Interview: MHP accelerates pet food expansion after Eurobond refinancing

In January, Ukrainian food producer MHP announced the issuance of a $450 million (€390M) Eurobond maturing in 2029, replacing an earlier bond due in 2026. The company said this marked the first such deal by a Ukrainian company since the start of the war.

On 10 March, it raised an additional $100 million (€87M) to replace the use of its internal cash intended to pay part of the 2026 borrowing.

“At a time when Ukraine’s sovereign risk profile remains elevated due to the ongoing conflict, MHP has been able to borrow on terms that reflect the company’s own fundamental strengths rather than the circumstances of the country in which it operates,” Oleksii Bezuglyi, MHP’s Director of Pet Food Business, tells GlobalPETS.

Company shares on the London Stock Exchange (LSE) have trended upward over the past year. In 12 months, the stock has gained 75.3%.

Financial insight

Company revenue in the first 9 months of 2025 (9M2025) increased by 16% year-over-year (YoY) to $2.6 billion (€2.2B), while net profit jumped 52% YoY to $215 million (€187M).

“Over the past year, MHP’s revenue reached approximately $3.7 billion (€3.2B) while the company also undertook a number of strategic investments, including the acquisition of UVESA, one of Spain’s leading poultry producers,” Bezuglyi says.

Bezuglyi says production has increased to 148,000 tonnes of meat and related products, while exports have expanded across Western Europe and the Iberian market.

For 2026, the company plans to advance integration with UVESA, increase organic production capacity and expand export capabilities, as well as launch its first pet food brand.

MHP attributes the positive performance of its shares to a combination of financial results and investments made during the period. It also became an official partner of the World Economic Forum, serving as an advocate for Ukraine’s agri-food and agro-tech sector at the institution.

Growing capacity

The company formally established a dedicated pet food division in 2023 and started investing in the facility in 2024.

The intention is to increase revenue through optimization by using by-products from its poultry production, as well as its cultivated grains and compound feed, to supply the pet food manufacturing industry.

“MHP is building this business deliberately and strategically, leveraging its existing vertically integrated poultry supply chain to create a high-value, higher-margin product stream. The foundations are strong, and we expect the segment’s contribution to grow significantly as production scales up through 2026 and beyond,” Bezuglyi says.

Initial production capacity stands at approximately 20,000 tonnes per year, with a pathway to expand to around 35,000 tonnes annually by 2028 as demand increases.

Investments

In January, the Ukrainian producer entered the pet food market by launching a wet pet food production facility in Croatia, following a €40 million ($44M) investment financed by the European Bank for Reconstruction and Development (EBRD).

The facility will focus on its own brands as well as private-label products. The business will initially target Southeastern Europe, with a strategic outlook toward broader European markets.

The choice to focus on wet food followed market analysis showing the category offers the “biggest opportunities” in Europe, says Oleksii Bezuglyi.

Once the factory reaches full operations, the company’s focus will be on launching wet pet food in pouches, with cats as the primary target.

“Dry food will initially be produced through a trusted outsourcing partner, allowing MHP to offer a broader range to retailers and distributors whilst the core manufacturing capability is established in Croatia,” MHP’s Director of Pet Food Business adds.

The Ukrainian player also plans to expand its portfolio into pet snacks.