Agri-food company and poultry processor MHP has suspended a planned investment project in Croatia following a due diligence process.
The proposal for the city of Sisak had been in the pipeline since early 2023 but the Ukraine-headquartered business confirmed the “outcomes” of its preliminary investigations “did not fully align with our shared expectations”.
London-listed MHP said in a statement it will instead focus on the “continued and active development of Perutnina Ptuj”, a Slovenian producer of poultry and value-added products it acquired in 2018-2019.
MHP explained the nature of the planned set up in Croatia: “The project was intended to focus on enhancing the capacity of the domestic food industry, strengthening the country’s food security, contributing to the region’s economic development, and supporting the growth of local communities.
“We conducted a thorough analysis of the project’s potential, carried out an environmental study, and planned to leverage MHP’s full expertise and experience to ensure the project’s success.”
However, the project has now been “put on hold”, MHP said.
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By GlobalDataJust Food has asked MHP, which is led by Ukrainian businessman, founder and CEO Yuriy Kosyuk, to confirm what was planned for Croatia in terms of production plants and products, and its current manufacturing presence there.
MHP said it has manufacturing facilities in Ukraine and south-eastern Europe, as well as subsidiaries in the UK, the UAE, Saudi Arabia, and the EU.
Acquired as part of a strategy initiated in 2018 to expand operations outside of Ukraine, Perutnina Ptuj has 15 production facilities in countries such as Slovenia, Croatia, Serbia, Bosnia and Herzegovina. It employs more than 5,200 people, MHP said in the statement.
The company added it has already opened an office in the Croatian capital of Zagreb and is also building a wet pet-food facility in the country under a more than €40m ($45.4m) investment project.
To be operated by MHP Pet Food, the site is due to open in 2026, creating 200 jobs, MHP confirmed.
“A comprehensive development strategy for Perutnina Ptuj through 2032 is currently in the process of being formulated,” MHP said in the statement.
Perutnina Ptuj produced 140,000 tonnes of poultry last year, compared to 88,000 tonnes in 2018, the company said.
Revenue had reached €574m last year, more than doubling from €271m in 2018, while EBITDA had grown to €87m from €34m.
Meanwhile, MHP also issued its annual results today (28 April).
For the period to 31 December, revenue was €3.05bn versus €3.02bn in the corresponding 12 months, MHP, which owns brands such as Qualiko, Apetytna and RyabChick, reported.
Adjusted EBITDA climbed 27% to €566m while net profit was relatively flat at €144m compared to €142m a year earlier.
With Ukraine now in its fourth year of conflict with Russia, MHP said in its results statement the company “has shown remarkable resilience” but added the “business environment remains difficult, vulnerable, and highly unpredictable”.
Under the international expansion strategy, MHP has recently struck a deal with Uvesa, initially taking a minority stake in the Spanish poultry processor.
However, the shareholding has now been built to majority ownership, with MHP confirming in a stock exchange announcement today it now holds 91.77% of the business, subject to regulatory approval.
Dr John Rich, executive chairman of the MHP board, said in the filing: “MHP sees this strategic investment as a pivotal step in strengthening our footprint in the European poultry sector.
“Our partnership with Uvesa unlocks new potential for sustainable growth, and expanded market access across new markets in Europe and the Middle East.”
Present in both retail and foodservice, Uvesa supplies fresh and frozen chicken, along with cured and marinated products, and charcuterie.
The company operates four poultry processing plants in Cuéllar, Málaga, Tudela and Rafelbuñol, according to its website.
