Mhp Se Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Britty Vera - Goldman Sachs - Analyst : Hi, congrats on the results, and thanks for the information. I just wanted to ask a little bit more about the UVESA acquisition. Where this asset will lie? And will it be part of the bond coverage? If not, then is there plans to use money from the Ukrainian entity to sort of fund this acquisition? Thank you.

Question: Britty Vera - Goldman Sachs - Analyst : Thank you, And maybe just one more question on the Poultry business. I saw that the margins in terms of like the cash EBITDA, which is excluding the effect of the IAF adjustment, but excluding that, it seems like margins have declined for Poultry business, 2025, do you see any impact of the data's war ongoing? Will that have like a positive or a negative impact for poultry in Europe?

Question: Britty Vera - Goldman Sachs - Analyst : European segment, yeah. European segment as well as like the export that happens from Ukraine.

Question: Britty Vera - Goldman Sachs - Analyst : Got it. thank you.

Question: Dmitry Ivanov - JFS International - Analyst : Thank you very much. Can you hear me?

Question: Dmitry Ivanov - JFS International - Analyst : Yes, thank you for the presentation. I have a few questions, if I may. Maybe the first question on your leverage. And you already like shared like guidance on EBITDA with us like $500 million. So basically, there will be some decrease in EBITDA. So like -- I'm trying to understand like your current leverage is 2.1. And given like you expect to acquire like UVESA, which also will add some leverage. So I'm just trying to understand how do you see your net leverage developing in 2025, given like reduction in EBITDA from the existing business and the additional debt, which will be acquired through this acquisition of UVESA. So should we expect net leverage to go like to 3, 3.5. So like any color on your leverage in 2025 would be much appreciated. So like my first question, basically. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 28, 2025 / 12:00PM, MHPCq.L - Q4 2024 Mhp Se Earnings Call

Question: Dmitry Ivanov - JFS International - Analyst : 2.07, 2.08, okay.

Question: Dmitry Ivanov - JFS International - Analyst : And in terms of the timeline, so you mentioned like you are waiting certainly like approvals to go ahead with acquisition. And should we expect like Q3, Q4? What's the kind of timeline are you expecting for this transaction -- that completion on the transaction?

Question: Dmitry Ivanov - JFS International - Analyst : So, this like number is 2.07 --

Question: Dmitry Ivanov - JFS International - Analyst : That's very helpful. That's very helpful. So this is pro forma 2.07, 2.08. My second question, basically on working capital dynamic, and you already provided some color on the kind of factors behind some increase in working capital in 2024. Should we -- how should we look at the working capital in 2025? Is it like should we kind of expect the working capital neutral position, some release buildup working capital? So any kind of guidance would be much appreciated on working capital.

Question: Dmitry Ivanov - JFS International - Analyst : So neutral or positively --

Question: Dmitry Ivanov - JFS International - Analyst : Understood. Understood. And if possible, like could you please remind us about your available credit facilities that are still undrawn? And you have -- you can use it. I guess, we have mainly trade facilities, right, available.

Question: Dmitry Ivanov - JFS International - Analyst : And this is mainly for working capital like items. So basically, this is not like for CapEx, it's mainly for like to finance --

Question: Dmitry Ivanov - JFS International - Analyst : Understood. And if possible, can you share like the latest cash balance after December like the current cash balance?

Question: Dmitry Ivanov - JFS International - Analyst : Got it. Thank you very much. I appreciate the color.

Question: Erica Ive - MetLife - Analyst : Good afternoon. Can I ask you, I don't know if you've already said it, but if so, I haven't really understood what is the EBITDA that UVESA generates?

Question: Erica Ive - MetLife - Analyst : Yeah. Sorry, yeah. But could you provide at least a range in terms of EBITDA margin?

Question: Erica Ive - MetLife - Analyst : Okay. You said between 5% and 15%?

Question: Erica Ive - MetLife - Analyst : Okay, thank you. And in terms of debt, the net debt that UVESA is carrying on, do you -- could you disclose that or give a sense of it?

Question: Erica Ive - MetLife - Analyst : Okay, understood. Thank you.