This article first appeared on GuruFocus .
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Revenue:Revenue remained stable, supported by higher sales volumes in the agricultural segment, which offset slight decreases in other segments.
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Gross Margin:Gross margin halved to 20% due to rising cost of sales and market price corrections.
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EBITDA Margin:EBITDA margin declined to 15%.
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Net Income Impact:Bottom line was affected by a EUR4 million foreign exchange loss.
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Leverage:Net debt to EBITDA increased to 3 times due to lower profitability.
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Agricultural Segment Volumes:Higher volumes of corn, wheat, and sunflower seeds, but lower average prices across all crops.
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Wheat Yield:Harvesting finished at 5.4 tonnes per hectare.
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Rapeseed Yield:Harvesting finished at 3.1 tonnes per hectare.
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Sugar Prices:Average prices declined 20% in the first six months.
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Cattle Farming Prices:Prices down by 25%, leading to a EUR5.5 million biological asset revaluation hit and negative EBITDA.
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Release Date: August 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue remained stable despite market challenges, supported by higher sales volumes in the agricultural segment.
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Harvesting results for winter crops showed higher yields, with wheat at 5.4 tonnes per hectare and rapeseeds at 3.1 tonnes per hectare.
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Sugar exports are being maintained at reasonable levels, with the MENA region as a key destination and potential for increased EU quota next year due to adverse weather in Europe.
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Soybean processing remains stable with steady prices, and the company is in the final year of CapEx for the soybean crush facility, expecting to launch it soon.
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The company has established stable relationships with EU partners and is prepared to use alternative export routes, ensuring a steady pace of exports despite port limitations.
Negative Points
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Gross margin halved to 20% and EBITDA margin fell to 15% due to rising cost of sales and market price corrections.
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The bottom line was negatively impacted by a EUR4 million ForEx loss, contributing to a net loss.
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Leverage increased to 3 times net debt to EBITDA due to lower profitability.
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Average prices for all crops declined compared to the previous period, with a significant widening differential between global and Ukrainian prices (over EUR100 per tonne) due to export difficulties.
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Cattle farming suffered a 25% price decline, leading to a EUR5.5 million biological asset revaluation hit and negative EBITDA.
Q & A Highlights
Q: What is the status and plan for selling 2026 agricultural volumes given the limited capacity of Black Sea terminals after recent strikes? A: Viacheslav Chuk, Commercial and Strategic Marketing Director, stated that Astarta will revert to the transit routes used at the beginning of the full-scale invasion, utilizing ports in European countries and railway logistics to direct processors of oilseeds on the European continent. He emphasized that while the pace of export will be slower, the company maintains stable contacts with EU partners, ensuring a consistent volume month-by-month.
Q: To what extent was the increase in fair value of biological assets and agricultural produce in Q2 driven by the cost-to-sell component, and are land transport routes viable alternatives to sea freight? A: CFO Liliia Lymanska confirmed that the deferred value of biological assets was largely driven by higher logistics costs, based on market price estimations at the harvest date. Pavel Popov added that alternative route capacity is only 2.5 million tonnes per month versus the required 5 million, making it insufficient. He noted that cooperation from neighboring countries, particularly Romania, which prioritizes Ukrainian cargo at the Port of Constanta, is crucial for realizing full potential.
Q: Does Astarta plan to resume trading in third-party volumes until export capacity increases? A: Viacheslav Chuk responded that the company is currently focused on stabilizing its own export volumes. Once logistics are stable, Astarta is willing to help its ecosystem of farmers export grains, and will consider taking on third-party volumes depending on the pace of its own export operations.
Q: How will the current logistics situation affect agricultural results? A: Pavel Popov explained that the price differential between global and domestic Ukrainian prices currently exceeds EUR100 per tonne, reflecting the high cost of logistics. He expressed hope that this differential will narrow and converge as Ukraine works towards resuming its maritime corridor, similar to the trend seen in 2023-2024.
Q: What is the status of the soybean crush facility construction? A: Pavel Popov stated that this is the last year of the three-year CapEx program for the project. The company hopes to launch the facility this year but would not commit to a specific date due to the security situation in Ukraine.
Q: Does Astarta export products directly outside of Ukraine, or does it use brokers or companies that take product from Astarta storage directly? A: Viacheslav Chuk clarified that Astarta primarily works with direct consumers and buyers, including major global trading houses (ABCD names), rather than relying on middle brokers.
Q: Is the acquisition of Vidrodzhennya and Orion Moloko still on the table for Astarta? A: Pavel Popov confirmed that the acquisition has been postponed given the current market environment.
Q: What is the expected time needed to restore terminal capacity, and has Kernel provided any timeline? A: Pavel Popov declined to comment, stating that the company is not in control of this situation and that the question should be directed to Kernel.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
