Kernel increased revenue by 44% in the second quarter of the fiscal year

The consolidated revenue of the agricultural holding Kernel increased by 44% compared to the previous quarter.

Thus, the company’s revenue in the second quarter of the 2025 fiscal year reached $1.149 billion, Latifundist reports with reference to the Kernel report.

The main driver of growth was an increase in vegetable oil sales, which is explained by the expansion of exports and the increase in world prices for this product. This is stated in the company’s report.

The net loss from the change in the fair value of biological assets amounted to $33 million, which significantly exceeds the figure for the same period last year ($12 million).

Selling expenses increased by 18% year-on-year, reaching $960 million. The main factor was a 45% increase in the cost of purchasing goods and raw materials due to increased competition and limited supply. At the same time, freight and handling costs decreased by 52% year-on-year, which was made possible by the stable operation of exports through the Black Sea ports.

Gross profit in the second quarter decreased by 28% year-on-year and 5% quarter-on-quarter, amounting to $157 million.

For the three months ended December 31, 2024, the company’s other operating income amounted to $10 million, which is 55% less compared to the previous quarter. The main sources of income included contract settlements, inventory gains and penalties received in grain and oil transactions.

Other operating expenses amounted to $6 million, mainly due to losses on derivative transactions.

General and administrative expenses increased by 42% year-on-year, reaching $75 million. The main reasons were an increase in salary and professional services expenses.

Kernel EBITDA was $118 million (-42% year-on-year).

USM previously reported that Kernel plants had been idle since the beginning of the year due to a shortage of sunflower.