Half Year 2026 Astarta Holding PLC Earnings Call Transcript
Key Points
- Revenue remained stable despite market challenges, supported by higher sales volumes in the agricultural segment.
- Harvesting results for winter crops showed higher yields, with wheat at 5.4 tonnes per hectare and rapeseeds at 3.1 tonnes per hectare.
- 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.
- 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.
- 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.
- Gross margin halved to 20% and EBITDA margin fell to 15% due to rising cost of sales and market price corrections.
- The bottom line was negatively impacted by a EUR4 million ForEx loss, contributing to a net loss.
- Leverage increased to 3 times net debt to EBITDA due to lower profitability.
- 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.
- Cattle farming suffered a 25% price decline, leading to a EUR5.5 million biological asset revaluation hit and negative EBITDA.
Thank you very much for your interest in the six months call for Astarta. We would like to start the call with the traditional overview of our consolidated P&L. One can see that we kept revenue stable.
This is on back of higher revenues, sales volumes in the agricultural segment, which allowed us to compensate a slight decrease in the revenues in the other segments. On the profitability side, as cost of sales were going up and there was a price correction in the market, gross margin halved to 20% and EBITDA margin came down to 15%.
The bottom line was also affected not only by the operating results, by the ForEx movement of EUR4 million, which gave us a loss at the bottom line.
Going to the cash flows. Our focus remained on maximizing operating cash flows, which were helped by working capital release as we accelerated sales of grains and oil seeds. We kept our investments at maintenance CapEx level, save for residual investment into the SPC, but lower profitability led to
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