Kernel reports $826 million in revenue in first quarter of its new financial year: segment EBITDA breakdown

1 December 2025, 13:05

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Kernel’s consolidated revenue in the first quarter of FY2026 increased by 4% year-on-year, reaching $826 million. Revenue growth was driven by higher average prices for edible oils and increased sales volumes, which offset the temporary slowdown in grain exports caused by a delayed harvest start in Ukraine, according to the company’s FY2026 Q1 report (July–September).

The net change in the fair value of biological assets amounted to $59 million, up from $42 million in the same period last year.

Cost of sales rose by 7% year-on-year, reaching $725 million, mainly due to higher costs of goods and raw materials. This reflects increased competition for raw materials and the limited supply of grains and oilseeds on the domestic market.

As a result, gross profit decreased by 3% year-on-year to $160 million, showing margin pressure in the oilseed processing and infrastructure & trading segments.

The Group’s EBITDA for the quarter totalled $144 million, with the following segment breakdown:

Oilseed Processing: EBITDA of $27 million, down 26% year-on-year. Profitability remained under pressure due to low processing margins despite an 18% increase in sales volumes. EBITDA margin fell to $85 per ton of oil sold (-37% YoY).
Infrastructure & Trading: EBITDA of $20 million. Export terminals remained the main revenue driver ($9 million), with an additional $6 million generated from grain trading in Ukraine and $5 million from Avere’s trading operations.
Farming Segment: EBITDA of $111 million, up 7% year-on-year, mainly due to $59 million in non-cash gains from the revaluation of biological assets. Excluding this revaluation, base EBITDA amounted to $52 million, supported by favourable grain pricing and the sale of around 500,000 tons of grains and oilseeds.