Ladies and gentlemen, thank you for standing by. I would like to welcome you to MHP's Q1 2026 Results Conference Call on the 16th June 2026. At this time, all participants line are in listen only mode. The format of the call is a presentation, which will be followed by a question and answer session. Without further ado, I would like to pass the line to Anastasiya Sobotyuk, Director of Investor Relations. Please go ahead, madam.
Thank you, Danielle. Dear stakeholders, good day. Thank you for joining MHP's conference call covering our Q1 2026 results. My name is Anastasiya, Investor Relations Director. I'm joined today by Viktoria Kapelyushnaya, CFO of MHP. Together, we will present and discuss the company's operational and financial performance for the reporting period. Please note that today's discussion is based on the press release, financial statements, and investor presentation published earlier today. During the call, we may also discuss our outlook, strategic priorities, and future plans. These statements are based on our current expectations, assumptions, and assessments of market conditions, and are therefore subject to risks and uncertainties. We encourage you to consider these factors when evaluating the information presented today. With that, let us begin. We go on slide number 3 of the presentation.
Before turning to our operational results, let me briefly comment on the macroeconomic environment in Ukraine. The Ukrainian economy continues to demonstrate resilience despite the ongoing war. Following the recovery in 2023/2024, GDP growth remained positive in 2025, although the outlook for 2026 has been revised downward due to continued infrastructure damage, energy challenges, and labor shortages. Inflation accelerated during the Q1 reaching almost 15% year-on-year in March 2025, driven primarily by higher food and energy prices. The National Bank expects inflation to gradually moderate over the medium term. The local currency, Ukrainian hryvnia, remains broadly stable, supported by the National Bank active management of foreign exchange markets, with only a gradual depreciation expected going forward. Importantly for our sector, Ukraine's agricultural industry remains resilient. The 2025 harvest was stable despite challenging conditions, you remember that, providing a solid foundation for agricultural exports and food production.
In addition, the 2026 sowing campaign has been successfully completed, with planting progressing largely in line with expectations despite the ongoing wartime environment, supporting prospects for the upcoming harvest. Overall, while the operating environment remains challenging, macroeconomic stability has been maintained. We continue to successfully adapt our business to the evolving conditions. With that, let me move to our operational and financial performance for the quarter. We are moving to slide number 4 of the presentation. Turning to our financial performance, Q1 2026 revenue increased by 31% year-on-year to $1 billion, primarily driven by the consolidation of Uvesa and continued growth of our European operations. Gross profit remained broadly stable at $162 million. Stronger contributions from our European business largely offset margin pressure in the poultry segment. Adjusted EBITDA, excluding IFRS 16, amounted to $79 million compared with $111 million in Q1 2025.
EBITDA margin was 8%, reflecting softer poultry market conditions, lower profitability in agricultural business due to seasonal factors, and the initial impact of integrating Uvesa. Net profit was - $85 million, mainly due to foreign exchange losses compared with gains in the prior year period. Looking at our export mix, poultry products remained the largest contributor, while grain exports increased year-on-year, reflecting continued diversification of our revenue streams. Overall, while profitability was affected by market conditions and integration related factors during the quarter, our revenue growth demonstrated the benefits of geographic diversification and the strategic expansion of our European platform. Let me now provide more detail on the performance of our key business segments. Slide number 5 of the presentation.
Looking at our segment performance, the business continues to benefit from increased diversification, with Europe contributing 35% of revenue and over half of segment EBITDA during the quarter. The poultry segment remained our largest revenue contributor, generating $453 million in revenue. The EBITDA declined year-on-year due to weaker poultry prices, lower sales volumes, and higher production costs, resulting in EBITDA contribution of $19 million only. The European operating segment delivered a strong performance, contributing $354 million in revenue and $42 million in EBITDA. The inclusion of Uvesa had a positive impact on both revenue and earnings and further strengthens our presence in key European markets.
Overall, while the poultry segment faced a more challenging market environment, the growing contribution from our European operations and the successful integration of Uvesa helped support the group's overall performance and demonstrates the benefits of our diversification strategy. Let us now turn to the operational highlights across our key business segments, and here I pass my word to Viktoria Kapelyushnaya.
Thank you, Anastasiya. Good afternoon, everyone. Let's turn to poultry and related operations segment performance. Slide number 6. Despite more challenging pricing environment in export poultry market during the Q1, MHP remain focused on operational discipline, with result reflecting the temporary impact of softer export prices. Total poultry meat sales volume declined slightly year-on-year to 152,000 tons, as reduced shipment to MENA were not fully offset by high exports to Europe. Processed meat volumes continued to grow, increased by 14,000 tons, supported by higher production and our ongoing shift toward add value product. Revenue for Q1 increased modestly year-on-year to $153 million, driven by stronger pricing and higher volumes of processed meat, alongside a significant increase in complementary product and other revenue, including biogas. On the same basis, revenue declined to $524 million in Q4 2025, reflecting softer pricing for poultry meat on export market.
Gross profit decreased year-on-year to $60 million, primarily due to a low IAS 41 biological assets revaluation gain compared to the prior year period and higher production cost. Decline comparing to Q4 last year reflected the continued deterioration in Europe export meat prices, and that carried through into Q1 2026. Adjusted EBITDA net IFRS 16 decreased year-on-year to $19 million, driven by lower gross profit and higher delivering and transportation expenses. The quarter-on-quarter decline was driven by lower gross profit, while selling general and administrative expenses remained stable compared with Q4 2025. Poultry price on export market continued to decline in Q1, however, stabilized and showed positive dynamic in April/May. Looking ahead into 2026, we expect the overall cost and price environment to remain challenging, but current pricing give us reason for cautious optimism as we move through the year.
Turning to our vegetable oil segment, slide 7. Revenue in Q1 remained probably unchanging year-on-year at $116 million, but increased significantly at the same period from $81 million in Q4 2025. Reflecting recovery in sales volume and price appreciation across both sunflower and soybean oil. Sunflower oil sales volume recovered to almost the level in Q1 2025 and increased quarter-on-quarter, supported by launch of new sunflower extraction line, which increased oil yield and expand overall processing capacity. Soybean oil sales volume continued to decline both year-on-year and quarter-on-quarter, mainly due to the high international consumption of soybean oil and feed recipe and the absence of toll manufacturing arrangement in Q1. Adjusted EBITDA net IFRS 16 slightly improved to $3 million, reflecting the combined effect of volume recovery and favorable commodity prices.
Looking in 2026, we expect some improvement in segment profitability, supported by gradual normalization of the raw material cost environment and higher production volume. However, the pace of recovery will depend on commodity market dynamics, and we remain cautious in our expectation for the near term. Let's move to the slide 8, agriculture operations. Revenue increased to $99 million, driven by higher price across key crops together with increased sales volume of corn and soybean to third party, which more than offset low wheat sales volume. Adjusted EBITDA net IFRS 16 increased to $39 million, supported by higher price of winter crops, wheat and rapeseed. Both winter and spring sowing campaign have been full complete. The group stands are in good condition and across the group farming area. Favorable weather patterns and adequate precipitation now support the outlook for crops yield at least in line with 2025 levels.
Looking ahead to 2026, we expect agriculture to continue delivering positive result supported by favorable crop price and yield forecast, even as the fuel costs rise, helping offset lower result in our poultry operation and stabilizing contribution to total EBITDA. Let's proceed to the slide 9. Several words about European operating segment. Revenue increased year-to-year to $354 million, driven by consolidation of Uvesa, while decreasing slightly quarter-on-quarter as outbreak on African swine fever in Spain put downward pressure on pork prices. Poultry meat sales volume grow year-on-year, driven by high sales in both domestic and export market, while processed meat volume remains stable. Average price for both poultry and processed meat held steady both year-on-year and quarter-on-quarter.
Gross profit increased year-on-year to $ 65 million, mainly due to the Uvesa effect, while the quarter-on-quarter increase was related to favorable IAS 41 fair value movement reflective partially recovering of pig price in Spain in March and April. Adjusted EBITDA net IFRS 16 also grow broadly in line with development of gross profit. Looking ahead to the remainder of 2026, we expect price for poultry and processed meat in the European operating segment to remain broadly stable with sales volume continuing to grow. This is expected to support steady growth in adjusted EBITDA net IFRS 16 over the courses of the year. Slide number 10. A few words about our cash flow, debt, and liquidity. Operating cash flow for Q1 decreased year-on-year to $ 14 million, driven by low cash earning, mainly reflecting negative trends in export poultry meat prices.
Working capital representing an investment only $ 20 million in Q1 2026, primarily driven by investment in inventory and crops field ahead of sowing campaign, partially offset by consumption of agricultural produced harvest in 2025 and increase in payables. The investment was lower than Q1 last year, which had reflected one-off increase in receivables last year. CapEx decreased to $ 43 million, with capital development mainly across key strategic area focused on the maintenance and modernization of existing facility. Regarding debt, the increase in long-term debt and reduction in short-term debt reflected the repayment $550 million senior notes due to 2026 and the issues of the new Eurobond 550 due 2029. Cash position was around $ 518 million at March 31st, 2026.
By the end of the first quarter, the group compliant with all banks' covenant, the group's acquisition leverage ratio increased to 2.6, below the defined limit 3.0, compared to the 2.5 by the end of last year. Few words about subsequent events. Subsequent to the reporting date, the groups entered into the share purchase agreement for acquisition of stake of 100% in Nitsiakos, the leading vertical integrated poultry producer in Greece. The transaction is structuring in three tranches, through which the group will acquire 70% of share capital. With first completion expected, the first tranche, with completion expected in the Q1 of 2027, subject to customary closing condition, including regulatory clearance. The group has also granted the existing shareholders a put option over the remaining 30% exercisable between 2030 and 2035. Yes.
As previously disclosed, the consideration for the acquisition is based on a pre-agreed valuation methodology linked to the target enterprise's value and financial performance, subject to customary adjustment for cash, debt, and working capital. In line with our announcement, the amount payable at each stage of the transaction will be disclosed at the relevant time. Now I give the floor to Anastasiya.
Thank you, Viktoria. In closing, despite ongoing challenges in Ukraine, we continue to demonstrate resilience across our operations, supported by our diversified and vertically integrated business model, as well as dedicated and professional team. At the time, we are making significant progress in executing our long-term growth strategy in Europe, as you mentioned. This includes the continued development of Perutnina Ptuj, the successful launch of our pet food business in Croatia, which is a part of Perutnina Ptuj Group, the integration of Uvesa in Spain, and the recently announced plans to acquire Nitsiakos in Greece, as you just recently elaborated. These milestones reflect our strategic vision of transforming MHP into a leading international food and agribusiness group with Ukrainian roots.
By combining the strengths of our Ukrainian operations with a growing European footprint, we are building a more diversified, resilient and sustainable business for the long term. Thank you for your continued support and trust in MHP. We are ready to answer your questions now. Danielle.
We will now move to the question and answer section. If you would like to ask a question, please press star two on your phone and wait to be prompted. If you are dialing by the web, you can type your question in the box provided or request to ask a voice question. We will wait just a moment or two for the questions to come in. Kind note that we can take the voice questions during the call and after the call, the MHP IR team will get back to you on your written questions. Our first question comes from Stella Cridge from Barclays. Your line is open. Please go ahead.
Thank you. Afternoon, everyone, and many thanks for all the updates today. There was two areas if I could ask on. The first is on the Greece acquisition. Could you tell us why you decided to go ahead with another acquisition so soon after Uvesa? Would it also be possible to perhaps give an EBITDA guidance range in the same way that you did for Uvesa in the early days there? You appreciate you're going to wait until make some kind of valuation type announcements, but any kind of indication at this stage about how that would be funded would be great. The second thing I want to ask about was the short-term debt and if you plan to pay down some of that short-term debt with cash or perhaps do some refinancing, that would be great. Thank you.
First of all, thank you for your question. It's very good question regarding why we decided to provide the new acquisition. Now, first of all, you need to understand during the whole our history, because during the last 15 years, we were working about new acquisition and try to find the right target for MHP in Europe. Unfortunately or fortunately, it is very difficult job. Regarding when we, how to say, to find this company, we understand this is a good company with what, for MHP, what is very important because we see a lot of room for improvement and we see a lot of potential for growth. First of all, the Greek market demonstrates strong growth, poultry market. We understand how we can provide growth on capacity of this company. We see how we can improve cost of production, efficiency of the company.
That is why, completely accordingly, our strategy, which we announced during the last few years, that the main target, the main strategy for MHP to increase our European business, pure European business. We have very good track records with Perutnina, and we clear understand how we can do it with right targets, not with all companies, but with right targets. The second part of your question about how we will finance, you're completely right, and we discussed a lot during our issue with Eurobond. In general, yes, we understand that we will, first is the one resources how we can provide acquisition and finance acquisitions through European debt. Through European debt, which we can put in balance sheet of our European business. You ask about the size of Nitsiakos. Size of Nitsiakos, which is very--
Yes, as we announced in our press release, is EBITDA is a revenue around EUR 100 million. Is approximately the profitability with the margin of this company today generate around 8%-9%. The second question about our short-term debt. Right now our short-term debt is $350 million, but at the same time, we always have the same level of short-term debt during the few last years. Our short-term debt for financing our current assets, approximately $300 million. Thank you.
Thank you very much. Our next question comes from Oleksiy Soroka from ING. Please go ahead. Your line is open.
Yes. Hi, I hope you can hear me. Some of my questions have been answered, Maybe we can go back and focus on your poultry business, just because I also dialed in late because I double-booked. Maybe you can repeat that, in terms of underlying margins, just explain what's going on, what impacted the margin in the Q1 and what you expect the overall effect to be and maybe refresh guidance for the full year if you haven't done so. If you have done so earlier in the call and I missed it.
Thank you for your question. Yes, as I told during the presentation, the segment poultry, now we are in very challenging environment. It's the main reason why we have the low financial result in Q1 is the low export price, especially low export price in Europe. As we understand, especially in Q1 , to be honest, always Q1 is the low season, Now we see some signal for slightly improvement price. Anyway, even today, European price remain is low level that, for example, compared to Q1 last year. That is why we understand that for 2026, our poultry segment will generate worse result compared to 2025. At the same time, our expectation and we see the better financial result in agriculture segment, in European operation segment, even in Russian segment.
It's very difficult, to be honest, to announce and to forecast our EBITDA for full year, We always try to be conservative and our current expectation about $ 520, $ 550 our EBITDA for whole company for 2026. Okay, thank you.
Sorry, the European prices, how much lower are they year-on-year? May I ask, so that I have a sort of understand.
European price is now lower compared to the first quarter, approximately by 15%. Despite on the product, but if you speak about the average, around 10%, 15% low.
Year-on-year?
No, Q1 compared to the year-on-year, it would be around only 5%, but you understand that in Q1 , we had significant increase in our cost production. Not significant, but increase because we have very cold winter with temperature -25 degrees and price of electricity, it was very high in Ukraine during Q1 . That is why our cost of production in Q1 was by around 7%-8% high compared to the last year-on-year. Today, situation more or less stabilized regarding cost of production.
Okay. Thanks very much.
Thank you very much. Our next question comes from Natalia Shpygotska from Dragon Capital. Your line is open. Please go ahead.
Good afternoon. Thank you very much for the presentation. I have a quick question on the company's operating cash flow, please. During presentation, it was mentioned that weaker operating cash flow came due to weaker poultry segment results. As I see, poultry segment cash, EBITDA before IFRS 16 and IAS 41 stood only like $ 25 million lower year-on-year, while operating cash flow before working capital changes declined by roughly $70 million. Could you please elaborate on what also drove the operating cash flow lower? Thank you very much.
Natalia, if I understood your question correctly, your question about why we have the operation cash flow better in changes than our financial result, yeah?
Yeah. Operating cash flow change worse than the profitability on the cash basis.
Operating cash flow, it is the way you look from segment result, yeah?
Well, yeah.
Operating cash flow, because operating cash flow after investment in working capital. Yeah. At the same time, as I told, the investment in working capital this year was slightly less than last year. Your question about just poultry segment or about our full?
No. Cash flow operations that declined from $101 million in Q1 2025 to $34 million in Q1 2026.
No, because unfortunately I don't see real figures right now. Yeah. Maybe it is after interest payment. Yeah?
I guess so.
Yeah. That is why it's a big difference. Yeah. That is why it seems to me the difference. Net cash flow operation, last year it was $45 million, this year $14 million. Yes? Now I see in our-
Yes. This is after working capital changes, but before working capital changes, the decline is much more material, like from $ 101 to $ 34.
No, maybe interest-- w ell, Natasha, maybe we will discuss with you-
Sure. Absolutely.
-[audio distortion] unfortunately.
Sure. Thank you very much.
Yeah, I don't see.
Thank you.
Okay.
Thank you very much. Just a reminder, if you'd like to ask a question, please press star two on your phone and wait to be prompted. If you are dialed in by the web, you can also request to ask a voice question. Our next question comes from Dmitry Ivanov from Jefferies. Please go ahead. Your line is open.
Hello, can you hear me?
Yes.
Yes, we can.
Yeah. Thank you very much for the presentation. I have a few questions, if I may, maybe ask them one by one. Maybe the first one is just, can you repeat the EBITDA margin, at the Nitsiakos business? Was it eight or 10% EBITDA margin you mentioned?
No, 8%, 9%.
8%-9%. Okay. How much debt is there like now? How much debt?
No, to be honest, we will be ready to describe this information, not right now. It's for the next year when we will have the first tranche. To be honest, we provide announce about this company, and to be honest, we don't want to provide you some special information on just only in one conference call. Okay?
Understood. The first stage of acquisition will result in ownership of above 50%. You will consolidate it after the first stage of the transaction?
Yes.
Yes right? A positive answer. Okay.
No. Yes, we have a few options, our aim to be consolidate. Anyway, we have the other option. We're flexible.
Okay. Maybe just like another question. Your leverage, like calculated under core analysis 2.8x . I remember you did some calculations for us, on some kind of expected pro forma net leverage. I'm just curious if you've done these calculations for this, like pro forma acquisition of Nitsiakos, what's like expected increase in net leverage with this acquisition? Will it go above 3x as like net leverage, or like just any color?
Yeah, we understand, our target after acquisition, we must be in leverage below 3x.
Okay. Pro forma acquisition, you will be below 3x?
In case of pro forma, below 3x.
Okay. That's-
No, close to, not just below. Significant below 3x, believe me. Close to the 3x, anyway, below 3x.
That's helpful. Thank you very much. A few more questions from my side. I think you mentioned EBITDA guidance of at least $ 520 million for this year, right? Basically. In Q1 you already generated $ 87 million, right, basically. I'm just trying to do like a simple math. Basically your guidance implies that in the rest of the three quarters you will generate around $ 145 million EBITDA each quarter. It implies like a material increase in quarterly EBITDA generation from Q1, right, basically.
Yeah. Very simple. Sorry for my interruption. Very simple explanation because first of all, Agri segment, you understand 40% of our business, of our contribution of EBITDA, it is the farming business. The biggest part of farming business generate mostly in the Q2, Q3, and Q4 . In the Q1 , close to zero.
Understood. Basically we should expect-
Yeah, always in the Q1 . During all our life, the Q1 , we have the lowest financial result. Zero.
That's very helpful. Okay, that's helpful. Basically, you will see material improvements in the next quarter.
Yes.
That's helpful.
Yes.
CapEx guidance. You previously guided $ 250 million-$ 275 million for the whole group for the year. Is it still the same guidance?
Yes.
You changed a bit?
Yes, we're still the same guidance. Yeah.
250-275. Okay.
Yeah.
That's helpful. Probably last question. Basically, I'm looking at your liquidity position. You're sitting on a half billion cash at the moment, like $518 million. I'm just trying to understand, why do you need so much cash on your balance sheet? Basically, it's $500 million cash. Can you expect other material outflows you should expect?
Yeah.
$500 million , that's a lot of money.
Yeah, Dmitry. It was on March 31st. Our cash position, because you did not ask me, what is the current our cash position. Our current position around $300 million. Internally, we have the rules. We would like to keep it minimum because you understand what condition we are leaving, and our minimum cash position around $200 million.
Why did you go to $ 300 million? Did you repay any loans? Your cash position went down by $ 280 million. What happened?
No. First of all, yes, we repay some, a little bit. Yes, we repay some loans. You're completely right, $ 400 million position is big. We have the term investment in working capital regarding our agricultural campaign.
It will be working capital outflow in the Q2 , basically. Another quarter.
Yeah. It's temporary [audio distortion]
Okay. Are we talking about $10 million, $20 million, or $50 million, approximately?
Approximately what? Now on the balance sheet, we have around $300 million.
No.
$300 million.
How much in working capital outflows we should expect in the Q2 of this year?
Yes. We have the clear target. We have the clear target because we would like to have reinvestment in working capital for full year around minimum $ 50 million. Because last year we have the huge investment in working capital, and our target provide optimization all our position. Current assets. And as a minimum, we would like to have reimbursement. Reinvestment $ 50 million.
Okay. That's helpful. I'll get back into the queue. Thank you very much for your answers.
Thank you.
Thank you very much. Our next question comes from Mary Gachanja from Salik. Your line is open. Please go ahead.
Thank you for the presentation. Mine is a quick question about EBITDA. You mentioned that the expectation is that year-end is $520 million-$550 million. How much of it comes from Uvesa, and what portion is of the group before Uvesa? Thank you.
Our total EBITDA from our European segment, Perutnina and Uvesa, because we consider it is a one segment for this year, around $150 million-$ 160 million.
Okay.
Thank you very much. Our next question is a follow-up question from Stella Cridge from Barclays. Your line is open. Please go ahead.
Thank you so much. I could just follow up on the Uvesa. It did look like EBITDA jumped quite a bit quarter-on-quarter, and I know that you were experiencing the impact of the African swine fever towards the end of last year. Could you just talk us through kind of what happened in Q1 and why you saw such a pick-up in EBITDA?
Yeah. Especially now, yes, it is the quarter-on-quarter. Your question about Q1 last year, this is the difference about revaluation of pigs. Yeah. Last in the Q4 , we have negative impact result of IAS 41. Here situation with price, pig price, pork price in Spain was stabilized, that is why we have revaluation, positive effect. This is the main reason why different.
Okay. That's super. It's been very helpful that you've been adding in these new disclosures around Uvesa. I think anything that we can perhaps have in terms of more information around that would be great as well going forward. Thank you.
Thank you very much. Just a reminder, if you would like to ask a question, please press star two on your phone and wait to be prompted. If you are dialed in by the web, you can also request to ask a voice question. Our next question comes from Vivi Vera from Goldman Sachs. Your line is open. Please go ahead.
Hi. Thanks for the presentation. Wanted to get some more color around the European operating segment. Last year we see IAS loss of $17 million versus a $ 14 million gain in Q1. I understand these are non-cash adjustments, if we adjust for that, the EBITDA actually declines, and the margin is also quite low. Wanting to hear from you, how do you look at profitability, and how do you expect this cash EBITDA, which is, after adjusting for IAS, how do you see that evolving? Thank you.
Okay. Yes, you're right, that effect of 41 standard is non-cash, your question about year-on-year or quarter-to-quarter? Sorry.
Year-over-year.
Year-over-year, yeah?
Yeah.
Yeah, if you look at year-over-year, our EBITDA, even exclude effect of 41 standard, increase. Yeah. Increase. Yeah. Because last year it is completely understandable because we include the financial result from Uvesa. Because for me, it's very strange why you tell that EBITDA decreased, because if you look at year-over-year, exclude effect of 41 standard, our EBITDA increased by $ 10 million. Yeah.
Sorry, yeah, the margin- [audio distortion]
No. Okay. Okay. Margin maybe decline. Yes. Okay. Maybe we will send you some explanation because regarding margin. At the same time, we understand it's very important that in Q1 we have the bad influence, especially in Uvesa, in pork segment. We have very, very low profitability in pork segment because it was African swine fever last year, and the situation now has stabilized. Anyway, today's price of pork very close to the cost. At the same time, we see the trend for improvement.
Other very important point, especially in Uvesa, always price in Q1, they're low because it's a low season, and price will improvement and cost of production, we do a lot of improvements in the Uvesa, and we expect significantly better result in Q2, Q3 , especially in Uvesa.
Thank you.
Just a final reminder, if you'd like to ask a question, please press star two on your phone and wait to be prompted. If you are dialed in by the web, you can also request to ask a voice question. We'll wait just a moment or two for the next questions to come in. Oops, sorry. Our next question comes from Antonio Luiz Gomes from Ninety One. Please go ahead. Your line is open.
Hi there. Thank you for your time. I just wanted to break down the cost increases in the poultry segment on the quarter, please. It seems like you have both lower gross margins and higher SG&A if you're looking year-over-year. Could you just break down what's happening in terms of the cost increases, why the gross margins have fallen significantly and also the same with the SG&A? You mentioned increased freight costs. If you could just give a little bit more detail there, that'd be helpful. Thank you.
Thank you for your question. Regarding SG&A, if you compare the quarter-to-quarter to SG&A in poultry segment, completely the same level. Because, yes, we last year in 2025, since Q2, we had some changes in SG&A regarding increased salary, increased logistic cost, transportation. But if you compare Q1 2025 with Q1 2026, our level of SG&A in poultry segment completely the same. The second issue here , cost of production chicken meat increased compared to the last year approximately by 7%. The main contribution was because we consume more gas. Consumption of gas was significantly higher compared to the previous year due to the weather condition, temperature -25 degrees. Price of the gas higher, by approximately 40%, and electricity price was higher year-to-year, almost 60%. It is the main contribution for increase our cost of production.
Going forward, looking at the rest of the year for the poultry segment, it sounds like the SG&A costs are not something that are going to go down. Is it the same for the cost of sales?
Antonio, the SGA cost will be the same which we had in Q1 during the 2026. I don't see any signals and any driver for decrease. At the same time, we don't expect any increase. It is good. Regarding cost of production, our expectations, the cost of production year-to-year will be not 7%-8%, will be high approximately by 4%-5%. Because for example, right now, situation with electricity, with price electricity has stabilized. For full year, with current price of grain, because maybe from the new harvest it would be higher price. We will see. Now, we see that cost of production will be high approximately by 4%-5%.
From a quarterly run rate, that poultry segment going forward, what's the kind of EBITDA that it's going to be able to generate this quarter? Seem relatively low. You're implying it's going to get better. Is it going to be, what, around the $50 million run rate per quarter, $60 million, $70 million? I mean, your high last year was $80 million. Just trying to get a range here.
As I told you previously that we understand that our EBITDA from poultry segment this year, because now we stay in a very challenging environment, will be lower than previous. It would be compensated partially by better result in agriculture segment and in our European operation segment. It would be low.
Okay.
Due to the cost of production and-
Will it be a-
-the special price, export price.
From a run rate perspective, on a quarterly EBITDA perspective, is that something you could give the guidance to?
No. I cannot provide any guidance, especially for poultry segment. Yeah, we will provide guidance for full financial result. Thank you.
Thank you very much.
Okay. I'm not seeing any more questions. Thank you all for sending your questions. Perhaps I can hand back to the MHP team for the closing remarks.
Thank you very much. Dear stakeholders, it was a great opportunity to receive all your questions you were interested in. Thank you for being with us during the call. Of course, if you would like to have a meeting with us, raise other questions, and discuss any questions which remained outstanding, please send me a message by email or directly the questions which you would like to be answered. Thank you, and have a lovely day. Bye-bye.
Thank you so much. Good day. Bye.
That concludes the call for today. Thank you all, have a nice day.