Astarta (AST) Q1 2025 earnings summary

Executive summary

• Consolidated revenues for 1Q25 declined 25% year-over-year to EUR125m, mainly due to lower sales volumes in agriculture and sugar segments.

• Gross profit fell 38% year-over-year to EUR33m, with gross margin narrowing to 27% from 32% on higher cost of sales.

• EBITDA decreased 7% year-over-year to EUR27m, but EBITDA margin improved to 21% from 17% due to lower selling and distribution expenses.

• Net profit for 1Q25 was EUR6.4m, down from EUR9.0m in 1Q24, with a net profit margin of 5%.

• Export sales contributed 59% of total revenue, down from 69% in 1Q24.

Financial highlights

• Operating cash flow dropped 51% year-over-year to EUR34m, mainly due to destocking and lower trade receivables.

• Investing cash flow rose 3.3x year-over-year to EUR21m, focused on machinery replacement and new production facility construction.

• Net financial debt (excluding lease liabilities) was a positive cash position of EUR17m at 1Q25, up from EUR11m in 1Q24.

• Adjusted net debt/EBITDA ratio improved to 0.1x from -0.02x in 1Q24, indicating strong liquidity.

• Export sales contributed 59% of consolidated revenue in 1Q25, down from 69% in 1Q24.

Outlook and guidance

• Sowing campaign for 2025 completed, though delayed by adverse weather; crop care and early grain harvest preparations ongoing.

• Management expects to meet loan covenants for the next 12 months, with stable external long-term debt and continued export opportunities.

• Ongoing military conflict in Ukraine remains a significant uncertainty, but assets and operations are currently unaffected.

• Ukrainian grain and oilseed exports expected to remain pressured by lower harvest and carryover stocks; domestic prices stable but driven by internal factors.

• Soybean acreage in Ukraine forecast to decrease by 9% year-over-year in 2025.