NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

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, agriculture and vegetable oil 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. Among other business activities, the Group also engaged into pork production and animal feed. Agriculture operations comprise cultivation and sale of grains as well as cattle breeding for milk production. Vegetable oil operations include production and sale of vegetable oil, cake, and husk. As at 30 June 2026, the Group had 38,781 employees, compared to 40,020 as at 31 December 2025.

The primary subsidiaries, the principal activities of the companies forming the Group and the Parent's effective ownership interest as of 30 June 2026 and 31 December 2025 were as follows:

Name	Country of registration	Year established/ acquired	Principal activities	30 June 2026	31 December 2025
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	99.9%	99.9%
Peremoga Nova1)	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	UK	2021	Trading in poultry meat	100.0%	100.0%
UVE S.A.	Spain	2025	Poultry and pork production	92.3%	92.0%

¹⁾         The assets, liabilities and respective operations of this subsidiary were merged by Vinnytska Ptakhofabryka in 2025. The entity is currently undergoing liquidation;

The Group's primary operational facilities are located across various regions of Ukraine and other European countries. The European operations are represented by Perutnina Ptuj and its subsidiaries, with facilities in Slovenia, Serbia, Croatia, and Bosnia and Herzegovina. Effective 1 August 2025, the Group's presence was expanded to Spain through acquisition of UVE S.A ("UVESA").

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

2.    Basis of preparation and accounting policies

Basis of preparation

The interim condensed consolidated financial statements for the six-month period ended 30 June 2026 have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union (EU). The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as of 31 December 2025, prepared in accordance with IFRS Accounting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap.113.

The interim condensed consolidated financial statements are presented in the US dollars (USD) and all values are rounded to the nearest million, except when otherwise indicated.

Going concern

In 2026, the Group has continued its operations in an environment severely affected by the Russian invasion of Ukraine since 24 February 2022. The Group concluded that the analysis of the observable impact of the War as described on pages 198 and 241 of the Annual Report, which is available at mhp.com.cy, continues to be relevant for these interim condensed consolidated financial statements. The updates in the economic environment conditions during January - June 2026 are presented in Note 13 Operating environment in Ukraine.

Subsequent to the reporting date, the Group's export logistics were adversely affected by intensified Russian missile and drone attacks on Ukrainian Black Sea ports and commercial shipping, as described in Note 17 Subsequent events. The disruption has increased freight and cargo insurance costs and delayed loading schedules, while the Group's production capacity remains unaffected. In response, the Group has redirected part of its export volumes to alternative routes; the Group's European operations are not exposed to Ukrainian maritime logistics.

Management has prepared financial forecast, including cash flow projections, covering the 2026-2027 budget cycle. This forecast reflects expected economic conditions and considers anticipated changes in the operating environment.

This forecast indicates that the Group has adequate resources to continue its operations in the foreseeable future. The Directors have therefore concluded that it is appropriate to apply the going concern basis of accounting in preparing these interim consolidated financial statements. However, due to the currently unpredictable effects of the factors described in the Annual report and referred above, 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.

Adoption of new and revised IFRS Accounting Standards

The accounting policies adopted in the preparation of these interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2025, except for the following amendments to IFRS Accounting Standards which have been adopted by the Group as of 1 January 2026:

·      IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures - Classification and Measurement of Financial Instruments (Amendments)

·      IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures - Contracts Referencing Nature-dependent Electricity (Amendments)

·      Annual Improvements to IFRS Accounting Standards - Volume 11

The newly adopted amendments and annual improvements to the IFRS Accounting Standards did not have a material impact on the Group's accounting policies and on the interim condensed consolidated financial statements of the Group. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

2.    Basis of preparation and accounting policies (continued)

Standards and interpretations issued, but not effective

At the date of authorization of these interim condensed consolidated financial statements, the following standards, interpretations and amendments to the standards were issued but not yet effective:

Standards and Interpretations		Effective for annual period beginning on or after
The standards/amendments that are not yet effective, but have been endorsed by the European Union:
IFRS 18 Presentation and Disclosure in Financial Statements		1 January 2027
The standards/amendments that are not yet effective and have not yet been endorsed by the European Union:
IFRS 19 Subsidiaries without Public Accountability: Disclosures, including amendments		1 January 2027
IFRS 20 Regulatory Assets and Regulatory Liabilities		1 January 2029
IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency (Amendments)		1 January 2027
Amendments to the Fair Value Option for Investments in Associates and Joint Ventures in IAS 28		1 January 2027
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		Postponed indefinitely

Except for IFRS 18, these new standards and the amendments are not expected to have a material impact on the Group's consolidated financial statements. Management continues to analyze the requirements of IFRS 18 and to assess its potential impact on the Group's consolidated financial statements. The initial expected impacts of this new standard are described on page 199 of the Group's 2025 Annual Report.

Functional and presentation currencies

The functional currency of the Ukrainian companies of the Group is the Ukrainian Hryvnia ("UAH"); the functional currency of the Cyprus companies and the Luxembourg company of the Group is the US Dollar ("USD"); the functional currency of the other 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 at 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.

 

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

2.    Basis of preparation and accounting policies (continued)

Functional and presentation currencies (continued)

For practical reasons, the Group translates items of income and expenses, cash flow items 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 following exchange rates were used:

Currency	Closing rate as of 30 June 2026	Average for six months ended    30 June 2026	Average for three months ended     30 June 2026	Closing rate as of 31 December 2025	Average for six  months ended    30 June 2025	Average for three months ended  30 June 2025
UAH/USD	44.8478	43.7441	44.1787	42.3878	41.6314	41.5078
UAH/EUR	51.1669	51.0254	51.3602	49.8565	45.4715	47.0369
USD/EUR	1.1409	1.1665	1.1626	1.1762	1.0922	1.1332
USD/GBP	1.3232	1.3448	1.3420	1.3497	1.2966	1.3351
AED/USD	3.67	3.67	3.67	3.67	3.67	3.67
SAR/USD	3.75	3.75	3.75	3.75	3.75	3.75

Seasonality of operations

Poultry and related operations, European operating segment, and Vegetable oils operations segment are not significantly exposed to seasonal fluctuations.

Agriculture operations segment, due to seasonality and implications of IAS 41, in the first half of the year mainly reflects sales of carried forward agricultural produce and the effect of biological assets revaluation, while during the second half of the year, it reflects sales of crops and the effect of revaluation of agricultural produce harvested during the year. Also, Agriculture operations segment has seasonal requirements for working capital increase from November to May due to the sowing campaign.

3.    Changes in the Group structure

Planned acquisition of Nitsiakos

On 30 May 2026, the Group entered into a share purchase agreement for the acquisition of a stake of up to 100% in Th. Nitsiakos AVEE Ptinotrofikes Epicheiriseis ("Nitsiakos"), the leading vertically integrated poultry producer in Greece.

The transaction is structured in three sequential tranches through which the Group plans to acquire 70% of the share capital of Nitsiakos, with first completion expected in the first quarter of 2027, subject to substantive customary closing conditions including regulatory clearances. The purchase price for each tranche will be calculated by reference to Nitsiakos's enterprise value, adjusted for cash, financial debt and working capital at the relevant completion date. The Group has also granted the existing shareholders a put option over the remaining 30% of the share capital, exercisable during the period from 2030 to 2035.

As no completion has occurred as of the date these interim condensed consolidated financial statements were authorised for issue, no amounts have been recognised in respect of this transaction.

Acquisition of  Payán Hermanos and obtaining control over Incusur in June 2026

On 16 June 2026, the Group obtained control over Payán Hermanos, S.A. ("Payán") through the acquisition of 100% of its share capital by UVE SA ("UVESA"), a subsidiary of the Group.

Payán, headquartered in Spain, is a Spanish poultry company with a strong position in the poultry sector. The acquisition is part of the Group's strategy to strengthen its presence and expand its operations in the Spanish poultry market.

The acquisition of Payán resulted in the Group obtaining control over INCUSUR AVICOLA S.A. (Incusur), as Payán held a 28.57% interest in Incusur and UVESA already held a 42.85% interest prior to the acquisition. Accordingly, the Group's total interest in Incusur increased to 71.42%, with the remaining 28.58% interest held by non-controlling interests.

 

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

3.    Changes in Group structure (continued)

The total consideration transferred in connection with the acquisition of Payán and the resulting acquisition of control over Incusur amounted to USD 28.2 million, of which USD 8.8 million remained unpaid as at 30 June 2026 and was recognised within other current liabilities. The outstanding amount was fully settled in July and August 2026.

The consideration transferred and the provisional fair value of the identifiable net assets acquired in Payán and Incusur are included in the calculation of provisional goodwill. At the acquisition date, the provisional fair value of the identifiable net assets acquired amounted to a preliminary USD 14.8 million. Accordingly, the provisional goodwill recognised in connection with the acquisitions amounted to USD 17.1 million, reflecting the expected synergies from integrating the acquired businesses, including the addition of an in-house hatchery and expanded production capabilities.

The table below presents provisional fair values of the assets acquired and liabilities assumed in connection with the acquisition of Payán and the resulting acquisition of control over Incusur:

		16 June 2026
Property, plant and equipment		8
Inventories		1
Biological assets and agricultural produce		12
Taxes recoverable and prepaid		3
Trade accounts receivable		6
Cash and cash equivalents		3
Bank borrowings		(2)
Trade accounts payable		(10)
Lease liability		(1)
Deferred tax liabilities		(1)
Other current liabilities		(4)
Net assets		15

The gross amount of trade accounts receivable approximates their fair value as stated above, and it is expected that the full contractual amount can be collected.

Upon obtaining control, the Group applied the requirements of IFRS 3 for a business combination achieved in stages. The previously held interest in Incusur was remeasured to its fair value at the date control was obtained. The fair value of the previously held investment in Incusur amounted to USD 2.5 million at the date control was obtained.  As a result of this remeasurement, the Group recognised a gain of USD 0.8 million in profit or loss for the period.

The accounting for the acquisition of Payán and Incusur is provisional as at 30 June 2026. The Group is continuing to assess the fair values of the identifiable assets acquired and liabilities assumed. Accordingly, the amounts presented above may be adjusted during the measurement period in accordance with the requirements of IFRS 3.

From the date of acquisition, Payan and Incusur contributed revenue of USD 2.2 million from third-party customers. The contribution to net profit was not material. If the acquisition of Payan and Incusur had been completed on the first day of the financial year, the Group revenues for the period ended 30 June 2026 would have reached USD 2,188 million (unaudited) and the Group loss would have comprised USD 52 million (unaudited).

 

 

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

4.    Segment information

The reportable segment information for the six-month period ended 30 June 2026 comprised:

	Poultry and related operations	Vegetable oils operations	Agriculture operations	European operating segment	Total reportable segments	Eliminations	Consolidated
External sales	976	261	186	738	2,161	-	2,161
Sales between segments	14	97	97	-	208	(208)	-
Total revenue	990	358	283	738	2,369	(208)	2,161
Net change in fair value of biological assets and agricultural produce	(26)	-	74	18	66	-	66
Cost of sales	(827)	(252)	(119)	(632)	(1,830)	-	(1,830)
Operating expenses1)	(138)	(2)	(11)	(70)	(221)		(221)
Segment results	(15)	7	130	54	176	-	176
Unallocated corporate expenses2)							(63)
Other expenses, net 3)							(170)
Profit before tax							(57)
Other information:
Depreciation and amortization expense 4)	68	2	29	33	132	-	132

¹⁾ Includes selling, general and administrative expenses, other operating income and expense;

²⁾ Calculated as external sales plus net change in fair value of biological assets and agricultural produce, cost of sales and corporate expenses;

³⁾ Includes finance income, finance costs, foreign exchange loss;

⁴⁾ Depreciation and amortization for the six-month period ended 30 June 2026 does not include unallocated depreciation and amortization in the amount of USD 2.3 million.

The reportable segment information for the six-month period ended 30 June 2025 comprised:

	Poultry and related operations	Vegetable oils operations	Agriculture operations	European operating segment	Total reportable segments	Eliminations	Consolidated
External sales	897	224	192	322	1,635	-	1,635
Sales between segments	9	78	110	-	197	(197)	-
Total revenue	906	302	302	322	1,832	(197)	1,635
Net change in fair value of biological assets and agricultural produce	54	-	(62)	1	(7)	-	(7)
Cost of sales	(730)	(219)	(67)	(244)	(1,260)		(1,260)
Operating expenses1)	(117)	(1)	(12)	(44)	(174)		(174)
Segment results	104	4	51	35	194	-	194
Unallocated corporate expenses2)							(58)
Other expenses, net 3)							(58)
Profit before tax							78
Other information:
Depreciation and amortization expense 4)	66	2	31	15	114	-	114

¹⁾ Includes selling, general and administrative expenses, other operating income and expense;

²⁾ Calculated as external sales plus net change in fair value of biological assets and agricultural produce, cost of sales and corporate expenses;

³⁾ Includes finance income, finance costs, foreign exchange loss;

⁴⁾ Depreciation and amortization for the six-month period ended 30 June 2025 does not include unallocated depreciation and amortization in the amount of USD 3.1 million.

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

4.    Segment information (continued)

The following table presents revenue and profit information regarding the Group's operating segments for the three-month period ended 30 June 2026:

	Poultry and related operations	Vegetable oils operations	Agriculture operations	European operating segment	Total reportable segments	Eliminations	Consolidated
External sales	523	145	87	384	1,139	-	1,139
Sales between segments	(17)	54	58	-	95	(95)	-
Total revenue	506	199	145	384	1,234	(95)	1,139
Net change in fair value of biological assets and agricultural produce	(23)	-	78	4	59	-	59
Cost of sales	(437)	(139)	(58)	(329)	(963)	-	(963)
Operating expenses1)	(65)	(1)	(5)	(33)	(104)	-	(104)
Segment results	(2)	5	102	26	131	-	131
Unallocated corporate expenses2)							(37)
Other expenses, net 3)							(72)
Profit before tax							22
Other information:
Depreciation and amortization expense 4)	34	1	14	17	66	-	66

¹⁾ Includes selling, general and administrative expenses, other operating income and expense;

²⁾ Calculated as external sales plus net change in fair value of biological assets and agricultural produce, cost of sales and corporate expenses;

³⁾ Includes finance income, finance costs, foreign exchange loss;

⁴⁾ Depreciation and amortization for the three-month period ended 30 June 2026 does not include unallocated depreciation and amortization in the amount of USD 1.2 million.

The following table presents revenue and profit information regarding the Group's operating segments for the three-month period ended 30 June 2025:

	Poultry and related operations	Vegetable oils operations	Agriculture operations	European operating segment	Total reportable segments	Eliminations	Consolidated
External sales	476	105	100	175	856	-	856
Sales between segments	6	33	45	-	84	(84)	-
Total revenue	482	138	145	175	940	(84)	856
Net change in fair value of biological assets and agricultural produce	24	-	(28)	1	(3)	-	(3)
Cost of sales	(379)	(101)	(39)	(129)	(648)		(648)
Operating expenses1)	(65)	-	(7)	(25)	(97)		(97)
Segment results	56	4	26	22	108	-	108
Unallocated corporate expenses2)							(32)
Other expenses, net 3)							(37)
Profit before tax							39
Other information:
Depreciation and amortization expense 4)	33	1	14	8	56	-	56

 ¹⁾ Includes selling, general and administrative expenses, other operating income and expense;

²⁾ Calculated as external sales plus net change in fair value of biological assets and agricultural produce, cost of sales and corporate expenses;

³⁾ Includes finance income, finance costs, foreign exchange loss;

⁴⁾ Depreciation and amortization for the three-month period ended 30 June 2025 does not include unallocated depreciation and amortization in the amount of USD 0.7 million.

 

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

4.    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 30 June 2026 and 31 December 2025:

	2026		2025
Ukraine	2,245		2,341
Europe	885		903
Middle East and North Africa (MENA)	1		2
	3,131		3,246

5.    Revenue

Revenue from the contracts with customers for the six-month and three-month periods ended 30 June 2026 and 2025 was as follows:

	Six-month period ended 30 June				Three-month period ended 30 June
	2026		2025		2026		2025
Poultry and related operations segment
Chicken meat	715		733		381		382
Processed meat	101		84		52		49
Other poultry related sales	160		80		90		45
	976		897		523		476
Vegetable oil operations segment
Vegetable oil	250		213		139		96
Oil related products	11		11		6		9
	261		224		145		105
Agricultural operations segment
Grain	160		161		72		82
Other agricultural sales	26		31		15		18
	186		192		87		100
European operating segment
Chicken meat	517		200		278		111
Processed meat	138		93		74		51
Live pigs	51		-		25		-
Other agricultural sales	32		29		7		13
	738		322		384		175
	2,161		1,635		1,139		856

The geographic structure of revenue for the six-month and three-month periods ended 30 June 2026 and 2025 was as follows:

	Six-month period ended 30 June				Three-month period ended 30 June
	2026		2025		2026		2025
Export	1,115		991		600		502
Domestic Ukraine	429		408		218		225
Domestic Other	617		236		321		129
	2,161		1,635		1,139		856

 

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

6.    Profit for the period

The Group's gross profit for the six-month period ended 30 June 2026 increased to USD 397 million compared to USD 368 million for the six-month period ended 30 June 2025. The increase was primarily attributable to fair value gains on biological assets and agricultural produce in the Agriculture segment, driven by higher projected yields and prices for the future harvest, together with the consolidation of UVESA within the Europe operating segment. This was partially offset by a decline in  gross profit in the Poultry segment, reflecting lower chicken meat prices and higher production costs.

The Group's operating profit amounted to USD 113 million for the six-month period ended 30 June 2026 compared to USD 136 million for the six-month period ended 30 June 2025. The decrease was primarily attributable to higher selling, general and administrative expenses, including payroll and services costs related to both transportation and delivery activities and administrative functions, which offset the increase in gross profit.

Loss for the six-month period ended 30 June 2026 amounted to USD 57 million, compared to USD 75 million of profit for the six-month period ended 30 June 2025. The deterioration was primarily attributable to a foreign exchange loss of USD 85 million (six-month period ended 30 June 2025: gain of USD 14 million), driven by the weakening of the Ukrainian Hryvnia against the US Dollar and Euro.

7.    Property, plant and equipment

During the six-month period ended 30 June 2026, the Group's additions to property, plant and equipment amounted to USD 90 million (six-month period ended 30 June 2025: USD 131 million). Capital expenditures were primarily related to the maintenance of existing assets, which accounted for approximately half of total CAPEX, as well as the development of production facilities.

As part of the acquisition of Payán Hermanos in June 2026, the Group recognised property, plant and equipment at the provisional fair value of USD 8 million.

There were no significant disposals of property, plant and equipment during the six-month periods ended 30 June 2026 and 30 June 2025.

8.    Inventories, agricultural produce and biological assets

Inventories increased during the six-month period ended 30 June 2026, primarily reflecting higher volumes of vegetable oil held for sale. The increase was partly offset by the consumption of inventories carried forward from 31 December 2025 during the 2026 sowing campaign, resulting in the seasonal transfer of related costs to biological assets.

Agricultural produce decreased over the reporting period, mainly due to the utilisation of internally produced grains and oilseeds as feed and processing inputs across the Group's vertically integrated operations.

Current biological assets increased compared to 31 December 2025, driven by the growth of crop inventories in the fields, predominantly spring crops planted during the reporting period, together with movements in market prices applied in the fair value measurement of expected grain and oilseed harvests.

As part of the acquisition of Payán Hermanos in June 2026, the Group recognised biological assets and agricultural produce of USD 12 million.

9.    Shareholders' equity

As of 30 June 2026 and 31 December 2025 the authorized, issued and fully paid share capital of MHP SE comprised the following number of shares:

	30 June 2026		31 December 2025
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

The authorized share capital as of 30 June 2026 and 31 December 2025 was EUR 222 million, 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, which are payable at the discretion of the Group.

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

10.  Bank borrowings

The following table summarizes bank borrowings and credit lines outstanding as of 30 June 2026 and 31 December 2025:

				30 June 2026			31 December 2025
		Currency		WAIR 1)	USD		WAIR 1)	USD
Non-current
		EUR		EURIBOR2) +1.45%	489		EURIBOR2) +1.26%	419
		EUR		2.03%	40		1.89%	49
		USD		SOFR3) +3.93%	226		SOFR3) +3.94%	269
		USD		UIRD4) +5.53%	29		UIRD4) +5.53%	34
		UAH		UIRD4) +4.00%	2		UIRD4) +4.00%	2
					786			773
Current
		EUR		EURIBOR2) +2.29%	31		EURIBOR2) +2.30%	32
		EUR		4.68%	123		4.57%	125
		USD		SOFR3) +2.47%	69		SOFR3) +2.48%	69
		USD		UIRD4) + 4.75%	63   63		UIRD4) +4.50%	10
		USD		5.67%	58		5.41%	37
Current portion of long-term bank borrowings		EUR		EURIBOR2) + 1.45%	92		EURIBOR2) +1.26%	89
		EUR		2.03%	18		1.89%	20
		USD		SOFR3)+ 3.93%	95		SOFR3) +3.94%	94
		USD		UIRD4)+ 5.53%	10		UIRD4) +5.53%	10
					559			486
Total bank borrowings					1,345			1,259

 

²⁾         WAIR represents the weighted average interest rate on outstanding borrowings;

³⁾         According to the terms of the agreement, if market EURIBOR becomes negative, it shall be deemed zero for the calculation of interest expense;

⁴⁾         The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities;

⁵⁾         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 respective currency 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 financial institutions and local subsidiaries of international banks and local banks as term loans and 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 30 June 2026 and 31 December 2025, 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 30 June 2026 and 31 December 2025:

	30 June 2026		31 December 2025
Credit lines	344		273
Term loans	1,001		986
	1,345		1,259

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

10. Bank borrowings (continued)

Maturity profile of the bank borrowings and credit lines outstanding as of 30 June 2026 and 31 December 2025 was as follows:

	30 June 2026		31 December 2025
Within one year	559		486
In the second year	223		195
In the third to fifth year inclusive	448		456
After five years	115		122
	1,345		1,259

As of 30 June 2026, the Group had undrawn facilities of USD 71 million (31 December 2025: USD 197 million). These undrawn facilities expire during the period until March 2030.

The Group's bank borrowings are jointly and severally guaranteed by MHP, Oril-Leader, Starynska Ptakhofabryka, Zernoproduct MHP, Katerinopilskiy Elevator, Agrofort, SPF Urozhay, MHP SE, Myronivska Pticefabrika, Vinnytska Ptakhofabryka.

As of 30 June 2026, the Group had borrowings of USD  470 million secured by property, plant and equipment with a collateral value of USD 557 million (31 December 2025: USD 489 million and USD 569 million respectively).

As of 30 June 2026, the Group had borrowings of USD  139 million that were secured by agricultural produce with a carrying value of USD 174 million (31 December 2025: USD 122 million and USD 153 million respectively).

As of 30 June 2026 and 31 December 2025, the cash deposits with a carrying amount of USD 2 million was restricted to secure issued letters of guarantee.

As of 30 June 2026 and 31 December 2025, interest payable on bank borrowings was USD 9.0 million and USD 8.8 million, respectively.

Covenants

The Group must comply with several maintenance covenants determined by its bank borrowing arrangements, including ongoing compliance with EBITDA to interest expenses ratio, current ratio, liabilities to equity ratio, Net Debt to EBITDA (the Group`s leverage ratio). The covenant compliance is monitored on quarterly or annual basis, as the case might be, for the borrowing arrangements at the Group consolidated or the specified borrower level.

As of 30 June 2026, the total bank borrowings at the Group level included the non-current bank borrowings with carrying amount of USD 328 million and current bank borrowings of USD 183 million subject to these covenants. At the Perutnina Ptuj Group level, the corresponding non-current and current bank borrowings subject to these covenants amounted to USD 377 million and USD 86 million, respectively.

The Group continuously monitors its covenant compliance to ensure that all covenant obligations are met and maintains the process of financial metrics proactive management to maintain compliance with the covenant requirements.

The leverage ratio covenant at the Group level operates as a negative covenant, which, in the event of non-compliance, would restrict the Group from making certain payments, including dividends, and from incurring additional indebtedness, while also imposing restrictions on mergers or consolidations, limitations on liens and asset disposals, and limitations on transactions with affiliates. As of 30 June 2026, the Group was in compliance with the leverage covenant (covenant threshold: 3.0:1) and all other applicable covenants.

In addition, the covenants at Perutnina Ptuj Group level, in case of non-compliance, may also provide the banks with the right to request payment acceleration under respective borrowings and, if such right is formally exercised, trigger similar consequences for the other Group borrowings. The Perutnina Ptuj Group met all the covenant requirements, except for the borrowing arrangement in respect of a bank loan with a carrying amount of USD 75 million, including non-current portion of USD 45 million as of 30 June 2026, where certain financial ratios had not been met as of 30 June 2026 as required by the arrangement. However, the requirement to meet this covenant was waived by the bank before it obtained the right to declare default and to accelerate the debt repayment.

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

11.  Bonds issued

Bonds issued and outstanding as of 30 June 2026 and 31 December 2025 were as follows:

	Carrying amount					Nominal amount
	30 June 2026		31 December 2025		30 June 2026			31 December 2025
Non-current
10.50% Senior Notes due in 2029	520		-		525			-
6.25% Senior Notes due in 2029	349		349		350			350
	869		349		875			350
Current
10.50% Senior Notes due in 2029	25		-		25			-
6.95% Senior Notes due in 2026	-		549		-			550
	25		549		25			550
Unamortized debt issuance cost	-		-		(6)			(2)
Total bonds issued	894		898		894			898

As of 30 June 2026 and 31 December 2025 amount of accrued interest on bonds issued was USD 30.2 million and USD 15.4 million, respectively.

10.50% Senior Notes

MHP Lux S.A. issued (i) an aggregate of USD 450 million 10.50% notes due 2029 issued on 28 January 2026 and (ii) an aggregate of additional USD 100 million 10.50% notes due 2029 issued on 10 February 2026. The additional notes were consolidated and form a single series of USD 550 million 10.50% Senior Notes due in 2029 at par value. The funds received were used to satisfy and discharge the 6.95% Senior Notes due in April 2026 for debt refinancing and general corporate purposes.

The Senior Notes are jointly and severally guaranteed on a senior basis by PrJSC "MHP", PrJSC "Zernoprodukt MHP", PrJSC "Agrofort", PrJSC "Oril - Leader", PrJSC "Myronivska Pticefabrika", "SPF "Urozhay" LLC, "Starynska Ptakhofabryka" ALLC, "Vinnytska Ptakhofabryka" LLC, "Katerinopolskiy elevator" LLC and MHP Europe Limited.

Coupon payments on the Senior Notes is payable semi-annually in arrears in January and July. On each interest payment date, the Issuer shall redeem the Notes in part in the aggregate principal amount of USD 25 million plus accrued and unpaid interest to (but not including) the date of redemption.

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 (as well as additional specific limitations for the European subsidiaries of the Group), 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.

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".

 

 

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

11. Bonds issued (continued)

6.25% Senior Notes (continued)

Coupon payments 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.

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.

To refinance these Notes, in January and February 2026, the Group issued new USD 550 million 10.50% Senior Notes due in 2029 as explained above.

The proceeds from the new issue were used to fund a tender offer and repurchase the outstanding 6.95% Senior Notes. On 18 February 2026, the Group completed the full repayment of the remaining 2026 Notes ahead of their contractual maturity in April 2026. 

As a result, all obligations under the 6.95% Senior Notes due in 2026 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 subject to limited exceptions, 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).

The Group remained compliant with all the covenants as of 30 June 2026. Its leverage ratio was below the covenant limit of 3.0 to 1.

12.  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 executed on the same terms and conditions as transactions between unrelated parties.

Transactions with related parties and key management personnel

In the ordinary course of business, the Group enters into transactions with its related parties, including companies under common control of the Group`s Principal Shareholder (Note 1) and presented below as "other related parties", and the associates, primarily  for the purchase and sale of goods and services. The Group also periodically provides loans and financial aids to 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.

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

12. Related party balances and transactions (continued)

Transactions with related parties during the six-month periods ended 30 June 2026 and 30 June 2025 were as follows:

in million USD		Six-month period ended 30 June 2026		Six-month period ended 30 June 2025
Interest charged on loans and finance aid provided to associates		0.1		0.1
Sales of goods and services to associates		0.4		-
Sales of goods and services to other related parties		0.1		0.2
Purchases from associates		6.1		-
Purchases from other related parties		-		0.2
Loans and finance aid provided to associates		4.5		-
Loans and finance aid repaid by associates		1.5		-
Key management personnel of the Group:
Loans repaid		0.3		0.1

 

The balances owed to and due from related parties were as follows as of 30 June 2026 and 31 December 2025:

in million USD		30 June 2026		31 December 2025
Loans and finance aid receivable to other related parties		1.9		3.7
Loans due from associates		8.9		4.4
Less: expected credit losses		(3.6)		(3.6)
		7.2		4.5
Loans to key management personnel		2.8		3.2
Less: expected credit losses		(0.7)		(0.8)
		2.1		2.4
Trade accounts receivable due from other related parties		0.1		0.4
Trade accounts receivable from associates		0.3		-
Prepayments due to associates		0.1		-
Payables due to other related parties		-		3.3

 

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 3.6 million and USD 3.6 million as of 30 June 2026 and 31 December 2025 respectively.

Compensation of key management personnel

Total compensation of the Group's key management personnel amounted to USD 14.6 million and USD 10.4 million for the periods ended 30 June 2026 and 2025, respectively, and was included primarily in selling, general and administrative expenses. Compensation of key management personnel consists of contractual salary and performance bonuses paid.

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

13.  Operating environment in Ukraine

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 invasion has led, and continues to lead, to significant casualties, displacement of the population, damage to infrastructure and logistics, and disruption of economic activity in Ukraine.

During the six months ended 30 June 2026, Ukrainian entities continued to operate in a challenging economic environment. Russian attacks on energy generation and transmission infrastructure intensified during the winter months, causing significant power shortages and elevated electricity costs for businesses. Conditions improved as the period progressed, with electricity supply stabilising through the spring. Supply chain disruptions, labour shortages, and elevated production costs continued to affect business activities throughout the period. The Black Sea export corridor remained operational throughout the six months ended 30 June 2026, supporting Ukrainian export volumes, although its future operability has since come under renewed pressure - refer to Note 17, Subsequent Events.

Economic conditions were mixed over the period. Real GDP declined in the first quarter of 2026 as a result of the energy crisis, before returning to growth in the second quarter as the energy system stabilised and government spending increased. Restrained fiscal policy amid delays in the receipt of external assistance weighed on activity earlier in the period. International organisations, individual countries, and non-governmental organisations continue to provide Ukraine with financing, donations, and material support, and external financial support remains a critical contributor to the funding of the state budget of Ukraine. Consequently, the timing and volume of such support may affect macroeconomic conditions subsequent to the reporting date.

Additional uncertainty in the international economic environment arose from the escalation of the armed conflict involving Iran, Israel and the United States, which began in late February 2026 and has continued intermittently through the period, including disruption to shipping through the Strait of Hormuz. The situation has created heightened uncertainty in global trade, energy supply, and commodity markets, with implications for logistics costs associated with the Group's MENA export operations and pressure on input costs due to energy and commodity price volatility. Increased selling prices observed across a number of MENA markets have partially offset the rise in freight costs. The situation remains fluid and its ultimate impact on the Group's operations cannot be reliably estimated at this stage.

Consumer price inflation in Ukraine was 7.2% year-on-year in June 2026, having fluctuated over the period amid energy-related cost pressures and hryvnia weakening. The National Bank of Ukraine (NBU) reduced its key policy rate from 15.5% to 15.0% with effect from 30 January 2026 and maintained the rate at that level through the remainder of the period, before raising it again to 15.5% effective since 31 July 2026 and 16% effective since 18 September 2026.

Peace negotiations between Russia and Ukraine have not resulted in a settlement. Short-term truces were observed around religious and commemorative dates during the period, but did not lead to a sustained reduction in hostilities. While diplomatic contacts have continued, the conflict remains active and the outlook for its resolution is subject to significant uncertainty.

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

13. Operating environment in Ukraine (continued)

The Group considers the following expenses incurred during the six-month periods ended 30 June 2026 and 2025 to be directly related to or driven by the continuing war:

		2026		2025
Salary to mobilized employees2)		12		12
Support donations to communities and defense forces1)		18		15
Write-off of damaged inventories and biological assets1)		-		3
Other war-related expenses1)		1		2
Total amount recognized in profit or loss		31		32

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 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.

14.  Contingencies and contractual commitments

Taxation and legal matters

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 30 June 2026 and 31 December 2025, management assessed the Group's possible exposure to corporate income tax risks at USD 4 million. No provision was recognized in respect of this possible tax exposure.

As of 30 June 2026, companies within the Group were involved in ongoing litigation with tax authorities totaling USD 9 million (31 December 2025: USD 29 million). This includes USD  3  million (31 December 2025: USD 5 million) related to disputes over disallowed VAT refunds and deductible expenses claimed by the Group. Of the total amount, USD 2 million as at 30 June 2026 (31 December 2025: USD 20 million) pertains to cases where court hearings have already taken place, and rulings in either the first or second instance have been issued in favor of the Group. In addition, the Group had no outstanding disputes with tax authorities that were not subject to court proceedings as at 30 June 2026 (31 December 2025: USD 0.3 million)

Management believes that, based on the Group's historical success in similar court cases, it is unlikely that a material settlement will result from these proceedings. Accordingly, no provision has been recognized in the Group's financial statements.

Contractual commitments for the acquisition of property, plant and equipment

During the six-month period ended 30 June 2026, companies of the Group entered into a number of contracts with foreign suppliers to purchase property, plant and equipment. These agreements are mainly related to maintenance and modernization projects as well as further expansion into European markets. As of 30 June 2026, purchase commitments amounted to USD 34 million (31 December 2025: USD 61 million).

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

15.  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 receivable, 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 inflows, 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

 

	30 June 2026	31 December 2025		30 June 2026	31 December 2025
Financial liabilities
Bank borrowings (Note 10)	1,354	1,268		1,362	1,277
Senior Notes due in 2026, 2029 (Note 11)	924	913		901	823

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.

16.  Risk management policy

During the six-month period ended 30 June 2026, there were no material changes to the objectives, policies, and process for credit risk, capital risk, liquidity risk, currency risk, interest rate risk, livestock diseases risk and commodity price and procurement risk managing.

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.

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 30 June 2026 and 31 December 2025. The amounts in the table may not be equal to the statement of financial position carrying amounts since the table includes all cash outflows on an undiscounted basis.

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

16. Risk management policy (continued)

	Carrying amount	Contractual Amounts	Less than  1 year	From 2nd to 5th year	After 5th year
30 June 2026
Bank borrowings	1,354	1,488	613	755	120
Bonds issued	924	1,167	105	1,062	-
Lease liabilities	346	690	84	312	294
Trade accounts payable	287	287	287	-	-
Other current liabilities1)	161	161	161	-	-
Total	3,072	3,793	1,250	2,129	414
31 December 2025
Bank borrowings	1,268	1,402	536	739	127
Bonds issued	913	1,007	591	416	-
Lease liabilities	323	614	95	285	234
Trade accounts payable	277	277	277	-	-
Other current liabilities1)	160	160	160	-	-
Total	2,941	3,460	1,659	1,440	361

¹⁾         As at 30 June 2026, other current liabilities included provisions of USD 3 million and income tax payables of USD 12 million (31 December 2025: USD 3 million and 10 million respectively).

 

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group operates across multiple jurisdictions and is exposed to currency risk through various export and import transactions, as well as monetary balances and net investments denominated in currencies other than the functional currency of each respective entity.

The Group's presentation currency is USD. The primary exposures arise from fluctuations in the US Dollar (USD), Euro (EUR), Ukrainian Hryvnia (UAH) and other. In particular, the Ukrainian operations, which use UAH as their functional currency, are significantly exposed to foreign currency risk due to a substantial portion of loans and borrowings being denominated in USD and EUR.

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 following table illustrates the estimated impact of a reasonably possible change in exchange rates on profit or loss, holding all other variables constant. Rate movements reflect management's assessment of historical volatility. The analysis covers monetary financial instruments only.

	Change in foreign currency exchange rates	Effect on profit before tax, gain/(loss)
2026
UAH/USD	10%	(135)
UAH/USD	-2%	27
UAH/EUR	10%	(20)
UAH/EUR	-2%	4
EUR/USD	5%	3
EUR/USD	-5%	(3)
2025
UAH/USD	10%	(134)
UAH/USD	-2%	27
UAH/EUR	10%	(15)
UAH/EUR	-2%	3
EUR/USD	5%	8
EUR/USD	-5%	(8)

 

 

 

Notes to the INTERIM CONDENSED Consolidated financial statements

for the six-month period ended 30 June 2026

(in millions of US dollars, unless otherwise indicated)

16. Risk management policy (continued)

During the six-month period ended 30 June 2026, the Ukrainian Hryvnia depreciated against the EUR and USD by 4.7% and 7.2%, respectively (six-month period ended 30 June 2025: depreciated against the EUR and USD by 10.0% and 1.0%, respectively). As a result, during the six-month period ended 30 June 2026, the Group recognized a net foreign exchange loss in the amount of USD 85 million (six-month period ended 30 June 2025: net foreign exchange gain in the amount of USD 14 million) in the interim condensed consolidated statement of profit or loss and other comprehensive income.

17.  Subsequent events

Subsequent to the reporting date, intensified Russian missile and drone attacks on Ukrainian Black Sea ports,  commercial shipping and the Group's logistics warehouses resulted in a significant reduction in vessel traffic through Ukraine's maritime export corridor, with a number of international shipping lines suspending port calls. Several of the Group's logistics warehouses were sustained damage of varying severity as a result of these attacks, with the related losses currently estimated at approximately USD 6.5 million. These developments have increased freight costs and disrupted the loading schedules of grain and vegetable oil cargoes shipped through the Group's export terminals. As at the date of authorization of these interim condensed consolidated financial statements, the situation remains fluid and its ultimate duration and impact on the Group's export volumes and logistics costs and the ultimate amount of losses resulting from the destruction of the Group's logistics warehouses cannot be reliably estimated.

18.  Authorization of the interim condensed consolidated financial statements

These interim condensed consolidated financial statements were authorized for issue by the Board of Directors of MHP SE on 28 September 2026.