Kernel (KER) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue reached USD 1,145 million, up 14% year-over-year but flat sequentially, driven by strong sale prices and higher grain export volumes offsetting lower bottled oil revenue.

• Gross profit declined 34% year-over-year to USD 137 million, reflecting margin compression in Oilseed Processing and Infrastructure and Trading.

• EBITDA for Q3 FY2025 was USD 110 million, down 31% year-over-year and 6% sequentially; net profit attributable to shareholders fell 59% year-over-year to USD 41 million.

• Operating profit before working capital changes rose 3.6x sequentially to USD 177 million, but net cash from operating activities dropped 55% year-over-year to USD 131 million.

• Net debt decreased 37% sequentially to USD 206 million, with a net-debt-to-EBITDA ratio of 0.5x and robust liquidity supported by a USD 549 million cash balance.

Financial highlights

• Revenue: USD 1,145 million (+14% y-o-y, flat q-o-q); 9M FY2025 revenue at USD 3,092 million (+19% y-o-y).

• EBITDA: USD 110 million (-31% y-o-y, -6% q-o-q); 9M FY2025 EBITDA at USD 398 million (+4% y-o-y).

• Net profit: USD 41 million (-59% y-o-y, -26% q-o-q); 9M FY2025 net profit at USD 218 million (+7% y-o-y).

• EPS: USD 0.14 in Q3 FY2025 (down from USD 0.34 y-o-y); 9M FY2025 EPS at USD 0.74.

• Net cash from operating activities: USD 131 million (-55% y-o-y); net cash used in financing activities: USD 228 million.

Outlook and guidance

• All grain produced by the Farming segment and available for sale has been contracted, reducing risk of material changes in segment performance for FY2025.

• Crop structure for FY2026 reflects a return to pre-war agronomic strategy, with corn covering 48% of acreage and sunflower acreage reduced to restore soil health.