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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Good afternoon, and welcome to MHP's Third Quarter 2022 Results Conference Call. We are joined by Anastasia and Victoria. I will now hand it over to Anastasiya to begin the presentation.
Thank you very much, Tim. The stakeholders, good afternoon, and good morning. Thank you for joining us today for MHP's conference call. As Steve said, Anastasiya, Director of Investor Relations and International Communications. On the call today, together with Victoria Kapelyushnaya, CFO of MHP, we will discuss MHP's financial and operational results for the third quarter and 9 months of 2022 as well as the current operational environment and expectations until the end of 2022 and going forward, taking into account the world in Ukraine, its current consequences for the country, challenges it brought to the operational environment in Ukraine and in the world. Today's call is based on information released earlier today. However, during our call, we will discuss our projections and plans based on our assumptions, domestic and international trends. Please take it into the call. We now move on Page #3 of our presentation, and we'll have a look at macro environment in Ukraine. But first of all, let me start from general overview, how the macro environment looks today and expect it to look like next year based on the forecast provided by the NBU, the Ministry of Finance in Ukraine, and number of research run in Ukraine during the last quarter. As you see from the public domain, the water situation in Ukraine has escalated since October when the gremlin started to conduct targeted massive decile strikes on the territory of Ukraine, firstly, attacking the country's energy infrastructure. This has led to the complete destruction of over 50% of Ukraine's energy infrastructure. Although the recent recovery of Hairston has been encouraging, the overall situation remains highly fluid, and the outlook is subject to extraordinary uncertainty. MHP faced complex challenges and disruptions to operations in the middle of October frank speaking, when a number of the country's electricity generation stations and power lines were hit by the cell attack. Operations at some MHP facilities had to shut down for a short period of time after the micelle hits. As of today, MHP is again operating growth to full capacity using a combination of state grid electricity generated at MHP's biogas station and diesel generators. However, events have shown that situation can deteriorate seriously, quickly, and without any notice. The macroeconomic situation looks very challenging, though. GDP in 2022 is expected to decrease by around 32%, while next year, taking into account that active hostilities finished by the end of this year, the economy will begin to recover. -- fingers crossed. Inflation ratio is expected to exceed 30% in 2022 and to be over 20% in 2023, including food inflation expected to reach the same levels as we lower inflation. The unemployment level reached 28% in 2022 and will remain almost at the same level in 2023. Interesting findings from the research I would like to share with you, and they are following around 13 million people love the countries in the inversion of which 50% came back to Ukraine, and around 20% will come back next year. Around 60% of population are in difficult financial situation because of the board. Over 50% of population has got financial reserves for less than months. Over 50% of employee salaries have been decreased, and almost 1/4 of the population lost their jobs and are unemployment now. The currency ratio, as you can see from the presentation is expected to reach C2, Ukrainian Grivner 1 dollar. Let me now proceed with the company's results for 9 months of the year. Slide #5 of the presentation. So let me, first of all, start with operational highlights for the 9 months of 2022. Driven by a decrease in capacity utilization because of the war in Ukraine, poultry sales decreased by 9% and reached around 477,000 tons facing significant challenges in logistics during the first 3 months since the beginning of the war, pulp exports from Ukraine decreased by 14% to out 257,000 tons with significant share of transshipments made through the territory of the European Union to MENA and African countries. Total share of tax costs out of total port sales volumes decreased to 54% from 58% in the same period last year. Financial results for 9 months of 2022 are following: Group's revenue increased by 14% and reached almost USD 2 billion, with export revenue representing 59% of total revenue, mainly driven by higher export prices for posture meat, but partially offset by lower volumes and higher volumes of vegetable oil sales. Adjusted EBITDA decreased by 47% to USD 275 million as a result of old disruptions in operations, which led to lower volumes and production sales as well as due to a significant increase in logistic costs and challenging logistics in general. Let's go on next slide, #6, where we can see the key financials for the third quarter of 2022. And the results are the following, Group's revenue increased by 10% and reached USD 727 million, with export revenue representing 65%. Adjusted EBITDA decreased by 35% year-on-year and reached USD 121 million. with EBITDA margin of 17%, significantly down year-on-year because of the word disruption in operations. Let's move on to Slide #7 of the presentation, where we can see the financial results by segment for the 9 months of the year. Pulp operations remained our key segment. The group generated the majority of total revenue, which was around 72% and 67% of the company's EBITDA. Grain segment generated 5% of total revenue and about 18% of company's EBITDA, net of IFRS 16, of course. As you know, the majority of grain produced by MHP and usually used internally to produce Cidofor chicken. New processing and agricultural operation generated only 5% of consolidated revenue. The European operating segment generated approximately 18% of total revenue and 20% of the company's EBITDA, progressing in line with their strategy and development plans. I would propose to have a closer look at each business segment of MHP. And here, I pass my word to Viktoria.
Thank you, Nitin. Good afternoon, everyone. Let me give you more color on our poultry segment performance, Slide #8. It is important to highlight that during the last 7 months of the year, and peas been facing contract challenges and disruptions in operations, sales, and logistics as a result of going raise. -- only during the third quarter of the year, MHP managed to reach full capacity in post-production after having a decrease is around 8%, 5% in March 2022. However, taken in account an increased novel of tack of energy Infrastructure in Ukraine, we foresee the MHP can potentially decrease its poultry capacity again. The impact of the in Ukraine remain core is this time and can change seriously, quickly, and without notice. Despite the number of difficult due to the win Ukraine, and we delivered a relatively strong result in Q3 compared to the same period last year. However, we already see that the company's financial results in are going down. I will talk about this follow. The main driver of our strong results in Q3 is substantial export price increase across all markets by 40% year-on-year. That was particularly negatively offset by increased logistic costs due to the war. Sales to the effective action of the company and the establishing alternative roles, our export volume decreased only by 10% or Hatamoto. At the same time, sales in poultry meat in Ukraine despite a substantial decrease in population, migration more than $7 million and disposable income. An effect, I was talking about the trend, Oli remained stable in Q2 this year, and we increased compared to the second quarter. At the same time, poultry price decreased substantially by 25% in dollar store, driven mainly by depreciation of Ukrainian greens and a mix of the product. Let me explain you would just happen now in Q4 on export markets. As a result, the changing economical environment of NEU and U.K. and increased competition in Minregion, especially so the other export price trends have changed to negative. Poultry price across all export markets Minus from September started to go down shortly with current pricing substantially low than in Q3 this year. Mont has been facing a triple increase in logistical year-on-year, I mentioned before, which makes it much more difficult for MHP to compete with our competitors from worldwide. Let's move to the next slide, #10, [indiscernible] -- it is important to highlight that despite the high price for grain on international market, export price for grain from Ukraine and in U.K. are significantly lower to international price due to the legit cost increase because of the war in Ukraine. All this negatively affects the profitability of MHP as well as all agri companies or agri produce [indiscernible] negative effects for profitability. Moreover, this year, weather negatively affect our core yield in Vinit and CarCaan, which we expect to be lower budget, 9 per Gerald -- in the down of the grain segment in 9 months constitutes EUR 50 million compared to the EUR 26 million last year, mainly due to lower expected results for premium groups and mainly because lower the yield of corn and pros. We expect total EBITDA in gray service this year to be around EUR 60 million. Zips the lowest result in MHP history. Please go to the Slide 11, net processing business, financial performance deteriorated significantly due to the substantial of Ukrainian bacon operation in the Daniere in April this year, partially commitment has better located Brydon in Ukraine. Additional negative impact was due to a significant decrease in the demand for cortical segment. Easter MHP produced around 1,000 tonnes of meat product per month versus 3,000 per month last year using both companies and rented facilities. Let's go to Slide 12. I have several words about Perutnina to, growth in capacity in Serbia in Croatia resulted in increased 10% in poultry sales year-on-year, which resulted in EBITDA growth 11% year-on-year, driven both an increase in production volume and price. Despite strong price trend during the last month, we expect poultry price in Balkan and Perina expert market, to go down in the fourth quarter, 22%. Please go to the Slide 13. He works about our cash flow and liquidity position. Best from operations before change in voting capital amount $378 million higher compared to the EBITDA due to noncash adjustments, mainly related to 4ter. But at the same tone, cash from operating activity was mainly investment during the 9 months in working capital. This investment in working Pegital was more than $245 million and mostly related to high amount of chicken meat by the end of 9 months, design for sale -- the second increase in investment in biological assets during the group sell campaign due to the higher cost per hectare comparing to the previous year, should increase in trade account receivables for Sampla oil due to the long settlement period as a result of increasing delivery per. Fourth, an increase VDreceivables and last a full in-trade account payables for plant protection products and seed and increase in advanced method to be used in for and first coming harvesting and so in campaigns. I also want to [indiscernible] the MHP made to investment in St. -- loose as the sort of September compared to the same period last year. This will result in more substantial investment requirements in sunflower seed in Q4. In Q4, we expect additional investment in working capital, about EUR 100 million. We expect that our cash and cash equivalents by the end of the year will be amount around $200 million to $250 million. What is very important to understand the minimum our position, minimum septic value for HP now is EUR 150 million given to current situation and significant uncertainty. And now I give it to Anastasiya.
Thank you very much, Victoria. Let me start with an update regarding who and its consequences for Ukraine and MHP. First of all, MHP team would like to think the defense forces of Ukraine, which since February 2022, have occupied a total of 52.5% of the territories captured by the Russian Federation, almost 78,000 square kilometers. Although we all have been receiving encouraging news from the defense forces of Ukraine, the overall situation in Ukraine remains highly fluid, and the outlook continues to be subject to extraordinary uncertainty. Unfortunately, the teller state does not stop its massive attacks. And just yesterday, it filed over 9 Misale during a massive strike surpassing October 10 this year when 84 were filed. As you can see from the press statements published today, MHP facilities were not physically hit by the metal attacks in October and November. However, the destruction of the energy generating stations and power lines have influenced and continues to influence MHP's operations as the production process has become very disruptive and has already led to increased production costs, losses in produce, and difficulties for employees' lives. If such mass betas continue, the energy infrastructure can be destroyed completely or to a large extent. And in this case, it will be extremely difficult for MHP to operate as usual, and that will lead to a decrease in capacity utilization of its poultry capacity, increased costs, and other expenses. Nonetheless, as of today, MHP has been successful in maintaining operations at close to full capacity. Hopefully, we will be able to continue to do so. As far as normal trading is concerned, prices in several property markets, including the Middle East and EU has softened substantially and are expected to remain weak due to excess supply and increased competition, the significant incremental cost incurred in recent months due to global inflationary pressures as well as in prelogistic costs are expected to continue in 2023. Grain and vegetable oil prices are likely to remain stable and high, at least into 2023, reflecting ongoing global supply constraints, compounded by ongoing effects over the wall in Ukraine. At the same time, Keratin MHP European assets independently will continue its further development in the Balkans, supported by favorable market environment. We hope, but let's see -- following the strong support demonstrated in March 2022 by holders of our Evrobonds and our bankers, the group paid Evron coupons due in autumn and will pay in full and on time all bond coupons deferred from March and May 2022. Let me finish the presentation now. We are ready for the questions to ensure that all participants on today's call have equal opportunities, please follow the rule that one participant can raise 3 questions per time. Thank you for cooperating in advance. Tim?
Thank you, Anastasia. So we will now move to the question-and-answer section. [Operator Instructions]Â So our first question comes from Yulia Di Mambro from Federated Hermes.
I have 3 questions, please. So you mentioned the horrific scale destruction to Ukraine's energy infrastructure. How have you been able to continue to operate at near full capacity? Do you have backup generators or your production facilities? And how are your production facilities heated? And if we think about the very worst-case scenario and the destruction continues, would that mean high production costs for you? Or would you have to hold production completely? That's my first question. Shall I go through all the questions or I should I get one at a time?
Yes.it would be badly if you answer the question by question. Yes, it's a good question about -- yes, you understand, it's very difficult to predict yes. Now yes, would potentially what potential kind restore facility because it is not yet is to do on it. Now it's not easy about the electricity infrastructure and use about, in general... But we have done generators, but not 100%. And we try, and now we try to buy more... Yes. Now anyway, we cannot exclude 100% risk -- we can -- we try to manage the detrition because you know that we have the different water housing a different part of Ukraine and how factory are located in feared we have generated and we have move generate from one facility to other facility. Now until today, we manage, yes. And we had some breaks, but not so long, maximum for a few days, yes. But we cannot guarantee what we will do in the future.
That's clear. And my second question is on your negotiations with the bank lenders. So we percent of your Q2 results, you mentioned that you were in the process of talking to them about potentially reopening some of the credit lines? And how these negotiations progress for -- and how do you plan to address the $160 million bank that repayment in February 2023.
Why so please -- maybe I did not get your question but repeat what it means.
Yes. It's about borrowing. Have you been able to get any credit lines since we also to Q2 results presentation? And also, you have $160 million of bank debt coming due in February next year. How are you planning to repay that?
I think it was a good question. Yes, about short-term debt. Yes. Yes, you know that we prolongating the Marathi year, we promote with short-term debt until the February. And since now and now until 2023. And now we have started negotiations with banks about net prolongation yes. Now we're in process. Yes. Yes. Because yes, I think that yes, this financing financial working capital, and we process about troponins. And we hope he and we hope then with Gastroga. It is also a big amount to be honest, JPY 160 million as we have a very good relation with Bank , I think that we will do it.
Great -- and my last question is on your dividend. So the statement included a sentence that you plan to repay all of the delayed coupons from earlier this year, which would mean that you could potentially resume paying dividends again. So should we expect you to resume paying dividends in Q4 this year?
So it's just to me it's a very interesting collection, but it seems to me important situation, I cannot imagine how we can take dividends... Yes... Yes, because we -- because we understand that we have huge obligation put the full future obligation with our people with our employees. We 26,000 people who live and work in Ukraine during the war. It is the fisor obligation at goes down. And the same tetration, we understand that we have a lot of creditors and obligations for creditors. So I don't see... For me Customer... It is our expenses, especially because liquidity position and cash is very, very important for continuous business of company now.
Our next question comes from Antonio Gomez from 91.
I wanted to ask you a couple of questions around the working capital items. The first one I had was in this quarter, your biological assets fell by around $130 million, but the cash inflow in the quarter from biological assets was only EUR 19 million and the fair value revaluations for the quarter, we're only around $25 million to $30 million. So I was just trying to understand what the difference is in your biological assets between Q2 and Q3. Better substantial decline, but no cash inflow commensurate with that.
1 minute, in -- maybe -- yes, sorry, maybe I did not take your question about the decreased working capital the different in that you are -- please to repeat your question about the investment in work in cattle.
The movement in biological assets between Q2 and Q3 was EUR 130 million, it went from 24 million to GBP 294 million, but the cash inflow or the change in biological assets for Q3 was only EUR 19 million year-to-date, minus GBP 150 million of which Q1 and Q2 had been 169. So the change in biological assets was EUR 130 million, but the change in cash flow was only EUR 19 million inflow, which means that there's about GBP 110 million delta that's not explained. Does that make sense?
Your dividend in balance is and position in cash flow, yes? Yes. Yes. Okay, okay. We will send an effect we will send you the calculation because at the same time, you need to understand that we are increasing because we saw our financial report in dollars but currently is you change by 20%... And to... Yes. And we will explain you, yes, because it is not possible exactly the direct way to calculate cash flow between a balanced position. But at the same time, we will send to your explanation, cleclinics, okay?
Okay. That makes sense. And then the second one is you're looking at another outflow with continued selling of the rate crops. And looking into 2023, when do you expect that releasing cash flow from the high balance in 2021 versus 2020? And then a closing balance again in 2022 that is, you're talking about a EUR 300 million cash outflow from working capital in -- for the full year.
Yes, I will explain. Yes, I explained just of all regarding what you need to understand, due to the 2 two, we increased significant our balance sheet regarding an flashy told in just in Faan, we increased our investments around in terms of our business, yes, because it pays receivables and some flow on stocks. We just yes, if when only we stopped, we decreased this cash flow regarding our crushing business. Regarding our, for example, the Synagis now become the very high level of talk of chicken meat. Because today, in chicken meat, we have more than 75,000 tons. -- for normal level of chicken meat on to around 30,000 tonnes. Yes, we can change this deterioration just maybe the same situation of the topics. I don't expect this situation will change next year. We will invest this money. But how is the 2023, which is a good signal, yes, because in 2023, we don't even current situation, we will continue until by the end of the next year, we don't expect any additional investment in working capital. Yes, we invest in and we understand this, the biggest part of this related to situation with a yes, and we don't expect any additional investment.
Okay. And my final question is you have your short-term debt in February, you're looking to extend that. You have the final deferred coupons that are going to probably be paid in January, February time, which takes our cash balance further down from the $200 million, GBP 250 million cash closing balance. And then you're going to start looking into sowing in March, April time for your next harvest season, which is next summer. I was just wondering what your cash need is and how you plan to fund that.
No. We -- current will continue until the February, we understand as antidote understand how we will repay our Yelo bond, which will postpone the bond we understand. We invest a lot of money regarding sowing campaign, we would utilize now in the short and fourth quarter yes, and this is why we understand that our investment regarding storing campaign next year will be slightly low compared to 2022 yes. And we understand how we repaid this Q4. But at the same time, was of current ejection if often happens from we understand it will be completely new is.
So how much is the sowing campaign from a working capital need next year versus this year?
So in, but we start showing campaigns... You to do the stack in campaigns is in October because you understand you try to buy Julie from the fourth quarter. Total our -- if you compare all our investments to compare year-to-year approximately decrease, not so significant approximately by 10% if you compare total amount.
So our next question comes from Kyle Nicely at Knighthead Capital.
I had 2 topics. First, on the export pricing, and I guess, a generic question around EU and MENA pricing. So for the quarter, I believe your export pricing was in the neighborhood of $2.60. And I was curious what the outlook for that is for Q4. And I'd like to understand how the outlook for pricing for EU exports from Ukraine compares to the outlook for Aronia pricing in the Balkans.
If you regarding price, yes, Q4 compared to the Q3 Yes, in Europe, appropriately minus 20%, 25%, we is this trend of around 20%. And in Minions team made approximately. In Peru, because you know that Gradina sells mostly a branded product. We see just not so significant decrease, but not the same fiber. -- is lower, maybe 5%, 3%, depends on the market, depends on the product.
Okay. So we could get round numbers to down around $2 per kilogram on the Ukraine export pricing.
Yes. Yes.
Okay. And my other question was just to help bridge the cash from 317 currently to $200 million to $250 million at year-end. What would the inputs there be for CapEx? I think you said negative $100 million for working capital. And so I'm struggling to understand where we see EBITDA CapEx with the coupon payments coming due versus some commentary earlier today about the EBITDA outlook being approximately 50% lower.
Your question about how we calculate how we expend EUR 150 million compared to the current our cash balance, 100, yes?
That's right.
Yes, roughly... Yes. Is it all went by the end of the September, our stock of sunflower seed was very, very low. Usually, yes, we buy approximately 400,000 tonnes of self-flowed seats. And usually, we make it very interesting to buy during the harvesting campaign, sent to our fleet, and put in stock to invest in this approximately $100 million. At the same time, in December, we will pay tropo yes? And we have the CapEx maintenance, yes, accordingly our program approximately 300 million -- $335 million.
$40 million to $45 million of CapEx?
Yes... No, it is a maintenance, yes. No, maintenance and some finalize our project. It's very important that you understand that part is very important to buy some equipment and to produce for export market, not just commodity products and some in value-added product because when we sell to the market value-added products, we have the higher margin. And it's not so huge insurance and price if you think about the value-added product.
Okay. And my last question. On the income statement, there's a large FX loss for the quarter. And I was trying to understand what drives that.
It is very simple because you have the debt of more than $1.5 billion yes and driven valuated by 20% approximately. And that is why it is affect your currency effect of validation of debt. revaluation of poisoned... Okay. I may follow up on that.
Our next question comes from David Shell Hammel.
Just back on the cash balance at the end of 3Q. Just curious how much of that cash sits at the Holdco? And how much of it sits in your correlation subsidiary? And then just a follow-up, how much can be repatriated from the Croatian subsidiary.
Yes. Tony, I try to answer to your question -- if you speak about the cash position in Perutnina, around $90 million yes? And the potential and at the same time, in ostarine loan yes, loan is syndicate around $140 million, yes, and some limitation, yes, mutation of this loan. Potentially, maybe is it possible to -- at can repatriate some amount to MHPS, but be amount Yes. so big amount to The EUR 20 million, EUR 30 million EUR 1 million to EUR 3 million, sorry... Or disintefigure is not done the euro. Yes. It was very important to understand because MHP is not guarantor for this loan.
We also have a question from Anna Katina from TR Price.
I wonder if you may have a rough estimate of, high level of cash burn on a monthly basis, all things equal as of now and all things equal and when the sowing campaign starts in the spring. Monthly on cash burn. So how much cash all things equal units on a margin weekly basis to get operations going.
And yes, it depends on the market because you can see that if you look at our financial results during the last 9 months, our cash from operations after working capital of the investment working capital, positive $130 million because -- and besides, we need to see the separator. Yes. What we see right now that we -- you're question about what cash we generate, yes, we generate with the operation cap after investment working capital, we have ran... Yes.
Yes, I apologize. -- many projects are not being clear. The question is rather how much cash you need to put into your business on a monthly basis to get going rather than how much cash you generate? How much cash do you need to put in in business to break even, so to say, number just on a high level.
Maybe, yes, understand your question, Ki. Yes, we -- yes, regarding on comp yard. We invest, we need to invest approximately. But in the sewing campaign, we need to understand what we intend comparing during the -- when showing campaigns, we need to understand approximately 100 seats, $180 million. Part of them we invest even in the third quarter, even in the fourth quarter because, for example, right now, yes, we provide solid rates, yes, approximately 30% of our land fund yes? And that is why regarding the next year based on currency -- I understand it is that for full year, we don't need investment in working capital. If we speak about the first quarter, we need to invest in insuring campaign approximately $140 million approximate -- but it would depend, yes, because now we continue to calculate. We continue to -- yes, what we do right now, we try to decrease. We understand the core. Is the notes during Xevo, especially right now, is not right growth, yes, because it's the profitability of corn one of the lowest. Yes, and this is why now we calculate and we try to change maybe cropation to change from clouds. We imposed -- but in general, is approximately 1 during the first half of the year.
What is your maintenance CapEx per annum?
And our maintenance code approximately -- not just approximately million, $60 million for MHP and approximately $20 million to $25 million for Perutnina...
And just maybe the last question. Do you expect any equity rate or any shareholder loans potentially in next year?
Your question about loan from shareholders. Yes, the direct injection or whether in a formal shareholder or is it something which you could potentially access or not at the moment? It's a very interesting question. Yes, because at the same time, our mesh understand that we then we understand the patent situation in is will not pay dividend. Yes. But yes, if we don't pay dividends, we have spend that we will support the company.
Our next question comes from Dmitry Ivanov at Jefferies.
I have like 3 quick questions. And the first one on this current National Bank of Ukraine regulation when it comes to FX treatments. So whenever you export something, what is the current expense of the Bank of Ukraine when it comes to repatriating back of the cash? And any kind of restrictions on inpatients when it comes to servicing of the coupon under international kind of instruments. So any kind of color would be very helpful my first question.
Yes, this is a real problem. You know very well our registration. Yes, it is a big problem that because, yes, because accordingly, currency is, we cannot pay maturity we cannot pay or yes. we will see. But yes, it is the real problem what we see yes.
You cannot pay coupons, right?
We can pay for on just since February upon which we can have in February until August, August. This is allowed to pay, and we paid this coupon. You know that in September, in October we pay it cup. But accordingly, legislation corona, yes, we cannot say it is... From Ukraine... Still on...
Okay. So in December, you have to pay the deferred coupons, right, under this consent solicitation update in March. Are there any issues with getting approval from a view to repay the deferred coupon in December?
Yes, this component, we will pay from our accounts outside in crisis. Yes. This component is open from this account, but it would be very wiki regarding the next about special maturity, you understand just one component, I think, is not the problem for us. We can pay just one coupon. -- not just for 6 months or 50 million. But the next, yes, it is a very open issue. When we ask the National Bank about please give us permission, National Bank to do yet because I asked a lot of times, so that please provide restructurings, the same as you create because everybody, all bondholders, all work should understand what situation now in Ukraine. Yes, it is not my work. It's a word from national bank. And everybody has helped to Ukraine. And please ask...
I understand. So there is more kind of current, let's say, regulation because there was some regulation covering period from February to August, so there is no such regulation for now, and like everything is prehire at like any payment of coupons to the offshore accounts from cranes prohibitor, right? So there is more kind of guidance on this.
Yes.
Okay. Understood. Just to -- just to understand like in December, you mentioned that you will pay deferred coupons and deferred coupons for the total of USD 50 million, approximately. So in December, you plan to pay the whole balance of the deferred coupons like $50 million.
Yes. December, January, accordingly as scheduled... Yes. On because December generally then... Put on the schedule... It will be in December and January in payments of the EUR 50 million deferred, like... Yes. Yes, because we have -- yes, you know that we have to the one in December, January.
Understood. And I apologize as third question on the export of grains. You told us that due to logistics costs and et cetera, you might like wait for better prices to start exporting grains. So when your harvesting campaign ends -- so how should we kind of look and approach your expert of volumes? Do you expect to export like some volumes this year, like wheat or rep seat or like you will wait until like next year to see more like better prices, et cetera. So any kind of color on export of gains.
Okay. I understood, yes. Now first of all, we grow just to group to export because the core cloud is where we use for internal mix, yes. Regarding grade, the biggest part maybe 70%, 80% of we sold this year as we exported this year, maybe 20%, 15% next year. And there is a similar proportion of yes. And regarding wheat was maybe 60-40, approximately this way, 60 this year for the next year.
Okay. But is it like -- as the current prices, is it profitable to export or like due to logistic costs, it just you just break even on this -- on the exports of grains.
Depends of growth to build on at rates is profitable. If you speak about the wet, it's nonprofitable as the loss. But anyway, we have the weak and we must tell yes. You talked about the profitable as grain growing business, yes?
More than mobile export profitability because like I think our profitability is because of the internal consumption of the gross, right? So I'm just curious about export profitability...
Sorry, your question, I didn't...
On the profitability of exports of these crops. So okay, understood. So we do not profitable at this price interrupt.
I'm going to say about just export of the... Because for us, it is a growing grain growing cooperation. Yes, we are not raising -- we don't want yes, we don't buy and sell to the export. We are not trader. Yes, when I talk about profitability, I talked about profitability of grain growing business, a business.
Our next question comes from Jennifer Finke from Deutsche Bank.
So regarding the bond coupon payments, the deferred bond coupon payments, will you pay the record holders at the original date from March? Or will you pay the current bondholders? And do you plan to run a consent solicitation on this?
Victoria, let me take this question, please. So first of all, thank you very much, Jennifer, for the question. With regard to the resort coupon payments. You're absolutely right, talking about the record date. This is how the approach works. So those bondholders who were the bondholders at the record date, meaning, for example, there were the bondholders on March 19, April 3 [indiscernible]Â on the third bondholders will be paid to get the deferred coupon payments. This is how the rule works. -- have been consulted together with Citibank. And actually, if there is such a question. And I hear that there is such a question, then you can also consult the Europe team agent, right? They will definitely provide you with more details regarding this question. But definitely, they will use the registry based on the record date.
Okay. And you're not planning to think about a consent solicitation given that most of those bondholders are no longer your creditors, they have sold...
No. No. This is not how this approach works.
And my second question regards the grain segment. I see you have revenue of EUR 86 million for 9 months in 2022. Then you have an IAS 41 loss, and this is EUR 147 million. I'd like to understand how you get to your gross profit of $44 million based on those numbers.
First of all, you need to understand, 70% of total grain of which is produced internally. We sell to poultry in intersegment. -- it is intersegment revenue. At the same time, we calculate our EBITDA in grain segment EBITDA for all grain, which we produce because now when we see just revenue, EUR 86 million is revenue only to 30 parties, yes? At the same time, during the 9 months, we sold intersegment, our grain, which we coveted last year to port segment. At the same time, we can do so on and where we evaluate, yes, Velogica assets, core and low fleet in the field and some our grain on the stock. It is very difficult to maybe issue we can describe you by e-mail.
Okay. So to understand your revenue figure is external sales only, and your EBITDA figure includes intersegment sales?
Yes. Yes, exactly. Thank you.
Our next question comes from Sergei Main from VR Capital.
Just want to come back for a second to be of the third coupon. So we understand how the mechanics of how the documentation works that you have to pay to the ages of the record date in March. But as you also know, there has been a lot of trading in the bonds since March. So I really think that you should kind of capable thing about this source of liquidity for both the company and for kind of any discussions that the company may want to have with its bondholders maybe in 2023, $30 million to $50 million that nobody expects from the holders as of the March record date who sold it already, and it's really the source of liquidities that can be used to pay to the current stakeholders. So I would just obviously have a conversation with the other company about it. And it's not so difficult to run consent station or approach it differently from what the segmentation has today.
I don't think -- yes, I'm here. I think at the moment, I do not have any further comments, and thank you very much for your comments. I think in order to comment more, we will have to get in touch with the team we've been doing the consent solicitation way, sorry, in March and April. And my recommendation from the company, i.e. that you to need to get in touch with the brain systems, ride an agent so we can be clear on terms and conditions of the deal.
We know that it will be paid to the relo March.
It's just a... This is what has been told by the City Bank, right? And I hear you, right? We hear your recommendation. So let us discuss internally with the team.
Yes. I mean, look, obviously, from our perspective, and we are very significant holdings, that would be the right approach. -- for the company is about the question but.
Yes, just I would like to add just a few words. We understand that we have obligation to pay coupon. And to be honest, you pay count rate -- and please -- for me, it's very difficult. It is not our obligation to pay directly, and it is the idea of MHP to pay to good order -- and so this to ride on quarter.
Yes. Yes. According to the registry. That is right.
Okay. Thank you. So I'm not seeing any more questions. Just a reminder, so text questions will all be forwarded to the MHP team after the call. So perhaps I can hand back to Anastasiya and Victoria for closing remarks.
First of all, thank you very much for the productive call. Thank you very much for your questions. In case you have further questions, please e-mail me. Second, definitely, all the tax questions will be answered during the next 2 days. And in case your question has not been taken or have been [indiscernible]. Thank you very much, and have a lovely day. Thank you. Bye.
Thank you. That concludes the call for today. Thank you, and have a nice day.
Thank you. Thank you so much.