Kernel Reports Strong Fiscal 2026 Earnings Despite War Challenges

Kernel Holding SA, a major Ukrainian agricultural company, reported a 7% increase in revenue to $4.4 billion for fiscal 2026, with EBITDA jumping 20% to $558 million. The company attributed its strong performance to the relative stability of Black Sea exports during the past season, though the situation has since deteriorated due to escalating conflict with Russia.

Crop production rose 43% to 2.3 million tonnes, while export terminal throughput reached 9.6 million tonnes. Grain exports accounted for 15% of Ukraine’s total. However, oilseed processing faced challenges, with throughput down 8% due to a decade-low sunflower seed harvest, intensifying competition for feedstock.

Recent Russian attacks on port infrastructure have severely disrupted operations, leading to a tenfold decline in vessel calls at Black Sea deepwater ports. Kernel’s assets in Chornomorsk were damaged in July, further straining logistics. Alternative routes via the Danube and rail offer limited capacity and higher costs.

To finance repairs and cover additional logistics costs, Kernel’s board recommended no dividend for fiscal 2026. The company emphasizes preserving liquidity while diversifying its business, including renewable energy projects. Kernel remains a key player in Ukraine’s agricultural sector, spanning farming, processing, storage, logistics, and exports.