acquisition method. On
acquisition date, the assets, liabilities and contingent
liabilities of a subsidiary are measured at their fair
values.
The consideration transferred by the Group is
measured at fair value, which is the sum of the
acquisition-date fair values of the assets transferred
by the Group, liabilities incurred by the Group to the
former owners of the acquired subsidiary and the
equity interests issued by the Group in exchange for
control of the subsidiary. Acquisition-related costs are
recognised in the consolidated statement of profit or
loss as incurred.
Non-controlling interests that are present ownership
interests and entitle their holders to a proportionate
share of the subsidiary’s net assets in the event of
liquidation may be initially measured either at fair
value or at the non-controlling interests’ proportionate
share of the recognised amounts of the subsidiary’s
identifiable net assets. The choice of measurement
basis is made on a transaction-by-transaction basis.
Goodwill is measured as the excess of the sum of the
consideration transferred, the amount of any non-
controlling interests in the acquired subsidiary, and
the fair value of the Group’s previously held equity
interest in the acquired subsidiary (if any) over the net
of the acquisition-date amounts of the identifiable
assets acquired and the liabilities assumed. If, after
reassessment, the net of the acquisition-date amounts
of the identifiable assets acquired and the liabilities
assumed exceeds the sum of the consideration
transferred, the amount of non-controlling interests
in the subsidiary and the fair value of the Group’s
previously-held interest in the subsidiary (if any), the
excess is recognised in the consolidated statement of
profit or loss, as a bargain purchase gain.
Changes in the Group’s ownership interests in
subsidiaries that do not result in the Group losing
control over the subsidiaries are accounted for as
equity transactions. The carrying amounts of the
Group’s interests and the non-controlling interests
are adjusted to reflect the changes in their relative
interests in subsidiaries. Any difference between
the amount by which the non-controlling interests
are adjusted and the fair value of the consideration
paid or received is recognised directly in equity and
attributed to owners of the Parent.
In acquisition of a legal entity that does not constitute
a business, the cost of the group of assets is allocated
between the individual identifiable assets in the group
based on their relative fair values.
INVESTMENTS IN ASSOCIATES
An associate is an entity over which the Group has
significant influence. Significant influence is the
power to participate in the financial and operating
policy decisions of the investee, but is not control or
joint control over those policies.
The considerations made in determining significant
influence or joint control are similar to those necessary
to determine control over subsidiaries. The Group’s
investment in its associates are accounted for using
the equity method.
The aggregate of the Group’s share of profit or loss
of an associate is shown in statement of profit or
loss within other operating income or expenses and
represents profit or loss after tax and noncontrolling
interests in the subsidiaries of the associate.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
174
2. Summary of material accounting
policies (continued)
INVESTMENTS IN ASSOCIATES (continued)
Under the equity method, the investment in
an associate is initially recognised at cost. The
carrying amount of the investment is adjusted
to recognise changes in the Group’s share of net
assets since the acquisition date. Goodwill relating
to the associate is included in the carrying amount
of the investment and is not tested for impairment
separately. Impairments are presented within
Share of profit or loss of an associate in the other
operating income or expenses. The statement
of profit or loss reflects the Group’s share of the
results of operations of the associate. Any change
in OCI of those investees is presented as part of
the Group’s OCI. In addition, when there has been
a change recognised directly in the equity of the
associate, the Group recognises its share of any
changes, when applicable, in the statement of
changes in equity. Unrealised gains and losses
resulting from transactions between the Group
and the associate are eliminated to the extent of
the interest in the associate or joint venture. The
financial statements of the associate are prepared
for the same reporting period as the Group. When
necessary, adjustments are made to bring the
accounting policies in line with those of the Group.
After application of the equity method, the Group
determines whether it is necessary to recognise an
impairment loss on its investment in its associate. At
each reporting date, the Group determines whether
there is objective evidence that the investment in the
associate is impaired. If there is such evidence, the
Group calculates the amount of impairment as the
difference between the recoverable amount of the
associate and its carrying value, and then recognises
the loss within other operating income or expenses
in the statement of profit or loss.
Upon loss of significant influence over the associate,
the Group measures and recognises any retained
investment at its fair value. Any difference between
the carrying amount of the associate upon loss of
significant influence and the fair value of the retained
investment and proceeds from disposal is recognised
in profit or loss.
FAIR VALUE MEASUREMENT
Fair value is the price received to sell an asset or paid
to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair
value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability
occurs either in the central market for the asset or
liability or, in the absence of a principal market, in the
most advantageous market for the asset or liability.
The principal or the most beneficial market must be
accessible by the Group.
The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability, assuming
that market participants act in their economic best
interest.
A fair value measurement of a non-financial asset
considers a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.
The Group uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs and
minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
• Level 1: Quoted (unadjusted) market prices in active
markets for identical assets or liabilities;
• Level 2: Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable;
• Level 3: Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in the
financial statements regularly, the Group determines
whether transfers have occurred between Levels in
the hierarchy by re-assessing categorization (based
on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each
reporting period.
BORROWING COSTS
Borrowing costs include interest expense, finance
charges on leases and other interest-bearing long-
term payables and debt servicing costs.
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which
are assets that necessarily take a substantial period
of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as
the assets are substantially ready for their intended
use or sale.
Investment income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the
borrowing costs eligible for capitalization.
All other borrowing costs are recognised in the
statement of profit or loss and other comprehensive
income in the period in which they are incurred.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
175
2. Summary of material accounting
policies (continued)
CONTINGENT LIABILITIES AND ASSETS
Contingent liabilities are not recognised in the
consolidated financial statements. Rather, they are
disclosed in the notes to the consolidated financial
statements unless the possibility of an outflow of
resources embodying economic benefits is remote.
Contingent assets are recognised only when it has
become virtually certain that an inflow of economic
benefits will arise.
SEGMENT INFORMATION
Segment reporting is presented on the basis of
Management’s perspective and relates to the parts
of the Group that are defined as operating segments.
Operating segments are identified on the basis
of internal reports provided to the Group’s chief
operating decision maker (“CODM”). The Group has
identified its top Management team as its CODM and
the internal reports used by the top Management
team to oversee operations and make decisions on
allocating resources serve as the basis of information
presented. These internal reports are prepared on the
same basis as these consolidated financial statements.
Based on the current management structure, the
Group identifies the following reportable segments
that fairly represent principal business activities:
Poultry and related operations, Vegetable oils
operations, Agriculture operations, Europe operating
segment. For more details on segmentation refer to
Note 6 Segment information.
REVENUE RECOGNITION
The Group generates revenue primarily from selling
of agricultural products to the end customers.
Revenue is measured based on the consideration to
which the Group expects to be entitled in a contract
with a customer and excludes amounts collected
on behalf of third parties. The Group recognises
revenue when it transfers product or service control
to a customer.
Revenue is adjusted for estimates of known or
expected variable consideration, which includes
consumer incentives, trade promotions, and
allowances, such as rebates, volume-based incentives
and other programs. Variable consideration related
to these programs is recorded as a reduction to
revenue based on amounts the Group expects to pay.
These estimates are based on current performance,
historical utilization, and projected redemption rates
of each program. The Group reviews and updates
these estimates regularly until the incentives are
realized and the impact of any adjustments are
recognized in the period the adjustments are
identified. Non-monetary exchanges or swaps of
goods that are of similar nature and value are not
treated as transactions that generate revenue.
The Group recognises revenue from the following
major sources:
• poultry meat and related sales (delivery services,
eggs, meat and bone meal, and other);
• processed meat and culinary products;
• vegetable oil and related products (sunflower and
soybean meals, sunflower husk) ;
• grains, oilseeds and other agriculture products
(milk, catlle, feed grains and other).
Revenue is measured based on the consideration to
which the Group expects to be entitled in a contract
with a customer. The Group recognises revenue at a
point in time when it transfers control of a product or
service to a customer.
A major part of the Group’s sales is generated from
the wholesale market. Revenue is recognised when
control of the goods has transferred, being when the
goods have been shipped to the wholesaler’s specific
location or delivered to major Ukrainian sea ports.
Following delivery, the wholesaler has full discretion
over the manner of distribution and price to sell the
goods, has the primary responsibility when on-selling
the goods, and bears the risks of obsolescence and
loss in relation to the goods. A receivable is recognised
by the Group when the goods are delivered to the
wholesaler as this represents the point in time at which
the right to consideration becomes unconditional.
Under the Group’s standard contract terms, customers
have no right of return.
Contract liability is recognised if a payment is received
from a customer before the Group transfers the related
goods. Contract liabilities are recognised as revenue
when the Group performs under the contract.
Sales price of products for domestic market
predominantly includes shipping and handling costs
in the price of the product. Export sales price may
include the shipping and handling costs depending
on specific incoterms applied.
TAXES RECOVERABLE AND PREPAID
Taxes recoverable and prepaid primarily include
value-added tax (“VAT”) recoverable. VAT recoverable
is reviewed at each reporting date and reduced
to the extent that it is no longer probable that a
reimbursement or VAT liabilities for settlement will be
available. The Group considers that the outstanding
amount due from the state at the reporting date will
be either recovered in cash or reclaimed against the
VAT liabilities related to sales.
PREPAYMENTS
Prepayments are carried at cost excluding VAT
less provision for impairment, when applicable.
Prepayments
are
mainly
represented
by
the prepayments made to suppliers for raw
materials and services.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
176
2. Summary of material accounting
policies (continued)
GOVERNMENT GRANTS
Government grants are recognised as income over
the periods necessary to match them with the related
costs, or as an offset against finance costs when
received as compensation for the finance costs for
agricultural producers. When the grant relates to an
asset, the received funds are recorded in the Group’s
consolidated financial statements as deferred income,
which is recognised in profit or loss on a systematic
basis over the useful life of the related assets.
Government grants are not recognised until there is
reasonable assurance that the Group will comply with
the conditions attaching to them and that the grants
will be received.
PROPERTY, PLANT, AND EQUIPMENT
All Group property, plant, and equipment are carried
at revalued amounts, being their fair value at the date
of the revaluation less any subsequent depreciation
and impairment losses, except land and other fixed
assets that are carried at historical cost less (for the
other fixed assets) accumulated depreciation.
The historical cost of an item of property, plant and
equipment comprises: (a) its purchase price, including
import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates; (b)
any costs directly attributable to bringing the item
to the location and condition necessary for it to be
capable of operating in the manner intended by the
management of the Group; (c) the initial estimate of
the costs of dismantling and removing the item and
restoring the site on which it is located, the obligation
for which the Group incurs either when the item is
acquired or as a consequence of having used the
item during a particular period for purposes other
than to produce inventories during that period; and
(d) for qualifying assets, borrowing costs capitalized
in accordance with the Group’s accounting policy.
Subsequently, capitalized costs include major
expenditures for improvements and replacements
that extend the useful lives of the assets or increase
their revenue-generating capacity. Repairs and
maintenance expenditures that do not meet the
foregoing criteria for capitalization are charged to the
consolidated statement of profit or loss as incurred.
For all Group`s property, plant, and equipment
carried at revalued amounts, the revaluations are
performed with sufficient regularity such that the
carrying amount does not differ materially from
that which would be determined using fair values
at the reporting date. If the asset’s carrying amount
is increased as a result of a revaluation, this increase
is credited to equity through other comprehensive
income as a revaluation reserve. However, such an
increase is recognized in the consolidated statement
of profit or loss under “Loss on impairment of
property, plant and equipment”, only to the extent
that it reverses a previously recognized revaluation
decrease of the same asset in the consolidated
statement of profit or loss. Conversely, if the
asset’s carrying amount is reduced as a result of
a revaluation, the decrease is recognized in the
consolidated statement of profit or loss. However,
the decrease is debited to the revaluation reserve
through other comprehensive income to the extent
of any credit balance existing in the revaluation
reserve in respect of that asset.
The carrying amount of the asset is adjusted by
eliminating accumulated depreciation against the
gross carrying amount and subsequent increase or
decrease of the gross carrying amount to fair value.
Depreciation on revalued assets is charged to the
consolidated statement of profit or loss. The excess
depreciation charge on the revalued asset over the
depreciation that would have been charged based
on the historical cost of the asset is transferred from
the revaluation reserve directly to retained earnings
over the assets useful life. On the subsequent sale
or retirement of a revalued asset, the attributable
revaluation surplus remaining in the revaluation
reserve is transferred directly to retained earnings.
Depreciation of property, plant, and equipment is
charged so as to write off the depreciable amount
over the useful life of an asset and is calculated using
a straight-line method. The useful lives of the groups
of property, plant, and equipment are as follows:
Buildings and structures
5 - 60 years
Grain storage facilities
10 - 60 years
Production machinery
5 - 35 years
Auxiliary and other machinery
5 - 30 years
Utilities and infrastructure
15 - 60 years
Vehicles and agricultural machinery
7 - 40 years
Other fixed assets
3 - 10 years
Depreciable amount is the cost of an item of property,
plant, and equipment, or revalued amount, less its
residual value. The residual value is the estimated
amount that the Group would currently obtain from
disposal of the item of property, plant, and equipment,
after deducting the estimated disposal costs, if the
asset were already of the age and in the condition
expected at the end of its useful life.
The residual value, the useful lives, and the depreciation
method are reviewed at each financial year-end. In
particular, the Group considers the impact of health,
safety and environmental legislation in its assessment
of expected useful lives and estimated residual values.
Furthermore, the Group considers climate-related
matters, including physical and transition risks.
Specifically, the Group determines whether climate-
related legislation and regulations might impact
either the useful life or residual values. The effect of
any changes from previous estimates is accounted for
prospectively as a change in an accounting estimate.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
177
2. Summary of material accounting
policies (continued)
PROPERTY, PLANT, AND EQUIPMENT (continued)
The gain or loss arising on the sale or disposal of an
item of property, plant, and equipment is determined
as the difference between the sales proceeds and the
carrying amount of the asset and is recognized in the
consolidated statement of profit or loss.
Construction in progress comprises costs directly
related to the construction of property, plant, and
equipment, including an appropriate allocation of
directly attributable variable overheads that are
incurred in construction. Construction in progress
is not depreciated. Depreciation of construction in
progress commences when completed construction
in progress is transferred to the relevant class of
property, plant, and equipment.
INTANGIBLE ASSETS
Intangible assets consist primarily of land lease rights,
trademarks, and customer relationships, which are
acquired in a business combination.
Intangible assets acquired in a business combination
are identified and recognized separately from
goodwill, where they satisfy the definition of an
intangible asset. The cost of such intangible assets is
their fair value at the acquisition date.
Intangible assets assessed as having an indefinite
useful life are not amortized and are examined for
impairment annually or more frequently where there
is an indication of impairment. Where the carrying
amount of an asset is greater than the amount
estimated to be recoverable, it is written down to its
recoverable amount. The assessment of indefinite
life is reviewed annually to determine whether the
indefinite life continues to be supportable. If not, the
change in useful life from indefinite to finite is made
on a prospective basis.
Subsequent to initial recognition, intangible assets
assessed as having finite valuable lives are reported at
cost less accumulated amortization and accumulated
impairment losses. Amortization of intangible assets
is recognized on a straight-line basis over their
estimated useful lives. The period of estimated useful
life of intangibles is as follows:
Land lease rights
3 - 15 years
Customer relationship
20 years
Trademarks
Indefinite
Other intangible assets
3 - 10 years
The amortization period and the amortization
method for intangible assets with finite useful lives
are reviewed at least at the end of each reporting
period, with the effect of any changes in estimate
being accounted for on a prospective basis.
An intangible asset is derecognized on disposal or
when no future economic benefits are expected
from use or disposal. Gains or losses arising from the
derecognition of an intangible asset, measured as the
difference between the net disposal proceeds and the
carrying amount of the asset, are recognized in profit
or loss when the asset is derecognized.
RIGHT-OF-USE ASSETS
Right-of-use assets mainly represents the rent of land
from individuals (Ukrainian citizens) for agricultural
purposes as well as trucks, agricultural machinery and
equipment essential for farm operation, also office
buildings, facilities used as culinary centers, warehouses,
and retail store spaces. The Group recognizes right-of-
use assets at the commencement date of the lease (i.e.,
the date the underlying asset is available for use). Right-
of-use assets are measured at cost, less accumulated
depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities
recognized, initial direct costs incurred, and lease
payments made at or before the commencement date,
less any lease incentives received. Right-of-use assets
are depreciated over the lease term. The depreciation
starts at the commencement date of the lease. The
Group recognizes depreciation of right-of-use assets
based on the lease term, presented within the cost of
goods sold in the consolidated statement of profit or
loss. The average maturity of land lease agreements
is 8 years, 5 years for lease agreements for agricultural
machinery and equipment, 11 years for buildings and
facilities and 4 years for retail store spaces.
IMPAIRMENT OF TANGIBLE AND INTANGIBLE
ASSETS OTHER THAN GOODWILL
At each reporting date, the Group reviews the carrying
amounts of its tangible and intangible assets with
definite useful lives to determine whether there is any
indication that those assets have suffered an impairment
loss. If any such indication exists, the asset's recoverable
amount is estimated to determine the extent of the
impairment loss (if any). Intangible assets with indefinite
useful lives are tested for impairment annually or more
frequently when there is an indication that they might
be impaired.
The Group considers whether climate-related risks,
including climate-related legislation, physical risks
and transition risks could have a significant impact. If
so, these risks are included in the cash-flow forecasts in
assessing value-in-use amounts. The inputs used are
developed based on the market trends and therefore
reflect current expectation of climate impacts.
To assess impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash
flows (cash-generating units). Recoverable amount
is the higher fair value, less costs to sell, and value in
use. In assessing value in use, the estimated future
cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
178
2. Summary of material accounting
policies (continued)
IMPAIRMENT OF TANGIBLE AND INTANGIBLE
ASSETS OTHER THAN GOODWILL (continued)
If the recoverable amount of an asset (or cash-
generating unit) is estimated to be less than its
carrying amount. In that case, the carrying amount
of the asset (cash-generating unit) is reduced
to its recoverable amount. An impairment loss
is recognized immediately in the consolidated
statement of profit or loss unless the relevant asset
is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease
through other comprehensive income.
Where an impairment loss subsequently reverses, the
carrying amount of the asset (cash-generating unit)
is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount
does not exceed the carrying amount that would
have determined had no impairment loss been
recognized for the asset (cash-generating unit) in prior
years. A reversal of an impairment loss is recognized
immediately in the consolidated statement of profit
or loss unless the relevant asset is carried at a revalued
amount, in which case the reversal of the impairment
loss is treated as a revaluation increase through other
comprehensive income.
IMPAIRMENT OF GOODWILL
For the purposes of impairment testing, goodwill is
allocated to each of the Group’s cash-generating units
(or groups of cash-generating units) that is expected
to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been
allocated is tested for impairment annually or more
frequently when there is an indication that the unit
may be impaired. If the recoverable amount of the
cash-generating unit is less than its carrying amount,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata based
on the carrying amount of each asset in the unit. Any
impairment loss for goodwill is recognized directly in
the consolidated profit or loss. An impairment loss
recognized on goodwill is not reversed in subsequent
periods.
The Group assesses whether climate-related risks,
including physical risks and transition risks could
have a significant impact. If so, these risks are
included in the cash-flow forecasts in assessing
value-in-use amounts.
INCOME TAXES
Income taxes have been computed by the laws
currently enacted or substantially enacted in
jurisdictions where operating entities are located.
Income tax is calculated based on the year's results as
adjusted for items that are non-assessable or non-tax
deductible. It is calculated using tax rates that have
been enacted by the reporting date.
Deferred tax is accounted for using the balance sheet
liability method regarding temporary differences
arising from differences between the carrying
amount of assets and liabilities in the consolidated
financial statements and the corresponding tax basis
used in the computation of taxable profit. Deferred
tax liabilities are generally recognized for all taxable
temporary differences, and deferred tax assets are
recognized to the extent that it is probable that taxable
profits will be available against which deductible
temporary differences can be utilized.
The carrying amount of deferred tax assets is reviewed
at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax liabilities and assets are measured at the
tax rates that are expected to apply in the period in
which the liability is settled or the asset realized, based
on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting
period. The measurement of deferred tax liabilities
and assets reflects the tax consequences that would
follow from how the Group expects, at the end of
the reporting period, to recover or settle the carrying
amount of its assets and liabilities.
Deferred tax is charged or credited to the consolidated
statement of profit or loss, except when it relates to
items credited or charged directly to equity or other
comprehensive income, in which case the deferred
tax is also dealt with in equity or other comprehensive
income.
Deferred tax assets and liabilities are offset when:
• The Group has a legally enforceable right to set off
the recognized amounts of current tax assets and
current tax liabilities;
• The Group has an intention to settle on a net
basis or to realize the asset and settle the liability
simultaneously;
• The deferred tax assets and the deferred tax
liabilities relate to income taxes levied by the same
taxation authority in each future period in which
significant amounts of deferred tax liabilities and
assets are expected to be settled or recovered.
The Group companies involved in agricultural
production (those engaged in grain and oilseeds
growing) benefit substantially from the status of an
agricultural producer. These companies are exempt
from income taxes and pay the Fixed Agricultural Tax
(FAT) instead (Note 15).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
179
2. Summary of material accounting
policies (continued)
INVENTORIES
Inventories are stated at the lower cost and net
realizable value. Costs comprise raw materials and,
where applicable, direct labor costs and overheads
incurred in bringing the inventories to their present
locations and condition.
Cost is calculated using the FIFO (first-in, first-out)
method. Net realizable value is determined as the
estimated selling price less all estimated completion
costs and costs to be incurred in marketing, selling,
and distribution. The agriculture-related production
process results in the production of joint products:
main and by-products. A by-product arising from
the process is measured at net realizable value and
deducted from the main product`s cost.
BIOLOGICAL ASSETS AND AGRICULTURAL PRODUCE
Agricultural activity is defined as a biological
transformation of biological assets for sale into
agrarian produce or into additional biological assets.
The Group classifies hatchery eggs, live poultry, cattle
and other animals and crops in fields as biological
assets.
The Group recognizes a biological asset or agricultural
produce when the Group controls the asset as a result
of past events, it is probable that future economic
benefits associated with the asset will flow to the
Group, and the fair value of the asset can be measured
reliably.
Biological assets are stated at fair value minus
estimated costs to sell at both initial recognition and
as of the reporting date, with any resulting gain or loss
recognized in the consolidated profit or loss.
Costs to sell include all costs necessary to sell the assets,
including costs necessary to get the assets to market.
The difference between fair value less costs to sell and
total production costs is allocated to biological assets
as of each reporting date as a fair value adjustment.
The change in this adjustment from one period to
another is recognised as a “Net change in fair value
of biological assets and agricultural produce” in the
consolidated profit or loss.
Agricultural produce harvested from biological assets
is measured at its fair value less costs to sell at the point
of harvest. A gain or loss arising on initial recognition
of agricultural produce at fair value, less costs to sell,
is included in the consolidated profit or loss.
Based on the above policy, the principal groups of
biological assets and agricultural produce are stated
as follows:
Biological Assets
(i) Broiler chickens
Broilers comprise poultry held for chicken meat
production. The fair value of broilers is determined
by reference to the cash flows obtained from the
sales of 42-day-aged chickens, with an allowance for
costs to be incurred and risks to be faced during the
remaining transformation process.
(ii) Breeders held for hatchery egg production
The fair value of breeders is determined using the
discounted cash flow approach based on hatchery
eggs’ and meat market prices.
(iii) Cattle
Cattle comprise cows and bulls held for the
regeneration of the livestock population and animals
raised for milk and beef meat production. The fair
value of livestock is determined based on cash flows
obtained from sales of milk, calves and meat during
the life of cattle.
(iv) Crops in fields
The fair value of crops in fields is determined by
reference to the cash flows obtained from sales of
harvested crops, with an allowance for costs to be
incurred and risks to be faced during the remaining
transformation process.
(v) Hatchery eggs
The fair value of hatchery eggs is determined by
reference to market prices at the point of harvest.
Agricultural Produce
(i) Dressed poultry, beef, and pork
The fair value of dressed poultry, beef and pork is
determined by reference to market prices at the point
of harvest.
(ii) Grain and oilseeds
The fair value of fodder grain and oilseeds is
determined by market prices at the point of harvest.
The Group’s biological assets are classified into bearer
and consumable biological assets depending upon
the function of a particular group of biological assets
in the Group’s production process. Consumable
biological assets are those to be harvested as
agricultural produce, including hatchery eggs and live
broiler chickens intended for the production of meat,
as well as pork and meat cows. Bearer biological assets
include poultry held for hatchery egg production, milk
cows, and breeding bulls.
FINANCIAL INSTRUMENTS
Financial assets and liabilities are recognized in the
Group’s statement of financial position when the
Group becomes a party to the contractual provisions
of the instrument.
The financial assets and financial liabilities of the
Group are represented by cash and cash equivalents,
bank deposits, bank borrowings, bonds issued and
other financial liabilities. The accounting policies for
initial recognition and subsequent measurement of
financial instruments are disclosed in the respective
accounting policies below in this Note.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
180
2. Summary of material accounting
policies (continued)
FINANCIAL INSTRUMENTS (continued)
Financial assets and financial liabilities are initially
recognised at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted
from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
Transaction costs are directly attributable to the
acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized
immediately in profit or loss.
FINANCIAL ASSETS
All recognized financial assets are measured
subsequently at either amortized cost or fair value,
depending on the classification of the financial assets.
Classification of financial assets
Debt instruments that meet the following conditions
are measured subsequently at amortized cost (this
category is the most relevant to the Group):
• the financial asset is held within a business model
whose objective is to have financial assets to collect
contractual cash flows; and
• the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.
Debt instruments that meet the following conditions
are measured subsequently at fair value through
other comprehensive income (FVTOCI):
• the financial asset is held within a business model
whose objective is achieved by both collecting
contractual cash flows and selling the financial
assets; and
• the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.
By default, all other financial assets are measured
subsequently at FVTPL.
Financial assets at amortized cost are subsequently
measured using the effective interest (EIR) method
and are subject to impairment.
The effective interest method is a method calculates
the amortized cost of a debt instrument and allocates
interest income over the relevant period.
The amortized cost of a financial asset is the amount at
which the financial asset is measured at initial recognition
minus the principal repayments, plus the cumulative
amortization using the effective interest method of any
difference between that initial amount and the maturity
amount, adjusted for any loss allowance. The gross
carrying amount of a financial asset is the amortized cost
of a financial asset before adjusting for any loss allowance.
Impairment of financial assets
The Group recognizes an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair
value through profit or loss. ECLs are estimated as the
difference between all contractual cash flows due to
the Group per the contract and all the cash flows that
the Group expects to receive, discounted at the original
effective interest rate. The amount of expected credit
losses is updated at each reporting date to reflect
changes in credit risk since the initial recognition of the
respective financial instrument.
The Group applies a simplified approach to calculating
ECLs for trade accounts receivable and contract
assets. Therefore, the Group does not track changes
in credit risk but instead recognizes a loss allowance
based on ECLs at each reporting date. The Group
has established a provision matrix that is based
on its historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and
the economic environment.
For all other financial instruments, a financial instrument
not credit-impaired on initial recognition is classified
in Stage 1. Suppose the credit risk on the financial
instrument has not increased significantly since initial
recognition. In that case, the Group measures the loss
allowance for that financial instrument (Stage 1) at an
amount equal to 12‑month ECLs. If the Group identifies a
significant increase in credit risk since initial recognition,
the financial instrument is transferred to Stage 2, but it
is not considered credit-impaired, the Group recognizes
lifetime ECLs. If the Group determines that a financial
asset is credit-impaired, the asset is transferred to Stage
3, and its ECLs are measured as Lifetime ECLs.
Lifetime ECLs represent the expected credit losses
that will result from all possible default events over
the expected life of a financial instrument. In contrast,
12‑month ECLs represent the portion of lifetime
ECLs that is expected to result from default events
on a financial instrument that are possible within 12
months after the reporting date.
Significant increase in credit risk
In assessing whether the credit risk on a financial
instrument has increased significantly since initial
recognition, the Group compares the risk of a default
occurring on the financial instrument at the reporting
date with the risk of a default occurring on the financial
instrument at the date of initial recognition. In making
this assessment, the Group considers both quantitative
and qualitative information that is reasonable and
supportable, including historical experience and
forward‑looking information that is available without
undue cost or effort. Forward‑looking information
considered includes the economic situation of countries
and the future prospects of the industries in which the
Group’s debtors operate, obtained from economic expert
reports, financial analysts, and governmental bodies, as
well as consideration of various external sources of actual
and forecast economic information that relates to the
Group’s core operations.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
181
2. Summary of material accounting
policies (continued)
FINANCIAL ASSETS (continued)
Significant increase in credit risk (continued)
Irrespective of the outcome of the above assessment,
the Group presumes that the credit risk on a
financial asset has increased significantly since initial
recognition when contractual payments are more
than 30 days past due unless the Group has reasonable
and supportable information that demonstrates
otherwise.
Low credit risk financial instruments
Despite the preceding, the Group assumes that the
credit risk on a financial instrument has not increased
significantly since initial recognition if the financial
instrument is determined to have low credit risk at
the reporting date. A financial instrument is chosen
to have low credit risk if:
a) the financial instrument has a low risk of default,
b) the debtor has a solid capacity to meet its
contractual cash flow obligations in the near term and
c) adverse changes in economic and business
conditions in the longer term may, but will not
necessarily, reduce the ability of the borrower to fulfill
its contractual cash flow obligations.
Default definition
The Group considers that default has occurred when a
financial asset is more than 90 days past due unless the
Group has reasonable and supportable information to
demonstrate that a more lagging default criterion is
more appropriate.
Credit-impaired financial assets
A financial asset is credit‑impaired (Stage 3) when
one or more events that have a detrimental impact
on that financial asset's estimated future cash flows
have occurred. Evidence that a financial asset is
credit‑impaired includes observable data about the
following events:
a) significant financial difficulty of the issuer or the
borrower;
b) a breach of contract, such as a default or past due
event;
c) the lender(s) of the borrower, for economic or
contractual reasons relating to the borrower’s
financial difficulty, having granted to the borrower a
concession(s) that the lender(s) would not otherwise
consider;
d) it is becoming probable that the borrower will enter
bankruptcy or other financial reorganization; or
e) the disappearance of an active market for that
financial asset because of financial difficulties.
Write-off policy
The Group writes off a financial asset when
information indicates the debtor has severe
financial difficulty. There is no realistic prospect
of recovery, e.g., when the debtor has been
placed under liquidation or has entered into
bankruptcy proceedings, or in the case of trade
accounts receivable, when the amounts are over
three years past due, whichever occurs sooner.
Written-off financial assets may still be subject to
enforcement activities under the Group’s recovery
procedures, taking into account legal advice where
appropriate. Any recoveries made are recognized in
the consolidated statement of profit or loss. Inputs,
assumptions, and estimation techniques used by
measurement and recognition of expected credit
losses are disclosed in respective Notes 20 and 26
on financial assets.
FINANCIAL LIABILITIES
Initial recognition and measurement
The Group’s financial liabilities include loans and
borrowings, lease liabilities, and trade and other
accounts payable.
Financial liabilities are recognized at fair value and
are measured at amortized cost using the effective
interest method.
The effective interest method calculates the amortized
cost of a financial liability and allocates interest
expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future
cash payments (including all fees and points paid or
received that form an integral part of the effective
interest rate, transaction costs, and other premiums
or discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to the
amortized cost of a financial liability.
Derecognition of financial liabilities
The Group derecognizes financial liabilities when, and
only when, the Group’s obligations are discharged,
canceled, or have expired. The difference between the
carrying amount of the financial liability derecognized
and the consideration paid and payable is recognized
in profit or loss.
When the Group exchanges one debt instrument with
the existing lender into another one with substantially
different terms, such exchange is accounted for as an
extinguishment of the original financial liability and
the recognition of a new one.
TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable are recognised if an
amount of consideration that is unconditional is due
from the customer. Trade accounts receivable that
do not contain a significant financing component are
measured at the transaction price.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, cash
with banks, deposits, and government bonds with
maturity of less than three months from the date of
acquisition.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
182
2. Summary of material accounting
policies (continued)
BANK BORROWINGS, CORPORATE BONDS
ISSUED, AND OTHER LONG-TERM PAYABLES
Interest-bearing bank borrowings, bonds issued, and
other long-term payables are initially measured at
fair value that is calculated by taking into account any
discount or premium on acquisition and fees or costs that
are an integral part of the effective interest rate (EIR). They
are subsequently measured at amortized cost using the
EIR method, where amortization is included as finance
costs in the statement of profit or loss. Gains and losses
are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization
process.
TRADE AND OTHER ACCOUNTS PAYABLE
Accounts payable are measured at initial recognition
at fair value and are subsequently measured at
amortized cost using the effective interest rate
method.
LEASE LIABILITIES
The Group assesses whether a contract is or contains
a lease at the inception of the contract.
The deferred tax liability mainly comprises the tax
effect of the accelerated depreciation for tax purposes
of property, plant and equipment.
The Group recognizes lease liabilities in the
consolidated statement of financial position, initially
measured at the present value of future lease
payments. The Group does not apply the short-term
and low-value lease exemptions.
The Group measures the lease liability at the
present value of the lease payments not paid at
the commencement date, discounted by using the
incremental borrowing rate, because the interest rate
implicit in the lease is not readily determinable. The
incremental borrowing rate is defined as the rate of
interest that the lessee would have to pay to borrow
over a similar term and with a similar security, the
funds necessary to obtain an asset of equal value to the
right-of-use asset in a similar economic environment.
The lease liability is presented as a separate line in the
consolidated statement of financial position. The lease
liability is subsequently measured by increasing the
carrying amount to reflect interest on the lease liability
and by reducing the carrying amount to reflect the
lease payments made. The Group recognizes interest
on lease liabilities and presents it within interest
expenses in the consolidated profit or loss.
The Group remeasures the lease liability (and makes a
corresponding adjustment to the related right-of-use
asset) whenever:
• The lease term has changed, or there is a change in
the assessment of the exercise of a purchase option,
in which case the lease liability is remeasured by
discounting the revised lease payments using a
revised discount rate.
• The lease payments change due to changes in an
index or rate or market rate. In these cases, the
lease liability is remeasured by discounting the
revised lease payments using the initial discount
rate (unless the lease payments change is due to a
change in a floating interest rate, in which case a
revised discount rate is used).
A lease contract is modified, and the lease modification
is not accounted for as a separate lease, in which case
the lease liability is remeasured by discounting the
revised lease payments using a fixed discount rate.
In the statement of cash flows, the Group separates
the total amount of cash paid into a principal portion
(presented within financing activities) and interest
(presented within operating activities).
PROVISIONS
Provisions are recognized when the Group has a
present legal or constructive obligation (either based
on legal regulations or implied) due to past events,
and an outflow of resources will probably be required
to settle the obligation, and a reliable estimate of the
obligation can be made.
FINANCE INCOME AND FINANCE COSTS
The Group’s finance income and finance costs include:
• Interest income (e.g. on bank deposits and loans
provided);
• Interest expense (e.g. on corporate bonds and bank
borrowings; on obligation under leases);
• Income/expense from derecognition of financial
assets/financial liabilities.
Interest income or expense is recognized under the
effective interest method.
The “effective interest rate” is the rate that exactly
discounts estimated future cash payments or
receipts through the expected life of the financial
instrument to:
• The gross carrying amount of the financial asset; or
• The amortized cost of the financial liability.
In calculating interest income and expense, the
effective interest rate is applies to the gross carrying
amount of the asset (when the asset is not credit-
impaired) or to the amortized cost of the liability.
However, for financial assets that have become credit-
impaired subsequent to initial recognition, interest
income is calculated by applying effective the interest
rate to the amortized cost of the financial asset. If the
asset is no longer credit-impaired, then the calculation
of interest income reverts to the gross basis.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
183
3. Changes in the group structure
ACQUISITION OF TONI
On 28 June 2024, the Group acquired 100% of the
issued share capital of Toni d.o.o., a non-listed company
based in Croatia and engaged in grain storage, drying
and trading. The Group acquired Toni to ensure
stability in grain supply chain for the Slovenian and
Croatian operations.
The fair values of identifiable assets acquired and
liabilities assumed are as set out in the table below:
28 JUNE 2024
Property, plant and equipment
9.3
Inventories
0.4
Trade accounts receivable
3.6
Other current financial assets
0.2
Cash and cash equivalents
3.6
Trade accounts payable
(1.5)
Other liabilities
(1.2)
Bank borrowings
(4.0)
Total identifiable net assets
10.4
Goodwill arising on acquisition
3.9
Total consideration due and payable
14.3
Analysis of cash flows on acquisitions:
Net cash acquitted on acquisition
3.6
Cash paid
14.1
Net cash outflow on acquisition
10.5
The gross amount of trade accounts receivable
approximates their provisional fair value as stated
above, and it is expected that the full contractual
amount can be collected.
The deferred tax liability mainly comprises the tax
effect of the accelerated depreciation for tax purposes
of property, plant and equipment.
The consideration payable is USD 14.3 million, out of
which the Group paid USD 14.1 million in June 2024,
while remaining USD 0.2 million will be payable till July
2025.
The goodwill of USD 3.9 million arising from the
acquisition is attributed to the expected synergies
and other benefits from combining the assets
and activities of Toni with those of the Group, in
particular of Perutnina Ptuj operations:
• Stabilization of purchasing prices of grain for feed
in Croatian and Slovenian markets.
• Ensuring of local grain quantities supply in view of
economy of scale positive effects.
The goodwill is not deductible for income tax
purposes.
From the date of acquisition, revenue of Toni to
third parties comprised USD 3 million, while profit
before tax was immaterial. If the acquisition of Toni
had been completed on the first day of the financial
year, the Group revenues for the year ended 31
December 2024 would have reached USD 3,056
million and the Group profit would have comprised
USD 145 million.
ACQUISITION OF KK & SONS GROUP
On 20 September 2024, the Group acquired 70% of
the corporate rights in KK & Sons Group, a company
which, together with its subsidiaries, provides
logistics services in Ukraine and internationally.
The total consideration for the acquisition amounted
to USD 3.9 million. The fair value of the company's
identifiable net assets at the acquisition date was
USD 2.0 million, mainly represented by the trade
and other accounts receivables and payables. The
non-controlling interest at the acquisition date was
measured at USD 0.6 million at the proportionate
share of the identifiable net assets.
The resulting goodwill of USD 2.6 million, recognized
in the transaction, reflects expected benefits from
the logistics capabilities acquired and expansion of
logistics services to the Ukrainian and international
customers.
From the date of acquisition, KK & Sons Group
contributed revenue of USD 1 million to the Group`s
results. The contribution to the net profit from the
acquiree was not material to the consolidated
financial statements of the Group/
CHANGES IN NON-CONTROLLING INTERESTS
IN SUBSIDIARIES
During the year ended 31 December 2023, the Group
increased its effective ownership interest in MHP
Saudi Arabia Trading to 100% through the purchase
of a non-controlling interest of 25% for the amount of
USD 1.8 million by exchanging the previously existed
loan granted to the holder of this non-controlling
interest. The difference between the carrying
value of the net assets acquired and the non-cash
consideration was recognised directly in retained
earnings in the amount of USD 3.6 million. This non-
cash transaction was excluded from the consolidated
statement of cash flows.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
184
4. Investments in associates
Investments in associates for the years ended 31 December 2024, and 2023 were as
follows:
2024
2023
49% ownership interest in Ukrainskyi Miasnyi Khutir
7.5
-
Prepayment for 51% ownership interest in Ukrainskyi
Miasnyi Khutir
7.4
-
45% ownership interest in MHP Desert Hills for Poultry
Company
6.0
-
Other investments in associates
0.1
1.1
Total investments in associates
21.0
1.1
ACQUISITION OF UKRAINSKYI MIASNYI KHUTIR
In April 2024, the Group entered into a share purchase agreement to acquire 100% of
the corporate rights in Ukrainskyi Miasnyi Khutir LLC, a company engaged in meat
processing in Ukraine. The total estimated consideration for this acquisition is USD 15.6
million.
In April 2024, the Group acquired 24.9% of the corporate rights in the company with
further increase of its stake in the company`s share capital to 49% in August 2024.
Cumulative consideration paid for acquired investment is USD 7.5 million. Since the
initial acquisition in April 2024 and up to 31 December 2024, the Group exercised
significant influence over this investee, so the Group`s interest in this entity is
accounted for as investment in associate using the equity method. Summarised
financial information of the investee is presented below.
In December 2024, the Group made prepayment for acquisition of the remaining 51%
interest in this entity. Management considers that the Group obtained control over
the investee only on 24 January 2025 upon fulfilment of all obligatory contractual
conditions.
As of the date of approval of these consolidated financial statements, the Group is in
the process of completing the purchase price allocation for the business combination
completed in January 2025 and evaluating the financial impact of this transaction
on its consolidated financial statements, which is expected to be completed during
twelve months since the acquisition date.
INVESTMENT IN MHP DESERT HILLS FOR POULTRY COMPANY
In June 2024, the Group and Desert Hills Veterinary Services Company Limited (DHV),
a wholly-owned subsidiary of Tanmiah Food Company, completed the incorporation
of MHP Desert Hills for Poultry Company. This new entity is established for poultry
farming in the Kingdom of Saudi Arabia. The Group holds a 45% interest, exercising
significant influence on the entity, and DHV holds the remaining 55%.
The Group has invested SAR 26,810 thousand (equivalent to USD 7.1 million) in this
entity, and the consideration was paid in full during 2024.
As of the reporting date, the Group's investment in MHP Desert Hills for Poultry
Company is accounted for as an associate using the equity method.
The following table illustrates the summarised financial information of the Group’s
investment in Ukrainskyi Miasnyi Khutir (UMH) and MHP Desert Hills for Poultry
Company (Desert Hills) as at 31 December 2024:
SUMMARISED STATEMENT OF FINANCIAL POSITION
UMH
DESERT HILLS
Non-current assets
3.2
25.2
Current assets
2.9
30.6
Non-current liabilities
-
23.7
Total non-current liabilities
2.9
18.7
Equity
3.2
13.4
Group’s share in equity
1.6
6.0
Goodwill
5.9
-
Group’s carrying amount of the investment
7.5
6.0
SUMMARISED STATEMENT OF PROFIT OR LOSS
UMH
DESERT HILLS
Revenue
5.0
20.1
Operating Expenses
(5.6)
(19.6)
Operating profit/(loss)
(0.6)
0.5
Profit/(loss) for the year
(0.6)
(2.2)
Group’s share of profit/(loss) for the year
(0.3)
(1.0)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
185
5. Critical accounting judgments
and key sources of estimation
uncertainty
In applying the Group’s accounting policies described
in Note 2, management must make judgments,
estimates, and assumptions about the carrying
amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and
associated assumptions are based on historical
experience and other factors that are considered
to be relevant. Actual results may differ from these
estimates.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the
estimate is revised if the revision affects both current
and future periods.
CRITICAL JUDGMENTS IN APPLYING
ACCOUNTING POLICIES
The following are the essential judgments, apart
from those involving estimations (see below), that
management has made using the Group’s accounting
policies and have the most significant effect on the
amounts recognized in the consolidated financial
statements.
Going concern
The Group has concluded that applying the going
concern basis of accounting in preparing these
consolidated financial statements is appropriate.
Management exercises significant judgment in
the assessment of the existence of a material
uncertainty related to going concern by taking into
consideration the effects of the ongoing War on the
Group`s activities. The information about material
uncertainties related to events or conditions that
may doubt the Group’s ability to continue as a going
concern is disclosed in Note 2.
Determination of variable lease payments
As described in Note 2, the Group measures lease
liabilities at the present value of future lease
payments, discounted using the lessee’s incremental
borrowing rate. Future lease payments consist
of fixed payments (including in-substance fixed
payments) and variable lease payments that depend
on an index or rate, including payments that vary to
reflect changes in market rental rates. Management
must make a significant judgment in determining
whether variable lease payments depend on an index
or rate. Regardless of the lease payments stated in
the lease contracts, customary business practices
complement the contractual terms so that at each
particular date, the rate is a market rate. Since the
entire market operates on the basis of expectations of
a periodic revision of rates (based on current market
rates), Management has concluded that the market
mechanism determines the rates. In substance, non-
contractual changes in lease payments are driven
by competitive forces. Pay changes are based on the
average changes in lease payments in the region,
meaning that the variable component of lease
payments depends on a market index.
Revaluation of property, plant, and equipment
As described in Note 2, the Group applies the revaluation
model to the measurement of all groups of property,
plant, and equipment, except land and other fixed assets
(Note 16). At each reporting date, the Group reviews
the carrying amount of items of property, plant, and
equipment accounted for using a revaluation model to
determine whether the amount differs materially from
fair value.
When determining whether to perform a fair value
assessment in a given period, Management considers
the development of macroeconomic indicators,
including changes in prices (producer price indices,
price indices for non-residential buildings, transport
facilities, utilities, and other engineering structures),
inflation rates, GDP growth rates and changes of the
Ukrainian Hryvnia (“UAH”) against USD and EUR. Also,
different internal and external factors, such as political,
legislative and economic situations, are reviewed.
Revaluation of property, plant, and equipment
(continued)
Based on the results of this review, the management of
the Group concluded that all groups of property, plant
and equipment accounted for using the revaluation
model should be revalued during 2024. Accordingly,
the Group engaged independent valuation specialists
to assess fair values of the relevant property, plant and
equipment as at 1 October 2024. The key assumptions
used to determine the fair value of the properties are
provided in Note 16.
Presentation of the expenses as war-related
Several critical assumptions have been used to
determine if the expenses incurred by the Group
relate to war and should be presented accordingly
in Note 35. These assumptions include but are not
limited to the timing of the costs, their nature,
prerequisites of their incurrence, ordinariness, and
necessity of expenses, and the possibility of their
incurrence in significant amounts during routine
operations during the pre-war period.
KEY SOURCES OF ESTIMATION UNCERTAINTY
The following are the key assumptions concerning the
future and other key sources of estimation uncertainty
at the end of the reporting period that have a
significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within
the next financial year.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
186
5. Critical accounting judgments
and key sources of estimation
uncertainty (continued)
KEY SOURCES OF ESTIMATION UNCERTAINTY
(continued)
Impairment of goodwill and intangibles with
indefinite useful lives
As disclosed in Notes 18 and 19, the Group determines on an
annual basis at least whether indefinite life intangible assets
and goodwill have been impaired. This requires an estimate
of an asset’s recoverable amount, which is the higher of
an asset’s or cash generating unit’s (CGU’s) fair value less
costs of disposal and its value in use and it is determined
for an individual asset unless the asset does not generate
cash inflows that are largely independent of those from
other assets or groups of assets. Estimating a value-in-use
amount requires management to estimate of the expected
future cash flows from the cash-generating unit and also to
choose a suitable discount rate and growth rates in order
to calculate the present value of those cash flows.
When assessing impairment of goodwill and
intangible assets with indefinite useful lives, the
Group constantly monitors climate-related matters
affecting the value-in-use of intangibles and goodwill.
As at 31 December 2024, the Group concluded that the
climate-related risks did not have material impact of
the value-in-use amounts for intangibles and goodwill.
The Group will adjust the critical assumptions used in
value-in-use calculations should a change be required
in the future.
Determination of incremental borrowing rate
As described in Note 2, the Group uses incremental
borrowing rate as the discounting factor to calculate
lease liability if the rate implicit in the lease is not
readily determinable. The incremental borrowing
rate is determined as the available rate for the Group
adjusted for the specifics of particular lease contracts.
Fair value less costs to sell biological assets and
agricultural produce
Biological assets are recorded at fair values, less costs
to sell. The Group estimates the fair values of biological
assets based on the following key assumptions:
• Average meat output for broilers and livestock for
meat production;
• Average productive life of breeders and cattle held
for regeneration and milk production;
• Expected crop output;
• Estimated changes in future sales prices;
• Projected production costs and costs to sell; and,
• Discount rate.
During the year ended 31 December 2024 the fair
value of biological assets was estimated using discount
factors of 21.3% and 21.5% (31 December 2023: 23.7% and
24.4%) for non-current and current assets, respectively.
Although some of these assumptions are obtained
from published market data, the majority of these
assumptions are estimated based on the Group’s
historical and projected results (Note 21).
The impact of potential climate-related matters,
including legislation, climate change, and company
climate objectives, which may affect the fair value
measurement of biological assets and agricultural
produce, has been considered in determining fair
value measurement. The impact of climate-related
matters is not material to the Group’s financial
statements.
Revaluation of property, plant, and equipment
During the year ended 31 December 2024, Management
appointed an independent appraiser to perform a
revaluation of buildings and structures, grain storage
facilities, production machinery, utilities and infrastructure,
vehicles and agricultural machinery, auxiliary and other
machinery as of 1 October 2024.
The independent appraiser has performed the
valuation according to International Valuation
Standards by applying the following techniques:
• market comparable approach for vehicles and
agricultural machinery; and
• depreciated replacement cost and market
comparable approach, if applicable, for buildings
and structures, utilities and infrastructure, grain
storage facilities, production, auxiliary, and other
machinery.
Key assumptions used by the independent appraiser
in assessing the fair value of property, plant, and
equipment using the depreciated replacement cost
and market comparable methods were as follows:
• changes in market prices of assets and construction
materials from the date of their acquisition/
construction/date of previous valuation to the date
of this valuation;
• external market prices for vehicles and equipment;
• normative and remaining useful lives;
• rates of physical depreciation.
To assess the level of economic obsolescence, if any,
the results of the revaluation using the depreciated
replacement cost and market-comparable approaches
were compared with a revaluation performed
under the income approach. As at 1 October 2024,
Management applied a single-scenario discounted
cash flow model under the income approach. The
discount rates used were 22.6% for the Poultry and
related operations and the Vegetable Oil segment,
and 23.7% for the Agricultural operations. These rates
reflect all relevant risks, including those associated
with the ongoing war in Ukraine. A sensitivity analysis
indicates that a 100 basis point increase in the
discount rate would lead to a decrease in the fair value
of property, plant and equipment by approximately
USD 28 million.
For CGUs in Ukraine, the terminal growth rate of
4.8% was used for all cash flows beyond the five-year
projected period, while the average revenue growth
rates within the five years ranged from 6.5% to 9.0%.
A decrease in the terminal growth rate by 100 basis
points or in the revenue growth rates by 100 basis
points would lead to a decrease in the fair value of
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
187
5. Critical accounting judgments
and key sources of estimation
uncertainty (continued)
KEY SOURCES OF ESTIMATION UNCERTAINTY
(continued)
property, plant, and equipment by USD 10 million or
USD 61 million, respectively. Key assumptions used for
the identification of economic obsolescence, if any,
for the European operating segment are described
in Note 19.
In determining fair value measurement, the impact
of potential climate-related matters, including
legislation, climate change, and company climate
objectives that may affect the fair value measurement
of property, plant, and equipment, has been
considered. The impact of climate-related matters is
not material to the Group’s financial statements.
Useful lives of property, plant, and equipment
The estimation of the useful life of an item of property,
plant, and equipment is a matter of management
based upon experience with similar assets. In
determining the useful life of an asset, Management
considers the expected usage, estimated technical
obsolescence, physical wear and tear, the physical
environment in which the asset is operated, and other
factors (including climate-related matters). Changes
in any of these conditions or estimates may result in
adjustments for future depreciation rates. The Group
concluded that, as of 31 December 2024, climate-
related matters had no material impact on the useful
lives of property, plant and equipment.
Deferred tax assets
Deferred tax assets, including those arising from
unused tax losses, are recognized to the extent that
they will probably be recovered, which is dependent
on the generation of sufficient future taxable profit.
Based on Management’s assessment, the Group
determined it was appropriate to recognize deferred
tax assets on unused tax losses, which will be utilized
against existing deferred tax liabilities and available
future tax profits.
The estimation uncertainty, therefore, pertains to the
level of deferred tax assets to be recognized.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
188
6. Segment information
The Group’s business is managed worldwide but main
manufacturing facilities and sales offices are located
primarily in Ukraine, Europe and Middle East.
Reportable segments are presented consistent with
the internal reporting to the Group’s chief operating
decision maker (“CODM”).
Segment information is analysed based on the types
of goods supplied by the Group’s operating divisions.
The Group’s reportable segments under IFRS 8 are as
follows:
Poultry and Related
Operations Segment:
• sales of poultry meat
• sales of processed meat and
culinary products
• sales of other poultry related
products
Vegetable oils operations
segment:
• sales of vegetable oil and
related products
Agriculture operations
segment:
• sales of grains and oilseeds
• other agricultural operations
(milk, feed grains and other)
European Operating
Segment:
• sales of poultry meat and
processed meat products in
Southeast Europe
The accounting policies of the reportable segments are
the same as the Group’s accounting policies described
in Note 2 Basis of preparation and accounting policies.
Sales between segments are carried out at market
prices. The segment result represents operating profit
under IFRS before unallocated corporate expenses
and loss on impairment of property, plant and
equipment. Unallocated corporate expenses include
management remuneration, representative expenses,
and expenses incurred in respect of the maintenance
of office premises. This is the measure reported to
the CODM for resource allocation and assessment of
segment performance.
European operating segment primarily includes
sales of poultry meat and processed meat products
produced by Perutnina Ptuj and its subsidiaries. The
CODM manages this as a single segment because each
research, development, manufacture, distribution, and
selling of chicken meat and meat processing products
requires single marketing strategies, a centralized
budgeting process, and centralized management of
production operations.
The Group does not present information on segment
assets and liabilities as the CODM does not review
such information for decision-making purposes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
The reportable segment information for the year ended 31 December 2024 comprised:
YEAR ENDED
31 DECEMBER 2024
POULTRY AND
RELATED OPERATIONS
VEGETABLE OILS
OPERATIONS
AGRICULTURE
OPERATIONS
EUROPEAN
OPERATING SEGMENT
TOTAL REPORTABLE
SEGMENTS
ELIMINATIONS
CONSOLIDATED
External sales
1,633
457
381
575
3,046
-
3,046
Sales between segments
16
178
200
-
394
(394)
-
Total revenue
1,649
635
581
575
3,440
(394)
3,046
Segment results
164
43
258
62
527
-
527
Unallocated corporate expenses
(87)
Loss on impairment of property,
plant and equipment 4)
(21)
(1)
(2)
(3)
(27)
-
(27)
Other expenses, net 1)
(264)
Profit before tax
149
OTHER INFORMATION:
Additions to property, plant and
equipment 2)
186
8
35
78
307
-
307
Depreciation and amortization expense 3)
93
6
64
27
190
-
190
Net change in fair value of biological
assets and agricultural produce
4
-
134
(3)
135
-
135
1) Includes finance income, finance costs, foreign exchange loss (net);
2) Additions to property, plant, and equipment in 2024 do not include unallocated additions in the amount of USD 6.6 million;
3) Depreciation and amortization for the year ended 31 December 2024 does not include unallocated depreciation and amortization in the amount of USD 2.6 million.
4) Loss on impairment of property, plant and equipment for the year ended 31 December 2024 includes unallocated loss in amount of USD 0.4 million.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
189
6. Segment information (continued)
The reportable segment information for the year ended 31 December 2023 comprised:
YEAR ENDED
31 DECEMBER 2023
POULTRY AND
RELATED OPERATIONS
VEGETABLE OILS
OPERATIONS
AGRICULTURE
OPERATIONS
EUROPEAN
OPERATING SEGMENT
TOTAL REPORTABLE
SEGMENTS
ELIMINATIONS
CONSOLIDATED
External sales
1,643
606
227
545
3,021
-
3,021
Sales between segments
10
170
207
-
387
(387)
-
Total revenue
1,653
776
434
545
3,408
(387)
3,021
Segment result
238
77
6
72
393
-
393
Unallocated corporate expenses
(54)
Other expenses, net 1)
(166)
Profit before tax
173
OTHER INFORMATION:
Additions to property, plant and
equipment 2)
130
3
25
50
208
-
208
Depreciation and amortization expense 3)
84
4
56
22
166
-
166
Net change in fair value of biological
assets and agricultural produce
15
-
(63)
-
(48)
-
(48)
1) Includes finance income, finance costs, foreign exchange loss (net);
2) Additions to property, plant, and equipment in 2023 do not include unallocated additions of USD 11.2 million;
3) Depreciation and amortization for the year ended 31 December 2023 does not include the unallocated amount of USD 2.9 million.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
190
6. Segment information (continued)
Non-current assets (excluding deferred tax assets, investments in associates and non-
current financial assets) based on the geographic location of the manufacturing facilities
were as follows as of 31 December 2024 and 31 December 2023:
2024
2023
Ukraine
2,285
1,911
Europe
441
371
The Middle East and North Africa (MENA)
3
4
2,729
2,286
No single customer contributed more than 10% of the Group’s revenue in either 2024 or 2023.
7. Revenue
Revenue for the years ended 31 December 2024, and 2023 was as follows:
2024
2023
POULTRY AND RELATED OPERATIONS SEGMENT
Chicken meat
1,363
1,402
Processed meat
127
111
Other poultry related sales
143
130
1,633
1,643
VEGETABLE OIL OPERATIONS SEGMENT
Vegetable oil
437
565
Oil related products
20
41
457
606
AGRICULTURAL OPERATIONS SEGMENT
Grain
328
186
Other agricultural sales
53
41
381
227
EUROPEAN OPERATING SEGMENT
Chicken meat
345
316
Processed meat
177
164
Other agricultural sales
53
65
575
545
3,046
3,021
The geographic structure of revenue for the years ended 31 December 2024, and 2023
was as follows:
2024
2023
Export1)
1,840
1,807
Domestic
1,206
1,214
3,046
3,021
1)Comprises revenue generated from sales to countries outside the production entity’s country of residence
The Group’s export sales to external customers by major product types were as follows
during the years ended 31 December 2024 and 2023:
2024
2023
Poultry and processed meat
1,062
1,026
Vegetable oil and related products
453
597
Grain
282
148
Other agricultural products
43
36
1,840
1,807
Export sales include revenue from shipping and handling services in the amount of
USD 161 million for the year ended 31 December 2024 (2023: USD 191 million).
Export sales of vegetable oil and related products and export sales of grains are primarily
made to global trading companies. The sales of poultry meat to the most significant
external markets – MENA and EU amounted to 34% and 38% of total export sales
respectively (2023: 34% and 45%).
Advances received from third parties as of 31 December 2023 in the amount of
USD 18 million were recognized as revenue during the year ended 31 December
2024. Advances received from third parties as of 31 December 2022 in the amount of
USD 31 million were recognized as revenue during the year ended 31 December 2023.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
191
8. Cost of sales
Cost of sales for the years ended 31 December 2024, and 2023 was as follows:
2024
2023
Poultry and related operations segment
1,262
1,246
Vegetable oil operations segment
385
509
Agricultural operations segment
259
164
European operating segment
427
415
2,333
2,334
Cost of sales included shipping and handling expenses for the years ended 31 December
2024 and 2023 as follows:
2024
2023
Poultry and related operations segment
100
101
Vegetable oil operations segment
55
96
Agricultural operations segment
44
29
European operating segment
10
9
209
235
Revenue includes shipping and handling costs in the price of the product.
For the years ended 31 December 2024 and 2023, the cost of sales comprised the
following:
2024
2023
Costs of raw materials and other inventory used
1,548
1,579
Payroll and related expenses
394
352
Services
223
255
Depreciation and amortization expense
168
148
2,333
2,334
Social security contributions, included in Payroll and related expenses above, amounted
to USD 60 million for the year ended 31 December 2024 (2023: USD 52 million).
9. Selling, general and administrative expenses
Selling, general and administrative expenses for the years ended 31 December 2024,
and 2023 were as follows:
2024
2023
Payroll and related expenses
183
136
Services
86
73
Depreciation and amortization expense
24
20
Advertising expense
23
15
Representative costs and business trips
11
9
Fuel and other materials used
7
8
Insurance expense
6
3
Other
8
6
348
270
Payroll and related expenses include social security contributions, which amounted to
USD 19 million for the year ended 31 December 2024 (2023: USD 14 million).
Remuneration to the auditors, included in the Services above, amounted to
USD 1.1 million for the year ended 31 December 2024 (2023: USD 1.2 million). This
consists of both audit and non-audit services, with the statutory audit fees amounting
to USD 0.8 million for the year ended 31 December 2024 and other assurance services
in amount of USD 0.2 million (2023: USD 0.9 million and USD 0.2 million respectively),
while the rest of fees relate to tax advisory and other non-audit services.
10. Other operating income
Other operating income for the years ended 31 December 2024, and 2023 was as follows:
2024
2023
Government grants
7
9
Gain on extinguisment of trade accounts payable
4
6
Insurance compensation
1
1
Income from claims, penalties and indemnification
2
1
Other income
2
2
16
19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
192
11. Other operating expenses
Other operating expenses for the years ended 31 December 2024, and 2023 were as
follows:
2024
2023
Charity expenses and community support donations
37
21
Expected credit losses and write-off of financial assets
10
7
Inventories and biological assets written off (Note 35)
6
-
Provision for claims, penalties and indemnification
4
2
Loss on disposal of property, plant and equipment
4
2
Other operating war-related expenses
3
3
Write-off of prepayments and taxes recoverable and prepaid
1
9
Share of loss of associates (Note 4)
2
-
Other expenses
9
5
76
49
12. Deferred income
During the years ended 31 December 2024 and 2023, the Group received government
compensation from the EU farming subsidies policy and other compensations by the
EU national employment programs, assigned contributions for employees, and refunds
of excise duties in total amount of USD 4 million and USD 7 million respectively. Also,
in 2024, grain transportation wagons with estimated fair value of USD 2 million were
received under the international grant programs.
Government grants for the construction and reconstruction of livestock farms and
compensation of the cost of machinery and equipment are presented in the Statement
of Financial Position as deferred income, which is recognized in profit or loss on a
systematic basis over the useful life of the related assets. All other compensations
received were recognised in the Consolidated Statement of Profit or Loss and Other
Comprehensive Income in full. There are no unfulfilled conditions or contingencies
attached to these grants.
13. Finance income
Finance income for the years ended 31 December 2024 and 2023 were as follows:
2024
2023
Gain on early redemption of bonds (Note 31)
6
22
Interest received from deposits and bank accounts
10
12
Other interest received
3
2
Other finance income
2
1
21
37
14. Finance costs
Finance costs for the years ended 31 December 2024 and 2023 were as follows:
2024
2023
Interest on corporate bonds
71
105
Interest on obligations under leases
45
40
Interest on bank borrowings
47
18
Bank commissions and other charges
1
3
Total finance costs
164
166
Less:
Finance costs included in the cost of qualifying assets
(4)
(3)
160
163
For qualifying assets, the weighted average capitalization rate on funds borrowed during
the year ended 31 December 2024 was 7.8% (2023: 7.8%).
Interest on corporate bonds for the years ended 31 December 2024 and 2023 includes
the amortization of premium and debt issue costs in the amount of USD 4 million and
USD 6 million, respectively.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
193
15. Income tax
The Group carries its operations in various jurisdictions,
but most of the Group’s operating entities are located
in Ukraine.
During the year ended 31 December 2024, the
Group’s companies that have the status of Corporate
Income Tax (the “CIT”) payers in Ukraine were subject
to 18% income tax. The deferred income tax assets
and liabilities as of 31 December 2024 and 2023 are
measured based on the tax rates expected to be
applied to the period when the temporary differences
are expected to reverse.
The components of income tax expense/(benefit) were
as follows for the years ended 31 December 2024 and
2023:
2024
2023
Current income tax expense
14
24
Withholding tax
-
2
Deferred tax expense/(benefit)
(9)
5
Income tax expense/(benefit)
5
31
The reconciliation between (loss)/profit before tax
from continuing operations multiplied by the statutory
tax rate and the tax expense for the years ended
31 December 2024 and 2023 was as follows:
2024
2023
Accounting profit/(loss) before
tax
149
173
Income tax expense/(benefit)
calculated at rates effective during
the year ended in respective
jurisdictions
27
31
Tax effect of:
Income/(expenses) generated
by FAT payers and other entities
exempt from corporate income tax
in Ukraine
(33)
6
Income tax attributable to non-
Ukrainian companies
1
(5)
Change in unrecognised deferred
tax asset
(3)
(6)
Withholding tax
-
2
Non-deductable expenses and
non-taxable income, net
13
4
Translation loss
-
(1)
Income tax expense/(benefit)
5
31
As of 31 December 2024 and 2023, deferred tax assets
and liabilities comprised:
2024
2023
Deferred tax assets arising from:
Other current liabilities
4
5
Current assets
1
-
Tax losses
26
26
Total deferred tax assets
31
31
Deferred tax liabilities arising
from:
Property, plant and equipment
(199)
(152)
Current assets
-
-
Total deferred tax liabilities
(199)
(152)
Net deferred tax liabilities
(168)
(121)
Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to cancel
current tax assets against current tax liabilities and
when the deferred income taxes relate to the same
fiscal authority. The following amounts, determined
after appropriate offsetting, are presented in the
consolidated statement of financial position as of
31 December 2024 and 2023:
2024
2023
Deferred tax assets
1
2
Deferred tax liabilities
(169)
(123)
(168)
(121)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
194
15. Income tax (continued)
As at 31 December 2024 and 2023 the Group did not
recognize deferred tax asset in respect of tax losses
carried forward in the amount of USD 1.0 million (USD
0.2 million of deferred tax assets), USD 2.0 million (USD
0.4 million of deferred tax asset), respectively, as the
Group did not intend to deduct the relevant expenses
for tax purposes in subsequent periods, as there are
uncertainties as to whether particular companies of
the Group will generate sufficient taxable profits in
the future. According to the Tax Code of Ukraine, there
is no expiration date for accounting tax losses carried
forward.
As at 31 December 2024 and 2023, the Company did
not recognize deferred tax liability in respect of taxable
temporary differences, associated with investments in
subsidiaries as the Company is able to control the timing
of the reversal of such temporary differences and it is
probable that they will not reverse in the foreseeable
future.
The movements in net deferred tax position of the
Group for the years ended 31 December 2024 and 2023
were as follows:
2024
2023
Net deferred tax liabilities as of
beginning of the year
(121)
(121)
Deferred tax benefit/(expense)
recognized in profit or loss
9
(5)
Deferred tax on revaluation of
property, plant and equipment
charged directly to other
comprehensive income
(69)
-
Deferred tax liabilities acquired in
business combinations (Note 3)
1
-
Translation difference
12
5
Net deferred tax liabilities
as of end of the year
(168)
(121)
PILLAR TWO MODEL RULES
The Organisation for Economic Co-operation and
Development (OECD)/G20 Inclusive Framework on
Base Erosion and Profit Shifting (BEPS) addresses
the tax challenges arising from the digitalisation of
the global economy. The Global Anti-Base Erosion
Model Rules (Pillar Two model rules) apply to
multinational enterprises with annual revenue in
excess of EUR 750 million per their consolidated
financial statements.
On 12 December 2024, the Cyprus House of
Representatives voted to transpose into law Council
Directive (EU) 2022/2523 of 14 December 2022 to ensure
a global minimum level of taxation of multinational
enterprise (MNE) groups and large domestic groups
in the Union (the Law), also known as the Pillar Two
Directive.
The Pillar Two model rules introduce new taxing
mechanisms under which MNEs would pay a minimum
level of tax (the Minimum Tax):
• the Qualified Domestic Minimum Top-up Tax
(QDMTT) is introduced for financial years starting
from 31 December 2024;
• the Income Inclusion Rule (IIR). The law introduced
IIR for financial years starting from 31 December 2023
in line with the Pillar Two Directive. The IIR requires
a parent entity of an MNE group or a large-scale
domestic group to pay a top-up tax on its low-taxed
income and the low-taxed income of its subsidiaries
to ensure that the group's overall income is taxed at
a minimum rate of 15%;
• the Under Taxed Payments/Profits Rule (UTPR)
is introduced for financial years starting from 31
December 2024.
The Pillar Two model rules are applicable to the Group
starting from 1 January 2024. According to these rules,
the Group is considered a multinational enterprise to
which the Pillar Two rules shall be applied.
The Pillar Two effective tax rates in most of the
jurisdictions, in which the Group operates, are above
15%. The application of Pillar Two model rules had
no material impact on the Group’s consolidated
financial statements. The Group applied a mandatory
temporary exception to the accounting for deferred
taxes arising from the jurisdictional implementation of
the Pillar Two model rules and disclosure requirements
for affected entities on the potential exposure to Pillar
Two income taxes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
195
16. Property, plant and equipment
The following table represents movements in property, plant and equipment for the year ended 31 December 2024:
LAND
BUILDINGS
AND
STRUCTURES
GRAIN
STORAGE
FACILITIES
PRODUCTION
MACHINERY
AUXILIARY
AND OTHER
MACHINERY
UTILITIES AND
INFRASTRUCTURE
VEHICLES AND
AGRICULTURAL
MACHINERY
OTHER FIXED
ASSETS1)
CONSTRUCTION
IN PROGRESS2)
TOTAL
COST OR REVALUED
AMOUNT:
At 31 December 2023
34.3
884.4
79.4
440.0
81.0
131.7
205.1
38.7
140.1
2,034.7
Additions
2.3
40.4
2.4
35.5
38.3
5.1
16.5
11.6
161.5
313.6
Acquisitions of
subsidiaries
1.9
4.7
1.0
1.7
-
-
0.5
0.1
0.9
10.8
Transfer from
Right-of-use assets
-
-
-
-
-
-
1.3
-
-
1.3
Transfers
0.7
(15.3)
(10.6)
68.2
(27.1)
19.0
0.2
3.1
(36.8)
-
Disposals
-
(2.8)
(0.1)
(1.8)
(0.6)
(0.4)
(5.6)
(1.2)
(0.2)
(12.7)
Revaluation, net
of depreciation
elimination
-
215.5
4.7
(31.6)
9.0
34.5
15.1
-
-
247.2
Impairment loss
-
(4.6)
(0.5)
(16.6)
(1.7)
(2.4)
(0.9)
-
-
(26.7)
Translation difference
(2.4)
(84.5)
(7.3)
(42.1)
(7.9)
(14.1)
(20.3)
(4.0)
(17.9)
(200.5)
At 31 December 2024
35.4
1,037.8
69.0
453.3
91.0
173.4
211.9
48.3
247.6
2,367.7
ACCUMULATED
DEPRECIATION:
At 31 December 2023
-
32.4
5.0
42.5
8.2
7.2
33.6
20.5
-
149.4
Depreciation charge
for the year
-
33.5
6.1
43.5
9.8
9.6
34.1
5.1
-
141.7
Disposal
-
(0.1)
-
(1.1)
(0.1)
(0.1)
(2.2)
(0.7)
-
(4.3)
Elimination upon
revaluation
(54.2)
(5.9)
(70.6)
(12.2)
(12.4)
(51.6)
-
(206.9)
Transfers
-
0.5
(1.6)
3.0
(2.6)
0.4
0.3
-
-
-
Transfer from
Right-of-use assets
-
-
-
-
-
-
0.5
-
-
0.5
Translation difference
-
(2.8)
(0.7)
(3.4)
(0.8)
(0.8)
(3.4)
(2.0)
-
(13.9)
At 31 December 2024
-
9.3
2.9
13.9
2.3
3.9
11.3
22.9
-
66.5
NET BOOK VALUE
At 31 December 2023
34.3
852.0
74.4
397.5
72.8
124.5
171.5
18.2
140.1
1,855.3
At 31 December 2024
35.4
1,028.5
66.1
439.4
88.7
169.5
200.6
25.4
247.6
2,301.2
1) Other fixed assets include office furniture and equipment;
2) Construction in progress include advances for property plant and equipment, machinery and equipment not in use, construction materials and spare parts, projects in progress.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
196
16. Property, plant and equipment (continued)
The following table represents movements in property, plant, and equipment for the year ended 31 December 2023:
LAND
BUILDINGS
AND
STRUCTURES
GRAIN
STORAGE
FACILITIES
PRODUCTION
MACHINERY
AUXILIARY
AND OTHER
MACHINERY
UTILITIES AND
INFRASTRUCTURE
VEHICLES AND
AGRICULTURAL
MACHINERY
OTHER FIXED
ASSETS1)
CONSTRUCTION
IN PROGRESS2)
TOTAL
COST OR REVALUED
AMOUNT:
At 31 December 2022
31.7
863.8
82.3
377.2
69.0
131.8
186.5
31.8
108.4
1,882.5
Additions
1.7
43.7
0.2
70.2
14.6
4.7
24.6
9.5
47.7
216.9
Transfer from
Right-of-use assets
-
-
-
-
-
-
3.1
-
-
3.1
Transfers
0.2
2.4
-
6.3
0.1
0.2
1.2
0.7
(11.1)
-
Disposals
(0.2)
(4.6)
-
(1.6)
(0.2)
(0.1)
(2.9)
(2.4)
(1.7)
(13.7)
Translation difference
0.9
(20.9)
(3.1)
(12.1)
(2.5)
(4.9)
(7.4)
(0.9)
(3.2)
(54.1)
At 31 December 2023
34.3
884.4
79.4
440.0
81.0
131.7
205.1
38.7
140.1
2,034.7
ACCUMULATED
DEPRECIATION:
At 31 December 2022
-
-
-
5.6
0.7
0.6
1.8
18.0
-
26.7
Depreciation charge
for the year
-
33.5
5.2
38.4
7.7
6.9
33.3
3.6
-
128.6
Disposal
-
(0.4)
-
(0.8)
-
(0.1)
(1.3)
(0.4)
-
(3.0)
Transfers
-
0.1
-
-
-
-
-
(0.1)
-
-
Transfer from
Right-of-use assets
-
-
-
-
-
-
0.8
-
-
0.8
Translation difference
-
(0.8)
(0.2)
(0.7)
(0.2)
(0.2)
(1.0)
(0.6)
-
(3.7)
At 31 December 2023
-
32.4
5.0
42.5
8.2
7.2
33.6
20.5
-
149.4
NET BOOK VALUE
At 31 December 2022
31.7
863.8
82.3
371.6
68.3
131.2
184.7
13.8
108.4
1,855.8
At 31 December 2023
34.3
852.0
74.4
397.5
72.8
124.5
171.5
18.2
140.1
1,885.3
1) Other fixed assets include office furniture and equipment;
2) Construction in progress include advances for property plant and equipment, machinery and equipment not in use, construction materials and spare parts, projects in progress.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
197
16. Property, plant and equipment
(continued)
As of 31 December 2024, included within construction
in progress were prepayments for property, plant, and
equipment in the amount of USD 53 million (2023: USD
23 million).
As of 31 December 2024, included within property,
plant and equipment were fully depreciated assets
with the original cost of USD 15 million (2023: USD 19
million).
As of 31 December 2024, certain of the Group’s property,
plant and equipment with the collateral amount of
USD 188 million (2023: USD 127 million) were pledged
as collateral to secure its bank borrowings.
REVALUATION OF PROPERTY,
PLANT AND EQUIPMENT
During the year ended 31 December 2024, the
Group engaged independent appraisers to perform
a revaluation of its buildings and structures, grain
storage facilities, production machinery, utilities and
infrastructure, vehicles and agricultural machinery,
auxiliary and other machinery as at 1 October 2024.
The previous revaluation of buildings and structures,
grain storage facilities, production machinery, utilities
and infrastructure, vehicles and agricultural machinery
and auxiliary and other machinery has been performed
as of 31 December 2022 as described in Note 4.
The revaluation process conformed to International
Valuation Standards and was performed using the
following methods and approaches:
• buildings and structures – depreciated replacement
cost method by reference to observable prices in
an active market adjusted by the cumulative index
of inflation of construction works and index of
physical depreciation (based on age and condition
of buildings and structures);
• grain storage facilities – depreciated replacement
cost method by reference to observable prices in an
active market adjusted based on age and condition
of the facilities;
• vehicles and agricultural machinery – market
comparable approach adjusted based on age and
condition of the machinery;
• production machinery – depreciated replacement
cost method for items of specialized nature and
market comparable approach adjusted based on
age and condition of the machinery for other items;
• auxiliary and other machinery – depreciated
replacement cost method for items of specialized
nature and market comparable approach adjusted
based on age and condition of the machinery for
other items;
• utilities and infrastructure – depreciated replacement
cost method by reference to observable prices in an
active market adjusted based on age and condition
of facilities, the fluctuations of the cumulative index
of inflation of construction works and the index of
physical depreciation.
During the year ended 31 December 2024, impairment
loss (in profit or loss) and increase in revaluation (in
other comprehensive income) as a result of the latest
regular valuation procedures amounted to USD 27
million and USD 454 million respectively.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
198
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
16. Property, plant and equipment (continued)
REVALUATION OF PROPERTY, PLANT AND EQUIPMENT (continued)
The following unobservable inputs were used to determine fair values of Buildings and structures, Utilities and infrastructure, Grain storage facilities, Vehicles and agricultural machinery,
Auxiliary and other machinery, and Production machinery:
DESCRIPTION
VALUATION TECHNIQUE(S)
UNOBSERVABLE INPUTS
RANGE OF UNOBSERVABLE
INPUTS 2022 (AVERAGE)
RELATIONSHIP OF UNOBSERVABLE INPUTS TO FAIR
VALUE
Buildings and structures
Depreciated replacement
cost method
Index of physical depreciation
0 – 80%
(26.65%)
The higher the index of physical depreciation,
the lower the fair value
Cumulative index of inflation of
construction works
1.00– 42.60
(4.81)
The higher the index, the higher the fair value
Utilities and infrastructure
Depreciated replacement
cost method
Index of physical depreciation
0 – 80%
(37.23%)
The higher the index of physical depreciation,
the lower the fair value
Cumulative index of inflation of
construction works
1.00 – 37.14
(5.41)
The higher the index, the higher the fair value
Grain storage facilities
Depreciated replacement
cost method
Index of physical depreciation
0 – 80%
(56.09%)
The higher the index of physical depreciation,
the lower the fair value
Cumulative index of inflation of
construction works
1.00 – 37.14
(4.79)
The higher the index, the higher the fair value
Vehicles and agricultural
machinery
Market
comparable approach
Index of physical depreciation
0 – 80%
(64.84%)
The higher the index of physical depreciation,
the lower the fair value
Auxiliary and other machinery
Depreciated replacement
cost method
Index of physical depreciation
0 – 80%
(38.03%)
The higher the index of physical depreciation,
the lower the fair value
Cumulative index of producer
inflation
1.00 – 17.05
(2.94)
The higher the index, the higher the fair value
Production machinery
Depreciated replacement
cost method
Market comparable approach
0 – 80%
(49.37%)
The higher the index of physical depreciation,
the lower the fair value
Cumulative index of producer
inflation
1.00–17.05
(3.78)
The higher the index, the higher the fair value
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
199
16. Property, plant and equipment (continued)
REVALUATION OF PROPERTY, PLANT AND EQUIPMENT (continued)
Had the Group’s property plant and equipment been measured on a historical cost basis, their carrying amount would have been as follows:
FAIR VALUE HIERARCHY
NET BOOK VALUE UNDER
REVALUATION MODEL
NET BOOK VALUE
IF CARRIED AT COST
2024
2023
2024
2023
Buildings and structures
Level 3
1,028
852
353
235
Production machinery
Level 2, 3
440
398
272
175
Utilities and infrastructure
Level 3
169
125
64
52
Vehicles and agricultural machinery
Level 2
201
172
117
100
Grain storage facilities
Level 3
66
74
28
23
Auxiliary and other machinery
Level 2, 3
89
73
71
58
1,993
1,693
905
643
17. Right-of-use assets
The following table presents movements in right-of-use assets for the years ended 31 December 2024 and 2023:
LAND
BUILDINGS AND
VEHICLES
TOTAL
NET BOOK VALUE:
As of 31 December 2022
193
30
223
Additions
13
30
43
Depreciation charge for the year
(30)
(9)
(39)
Termination of the lease
(12)
(2)
(14)
Reassessment of the lease
44
1
45
Translation difference
(8)
(2)
(10)
As of 31 December 2023
200
48
248
Additions
11
36
47
Depreciation charge for the year
(30)
(11)
(41)
Termination of the lease
(7)
(1)
(8)
Reassessment of the lease
44
-
44
Translation difference
(20)
(4)
(24)
As of 31 December 2024
198
68
266
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
200
18. Intangible assets
The following table presents movements in intangible assets for the year ended 31 December 2024:
LAND LEASE RIGHTS
TRADEMARKS
CUSTOMER RELATIONS
OTHER INTANGIBLE
ASSETS
TOTAL
COST:
As of 31 December 2023
52
31
19
31
133
Additions
-
-
-
8
8
Translation difference
(5)
(2)
(1)
(4)
(12)
As of 31 December 2024
47
29
18
35
129
ACCUMULATED AMORTIZATION:
As of 31 December 2023
40
-
5
13
58
Amortization charge for the year
3
-
1
8
12
Translation difference
(4)
-
(1)
(2)
(7)
As of 31 December 2024
39
-
5
19
63
NET BOOK VALUE:
As of 31 December 2023
12
31
14
18
75
As of 31 December 2024
8
29
13
16
66
The following table presents movements in intangible assets for the year ended 31 December 2023:
LAND LEASE RIGHTS
TRADEMARKS
CUSTOMER RELATIONS
OTHER INTANGIBLE
ASSETS
TOTAL
COST:
As of 31 December 2022
54
30
19
28
131
Additions
-
-
-
5
5
Disposals
-
-
-
(1)
(1)
Translation difference
(2)
1
-
(1)
(2)
As of 31 December 2023
52
31
19
31
133
ACCUMULATED AMORTIZATION:
As of 31 December 2022
37
-
4
10
51
Amortization charge for the year
5
-
1
4
10
Translation difference
(2)
-
-
(1)
(3)
As of 31 December 2023
40
-
5
13
58
NET BOOK VALUE:
As of 31 December 2022
17
30
15
18
80
As of 31 December 2023
12
31
14
18
75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
201
18. Intangible assets (continued)
The Group has recognized certain trademarks
and customer relationships as a part of intangible
assets through the acquisition of Perutnina Ptuj in
previous years. The remaining useful life of customer
relationships was estimated at 20 years.
The trademarks acquired by the Group mainly consist
of the PP and Topiko poultry meat brands and the
Poli meat processing products brand. The Group
believes that, since trademarks are well-positioned and
recognizable on a stable and mature market, there are
no technical barriers that would limit their lifetime. As
a result of further promotion of the trademarks, the
Group expects to obtain economic benefits from them
indefinitely. Accordingly, the trademarks held by the
Group are considered to have an indefinite useful life
and thus are not amortized but tested for impairment
by comparing their recoverable amount with their
carrying amount annually.
The Group allocates trademarks to individual entities
as separate cash-generating units (CGU). A summary
of the allocation of trademark values to separate CGUs
is presented below:
SEGMENT
COUNTRY
TRADEMARKS
CARRYING VALUE
2024
2023
European
operating
Slovenia
17
18
Bosnia and
Herzegovina
5
6
Croatia
5
5
Serbia
2
2
29
31
The impairment testing of the trademarks values was
performed by internal specialists. The recoverable
amount of trademarks in all cash-generating units
is determined based on the value-in-use method,
which uses cash flow projections covering a five year
period.
Discount rates incorporate the current market
assessment of the risks specific to each CGU,
considering the time value of money and individual
risks of the underlying assets that have not been
incorporated in the cash flow estimates. The discount
rate calculation is based on the specific circumstances
of the separate CGUs and is derived from its weighted
average cost of capital (WACC). The WACC takes into
account both debt and equity. The cost of equity is
derived from the expected return on investment by
the Group’s investors. The cost of debt is based on
the interest-bearing borrowings the Group is obliged
to service. Segment-specific risk is incorporated by
applying individual beta factors.
The weighted average discount rate of 15.9% (2023:
16.9%) was used. An increase of 6,154 basis points in
the weighted average discount rate would result in
impairment in 2024 (2023: 1,146 basis points).
The revenue for the next five years was estimated
using a weighted average 2.3% sales growth rate and
2.3% the terminal growth rate for revenue beyond this
period (2023: 2.4% and 2.1% respectively). A reduction of
5,972 basis points in the budgeted sales growth would
result in impairment in 2024 (2023: 1,583 basis points).
Weighted average royalty rate used in calculation of
cash flows was set at a level of 4.4% (2023: 2.6%). A
reduction by 368 basis points in the weighted average
royalty rate would result in impairment in 2024 (2023:
81 basis points).
As of 31 December 2024 and 2023 no impairment of
trademarks was identified.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
19. Goodwill
The following table represents movements in goodwill
for the years ended 31 December 2024 and 2023:
2024
2023
NET BOOK VALUE:
As of 1 January
62
60
Acquisitions of subsidiaries (Note 3)
7
-
Translation difference
(4)
2
As of 31 December
65
62
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
202
19. Goodwill (continued)
The Group allocates goodwill to individual entities as separate cash-generating units (CGU). A summary of goodwill
allocation to separate CGUs is presented below:
SEGMENT
COUNTRY
GOODWILL CARRYING
VALUE
METHODOLOGY ASSUMPTIONS
AND METHODS USED FOR GOODWILL
2024
2023
2024 (2023)
Poultry and related
operations
Ukraine
3
1
Average sales growth: 10.0%(5.8%)
Terminal sales growth: 4.8% (5.0%)
Discount rate: 22.6% (16.9%)
Projection period: 5 years
European
operating
Slovenia
36
38
Average sales growth: 1.6% (3.0%)
Terminal sales growth: 2.1% (1.8%)
Discount rate: 8.7% (8.2%)
Projection period: 5 years
Serbia
4
4
Average sales growth: 2.4%(4.4%)
Terminal sales growth: 3.0%(3.0%)
Discount rate: 11.2%(10.8%)
Projection period: 5 years
Bosnia and
Herzegovina
11
11
Average sales growth: 1.5%(2.1%)
Terminal sales growth: 2.0%(2.0%)
Discount rate: 15.8%(15.9%)
Projection period: 5 years
Croatia
11
8
Average sales growth: 1.8%(3.2%)
Terminal sales growth: 2.2%(2.1%)
Discount rate: 8.8%(9.2%)
Projection period: 5 years
65
62
The recoverable amount of cash-generating units is determined based on a value-in-use calculation, which uses cash
flow projections based on financial forecasts approved by the Directors.
The discount rate is determined on the specific circumstances of the Group and its operating segments and is derived
from its weighted average cost of capital (WACC), adjusted on segment-specific risk by applying individual beta factors.
An increase of 386 basis points in the weighted average discount rate to 13.9% would result in impairment in 2024 (2023:
808 basis points to 17.9%).
The growth rates and gross margins used for cash flow extrapolations are supported by industry trends such as consumer
prosperity and dietary trends. The Directors estimated these inputs based on the past performance of the cash-generating
unit and their expectations of market development. A reduction by 364 basis points in the budgeted sales growth or a
decrease in gross margin by 239 basis points would result in impairment in 2024 (2023: 897 and 554 respectively).
As of 31 December 2024 and 2023, no impairment was identified.
20. Non-current financial assets
The balances of non-current financial assets were as
follows as of 31 December 2024 and 2023:
2024
2023
Loans provided to third parties
33
26
Loans and finance aid provided
to related parties (Note 35)
2
3
Other financial assets
1
2
Less: expected credit losses
(26)
(22)
10
9
Loans receivable are mainly represented by loans with
a fixed interest rate of 2.5% in US dollars (Effective
Interest Rate of 4.25%) with rates of 15-25% in Ukrainian
hryvnia with maturities in 2025 - 2027.
The Group determines expected credit losses
attributable to other non-current loan receivables and
other financial assets based on different scenarios
of probability of default and on individual basis. The
expected credit losses relate to loans provided to third
parties and loans and finance aid provided to related
parties in amounts of USD 25.6 million and USD 0.4
million, respectively (2023: USD 21.5 million and USD
0.4 million, respectively)..
The movement in loss allowance for loan receivables
and other financial assets classified at amortized cost
is detailed below:
2024
2023
1 January
(22)
(20)
Charged during the year
(4)
(2)
31 December
(26)
(22)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
203
21. Biological assets
The balances of non-current biological assets were as follows as of 31 December 2024 and 2023:
THOUSAND UNITS
CARRYING AMOUNT
THOUSAND UNITS
CARRYING AMOUNT
2024
2023
Milk cows and other non-current bearer biological assets, units
16.8
27
15.7
12
Non-current comsumable cattle and pigs, units
4.8
4
5.0
4
Total non-current biological assets
31
16
The balances of current biological assets were as follows as of 31 December 2024 and 2023:
THOUSAND UNITS
CARRYING AMOUNT
THOUSAND UNITS
CARRYING AMOUNT
2024
2023
Bearer breeders held for hatchery eggs production, units
4,539
53
4,865
65
Broiler chickens, units
55,421
66
52,239
73
Hatchery eggs, units
38,701
10
43,430
11
Crops in fields, hectare
84
39
78
21
Cattle, pigs and other consumable current biological assets , units
2,6
1
3,5
1
Total consumable current biological assets
116
106
Total current biological assets
169
171
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
204
21. Biological assets (continued)
The following table represents movements in significant biological assets for the years ended 31 December 2024 and 2023:
MILK
COWS
BREEDERS HELD
FOR HATCHERY
EGGS PRODUCTION
BROILER
CHICKENS
CROPS
IN FIELDS
As of 31 December 2022
17.2
59.8
75.2
29.7
Costs incurred
9.4
115.7
957.9
349.6
Gains arising from change in fair value of biological assets less costs to sell
5.9
57.3
454.5
0.9
Transfer to consumable biological assets
-
(130.8)
130.8
-
Increase due to birth and weight increase
5.1
-
-
-
Decrease due to sale
(0.3)
(3.9)
-
-
Decrease due to harvest/slaughtering
(24.9)
(31.3)
(1,544.0)
(358.4)
Translation difference
(0.6)
(1.7)
(1.9)
(0.8)
As of 31 December 2023
11.8
65.1
72.5
21.0
Costs incurred
9.6
117.9
981.1
307.7
Gains arising from change in fair value of biological assets less costs to sell
35.5
44.1
428.3
168.2
Transfer to consumable biological assets
-
(143.0)
143.0
-
Increase due to birth and weight increase
5.3
-
-
-
Decrease due to sale
(0.4)
(2.1)
(1.3)
-
Decrease due to harvest/slaughtering
(32.9)
(23.6)
(1,551.0)
(454.9)
Translation difference
(1.9)
(5.7)
(6.7)
(2.9)
As of 31 December 2024
27.0
52.7
65.9
39.1
Information on movements in hatchery eggs and cattle and pig groups has been considered immaterial for disclosure.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
205
21. Biological assets (continued)
Biological assets of the Group are measured at fair value within Level 3 of the fair value hierarchy, except for cattle and pigs that can be calculated based on market prices of livestock of a
similar age, breed and genetic merit, and which are therefore measured at fair value within Level 2 of the fair value hierarchy. There were no transfers between any levels during the year.
The following unobservable inputs were used to measure biological assets:
DESCRIPTION
VALUATION
TECHNIQUE
SIGNIFICANT UNOBSERVABLE
INPUTS
RELATIONSHIP OF
UNOBSERVABLE
INPUTS TO FAIR VALUE
RANGE OF UNOBSERVABLE
INPUTS
SENSITIVITY OF THE INPUT TO FAIR VALUE
INCREASE/ (DECREASE) USD MILLION
INPUT 5% HIGHER
INPUT 5% LOWER
Crops in fields
DCF method
Crops yield – tonnes per hectare
The higher the crops yield,
the higher the fair value
2024: 3.7 – 6.9
5.0
(5.0)
2023: 3.8 – 9.9
3.8
(3.8)
Crops price – per tonne
The higher the market price,
the higher the fair value
2024: USD 173 - 444
5.0
(5.0)
2023: USD 114 - 350
3.8
(3.8)
Discount rate
The higher the discount rate,
the lower the fair value
2024: 21.5%
(0.2)
0.2
2023: 24.4%
(0.1)
0.1
Breeders held for
hatchery eggs
production
DCF method
Number of hatchery eggs produced
by one breeder
The higher the number,
the higher the fair value
2024: 165
0.9
(0.9)
2023: 165
1.2
(1.2)
Hatchery egg price – per egg
The higher the market price,
the higher the fair value
2024: USD 0.25
4.2
(4.2)
2023: USD 0.24
4.1
(4.1)
Discount rate
The higher the discount rate,
the lower the fair value
2024: 21.5%
(0.2)
0.2
2023: 24.4%
(0.2)
0.2
Broiler chickens
Cash flows method
Average weight of
one broiler – kg
The higher the weight,
the higher the fair value
2024: 2.42
6.5
(6.5)
2023: 2.32
5.8
(5.8)
Poultry meat price – per kg
The higher the market price,
the higher the fair value
2024: UAH 47.37 1.17 EUR*
7.0
(7.0)
2023: UAH 42.09 1.20 EUR*
6.3
(6.3)
Milk cows
DCF method
Daily milk yield – litre per cow
The higher the milk yield,
the higher the fair value
2024: 22.60 - 24.09
1.4
(1.4)
2023: 20.56 - 22.44
0.5
(0.5)
Weight of the cow – kg per cow
The higher the weight,
the higher the fair value
2024: 570 - 619
0.1
(0.1)
2023: 566 - 599
0.2
(0.2)
Milk price – per litre
The higher the market price,
the higher the fair value
2024: UAH 18.10 - 18.63
6.0
(6.0)
2023: UAH 14.03 -14.54
4.4
(4.4)
Meat price – per kg
The higher the market price,
the higher the fair value
2024: UAH 18.25 - 19.94
0.1
(0.1)
2023: UAH 21.77 - 35.00
0.2
(0.2)
Discount rate
The higher the discount rate,
the lower the fair value
2024: 21.3%
(0.7)
0.7
2023: 23.7%
(0.3)
0.4
* data of European operating segment
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
206
22. Inventories
The balances of inventories were as follows as of 31
December 2024 and 2023:
2024
2023
Components for mixed fodder
production
153
104
Other raw materials
69
62
Work in progress
37
44
Vegetable oil
29
25
Spare parts
26
21
Fertilizers
21
34
Mixed fodder
11
9
Gas and fuel
8
15
Other inventories
27
19
381
333
As of 31 December 2024 and 2023 work in progress
was mainly comprised of expenses incurred in
cultivating fields to be planted in the years 2025 and
2024 in amounts of USD 37 million and USD 42 million,
respectively.
As of 31 December 2024, components for mixed
fodder production mostly consist of sunflower seeds
in the amount of USD 56 million (31 December 2023:
USD 57 million), corn in the amount of USD 34 million
(31 December 2023: USD 10 million), and soybeans in
the amount of USD 39 million (31 December 2023:
USD 7 million). The remaining amount includes other
components of mixed fodder production.
Inventory is stated at the lower of cost and net
realizable value. There were no significant inventory
write-downs to bring them to net realizable value in
both 2024 and 2023.
23. Agricultural produce
The balances of agricultural produce were as follows
as of 31 December 2024 and 2023:
THOUSAND
TONNES
CARRYING
AMOUNT
THOUSAND
TONNES
CARRYING
AMOUNT
2024
2023
Grain
1,271
278
1,632
243
Chicken
meat
67.0
145
59.8
113
Other
various
crops
14
14
437
370
The fair value of Agricultural produce was estimated
based on market price as of the date of harvest and is
within Level 2 of the fair value hierarchy.
As of 31 December 2024, agricultural produce in the
amount of USD 105 million was pledged as collateral
to secure bank borrowings (2023: USD 13 million).
24. Taxes recoverable and prepaid
Taxes recoverable and prepaid were as follows as of 31
December 2024 and 2023:
2024
2023
VAT recoverable
51
29
Income tax prepaid
5
-
Miscellaneous taxes prepaid
1
1
57
30
25. Trade accounts receivable
The balances of trade accounts receivable were as
follows as of 31 December 2024 and 2023:
2024
2023
Poultry meat
127
132
Processed meat
27
21
Vegetable oil
12
22
Agriculture
30
14
Energy and fuel resources
6
5
Other*
8
5
Less: expected credit losses
(10)
(13)
200
186
* – includes trade accounts recivables due from related parties (Note
34) in total amount of USD 346 thousands as of 31 December 2024 (31
December 2023: USD 391 thousands)
The average credit period for poultry sales is 30 days,
and for sales of agricultural goods is 10 days. No interest
is charged on outstanding trade accounts receivable.
The expected credit losses on trade accounts receivable
are estimated collectively using a provision matrix and
on individual basis using different scenarios of the
probability of default.
The provision matrix is used by reference to the past
default experience of the debtor and an analysis of the
debtor’s current financial position, adjusted for factors
that are specific to the debtors, general economic
conditions of the industry in which the debtors operate,
and an assessment of both the current as well as the
forecast direction of conditions at the reporting date.
Thus, due to the challenging current economic conditions
in Ukraine as a result of the Russian invasion, and in order
to ensure that expected credit losses accurately reflects the
credit risk of domestic trade accounts receivable in Ukraine,
the credit default swap rate of 9.18%, was incorporated in
calculation of expected credit losses as at 31 December
2024 and 2023.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
207
25. Trade accounts receivable
(continued)
An individual assessment is used for individually
significant debtors with credit risk characteristics that
are not aligned with others.
As at 31 December 2024, the Group has recognized
a loss allowance of USD 3 million against all trade
accounts receivable over 270 days past due, which
are assessed on a collective basis because historical
experience has indicated that these trade accounts
receivable are generally not recoverable.
There has been no change in the estimation techniques
or significant assumptions made during the current
reporting period. The Group writes off a trade accounts
receivable when there is information indicating that
the debtor is in severe financial difficulty and there is
no realistic prospect of recovery, e.g., when the debtor
has been placed under liquidation or has entered into
bankruptcy proceedings or when the trade accounts
receivable are over 3 years past due, whichever
occurs earlier. None of the written-off trade accounts
receivable are subject to enforcement activities.
The following table details the trade accounts
receivable risk profile based on the Group’s provision
matrix. It discloses poultry meat Ukraine, poultry meat
export and other products Ukraine, other products
export sales, and European operating segment as
separate financial instruments. It applies the simplified
approach to its trade accounts receivable so that the
loss allowance is always measured at an amount equal
to lifetime expected credit losses.
The following table illustrates the use of a provision matrix as a risk profile disclosure under the simplified approach as
of 31 December 2024:
31 DECEMBER 2024
TRADE ACCOUNTS RECEIVABLE – DAYS PAST DUE
NOT PAST
DUE
< 30
31-90
91-270
>270
TOTAL
PORTFOLIO ASSESSMENT:
Poultry meat Ukraine1)
ECL rate, %
9.22%
9.38%
9.73%
10.19%
100%
Estimated total gross carrying amount at default
18.7
3.1
0.2
0.1
0.6
22.7
Lifetime ECL
(1.7)
(0.3)
-
-
(0.6)
(2.6)
Poultry meat export1)
ECL rate, %
0.04%
0.13%
0.61%
2.18%
100%
Estimated total gross carrying amount at default
48.9
9.0
0.7
0.1
0.4
59.1
Lifetime ECL
-
-
-
-
(0.4)
(0.4)
Other products Ukraine2)
ECL rate, %
9.31%
9.46%
9.74%
10.00%
100%
Estimated total gross carrying amount at default
19.7
9.2
2.8
2.0
1.4
35.1
Lifetime ECL
(1.8)
(0.9)
(0.3)
(0.2)
(1.4)
(4.6)
Other products export3)
ECL rate, %
0.01%
0.01%
0.04%
0.31%
100%
Estimated total gross carrying amount at default
8.0
12.3
1.1
0.7
-
22.1
Lifetime ECL
-
-
-
-
-
-
European operating segment
ECL rate, %
0.01%
0.08%
0.12%
0.16%
100%
Estimated total gross carrying amount at default
47.1
9.6
3.6
4.6
0.1
65.0
Lifetime ECL
-
-
-
-
(0.1)
(0.1)
Estimated total gross carrying amount at default
204.0
Total lifetime ECL
(7.7)
INDIVIDUAL ASSESSMENT4):
ECL rate, %
23.63%
23.63%
23.63%
26.18%
62.80%
Estimated total gross carrying amount at default
0.2
-
0.3
2.5
2.6
5.6
Lifetime ECL
(0.1)
-
-
(0.7)
(1.6)
(2.4)
Estimated total gross carrying amount at default
209.6
Total lifetime ECL
(10.1)
¹) Poultry meat consists only trade accounts receivables from sales of raw poultry meat and other raw poultry components
²) Other products Ukraine mostly consists of trade accounts receivables from sales of processed meat and agricultures products (milk, grain, cattle and
different agricultural services)
³) Other products export mostly consists of trade accounts receivables from sales of vegetable oil and grain
⁴) Individually assessed trade accounts receivable mainly consists of accounts receivable from sales of energy
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
208
25. Trade accounts receivable (continued)
The following table illustrates the use of a provision matrix as a risk profile disclosure under the simplified approach as
of 31 December 2023:
31 DECEMBER 2023
TRADE ACCOUNTS RECEIVABLE – DAYS PAST DUE
NOT PAST
DUE
< 30
31-90
91-270
>270
TOTAL
PORTFOLIO ASSESSMENT:
Poultry meat Ukraine1)
ECL rate, %
9.20%
9.28%
9.49%
9.79%
100%
Estimated total gross carrying amount at default
22.4
5.0
2.1
0.3
1.1
30.9
Lifetime ECL
(2.1)
(0.5)
(0.2)
-
(1.1)
(3.9)
Poultry meat export1)
ECL rate, %
0.03%
0.07%
0.23%
1.07%
100%
Estimated total gross carrying amount at default
35.6
11.0
1.9
0.6
0.5
49.6
Lifetime ECL
-
-
-
-
(0.5)
(0.5)
Other products Ukraine2)
ECL rate, %
9.29%
9.45%
9.71%
9.91%
100%
Estimated total gross carrying amount at default
13.6
4.5
1.8
0.9
3.6
24.4
Lifetime ECL
(1.2)
(0.4)
(0.2)
(0.1)
(3.6)
(5.5)
Other products export3)
ECL rate, %
0.00%
0.00%
0.01%
0.13%
100%
Estimated total gross carrying amount at default
1.2
13.7
9.7
0.4
0.4
25.4
Lifetime ECL
-
-
-
-
(0.4)
(0.4)
European operating segment
ECL rate, %
0.00%
0.03%
0.23%
0.34%
100%
Estimated total gross carrying amount at default
46.2
9.6
2.0
4.3
0.1
62.2
Lifetime ECL
-
-
-
-
(0.1)
(0.1)
Estimated total gross carrying amount at default
192.5
Total lifetime ECL
(10.4)
INDIVIDUAL ASSESSMENT4):
ECL rate, %
21.11%
21.11%
21.11%
35.22%
45.03%
Estimated total gross carrying amount at default
0.5
-
-
1.2
4.5
6.2
Lifetime ECL
(0.1)
-
-
(0.4)
(2.0)
(2.5)
Estimated total gross carrying amount at default
198.7
Total lifetime ECL
(12.9)
¹) Poultry meat consists only trade accounts receivables from sales of raw poultry meat and other raw poultry components
²) Other products Ukraine mostly consists of trade accounts receivables from sales of processed meat and agricultures products (milk, grain, cattle and
different agricultural services)
³) Other products export mostly consists of trade accounts receivables from sales of vegetable oil and grain
⁴) Individually assessed trade accounts receivable mainly consists of accounts receivable from sales of energy
The following table shows the movement in lifetime
ECL that has been recognized for trade and other
accounts receivable, in USD million:
COLLECTIVELY
ASSESSED
INDIVIDUALLY
ASSESSED
1 January 2023
(9.4)
(3.9)
(Charged)/reversed
during the year
(1.8)
1.4
Utilised
0.8
-
31 December 2023
(10.4)
(2.5)
(Charged)/reversed
during the year
1.9
0.1
Utilised
0.8
-
31 December 2024
(7.7)
(2.4)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
209
26. Other current financial assets
The balances of other current assets were as follows as
of 31 December 2024 and 2023:
2024
2023
Loans provided to third parties
17
13
Loans and finance aid provided
to related parties (Note 34)
6
4
Receivables for claims and
indemnification
4
2
Letters of credit
1
8
Government bonds
-
8
Other financial assets
1
6
Less: allowance for expected
credit losses
(10)
(7)
19
34
The Group determines the expected credit loss of loans
and finance aid receivable and other financial assets
based on different scenarios of probability of default
and expected loss applicable to each of the material
underlying balances. The expected credit losses relate
to loans provided to third parties, lending and finance
aid provided to related parties, and receivables for
claims and indemnification in amounts of USD 5.7
million, USD 2.4 million and USD 1.6 million, respectively
(2023: USD 4.3 million, USD 2.1 million and USD 0.4
million, respectively).
The movement in allowance for expected credit losses
is detailed below:
2024
2023
1 January
(7)
(5)
Charged during the year
(3)
(2)
31 December
(10)
(7)
27. Cash and cash equivalents
The balances of cash and cash equivalents were as
follows as of 31 December 2024 and 2023:
2024
2023
CASH AND CASH EQUIVALENTS
AT BANKS AND ON HAND IN:
US Dollars
119
136
Euro
75
89
Ukrainian Hryvnia
65
26
Bosnia-Herzegovina Convertible
Mark
7
19
Pound Sterling
1
6
Other currencies
8
13
SHORT-TERM DEPOSITS WITH
AN ORIGINAL MATURITY OF
LESS THAN 90 DAYS:
US Dollars
35
66
Ukrainian Hryvnia
7
43
Euro
26
38
Other currencies
12
-
Total cash and equivalents
355
436
Cash balances at banks earns interest at floating rates
based on daily bank deposit rates. Short-term deposits
with the original maturity up to three months earn
interest at the respective short-term deposit rates.
In accordance with the international rating agency of
Moody’s, credit ratings of the banks with which the
Group had accounts opened as of 31 December 2024
and 2023 were as follows:
2024
2023
International banks with A rating
176
191
International banks with B rating
2
7
Subsidiaries of international banks
with A rating
68
71
Subsidiaries of international banks
with B rating
40
107
Subsidiaries of international banks
with С rating
4
-
Ukrainian banks with C rating
65
60
355
436
Estimated credit losses relating to cash and cash
equivalents held in Ukrainian state banks with C rating
were immaterial as of 31 December 2024 and 2023.
28. Shareholders’ equity
SHARE CAPITAL
As of 31 December 2024 and 2023 the authorized,
issued, and fully paid share capital of MHP SE comprised
the following number of shares:
2024
2023
Number of shares issued
and fully paid
110,770,000
110,770,000
Less: Treasury shares
(3,731,792)
(3,731,792)
Number of shares outstanding*
107,038,208
107,038,208
* This number of outstanding shares is included in computation of
the weighted average number of shares used as a denominator in
calculating earnings per share in Note 40
The authorized share capital as of 31 December 2024
and 2023 was EUR 221,540 thousand represented by
110,770,000 shares with a par value of EUR 2 each.
All shares have equal voting rights and rights to receive
dividends, payable at the Company's discretion.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
210
29. Non-controlling interests
The table below presents the details of non-wholly owned subsidiaries of the Group that have material non-controlling interests:
NAME OF SUBSIDIARY
PROPORTION OF OWNERSHIP
INTERESTS AND VOTING RIGHTS HELD
BY NON-CONTROLLING INTERESTS
PROFIT/(LOSS) ALLOCATED
TO NON-CONTROLLING INTERESTS
ACCUMULATED
NON-CONTROLLING INTERESTS
2024
2023
2024
2023
2024
2023
MHP-Agro-S
49,0%
49.0%
7.8
(1.4)
17.0
7.8
MHP-AgroKryazh
49,0%
49.0%
4.5
(2.4)
8.4
4.1
Myronivsky Plant of Manufacturing Feeds and Groats
11.5%
11.5%
(1.8)
(0.7)
4.2
3.5
Other subsidiaries with immaterial non-controlling interests
n/a
n/a
(0.7)
2.8
(4.1)
(5.0)
n/a
n/a
9.8
(1.7)
25.5
10.4
Summarised financial information regarding each of the Group's subsidiaries with material non-controlling interests is set out below. The summarised financial information below
represents amounts before intragroup eliminations.
Summarised statement of financial position as of 31 December 2024 and 2023:
MHP-AGRO-S
MHP-AGROKRYAZH
MYRONIVSKY PLANT OF
MANUFACTURING FEEDS AND GROATS
2024
2023
2024
2023
2024
2023
Current assets
40.0
35.1
27.2
34.0
37.3
58.7
Non-current assets
24.2
22.4
18.5
18.4
107.3
99.1
Current liabilities
(29.7)
(38.9)
(23.0)
(39.6)
(105.6)
(124.2)
Non-current liabilities
(10.0)
(9.3)
(8.2)
(7.4)
(10.1)
(9.4)
Total equity
24.5
9.3
14.5
5.4
28.9
24.2
Attributable to:
Owners of the Group
7.5
1.5
6.1
1.3
24.7
20.7
Non-controlling interest
17.0
7.8
8.4
4.1
4.2
3.5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
211
29. Non-controlling interests (continued)
Summarised statements of profit or loss and other comprehensive income for the years ended 31 December 2024 and 2023:
MHP-AGRO-S
MHP-AGROKRYAZH
MYRONIVSKY PLANT OF
MANUFACTURING FEEDS AND GROATS
2024
2023
2024
2023
2024
2023
Revenue
40.7
30.1
33.4
15.6
150.0
128.6
Expenses
(24.7)
(32.9)
(24.1)
(20.4)
(165.4)
(135.1)
Profit/(loss) for the year
16.0
(2.8)
9.3
(4.8)
(15.4)
(6.5)
PROFIT/(LOSS) ATTRIBUTABLE TO:
Owners of the Group
8.2
(1.4)
4.8
(2.4)
(13.6)
(5.8)
Non-controlling interests
7.8
(1.4)
4.5
(2.4)
(1.8)
(0.7)
Total profit/(loss)
16.0
(2.8)
9.3
(4.8)
(15.4)
(6.5)
OCI ATTRIBUTABLE TO:
Owners of the Group
1.3
(0.3)
(0.2)
(0.2)
18.9
(1.0)
Non-controlling interests
1.3
(0.3)
(0.2)
(0.1)
2.5
(0.1)
Total OCI
2.6
(0.6)
(0.4)
(0.3)
21.4
(1.1)
COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Group
9.5
(1.7)
4.6
(2.6)
5.3
(6.8)
Non-controlling interests
9.1
(1.7)
4.3
(2.5)
0.7
(0.8)
Total comprehensive income/(loss) for the year
18.6
(3.4)
8.9
(5.1)
6.0
(7.6)
Dividends declared to non-controlling interest
-
-
-
-
-
-
No dividends were declared or paid to non-controlling interest for the years ended 31 December 2024 and 2023.
Summarised cash inflow/(outflow) for the years ended 31 December 2024 and 2023:
MHP-AGRO-S
MHP-AGROKRYAZH
MYRONIVSKY PLANT OF
MANUFACTURING FEEDS AND GROATS
2024
2023
2024
2023
2024
2023
Operating activities
2.3
6.4
1.2
1.2
3.6
8.8
Investing activities
(2.1)
(2.9)
(1.0)
(1.3)
(3.3)
(8.8)
Financing activities
(0.2)
(3.6)
(0.2)
-
-
-
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
212
30. Bank borrowings
The following table summarizes bank borrowings and credit lines outstanding as of 31 December 2024 and 2023:
2024
2023
CURRENCY
WAIR 1)
USD’ MLN
WAIR 1)
USD’ MLN
Non-current
EUR
EURIBOR2) + 1,03%
105
EURIBOR2) + 1,05%
116
EUR
1,50%
4
-
USD
SOFR3)+ 3,95%
337
SOFR3)+ 3,70%
101
USD
UIRD4)+ 5,53%
44
UIRD5)+ 6,76%
17
UAH
UIRD4)+ 4,00%
2
-
492
234
Current
EUR
EURIBOR2) + 2,30%
34
-
EUR
4,60%
54
6,26%
43
USD
SOFR3) + 2,48%
32
-
USD
5,70%
45
7,38%
47
UAH
-
11,85%
13
Current portion of
long-term bank borrowings
EUR
EURIBOR2) + 1,03%
26
EURIBOR2)+ 1,05%
28
EUR
1,50%
1
-
USD
SOFR3)+ 3,95%
74
14
USD
UIRD4)+ 5,53%
5
-
Total bank borrowings
271
145
763
379
1) WAIR represents the weighted average interest rate on outstanding borrowings;
2) According to the terms of the agreement, if market EURIBOR becomes negative, it shall be deemed zero for the calculation of interest expense;
3) The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities;
4) Ukrainian Index of Retail Deposit Rates (UIRD) - indicative rate calculated at 15:00 Kyiv time of each Banking Day in the Thomson Reuters system based
on nominal rates on time deposits of individuals in US Dollars for a period of 3 months with interest paid upon the expiration of the deposit agreement,
operating in 20 largest Ukrainian banks in the size of the deposit portfolio of individuals.
The Group’s borrowings are drawn from various
banks, mostly from international ones and Ukrainian
subsidiaries of international banks as term loans, credit
line facilities. Repayment terms of principal amounts
of bank borrowings vary from monthly repayment to
repayment on maturity depending on the terms of the
agreement with each bank.
As of 31 December 2024 and 31 December 2023, the
Group’s bank term loans and credit lines bear either
floating or fixed interest rates.
Term loans and credit line facilities were as follows as
of 31 December 2024 and 2023:
2024
2023
Credit lines
164
103
Term loans
599
276
763
379
Maturity profile of the bank borrowings and credit lines
outstanding as of 31 December 2024 and 2023 was as
follows:
2024
2023
Within one year
271
145
In the second year
134
49
In the third to fifth year inclusive
336
167
After five years
22
18
763
379
As of 31 December 2024, the Group had undrawn
facilities of USD 162 million (2023: USD 468 million).
Most of these undrawn facilities expire during the
period until January 2030.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
213
30. Bank borrowings (continued)
The Group’s bank borrowings are jointly and severally
guaranteed by MHP, Myronivsky Plant of Manufacturing
Feeds and Groats, Oril-Leader, Peremoga Nova, Starynska
Ptakhofabryka, Zernoproduct MHP, Katerinopilskiy
Elevator, Agrofort, SPF Urozhay, MHP SE, Scylla Capital
Limited, Myronivska Pticefabrika, Ptakhofabryka
Snyatynska Nova, Vinnytska Ptakhofabryka, Zakhid-
Agro MHP, MHP-Urozhayna Krayina.
As of 31 December 2024, the Group had borrowings of
USD 189 million that were secured by property, plant,
and equipment with a collateral amount of USD 188
million (31 December 2023: USD 148 million and USD
127 million, respectively) (Note 16).
As of 31 December 2024, the Group had borrowings
of USD 84 million that were secured by agricultural
produce with a carrying amount of USD 105 million
(31 December 2023: USD 10 million and USD 13 million,
respectively) (Note 23).
As of 31 December 2024, the bank short-term deposits
with a carrying amount of USD 1 million (31 December
2023: USD 19 million) was restricted as collateral to
secure issued letters of credit. These amounts are
presented within the letters of credit in other current
financial assets.
As of 31 December 2024 and 31 December 2023, interest
payable on bank borrowings was USD 8.6 million and
USD 2.4 million, respectively.
COVENANTS
The Group, as well as its specified subsidiaries, have
to comply with the following maintenance covenants
imposed by the banks providing the loans: EBITDA to
interest expenses ratio, current ratio, and liabilities to
equity ratio. These covenants are assessed periodically
to ensure compliance, and the Group is required to
meet these covenants on a quarterly basis.
As of the reporting date, the carrying amount of non-
current liabilities related to these covenants is USD 327
million. The Group has reviewed all relevant facts and
circumstances and believes the risk of non-compliance
with these covenants is remote. This assessment
considers the Group's current financial position and
historical performance, along with its established
processes for proactively managing financial metrics to
maintain compliance with covenant requirements. The
Group consistently monitors these metrics to ensure
that all covenant obligations are met.
Separately, in case of excess of Net Debt to EBITDA
ratio (the Group’s leverage ratio), there are negative
covenants in respect of restricted payments, including
dividends, additional indebtedness and restrictions
on mergers or consolidations, limitations on liens and
dispositions of assets and limitations on transactions
with affiliates.
As of 31 December 2024 the Group has complied
with all bank covenants. As of 31 December 2024, the
Group’s leverage ratio decreased to 2.08 to 1, below the
defined limit of 3.0 to 1, compared with 2.47 to 1 as at
31 December 2023 respectively.
LOAN AGREEMENT WITH INTERNATIONAL
FINANCIAL INSTITUTIONS
With the purpose of refinancing the part of its
Eurobond indebtedness matured in May 2024, on 20
October 2023 the Group signed agreements with three
international and development financial institutions
- DFC, IFC and EBRD - to provide facilities of up to
USD 400 million in aggregate. First tranches in total
amount of USD 107 million were received to partially
finance the repurchase of Notes on 10 November 2023,
under a Tender Offer, with a principal amount of USD
151 million for USD 128 million. Subsequently, in 2024,
second tranches (USD 113 million) were received to
partially finance the repurchase of Notes on 23 January
2024, under a Tender Offer, with a principal amount of
USD 138 million for USD 131 million. The last tranches in
total amount of USD 180 million were received in early
May 2024 for repayment of Notes with the outstanding
amount of USD 211 million. As a result, the Group’s
obligations in respect of 7.75% Senior Notes due in
2024 with a total nominal value of USD 500 million
have been fully discharged (for details refer to Note 31
Bonds issued).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
214
31. Bonds issued
Bonds issued and outstanding as of 31 December 2024 and 2023 were as follows:
CARRYING AMOUNT
NOMINAL AMOUNT
31 DECEMBER
2024
31 DECEMBER
2023
31 DECEMBER
2024
31 DECEMBER
2023
Non-current
6.25% Senior Notes due in 2029
348
348
350
350
6.95% Senior Notes due in 2026
546
543
550
550
894
891
900
900
Current
7.75% Senior Notes due in 2024
-
348
-
349
-
348
-
349
Unamortized debt issuance cost
-
-
(6)
(10)
Total bonds issued
894
1 239
894
1 239
As of 31 December 2024 and 2023 accrued interest payable on bonds issued was USD 15.4 million and USD 19.2 million,
respectively.
6.25% SENIOR NOTES
On 19 September 2019, MHP Lux S.A., a public
company with limited liability (société anonyme)
incorporated in 2018 under the laws of the Grand
Duchy of Luxembourg, issued USD 350 million 6.25%
Senior Notes due in 2029 at par value. The funds
received were used to satisfy and discharge the 8.25%
Senior Notes due in April 2020 for debt refinancing
and general corporate purposes.
The Senior Notes are jointly and severally guaranteed
on a senior basis by MHP SE, PrJSC “Oril – Leader”,
PrJSC “Myronivska Pticefabrika”, “SPF “Urozhay”
LLC, “Starynska Ptakhofabryka” ALLC, “Vinnytska
Ptakhofabryka”
LLC,
“Peremoga
Nova”
SE,
“Katerinopolskiy Elevator” LLC, PrJSC “MHP”, PrJSC
“Zernoprodukt MHP” and PrJSC “Agrofort”.
Interest on the Senior Notes is payable semi-annually in
arrears in March and September. These Senior Notes are
subject to certain restrictive covenants including, but
not limited to, limitations on the incurrence of additional
indebtedness in excess of Net Debt to EBITDA ratio as
defined by the indenture, restrictions on mergers or
consolidations, limitations on liens and dispositions of
assets and limitations on transactions with affiliates. If
the Group fails to comply with the covenants imposed,
the Trustee or the Holders of at least 25% in principal
amount of outstanding Notes may, upon written notice
to the Group, declare all outstanding Senior Notes to
be due and payable immediately. If a change of control
occurs, the Group shall make an offer to each holder
of the Senior Notes to purchase such Senior Notes at a
purchase price in cash in an amount equal to 100% of
the aggregate principal amount thereof, plus accrued
and unpaid interest and additional amounts, if any.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
6.95% SENIOR NOTES
On 3 April 2018, MHP Lux S.A. issued USD 550 million
6.95% Senior Notes due in 2026 at par value. Out of the
total issue amount, USD 416 million were designated
for redemption and exchange of the existing 8.25%
Senior Notes due in 2020.
The Senior Notes are jointly and severally guaranteed
on a senior basis by MHP SE, PrJSC “MHP”, PJSC
“Myronivsky Plant of Manufacturing Feeds and
Groats”, PrJSC “Zernoprodukt MHP”, PrJSC “Agrofort”,
PrJSC “Oril-Leader”, PrJSC “Myronivska Pticefabrika”,
“SPF “Urozhay” LLC, “Starynska Ptakhofabryka” ALLC,
“Vinnytska Ptakhofabryka” LLC, “Peremoga Nova” SE,
“Katerinopolskiy Elevator” LLC, Scylla Capital Limited.
Interest on the Senior Notes is payable semi-annually
in arrears in April and October. These Senior Notes are
subject to certain restrictive covenants including, but
not limited to, limitations on the incurrence of additional
indebtedness in excess of Net Debt to EBITDA ratio as
defined by the indenture, restrictions on mergers or
consolidations, limitations on liens and dispositions of
assets and limitations on transactions with affiliates. If
the Group fails to comply with the covenants imposed,
the Trustee or the Holders of at least 25% in principal
amount of outstanding Notes may, upon written notice
to the Group, declare all outstanding Senior Notes to
be due and payable immediately. If a change of control
occurs, the Group shall make an offer to each holder
of the Senior Notes to purchase such Senior Notes at a
purchase price in cash in an amount equal to 100% of
the principal amount thereof, plus accrued and unpaid
interest and additional amounts, if any.
7.75% SENIOR NOTES
On 10 May 2017, MHP SE issued USD 500 million 7.75%
Senior Notes due in 2024 at par value. Out of the total
issue amount, USD 245 million were designated for
redemption and exchange of existing 8.25% Senior
Notes due in 2020.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
215
31. Bonds issued (continued)
7.75% SENIOR NOTES (continued)
To refinance part of these Notes, the Group secured
up to USD 400 million in facilities from DFC, IFC, and
EBRD. These funds were used for repurchasing Notes
under Tender Offers in November 2023 (USD 151 million
repurchased for USD 128 million) and January 2024
(USD 138 million repurchased for USD 131 million). As the
Group repurchased these Notes with discount, finance
income in the amount of USD 6 million was recognized
in 2024 (2023: USD 22 million). The remaining USD 211
million was repaid in May 2024.
As a result, all obligations under the 7.75% Senior Notes
due in 2024 have been fully discharged.
COVENANTS
Certain restrictions under the indebtedness agreements
(e.g. incurrence of additional indebtedness, restricted
payments as defined above, dividends payment) are
dependent on the leverage ratio of the Group calculated
as Net Debt to EBITDA. Once the leverage ratio exceeds
3.0 to 1, it is not permitted for the Group to make certain
restricted payments, declare dividends exceeding USD
30 million in any financial year, or incur additional debt
except that defined as a Permitted Debt. According to
the indebtedness agreements, the consolidated leverage
ratio is tested on the date of incurrence of additional
indebtedness or restricted payment and after giving pro
forma effect to such incurrence or restricted payment as if
it had been incurred or done at the beginning of the most
recent four consecutive fiscal quarters for which financial
statements are publicly available (or are made available).
As of 31 December 2024 the Group has complied with
all covenants. As of 31 December 2024, the Group’s
leverage ratio decreased to 2.08 to 1, below the
defined limit of 3.0 to 1, compared with 2.47 to 1 as at
31 December 2023 respectively.
32. Lease liabilities
Long-term lease obligations represent amounts due
under agreements for the leasing of agricultural land,
trucks, agricultural machinery and equipment. As of 31
December 2024, the weighted average interest rates
implicit in the lease were 3.65% (2023: 3.89%), 7.98% (2023:
8.00%) and 19.61% (2023: 20.08%) for lease obligations
denominated in EUR, USD and UAH respectively.
The carrying amount of lease liabilities as of
31 December 2024 includes USD 211 million of land
lease liabilities (2023: USD 213 million).
The maturity profile of the lease agreements as of
31 December 2024 and 2023 was as follows:
2024
2023
As at 1 January
256
229
Cash repayments of lease
liabilities
(73)
(68)
Non-cash repayments of lease
liabilities1)
(4)
(7)
Foreign exchange movements
2
1
Non-cash additions and change
in terms
78
69
Interest charged
45
40
Translation difference
(28)
(8)
As at 31 December
276
256
Current portion of lease liabilities
79
76
Long-term portion of lease
liabilities
197
180
) Non-cash repayments are represented by grains and other agriculture
produce provided to lessors of land in settlement of lease liabilities.
33. Other current liabilities
Other current liabilities were as follows as of
31 December 2024 and 2023:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
2024
2023
Accrued payroll and related taxes
86
75
Amounts payable for property,
plant and equipment
17
12
Income tax payable
9
4
VAT paybable
4
2
Provision for claims, penalties and
indemnification
2
2
Other financial liabilities
2
4
120
99
34. Related party balances and
transactions
For the purpose of these financial statements, parties are
considered to be related if one party controls, is controlled by,
or is under common control with the other party or exercises
significant influence over the other party in making financial
or operational decisions. In considering each possible related
party relationship, attention is directed to the substance of
the relationship, not merely the legal form.
Related parties may enter into transactions unrelated
parties might not, and transactions between related
parties may not be effected on the same terms and
conditions as transactions between unrelated parties.
TRANSACTIONS WITH RELATED PARTIES
UNDER COMMON CONTROL
The Group, in the ordinary course of business, enters
into transactions with related parties that are companies
under common control of the Principal Shareholder of
the Group (Note 1) for the purchase and sale of goods and
services and the key management personnel in relation
to the provision of financing arrangements. Terms and
conditions of sales to related parties are determined based
on arrangements specific to each contract or transaction.
The terms of the payables and receivables related to the
Group's trading activities do not vary significantly from
the terms of similar transactions with third parties.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
216
34. Related party balances and
transactions (continued)
TRANSACTIONS WITH RELATED PARTIES
UNDER COMMON CONTROL (continued)
Transactions with related parties during the years
ended 31 December 2024 and 2023 were as follows:
IN THOUSAND USD
2024
2023
Loans and finance aid provided to
related parties 1)
1,644
46
Interest charged on loans and
finance aid provided
232
322
Sales of goods and services
973
571
Purchases from related parties
295
460
Key management personnel
of the Group:
Loans provided
494
383
Loans repaid
365
337
1) In 2024, the loans were provided to the associate. These loans remained
outstanding as at 31 December 2024 according to the payment terms.
The balances owed to and due from related parties
were as follows as of 31 December 2024 and 2023:
IN THOUSAND USD
2024
2023
Loans and finance aid receivable
(Notes 20, 26)
5,287
3,815
Less: expected credit losses
(1,955)
(2,101)
3,332
1,714
Loans to key management
personnel (Notes 20, 26)
3,336
3,564
Less: expected credit losses
(596)
(414)
2,740
3,150
Trade accounts receivable (Note 25)
346
391
Payables due to related parties
28
53
Payables due to associates
189
-
LOANS AND FINANCE AID RECEIVABLE
For loans and finance aid receivable, credit risk increased
to the point where it is considered credit-impaired.
The expected credit loss for such loans amounted to
USD 1,810 thousand and USD 1,894 thousand as of 31
December 2024 and 2023, respectively.
COMPENSATION OF KEY MANAGEMENT
PERSONNEL
Key management personnel totalled 22 individuals as
of 31 December 2024 (31 December 2023: 21 individuals),
including 3 and 4 independent non-executive directors
as of 31 December 2024 and 2023 respectively.
Total compensation of the Group’s key management
personnel included primarily in selling, general
and administrative expenses in the Consolidated
Statements of Profit and Loss and Other Comprehensive
Income amounted to USD 24,728 thousand and USD
23,626 thousand for the years ended 31 December
2024 and 2023, respectively. Compensation of key
management personnel consists of contractual salary
and performance bonuses paid.
Total compensation of the Group’s non-executive
directors, which consists of contractual salary,
amounted to USD 829 thousand and USD 771 thousand
in 2024 and 2023, respectively.
Total compensation of the Group’s Executive Chairman,
which consists of contractual salary, amounted to USD
654 thousand in 2024 (2023: USD 588 thousand).
LOANS TO KEY MANAGEMENT PERSONNEL
The Group has provided several of its key management
personnel with unsecured loans. The loans to key
management personnel granted during 2024 and 2023
mainly include loans provided by the Ukrainian subsidiaries
to the Group’s executive directors, which amounted to
USD 494 thousand and USD 383 thousand, respectively.
35. Operating environment
On 24 February 2022, Russian forces commenced a
military invasion of Ukraine, resulting in a full-scale
war across the Ukrainian State. The ongoing military
hostilities have led and continue to lead, to significant
casualties, dislocation of the population, damage
to infrastructure, disruption to economic activity in
Ukraine. Some territories remain temporarily occupied,
further complicating the situation.
In 2024, Ukrainian businesses continued their activities
in the challenging economic environment, facing
disruption of supply chains, rising operational costs,
and physical destruction of production facilities and
infrastructure. Between March and August 2024,
Russian attacks on Ukrainian power generation and
distribution infrastructure led to the loss of a number
of power generating capacities, severe power outages
and increased electricity price.
The stable operation of the Black Sea corridor,
established during second half of 2023, continued to
support economic activities of Ukrainian companies.
However, logistic challenge, which arose from the
blockade of the Polish-Ukrainian border by Polish
truckers and farmers during November 2023 - April
2024, negatively impacted the country’s external trade
during this period.
In April 2024, the EU extended Free Trade Agreement
with Ukraine until 5 June 2025. Further, in May 2024,
the EU introduced quantitative restrictions for some
types of agricultural products, including poultry, eggs,
sugar, oats, corn, cereals and honey. The imposed trade
restrictions limit Ukrainian exports of these products to
the EU to the average yearly export volumes recorded
between 1 July 2021 and 31 December 2023.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
217
35. Operating environment
(continued)
In 2024, Ukraine's real GDP grew by 3.4%, slowing
down compared to 2023. This decline was driven not
only by weaker harvests and softer-than-expected
external demand but also by the heightened risks of
military escalation, intensified Russian airstrikes, and
resulting electricity shortages. Despite continued
economic growth, challenges such as damaged energy
infrastructure and labor shortages remain significant.
GDP growth is expected to slow to 2.5-3.5% in 2025.
Consumer inflation accelerated notably, reaching 12.0%
year-over-year in December 2024 compared to 5.1% in
2023. While temporary factors, such as poor harvests,
contributed to rising inflation, underlying price
pressures also increased due to higher costs for raw
materials, electricity, and labor, along with persistent
workforce shortages. According to the forecasts made
by the National Bank of Ukraine (NBU) at the beginning
of 2025, inflation is expected to peak in the second
quarter of 2025 and to begin declining in the second
half of the year, with a projected slowdown to 8.4% by
the year-end.
To stabilize the foreign exchange market, anchor
inflation expectations, and gradually bring inflation
down to the 5% target over the policy horizon, the NBU
raised its key policy rate to 15.5%.
In 2024, the NBU continued implementing its managed
exchange rate flexibility policy, first introduced in
October 2023. Throughout the year, the official
exchange rate of the hryvnia against the US dollar
gradually declined, following a depreciation trend.
Additionally, the NBU shortened the maximum
settlement period for repatriating cash from the export
of specific grain products – including wheat, corn, soy,
sunflower, rapeseed, and vegetable oils (soy, sunflower,
and rapeseed) – from 180 to 90 calendar days.
The Government continues to implement measures
to stabilize markets and the economy. International
organizations (such as the IMF, EBRD, World Bank),
along with individual countries and charities, are
providing Ukraine with financing, donations and
material support. International assistance remains an
important source of financing to meet state budget
needs.
Despite the ongoing conflict, the Ukrainian economy
has been demonstrating remarkable resilience and
adaptability, relying on international support and
domestic reforms to sustain recovery.
The Group considers the following losses and expenses
incurred during the periods ended 31 December 2024
and 2023 to be directly related to or driven by the
continuing war:
IN MILLION USD
2024
2023
Community support donations1)
22.6
12.1
Write-off of inventories and
biological assets1)
6.4
0.2
Salary to mobilized employees2)
21.4
19.2
Other war-related expenses1)
3.3
3.2
Total amount recognized
in profit or loss
53.7
34.7
1) These expenses are presented within other operating expenses
in the consolidated statement of profit or loss and other
comprehensive income.
2) These expenses are presented within the cost of sales and selling,
general and administrative expenses in the consolidated statement
of profit or loss, and other comprehensive income.
The Group, working with volunteers, has provided
humanitarian aid (mainly through food supply) to the
people of Ukraine since the beginning of the war.
While the Ukrainian businesses and government
institutions demonstrated a high degree of
adaptability and resilience in the face of challenges
brought by the full-scale military invasion, the related
security and macroeconomic risks remain high and
continue to affect the economic situation in Ukraine.
Due to the unpredictability in the future course of
the war and the uncertainty regarding the timing
of its cessation as well as availability of sustainable
international financial support, other geopolitical
and macroeconomic factors, it remains difficult to
estimate the scale and direction of possible further
developments, both negative or positive, in the
operating environment in Ukraine at present.
36. Contingencies and contractual
commitments
TAXATION AND LEGAL ISSUES
The Group carries its operations in various jurisdictions,
with a significant number of operations in Ukraine.
Ukrainian legislation regarding taxation and other
regulatory matters, including currency exchange
control and customs regulations, is regularly changed
and revisited. Non-compliance with tax laws and
regulations may lead to the imposition of severe
penalties and fines.
Management believes that the Group has complied
with all requirements of effective tax legislation.
The Group exports vegetable oil, chicken meat,
and related products and performs intercompany
transactions, which may potentially be in the scope of
the Ukrainian transfer pricing regulations. The Group
believes that it complies with relevant transfer pricing
requirements.
As of 31 December 2024 and 2023, management
assessed the Group`s possible exposure to tax risks for
a total amount of USD 4 million related to corporate
income tax. No provision was recognized relating to
such possible tax exposure.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
218
36. Contingencies and contractual
commitments (continued)
TAXATION AND LEGAL ISSUES (continued)
Also, as of 31 December 2024, companies of the
Group were engaged in ongoing litigations with tax
authorities in the amount of USD 35 million (2023:
USD 35 million), including USD 5 million (2023: USD 6
million) of litigations with the tax authorities related to
disallowance of certain amounts of VAT refunds and
deductible expenses claimed by the Group. Out of this
amount, USD 30 million as of 31 December 2024 (2023:
USD 5 million) relates to cases where court hearings
have taken place and where the court in either the
first or second instance has ruled in favour of the
Group. In addition, the Group maintains disputes with
tax authorities in the amount of USD 2 million, which
are not brought to the courts as at 31 December 2024
(2023: USD 26 million).
Management believes that, based on the past history
of court resolutions of similar disputes upheld by the
Group, it is unlikely that a significant settlement would
arise out of such lawsuits and, therefore, no respective
provision is required in the Group’s financial statements.
CONTRACTUAL COMMITMENTS ON THE PURCHASE
OF PROPERTY, PLANT, AND EQUIPMENT
During the year ended 31 December 2024, companies
of the Group entered into a number of contracts with
suppliers for the purchase of property, plant and
equipment. These agreements are mainly related to
maintenance and modernization projects, new product
development in Ukraine, and expansion of Perutnina
Ptuj production facilities. As of 31 December 2024, such
purchase commitments amounted to USD 70 million
(2023: USD 67 million).
37. Fair value of financial instruments
Fair value disclosures in respect of financial instruments
are made in accordance with the requirements of
IFRS 7 “Financial Instruments: Disclosure” and IFRS 13
“Fair Value Measurement”. Fair value is defined as the
amount at which the instrument could be exchanged
in a current transaction between knowledgeable
willing parties in an arm’s length transaction, other
than in forced or liquidation sale. As no readily available
market exists for a large part of the Group’s financial
instruments, judgment is necessary in arriving at
fair value, based on current economic conditions
and specific risks attributable to the instrument.
The estimates presented herein are not necessarily
indicative of the amounts the Group could realize in a
market exchange from the sale of its full holdings of a
particular instrument.
The fair value is estimated to be the same as the
carrying value for cash and cash equivalents, short-
term bank deposits, trade accounts receivables, other
current assets, and trade accounts payable due to the
short-term nature of the financial instruments. The fair
value of non-current financial assets is measured by
discounting the estimated future cash outflows, with
reference to market interest rates, and it approximates
the carrying value of non-current financial assets.
Set out below is the comparison of carrying amounts
and fair values of the Group’s financial instruments,
excluding those discussed above, in the consolidated
statement of financial position:
CARRYING
AMOUNT
FAIR VALUE
2024
2023
2024
2023
FINANCIAL
LIABILITIES
Bank borrowings
(Note 30)
772
381
774
382
Senior Notes due
in 2024, 2026, 2029
(Note 31)
909
1,259
807
996
The fair value of bank borrowings was estimated by
discounting the expected future cash outflows by a
market rate of interest for bank borrowings, and is
within Level 2 of the fair value hierarchy.
The fair value of Senior Notes was estimated based on
market quotations and is within Level 1 of the fair value
hierarchy.
In determining the fair value of financial instruments,
the impact of potential climate-related matters,
including legislation, climate change, and company
climate objectives, which may affect the fair value
measurement of financial assets and liabilities, has
been considered and found not to be material.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
219
37. Fair value of financial instruments (continued)
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
The table below details the changes in the Group’s liabilities arising from financing activities, including cash and non-
cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will
be classified in the Group’s consolidated statement of cash flows as cash flows from financing activities.
BANK
BORROWINGS
BONDS ISSUED
LEASE
OBLIGATIONS
TOTAL
As of 31 December 2023
379
1 239
256
1 874
Cash flow from proceeds/(repayments)
387
(342)
(73)
(28)
Non-cash movements
Foreign exchange movements
57
-
2
59
Non-cash additions and change in terms
-
-
78
78
Non-cash repayments of lease liabilities1)
-
-
(4)
(4)
Acquisition of subsidiaries
4
-
-
4
Gain on bonds early redemption
-
(6)
-
(6)
Finance costs
47
71
45
163
Reclassification to interest payable
(47)
(67)
-
(114)
Translation difference
(64)
(1)
(28)
(93)
As of 31 December 2024
763
894
276
1 933
1) Non-cash repayments are represented by grains and other agriculture produce provided to lessors of land in settlement of lease liabilities.
BANK
BORROWINGS
BONDS ISSUED
LEASE
OBLIGATIONS
TOTAL
As of 31 December 2022
294
1,383
229
1,906
Cash flow from proceeds/(repayments)
71
(128)
(68)
(125)
Non-cash movements
Foreign exchange movements
20
-
1
21
Non-cash additions and change in terms
-
-
69
69
Non-cash repayments of lease liabilities1)
-
-
(7)
(7)
Gain on bonds early redemption
-
(22)
-
(22)
Finance costs
18
111
40
169
Reclassification to interest payable
(18)
(103)
-
(121)
Translation difference
(6)
(2)
(8)
(16)
As of 31 December 2023
379
1,239
256
1,874
1) Non-cash repayments are represented by grains and other agriculture produce provided to lessors of land in settlement of lease liabilities.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
220
MAJOR CATEGORIES OF ASSETS AND LIABILITIES
CONSIDERED BY THE GROUP FROM A RISK
MANAGEMENT PERSPECTIVE
2024
2023
ASSETS:
Cash and cash equivalents (Note 27)
355
436
Trade accounts receivable (Note 25)
200
186
Investments in associates (Note 4)
21
1
Other current financial assets (Note 26)
19
34
Non-current financial assets (Note 20)
10
9
605
666
LIABILITIES:
Bonds issued (Note 31)
894
1,239
Bank borrowings (Note 30)
763
379
Lease liabilities (Note 32)
276
256
Trade accounts payable
147
142
Accrued payroll and related taxes
(Note 33)
86
75
Interest payable (Note 30, 31)
24
22
Amounts payable for property,
plant and equipment (Note 33)
17
12
Income tax payable (Note 33)
9
4
VAT payable (Note 33)
4
2
Provision for claims, penalties and
indemnification (Note 33)
2
2
Other financial liabilities (Note 33)
2
4
2,224
2,137
The main risks inherent to the Group’s operations are
those related to credit risk, liquidity risk, currency risk,
interest rate, and commodity price risk.
CREDIT RISK
The Group is exposed to credit risk, which is the risk that
one party to a financial instrument will fail to discharge an
obligation and cause the other party to incur a financial
loss. The Group does not hold any collateral or other
credit enhancements to cover its credit risks associated
with its financial assets. The amount of financial assets
disclosed in the table “Major categories of assets and
liabilities considered by the Group from a risk management
perspective” represents the maximum credit exposure.
The Group structures the levels of credit risk it undertakes
by limiting the amount of risk accepted by one customer
or group of customers. The approved credit period for
significant customer groups, including franchisees,
distributors, and supermarkets, is 30 days.
Limits on the level of credit risk by customers are approved
and monitored regularly by the management of the Group.
Management assesses amounts receivable from customers
for recoverability starting from 30 and 60 days for receivables
on sales of poultry meat and receivables on other sales,
respectively. As of 31 December 2024, approximately 20% of
trade accounts receivable relates to the top 10 customers,
of which 57% are from the customers outside of Ukraine (31
December 2023: 21% and 56%, respectively).
Other current and non-current financial assets primarily
consist of loans to third parties and related parties, as well
as other financial assets. The Group has implemented
a credit risk policy, whereby each new loan is assessed
for creditworthiness on an individual basis prior to the
transaction. This assessment includes an evaluation of the
debtor’s financial position, payment history, transaction
volume, and other relevant factors
The credit risk on liquid funds is limited because almost all
counterparties are banks with high credit ratings assigned by
international credit-rating agencies; a relatively small portion
of cash is held in Ukrainian state banks on current accounts.
LIQUIDITY RISK
Liquidity risk is the risk that the Group will not be able to settle
all liabilities as they fall due. The Group’s liquidity position is
carefully monitored and managed. The Group has a detailed
budgeting and cash forecasting process to help ensure
adequate cash is available to meet its payment obligations.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
38. Risk management policies
During the years ended 31 December 2024 and 2023,
there were no material changes to the objectives,
policies, and processes for managing credit risk,
capital risk, liquidity risk, currency risk, interest rate
risk, livestock diseases risk, and commodity price and
procurement risk.
CAPITAL MANAGEMENT
The Group manages its capital to ensure that entities of
the Group will be able to continue as a going concern
while maximizing the return to the equity holders
through maintaining a balance between the higher
returns that might be possible with higher levels of
borrowings and the security afforded by a sound
capital position. The management of the Group reviews
its capital structure regularly. Based on the results of
this review, the Group takes steps to balance its overall
capital structure through new share issues and the
issue of new debt or the redemption of existing debt.
In addition to the target ratios of the covenants
established under the terms of the bonds issued and
bank borrowings (Notes 30 and 31), the Group aims to
achieve a gearing ratio that is not higher than 2.5. The
Group defines its gearing ratio as the proportion of
total liabilities to total equity.
As of 31 December 2024 and 2023 the gearing ratio
was as follows:
2024
2023
Total Liabilities
2,460
2,319
Total Equity
1,966
1,567
Total Liabilities to Equity
1.25
1.48
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
221
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
38. Risk management policies (continued)
LIQUIDITY RISK (continued)
The following table details the Group’s financial liabilities by their remaining contractual maturity. The table has
been drawn up based on the undiscounted cash flows of financial liabilities using the earliest date the Group can
be required to pay. The table includes both interest and principal cash flows as of 31 December 2024 and 2023. The
amounts in the table may not be equal to the carrying amounts in the statement of financial position since the table
presents all cash outflows on an undiscounted basis.
CARRYING
AMOUNT
CONTRACTUAL
AMOUNTS
LESS THAN
1 YEAR
FROM 2ND
TO 5TH YEAR
AFTER
5TH YEAR
YEAR ENDED 31 DECEMBER 2024
Bank borrowings
772
1,019
341
651
27
Bonds issued
909
1,067
60
1,007
-
Lease liabilities
276
529
80
246
203
Trade accounts payable
147
147
147
-
-
Other current liabilities
120
120
120
-
-
Total
2,224
2,882
748
1,904
230
YEAR ENDED 31 DECEMBER 2023
Bank borrowings
381
439
164
256
19
Bonds issued
1,259
1,490
423
695
372
Lease liabilities
256
510
76
230
204
Trade accounts payable
142
142
142
-
-
Other current liabilities
99
99
99
-
-
Total
2,137
2,680
904
1,181
595
The Group’s target is to maintain its current ratio, defined as the proportion of current assets to current liabilities, at
the level of not less than 1.2. As of 31 December 2024 and 2023, the current ratio was as follows:
2024
2023
Current assets
1,665
1,588
Current liabilities
665
850
2.50
1.87
CURRENCY RISK
Currency risk is the risk that the value of a financial
instrument will fluctuate due to changes in foreign
exchange rates. The Group subsidiaries undertake
various export and import transactions and have
certain loans and borrowings denominated in foreign
currencies. In particular, the Ukrainian operations
(with UAH as their functional currency) are primarily
exposed to the foreign currency risk. The Group does
not use any derivatives to manage foreign currency risk
exposure. However, Management limits exposure to
foreign currency fluctuations to manage currency risk.
The carrying amounts of the Group’s foreign currency-
denominated monetary assets and liabilities as of
31 December were as follows:
2024
2023
USD
EUR
USD
EUR
Assets
215
97
255
107
Liabilities1)
1,470
153
1,449
225
Net liabilities
1,255
56
1,194
118
1) Currency-denominated liabilities consist primarily of bonds issued
and bank borrowings.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
222
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
38. Risk management policies (continued)
CURRENCY RISK (continued)
The table below illustrates the Group’s sensitivity to a change in the exchange rate of
the Ukrainian Hryvnia against the US Dollar and Euro. The sensitivity analysis includes
only outstanding foreign currency-denominated monetary items and adjusts their
translation at the year-end for possible changes in foreign currency rates.
CHANGE IN FOREIGN
CURRENCY EXCHANGE
RATES
EFFECT ON PROFIT
BEFORE TAX,
GAIN/(LOSS)
2024
Increase in USD exchange rate
10%
(126)
Increase in EUR exchange rate
10%
(6)
Decrease in USD exchange rate
2%
25
Decrease in EUR exchange rate
2%
1
2023
Increase in USD exchange rate
20%
(119)
Increase in EUR exchange rate
20%
(12)
Decrease in USD exchange rate
2%
24
Decrease in EUR exchange rate
2%
2
During the year ended 31 December 2024 the Ukrainian Hryvnia depreciated against
the EUR and USD by 3.91% and 9.65% respectively (2023: depreciated against the EUR
by 7.72% and 3.72% against the USD). As a result, during the year ended 31 December
2024 the Group recognised net foreign exchange losses in the amount of USD 125
million (2023: foreign exchange losses in the amount of USD 40 million) and cumulative
translation loss of USD 131 million (2023: USD 20 million) in the consolidated statement
of profit or loss and other comprehensive income.
As operations of Ukrainian subsidiaries of the Group are primarily exposed to the
currency risk, it is mitigated by the USD-denominated cash proceeds from sales of
sunflower oil, grain, and chicken meat export, which are deemed sufficient for servicing
the Group’s foreign currency denominated liabilities. Information about export sales is
presented in Note 7.
INTEREST RATE RISK
Interest rate risk arises from the possibility that interest rate changes will primarily
affect borrowings by changing future cash flows. For variable rate borrowings, interest
is linked to SOFR, EURIBOR or UIRD.
The table below illustrates the Group’s sensitivity to increases or decreases in interest
rates by 1%. The analysis was applied to interest-bearing bank borrowings and lease
obligations based on the assumption that the amount of liability outstanding as of the
reporting date was significant for the whole year.
INCREASE/
(DECREASE) OF
FLOATING RATE
EFFECT ON PROFIT
BEFORE TAX,
GAIN/(LOSS)
2024
SOFR
1%
(4)
SOFR
-1%
4
EURIBOR
1%
(2)
EURIBOR
-1%
2
2023
SOFR
1%
(1)
SOFR
-1%
1
EURIBOR
1%
(2)
EURIBOR
-1%
2
The effect of interest rate sensitivity on shareholders’ equity is equal to that on the
consolidated statement of profit or loss.
LIVESTOCK DISEASES RISK
The Group’s agro-industrial business is subject to risks of outbreaks of various diseases.
The Group faces the risk of outbreaks of diseases, which are highly contagious and
destructive to susceptible livestock, such as avian influenza or bird flu, for its poultry
operations. These and other diseases could result in mortality losses. The Group adopted
disease control measures to minimize and manage this risk. Management is satisfied
that its current risk management and quality control processes are adequate to prevent
any outbreak of livestock diseases and related losses.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
223
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
38. Risk management policies (continued)
COMMODITY PRICE AND PROCUREMENT RISK
Commodity price risk arises from the risk of an adverse effect on current or future
earnings from fluctuations in the prices of commodities. To mitigate this risk, the Group
continues the expansion of its grain-growing segment as part of its vertical integration
strategy. Also, it accumulates sufficient commodity stock to meet its production needs.
39. Pensions and retirement plans
The Group's employees receive pension benefits from the government in accordance
with the laws and regulations of their respective jurisdictions.
Ukrainian subsidiaries of the Group contributed USD 87 million to the State Pension Fund
of Ukraine for the year ended 31 December 2024, which is recorded in the Consolidated
Statement of Profit or Loss and Other Comprehensive Income on an accrual basis
(compared to USD 73 million in 2023). The Ukrainian companies of the Group are not
obliged for providing any additional pensions, post-retirement healthcare, insurance
benefits, or retirement indemnities to current or former employees, apart from pay-
as-you-go expenses.
According to legislative regulations, collective contracts, and internal rules, the European
Operating Segment companies are obligated to pay loyalty bonuses and severance
payments to employees upon their retirement, for which long-term provisions are made.
Provisions are recognised in other operating expenses in the Consolidated Statement
of Profit or Loss and Other Comprehensive Income, and in other non-current liabilities
in the Statement of Financial Position.
The balances of provisions for employee benefits are presented within other non-current
liabilities and were as follows as of 31 December 2024 and 2023:
2024
2023
Provisions for severance payments
4.7
4.8
Provisions for loyalty bonuses
1.1
1.0
5.8
5.8
The following table represents movements in provisions for employee benefits for the
years ended 31 December 2024 and 2023:
PROVISIONS
FOR SEVERANCE
PAYMENTS
PROVISIONS
FOR LOYALTY
BONUSES
TOTAL
31 December 2022
3.9
0.9
4.8
Formation
1.1
0.2
1.3
Expenditure
(0.4)
(0.1)
(0.5)
Translation Differences
0.2
-
0.2
31 December 2023
4.8
1.0
5.8
Formation
0.8
0.2
1.0
Expenditure
(0.6)
(0.1)
(0.7)
Translation Differences
(0.3)
-
(0.3)
31 December 2024
4.7
1.1
5.8
40. Earnings per share
The earnings and weighted average number of ordinary shares used in calculation of
earnings per share are as follows:
2024
2023
Profit for the year attributable to equity holders of the
Parent
134
144
(Loss)/earnings used in calculation
of earnings per share
134
144
Weighted average number of shares outstanding
(Note 28)
107,038,208
107,038,208
Basic and diluted (loss)/earnings
per share (USD per share)
1.25
1.35
The Group has neither potentially dilutive ordinary shares nor other dilutive instruments;
therefore, the diluted earnings per share equal basic earnings per share.
GOVERNANCE
FINANCIAL
STATEMENTS
SHAREHOLDER
INFORMATION
STRATEGIC
REPORT
Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
224
FOR THE YEAR ENDED 31 DECEMBER 2024
(in millions of US dollars, unless otherwise indicated)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
41. Subsequent events
COMPLETED ACQUISITION IN 2025
The Group obtained control over Ukrainskyi Miasnyi
Khutir in January 2025 as described in Note 4. As of
the date of approval of these consolidated financial
statements, the Group is in the process of completing
the purchase price allocation for this business
combination and evaluating the financial impact of this
transaction on its consolidated financial statements,
which is expected to be completed during twelve
months since the acquisition date.
PLANNED ACQUISITION IN 2025
On 20 March 2025, the Group entered into a Share
Purchase Agreement (SPA) with shareholders
representing over 41% of the share capital of Group
U.V.E.S.A., one of the leading poultry production
companies in Spain. The agreement provides for the
acquisition of shares at a fixed price of EUR 225 per
share, with an additional contingent consideration
of up to EUR 21.43 per share, subject to certain post-
closing conditions.
The
SPA
included
provisions
allowing
other
shareholders of Group U.V.E.S.A. to join the agreement
within one month from the signing date under the
same terms. Pursuant to these provisions, additional
shareholders joined the agreement within the allowed
timeframe, bringing total participating equity shares to
more than 90% as of the date of authorization of these
consolidated financial statements. The completion
of the transaction is subject to obtaining regulatory
approvals, including merger control and foreign
subsidies clearance by the European Commission.
The acquisition is aligned with the Group’s strategic
goal to expand its presence in the European poultry
market. The consideration is expected to be settled in
cash upon completion.
As at the date of authorization of these consolidated
financial statements, the transaction had not yet been
completed and the necessary procedures to determine
the fair values of the identifiable assets and liabilities
of the acquiree have not yet commenced.
42. Authorization of the
consolidated financial statements
These consolidated financial statements were
authorized for issue by the Board of Directors of MHP
SE on 28 April 2025.
GOVERNANCE
FINANCIAL
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Statement of the
Board of Directors
Independent
Auditor’s Report
Consolidated Financial
Statements
Notes to Financial
Statements
225
COMPANY REGISTERED OFFICE
AUDITOR
COMPANY OFFICE
REGISTRAR
KEY CONTACTS &
ADVISORS
16-18 Zinas Kanther Street,
Ayia Triada,
3035 Limassol,
Cyprus
Ernst & Young Cyprus Ltd
10 Esperidon Street
1087 Nicosia
P.O. Box 21656
1511 Nicosia, Cyprus
Tel: +357 22209999
Fax: +357 22209998
ey.com
EB 1, Nicolaides Sea View City Block AB,
3-7 Archbishop Makarios III Avenue,
6017 Larnaca,
Cyprus
Citigroup Global Markets Deutschland AG,
16 Reuterweg,
60323 Frankfurt,
Germany
WEBSITE
Shareholders are encouraged to visit our websites
to obtain information on the Company, including
its history, reports, news and press information:
www.mhp.com.ua
www.mhp.com.cy
GOVERNANCE
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226
FINANCIAL
CALENDAR
MHP’s financial calendar
can be found here:
mhp.ua/en/mhp-se/financial-calendar
The calendar is updated to show all
important event and publication dates.
Director of Investor Relations,
International Communications
and ESG Compliance
Email: a.sobotyuk@mhp.com.ua
+38 050 339 29 99
+357 99 76 71 26
ANASTASIYA
SOBOTYUK
SHAREHOLDER
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226
GOVERNANCE
STRATEGIC
REPORT
Key Contacts & Advisors
Financial Calendar
Glossary of Terms
GLOSSARY OF TERMS
AGM
Annual general meeting
AI
Avian Influenza
AI
Artificial Intelligence
ARC
Audit & Risk Committee
ATM
Autonomous Trade Measures
B2B
Business-to-Business
B2C
Business-to-Customer
BECCS
Bioenergy with Carbon Capture
and Storage
BESS
Battery Energy Storage System
Bio-LNG
A sustainable, renewable
fuel produced by liquefying
biomethane
BRCGS
Organisation that harmonises food
safety standards across the supply
chain. Also known as BRC Global
Standard
Broiler
A young chicken raised for meat
CAPEX
Capital expenditure
CBD
Customer Business Development
CEO
Chief Executive Officer
CFO
Chief Financial Officer
CGU
Cash Generating Unit
CIS
Commonwealth of Independent
States
Company
MHP SE
CO2
Carbon Dioxide
CO2e
Carbon Dioxide Equivalent
COSO
Committee of Sponsoring
Organisations of the Treadway
Commission
CSR
Corporate Social Responsibility
CSRD
Corporate Sustainability Reporting
Directive
DFC
U.S. International Development
Finance Corporation
DNA
Deoxyribonucleic Acid
EBITDA
Earnings before interest, tax,
depreciation and amortisation
EBRD
European Bank for Reconstruction
and Development
EGM
Extraordinary general meeting
EOS
European Operating Segment
ERP
Enterprise Resource Planning
ESAP
Environmental & Social Action Plan
ESG
Environmental, Social and
Governance
EU
European Union
EUR
Euro
Fodder
Food for livestock
FRU
The Federation of Employers of
Ukraine
FX
Foreign Exchange
GDR
Global depositary receipt
GHG
Greenhouse gases
GLOBALG.A.P.
CFM
Standard on compound feed
manufacturing
GLOBAL S.L.P.
IFM
Standard for Integrated Farm
Assurance for livestock
GMP
Good management practices
GMP+ FSA
Standard for feed safety
GRI
Global Reporting Initiative
Group
MHP SE and its subsidiaries
Ha
Hectares
HACCP
Hazard Analysis and Critical Control
Points
HoReCa
HOtel, REtail and CAfe
GOVERNANCE
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227
SHAREHOLDER
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227
GOVERNANCE
STRATEGIC
REPORT
Key Contacts & Advisors
Financial Calendar
Glossary of Terms
HR
Human resources
IAS
International Accounting
Standards
ICS
Industrial Control System
IFC
International Finance Corporation
IFI
International financial institution
IFRS
International Financial Reporting
Standards
IR
Investor relations
ISCC
International Sustainability &
Carbon Certification, a globally
applicable sustainability
certification system
ISO
International Organisation for
Standardisation
JV
Joint venture
Kg
Kilogram
KPIs
Key performance indicators
KSA
Kingdom of Saudi Arabia
kWH
Kilowatt hour
KYC
Know Your Client // Customer
LNG
Liquefied natural gas
LTM
Last twelve months
M&A
Mergers and acquisitions
MENA
Middle East and North Africa region
MJ
Megajoule, a unit of measurement
of energy
MW
Megawatt
NBU
National Bank of Ukraine
NED
Non-executive director
NGO
Non-governmental organisation
NRC
Nominations and Remuneration
Committee
OKR
Objectives & Key Results
OT
Operational Technology
Overalls and
PPE
Personal protective equipment
PP
Perutnina Ptuj, acquired during
2019
pps
Percentage Points
QSR
Quick Service Restaurant
R&D
Research and development
RTC
Ready-to-cook
RTE
Ready-to-eat
S&IA
Sustainability and International
Affairs (Committee)
SAP SF LMS
SAP Success Factos Learning
Management System
SE
Societas Europaea
SKU
Stock keeping unit, or
distinct type of item for sale
SOC
Security Operation Centre
SPA
Share Purchase Agreement
t/ha
Tonnes per hectare
TCFD
Task Force on Climate-Related
Financial Disclosures
TJ
Terajoule, a unit of measurement of
energy
UAE
United Arab Emirates
UAH
Ukrainian Hryvnia
UK
United Kingdom
UN SDGs
(United Nations) Sustainable
Development Goals
US
United States
US$/USD
United States Dollar
y/y
Year-on-year
VAT
Value-added tax
GOVERNANCE
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228
SHAREHOLDER
INFORMATION
FINANCIAL
STATEMENTS
228
GOVERNANCE
STRATEGIC
REPORT
Key Contacts & Advisors
Financial Calendar
Glossary of Terms