AgroGeneration Turns Profitable in 2025 Despite a 64% Drop in Revenue
AgroGeneration announces its annual 2025 results marked by a paradox: the Ukrainian grain and oilseed producer reports a net profit of €3.7M after a loss of €1.5M in 2024, but its revenue plummets by 64% to €8.2M. This improvement reflects a deliberate contraction of activity and a drastic cost reduction, offset by favorable harvest prices and asset disposal gains.
Production Maintained but Sales Minimized
AgroGeneration produced 63,000 tonnes of cereals and oilseeds in 2025, compared to 62,000 tonnes in 2024, on 28,000 hectares of cultivated land. This stability masks an adjustment reality: wheat production reached 28,000 tonnes with a yield increase of 20% to 3.0 tonnes per hectare, benefiting from a quality improvement (40% classified as milling wheat versus 100% feed wheat the previous year). The group harvested about 23,000 tonnes of sunflower, with an average yield of 1.8 tonnes per hectare compared to 1.9 tonnes in 2024, amid unfavorable weather conditions. The group only marketed 53% of its 2025 harvest, choosing to postpone sales in anticipation of more favorable market conditions. This strategy largely explains the collapse in revenue: €7.9M came from the sale of about 32,000 tonnes of the 2025 harvest, with no exports in 2025 (compared to about 32% in tonnage in 2024).
Cost Control Compensates for the Decline in Volumes
The gross margin stands at €5.6M, identical to that of 2024 despite the dramatic drop in sales. This maintenance is explained by higher unit margins generated by the 2025 harvest, supported by an increase in crop prices and a reorientation towards sunflower, which offers higher margins. Commercial, general, and administrative expenses fell by 60%, from €1.8M to €0.7M, fueled by the elimination of export-related sales expenses and workforce optimization. This discipline allowed the operating result to jump to €5.7M from €0.7M in 2024. Added to a net gain of €2.2M from the sale of the Podolivska operation at the end of 2025, these elements propelled the group towards profitability, despite an increase in financial expenses to €4.2M (from €2.2M in 2024), linked to the increase in debt.
2026 Between Assured Financing and Strategic Uncertainty
The group successfully renewed its credit line with Ukreximbank in March 2026, securing €7.0M in financing for working capital. This continuity allowed the launch of the spring 2026 sowing campaign as scheduled, with about 11,700 hectares to be sown and a total cultivated area planned of 21,000 hectares (compared to 28,000 in 2025). However, the outlook remains highly uncertain. The group cannot establish reliable projections for 2026 due to the ongoing military conflict in Ukraine, now in its fifth year. Operational risks remain significant: potential damage to facilities located in the front-line zone (Kharkiv region), data losses, logistical constraints, and limited access to financing. Meanwhile, net debt increased from €9.2M (2024) to €12.6M (2025), absorbing profitability gains and reinforcing dependence on external financing.
