MHP speeds pet food push after refinancing and Croatia investment: full analysis

MHP is stepping harder on pet food expansion after refinancing its debt, framing the category as a core growth engine rather than a side business. In a May 5, 2026 interview with GlobalPETS, the Ukrainian food and agri group said a $450 million (€390 million) Eurobond maturing in 2029, followed by a $100 million add-on in March, has helped it move ahead with a €40 million wet pet food project in Croatia. (globalpetindustry.com)

The push has been building for some time. MHP formally created a dedicated pet food division in 2023, began investing in the Croatian facility in 2024, and had previously signaled plans to reconstruct an acquired plant near Zagreb for wet pet food production. The company’s broader strategy is vertical integration: using its poultry operations, rendered ingredients, grains, and feed infrastructure to move into finished pet nutrition products with better margins. (globalpetindustry.com)

The financing backdrop matters here. The European Bank for Reconstruction and Development said in 2025 that it was arranging a €100 million investment package for MHP, including €40 million from the EBRD itself, to support energy security, operational efficiency, and geographic diversification, including construction of the Croatian pet food plant. In its project documentation, the EBRD listed the pet food project’s total cost at €100 million and said the work had undergone environmental and social due diligence, including review of permitting and an independent animal welfare audit tied to MHP’s poultry operations. (ebrd.com)

Operationally, MHP says the Croatian site will start with capacity of about 20,000 tonnes a year and could scale to around 35,000 tonnes by 2028. The initial focus is wet food, especially cat food in pouches, because the company sees the biggest European opportunity there. Dry food is expected to be outsourced at first so MHP can offer a broader assortment while its in-house wet manufacturing capability is established, and snacks are also on the roadmap. The facility is intended to serve MHP’s own brands as well as private-label customers, first in Southeastern Europe and then more broadly across Europe. (globalpetindustry.com)

The company’s financial position appears to have given management room to accelerate. GlobalPETS reported that MHP’s revenue rose 16% year over year to $2.6 billion in the first nine months of 2025, while net profit increased 52% to $215 million. That aligns with MHP’s reported 9M 2025 results as carried by investor news services. GlobalPETS also noted that MHP shares had gained more than 75% over the prior 12 months, underscoring why management may feel it has momentum to invest into adjacent categories. (globalpetindustry.com)

Industry context supports the move, even if the timing is ambitious. Global pet food production growth slowed in 2025, according to Alltech’s 2026 Agri-Food Outlook, but manufacturers are still investing in capacity and in value-added segments such as wet food, premium formulations, and private label. That makes MHP’s strategy notable: it is entering a competitive market, but doing so with upstream control over animal protein inputs and a manufacturing base inside the EU. An inference here is that this could help the company appeal to retail and distribution partners looking for regional supply, though MHP will still need to prove brand-building ability in a crowded category. (petfoodprocessing.net)

Why it matters: For veterinarians and other animal health professionals, the story is less about one factory and more about how the pet nutrition supply base is evolving. Large poultry and agri-food groups are increasingly moving downstream into finished pet food, which could affect product availability, private-label penetration, ingredient sourcing narratives, and the pace of new product launches in Europe. If MHP succeeds, clinics may see more regionally produced wet diets and treats enter the market over the next several years, especially in cat-focused segments. (globalpetindustry.com)

What to watch: The next markers are the launch of MHP’s first pet food brand in 2026, the production ramp at the Croatia facility, and any disclosure on customers, export markets, or regulatory clearances tied to broader European distribution. It will also be worth watching whether MHP keeps dry food outsourced longer term or invests in additional in-house manufacturing once wet capacity is fully utilized. (globalpetindustry.com)