ASTARTA Holding NV (WAR:AST) (Half Year 2025) Earnings Call Highlights: Navigating Challenges …

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This article first appeared on GuruFocus.

  • Revenue: Decrease in agriculture and sugar production revenue due to lower harvest.

  • Gross Margin: Retained at 40%, same as last year.

  • EBITDA Margin: Slightly higher than last year at 29% excluding biological assets remeasurement.

  • Investment Cash Flows: Higher due to investment projects in soybean protein concentrate and new multi-seed crusher.

  • Net Debt to EBITDA: Leverage remains at 1 times EBITDA.

  • Sugar Segment Gross Margin: 27%.

  • Sugar Segment EBITDA Margin: 18%.

  • Soybean Processing EBITDA Margin: Down to 13% due to lower soybean meal pricing.

  • Cattle Farming: Stable with growth in milk production and premium pricing for high-quality milk.

Release Date: August 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • ASTARTA Holding NV (WAR:AST) maintained a stable gross margin of 40%, similar to last year, with an improved EBITDA margin of 29% after excluding biological assets remeasurement.

  • The company is investing in new projects, including a soybean protein concentrate and a multi-seed crusher, indicating a focus on long-term growth and diversification.

  • Positive pricing dynamics in the agricultural segment, particularly for corn and oilseeds, are benefiting the company.

  • Cattle farming remains stable with growth in milk production, and the company earns premium pricing for high-quality milk.

  • The convergence of Ukrainian and global sugar prices is a positive development, enhancing the competitive position of Ukrainian producers.

  • Revenue from agriculture and sugar production decreased due to a lower harvest last year.

  • Soybean processing margins are down, with a decrease in soybean meal pricing leading to lower crushing and EBITDA margins.

  • Sugar prices have declined, resulting in lower revenues despite maintaining good margin levels.

  • The overall headcount in dairy cows is down, although industrial milk production is up.

  • The planting area for sugar beet has decreased by 1/5, which could impact future production volumes.

Q: With such low soybean segment performance, does Astarta still consider its CapEx pipeline as viable? A: Julia Bereshchenko, Director for Sustainable Business Development and Investor Relations, explained that the soybean concentrate project is aimed at producing a higher-margin, custom-tailored product for premium markets like aquaculture. Viacheslav Chuk, Executive Director and Commercial Director, added that the project’s viability is assessed over a long-term period, considering average segment results over the last 5 to 10 years. They anticipate fluctuations in margins but remain committed to the strategic direction.

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