Astarta (AST) Q2 2025 earnings summary

Executive summary

• Consolidated revenues declined 29% year-over-year to EUR227m in 1H25, mainly due to lower sales volumes across segments and a lower harvest last year.

• Gross margin held steady at 40%, with improved selling and distribution costs supporting a higher EBITDA margin of 36% (excluding biological asset remeasurement).

• Net profit fell 10% year-over-year to EUR42m, with net profit margin at 19%.

• Export sales contributed 61% of total revenue, down from 67% in 1H24.

Financial highlights

• EBITDA margin increased to 36% (excluding biological asset remeasurement), up from 27% in 1H24.

• Gross margin remained at 40% year-over-year.

• Operating cash flow dropped 80% year-over-year to EUR24m, mainly due to destocking and lower trade receivables.

• Investing cash flows increased 2.5x year-over-year to EUR46m, focused on plant modernization and new facilities.

• Net financial debt (excluding lease liabilities) was EUR28m, compared to a positive cash position of EUR28m in 1H24.

Outlook and guidance

• Major investments are underway in soybean protein concentrate and multi-seed crushing facilities, with new production expected in 2025–2027.

• The company is scaling up precision and regenerative farming, expanding organic acreage, and investing in digitalization and sustainability.

• Positive pricing dynamics for corn and oilseeds; continued strong export potential for sugar despite acreage reduction.

• Anticipation of EU sugar quota approval in September could provide upside for exports.

• Management expects continued operational challenges due to market volatility and ongoing military conflict in Ukraine.