MBF Group MBF Group SA has been consistently developing its core operating activities in the area of wholesale trade, import and export of raw materials and industrial and agri-food products. Regardless of the Company’s involvement in consortium technology and defense projects, commercial activities remain a key pillar for generating operating cash flow, maintaining market relationships and ongoing business activity.
In recent months, the Company has held intensive trade talks with partners from Western Europe, Central and Eastern Europe and non-European markets. These ranged from food to technical and industrial products, including refined and unrefined vegetable oils, oil blends for industrial applications, as well as packaged and chemical products.
LOI and procurement as part of the commercial process
As part of these activities, MBF Group SA obtained and processed letters of intent (LOIs) and preliminary orders, which represent a natural transition stage between the request for proposal and potential delivery. Topics of discussion included. volumes of several hundred tons per month of technical and industrial oils, including rapeseed-soy blends, as well as pilot deliveries of food oils in bulk and retail packaging. The unit values of such inquiries were in the ranges of several hundred euros per ton for technical oils and in excess of a thousand euros per ton for selected refined oils.
At the same time, the Company was in talks to supply packaged products and chemicals, including. orders for tens of thousands of unit packs of operating fluids. In such cases, the total value of the initial orders was in the hundreds of thousands of euros (EUR), with one-off or test transactions, with the possibility of further scaling of cooperation in subsequent periods.
The Management Board of MBF Group SA emphasizes that the presented volumes and values are based on current business correspondence and declarations from contractors. The total value of LOIs and pre-orders represents only the sum of potential orders under discussion and cannot be equated with the Company’s guaranteed revenues. Transition to implementation in each case depends on final commercial arrangements, availability of goods, logistical conditions and the market situation.
Market environment and current trade situation
The market for vegetable oils, chemical raw materials and related products remains highly volatile and susceptible to macroeconomic factors. The prices of the underlying raw materials, energy, transportation and financing costs directly affect the structure of bids and the margins of transactions. At the same time, there is an increase in demand for flexible suppliers capable of responding quickly to volume and logistical changes.
For trading companies like MBF Group SA, this means the need for parallel discussions with multiple counterparties, diversification of supply sources and a flexible approach to transaction models. Letters of intent and pre-orders play an important role in this process, allowing both parties to assess operational and market opportunities before making binding commitments.
An additional factor shaping current business conditions is growing caution on the part of market participants, stemming from both the experience of recent years and the tightening of financial and insurance requirements. Contractors increasingly expect shorter decision-making deadlines, transparent payment terms and a clear allocation of risks at the bidding stage. In such realities, the ability to quickly vet partners, secure deals, and work on various trading formulas, including FCA, DAP or DDP, becomes important. MBF Group SA, operating as a public company, operates under a heightened regime of transparency and regulatory compliance, which in practice is a competitive advantage in discussions with institutional entities and larger industrial customers. The Company’s management believes that current market conditions favor operationally disciplined entities capable of combining scale of operations with a selective approach to risk and quality of the contract portfolio.
Impact of war in Ukraine on raw materials trade
The ongoing armed conflict in Ukraine remains an important factor affecting the current market situation. The war is affecting the availability of agricultural and oil raw materials, logistics directions and transportation costs, especially in the Central and Eastern European region. These changes require market participants to be more cautious, to analyze risks on an ongoing basis, and to take a flexible approach to contracting.
At the same time, the conflict is causing a permanent reshuffling of supply chains, increasing the importance of alternative import and export destinations and actors capable of handling transactions under non-standard conditions. MBF Group SA, as a company with many years of experience in international trade, actively adapts its activities to these conditions, treating them as part of long-term market reality.
Narrative bridge: from commercial operations to strategic projects
The company’s management emphasizes that its current operations provide a natural base of competence, organization and financing for projects carried out within the framework of technology and defense consortia. Competencies in logistics, contracting, risk management and international cooperation are versatile and applicable to both wholesale and high-tech projects.
At the same time, MBF Group SA is not abandoning its core business or treating it as a secondary area. On the contrary, maintaining active, scalable commercial operations remains an important element of the Company’s stability and a source of market knowledge and business relationships.
Experience gained in day-to-day commercial operations allows the Company to continuously test and refine its decision-making processes under conditions of price volatility, logistical pressures, and regulatory and geopolitical risks. Practical knowledge of commodity markets, supply chains and mechanisms for securing transactions translates into the ability to realistically assess the feasibility of projects of a strategic nature, including dual-use and defense projects. Ongoing operations also generate a stream of market data that provides important analytical support for planning long-term technology initiatives. Importantly, relationships with international partners built through wholesale trade facilitate consortium talks and project negotiations at the international level. The Company’s management therefore views operations not as a separate area, but as the foundation on which ventures of higher complexity and strategic importance are developed in a controlled and responsible manner.
Transparency and information continuity
The total indicative value of all the inquiries and preliminary orders included in this article, calculated solely as the sum of the values resulting from the documents received and business correspondence, is about EUR 4.1 million (in words: four million one hundred thousand euros), which corresponds to about PLN 17.3 million (in words: seventeen million three hundred thousand zlotys) according to the exchange rate adopted for the purposes of the report. The Board of Directors clearly indicates that this value is not a forecast, estimate or guarantee of the Company’s future revenues, but only an arithmetic summary of the value of orders and inquiries at the negotiation stage.
The Management Board of MBF Group SA declares that information on significant operational activities, including the progress of the LOI and the transition from talks to actual deliveries, will be presented in periodic reports on a quarterly basis. The goal is to provide investors with a more complete picture of the Company’s current operations and to transparently show the process of moving from commercial intent to execution.
This approach is in line with the Company’s disclosure obligations under MAR regulations and the long-term strategy of building MBF Group SA’s credibility as both an operationally and strategically active entity.
