MHP SE
Parent's Separate
Financial Statements
31 December 2023
MHP SE
Contents | ||
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 12 | |
STATEMENT OF FINANCIAL POSITION | 13 | |
STATEMENT OF CHANGES IN EQUITY | 14 | |
STATEMENT OF CASH FLOWS | 15 | |
NOTES TO THE FINANCIAL STATEMENTS | 16 | |
1. | Incorporation and principal activities | 16 |
2. | Material accounting policies | 16 |
3. | Financial risk factors | 26 |
4. | Critical accounting estimates and judgements | 35 |
5. | Revenue | 38 |
6. | Administrative expenses | 38 |
7. | Finance cost, net | 38 |
8. | Other income | 39 |
9. | Taxation | 39 |
10. | Dividends | 40 |
11. | Investments in subsidiaries | 40 |
12. | Investments in associates | 41 |
13. | Loans receivable | 42 |
14. | Other receivables | 43 |
15. | Cash at bank | 43 |
16. | Other financial assets measured at amortized cost | 43 |
17. | Financial assets at fair value through profit and loss | 44 |
18. | Property, plant and equipment | 44 |
19. | Shareholder's equity | 45 |
20. | Bonds issued (Note 3.8) | 45 |
21. | Loans payable (Note 3.8) | 47 |
22. | Interest payable | 47 |
23. | Financial guarantees | 47 |
24. | Related party transactions | 49 |
25. | Operating environment of the Group | 51 |
26. | Commitments and contingent liabilities | 52 |
27. | Events after the reporting period | 53 |
MHP SE
BOARD OF DIRECTORS AND OTHER OFFICERS | |
Board of Directors: | John Grant (appointed 27 December 2017) |
Viktoria Kapelyushnaya (appointed 27 December | |
2017) | |
Yuriy Kosyuk (appointed 27 December 2017) | |
Andriy Bulakh (appointed 28 December 2021) | |
John Clifford Rich (appointed 27 December 2017) | |
Christakis Taoushanis (appointed 26 August 2018) | |
Philip J Wilkinson (appointed 24 March 2020) | |
Oscar Chemerinski (appointed 7 March 2023) |
Company Secretary: | Confitrust Limited |
Independent Auditors: | Ernst & Young Cyprus Limited |
Registered office: | 16-18 Zinas Kanther Street |
Ayia Triada | |
3035 Limassol | |
Cyprus |
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MHP SE
MANAGEMENT REPORT
The Board of Directors presents its report and audited separate financial statements of MHP SE ("the Company") for the year ended 31 December 2023.
Incorporation
The Company is registered under the laws of Cyprus, was formed in Luxembourg on 30 May 2006 under the name MHP S.A. It was converted from a public limited liability company ("Société anonyme") into a European company ("Societas Europaea") with effect from 7 August 2017.
On 27 December 2017, the Company transferred its registered office (the "Seat Transfer") under the provisions of the Cyprus Companies Law, Cap. 113, from 5, rue Guillaume Kroll, L-1882 Luxembourg, Grand Duchy of Luxembourg, to 16-18 Zinas Kanther Street, Ayia Triada, 3035 Limassol, Cyprus.
Principal activity
The principal activities of the Company, which are unchanged from last year, are holding of participations in any form in foreign companies, acquisition by purchase, subscription, and exchange of stock, bonds, debentures, deposits and provision of finance to group companies as well as consultancy services. The principal business activities of the Company and its subsidiaries (the "Group") are mainly in Ukraine and Europe and are in poultry and related operations, grain growing, as well as other agricultural operations (meat processing and meat products ready for consumption).
Review of current position, future developments and significant risks
In 2023, the Company realized a total comprehensive income for the year of US$ 16,458,078 compared to a total comprehensive income of US$23,257,586 in 2022. The financial position of the Company as presented in the financial statements is a net asset position of US$ 504,277,697 (2022: US$ 487,819,619) and net current asset position of US$ 145,962,022 * (2022: in a net current asset US$111,807,275). Furthermore, out of the total current liabilities of the Company as at 31 December 2023 of US$ 560,482,701, amount of US$ 278,757,445 related to amount due to related parties (Note 24.5 to the separate financial statements). The Company's development to date, financial results and position as presented in the financial statements are considered satisfactory.
Management has considered the Company's cash flow forecasts for the foreseeable future, which take into account the current and expected economic situation in Ukraine (Note 4 and 25 to the separate financial statements), the Company's financial position, available borrowing facilities and loan covenant compliance.
Despite the single material uncertainty relating to the war in Ukraine, management is continuing taking actions to minimise the impact on the Company and its subsidiaries and believes that application of the going concern assumption for the preparation of these parent separate financial statements is appropriate (Note 4 to the separate financial statements).
There were no changes during the financial year in the nature of the operations of the Company.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks.
The principal financial risks and uncertainties faced by the Company are disclosed in Note 3 to the separate financial statements.
- Current assets less current liabilities
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MHP SE
MANAGEMENT REPORT (continued)
Results and Dividends
The Company's results for the year are set on page 12.
No dividends have been approved during 2023 by the Board of Directors of the Company (US$2022:nil).
Significant events after the reporting date
Any significant events that occurred after the reporting date are described in Note 26 to the separate financial statements.
Branches
During the year ended 31 December 2023 the Company did not operate any branches.
Share capital
As of 31 December 2023 and 31 December 2022, the authorised share capital of the Company was EUR 221,540,000 divided into 110,770,000 ordinary shares, each having a nominal value of EUR 2 each. The authorised share capital of the Company is fully issued and all the shares are fully paid up.
As at 31 December 2023 and 31 December 2022, the Company has a direct holding of treasury shares(ordinary shares, represented by an equal amount of global depositary receipts "GDRs") in the amount of 3,731,792 shares .The amount of 3,564,568 shares were held directly by the Company and 167,244 shares were held by the Company's subsidiary PrJSC MHP.
There were no changes in the share capital of the Company during the year ended 31 December 2023.
Significant shareholders and related party transactions
Significant shareholders and related party transactions are disclosed in Note 24 to the separate financial statements.
Board of Directors
The members of the Company's Board of Directors as at 31 December 2023 and at the date of this report are presented on page1.Oscar Chemerinski was appointed on 7 March 2023.
There were no other changes and up to the date of this report. More information on the Board of Directors is stated in the Governance section of the Annual Report.
Key management personnel compensation is disclosed in Note 24 to the separate financial statements .
Independent auditors
The Independent Auditors, Ernst & Young Cyprus Limited, have expressed their willingness to continue in office. A resolution giving authority to the Board of Directors to fix their remuneration will be proposed at the Annual General Meeting of the Company.
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MHP SE published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 11:52:04 UTC.