Astarta (AST) Q1 2026 earnings summary

Executive summary

• Revenues in 1Q26 rose 5% year-over-year to EUR131m, with 63% from exports; agriculture was the only segment with revenue growth, while sugar, soybean, and cattle segments declined.

• Net loss of EUR12.3m versus a profit of EUR6.4m in 1Q25, driven by higher costs, lower commodity prices, and negative fair value adjustments.

• EBITDA dropped 58% year-over-year to EUR11m, with margin narrowing to 9%; sugar and cattle farming posted negative EBITDA.

• Operating cash flow increased 42% year-over-year to EUR49m, supported by destocking and cash generation focus.

Financial highlights

• Gross profit fell 44% year-over-year to EUR19m, with gross margin dropping from 35% to 14–27% due to margin compression.

• EBITDA for sugar production was negative EUR 0.5 million, and cattle farming was negative EUR 2 million.

• Net profit margin was -9% in 1Q26, compared to 5% in 1Q25.

• Net financial debt (excl. leases) improved to a EUR72m net cash position; net debt (including leases) increased 87% year-over-year to EUR218m.

• Investing cash flows halved year-over-year to EUR11m, mainly for facility construction and maintenance.

Outlook and guidance

• Crop mix remains stable, with increased corn acreage and reduced wheat and sugar beet acreage; spring sowing campaign in Ukraine faced delays but is nearing completion.

• SPC plant commissioning expected in the second half of the year, with meaningful EBITDA contribution anticipated in early next year.

• Cost per hectare expected to rise 5–10% in 2026 due to higher fuel and fertilizer prices, though impact is limited by advance purchasing.

• Management expects continued cost pressures, lower sugar and milk prices, and higher energy costs.

• Management is negotiating with lenders to amend or waive financial covenants due to potential non-compliance risks.