UBM may continue its international expansion

As part of the negotiations, the Hungarian company signed a letter of intent with EL.VI.Z. A.E. to purchase a 65 percent stake. Meanwhile, as a result of negotiations between KazFoodProducts and UBM, an investment in Kazakhstan could begin, and construction could begin in the coming months. The acquisition of the Hungarian subsidiary of the Dutch Royal Agrifirm Group was closed in the fall, and the 45 percent stake in UBM Feed Romania SRL was sold. According to the statement, the transactions contributed to the company closing the first half of its business year, which began in July, with its best results to date. Exceeding expectations, they achieved sales of HUF 131.6 billion, EBITDA (earnings before interest, taxes, depreciation and amortization) of HUF 5.4 billion and pre-tax profit of HUF 2.4 billion in 6 months. The grain and oilseeds trading business unit posted a loss of HUF 1.7 billion and the livestock segment posted a loss of more than HUF 400 million, while feed production showed a pre-tax profit of HUF 4.7 billion. The outlook is favorable, and the market environment may improve in the second half of the 2025-2026 business year. Although European conditions have not been good recently, pig farming could be a good investment for UBM in the longer term, they added.

Founded in 1996, UBM Hungary is the market-leading feed manufacturer, operating 9 production units in Hungary and abroad

In the previous business year, it closed with sales of more than 198.6 billion forints, and the year before that, it had been around 231.6 billion forints. Pre-tax profit increased from 1.5 billion forints to 1.9 billion forints, and after-tax profit from 913 million forints to 1.4 billion forints. The company is a standard issuer on the Budapest Stock Exchange (BSE), its shares were worth 1,100 forints at the last close, and their price ranged between 1,000 and 1,490 forints within a year.

MTI