Kernel, one of Ukraine’s largest agricultural holdings, reported EBITDA of $103 million in October-December 2026 fiscal year (FY, July 2025-June 2026), down 13% from the same period last year, according to a report on Friday.
According to the report, consolidated revenue in the second quarter of FY 2026 amounted to $1 billion 98 million, which is 4% less than in the second quarter of FY 2025, but compared to the previous quarter, revenue grew by 33% thanks to an increase in sales of grain, vegetable oils, and meal as the harvest campaign gained momentum and export activity accelerated.
Kernel noted that the loss from changes in the fair value of biological assets in the second quarter of FY 2026 amounted to $43 million, compared to $33 million in the second quarter of FY 2025.
The cost of goods sold increased by 28% compared to the previous quarter, mainly reflecting higher costs of goods for resale and raw materials used, as well as a 55% increase in delivery and handling costs due to higher insurance premiums amid increased Russian attacks on civilian vessels during the reporting period.
As a result, gross profit decreased by 20% year-on-year to $126 million, reflecting lower profitability in the infrastructure, trading, and oilseed processing segments.
At the same time, Kernel managed to reduce general and administrative expenses by 26% to $55 million, reflecting a decrease in payroll-related expenses.
The company’s net profit for October-December 2025 amounted to $13 million, which is 2.3 times less than in October-December 2025. It is noted that the group incurred financial expenses of $21 million, which is 21% more than in the previous quarter, mainly due to an increase in expenses related to the extension and modification of lease agreements, while other expenses in the second quarter of FY 2026 reached $20 million, mainly due to an increase in the Group’s social expenses.
It is noted that Kernel received an operating profit before working capital changes of $113 million in the second quarter of FY 2026, which is 2.3 times more than in the previous year. The strong growth mainly reflects a low comparative base, as the previous year’s result was significantly affected by non-cash trading gains recognized by Avere.
According to the report, changes in working capital resulted in a cash outflow of $249 million in the second quarter of FY 2026, to $331 million, primarily due to an increase in inventories of $209 million, to $644 million, as well as the temporary allocation of a portion of liquidity to liquid securities.
“This reflects a normalization of seasonal purchasing patterns as the company resumed its typical inventory build following the harvest in the first half of the fiscal year. The previous season was atypical due to slower sales by farmers and a smaller grain harvest, which limited inventory accumulation and distorted the normal working capital cycle,” the document says.
It is specified that stocks related to the oilseed processing segment increased by 23% compared to the previous quarter, to $348 million, thanks to growth in sunflower seed and vegetable oil stocks. Grain stocks grew more sharply, 2.3 times compared to the previous quarter, to $296 million, as the group accumulated corn and other grains during the peak harvest season.
In physical terms, edible oil volumes by weight increased by 8% compared to the previous quarter, to 106,000 tons, while sunflower seed stocks reached 334,000 tons. Grain stocks, mainly corn, wheat, and soybeans, increased 2.6 times compared to the previous quarter, to 1.6 million tons.
Net cash flow used in investing activities amounted to $145 million during October-December 2025: the outflow consisted mainly of $120 million invested in financial assets as part of the group’s liquidity management strategy and $25 million in capital expenditures, mainly related to the reconstruction of the transshipment terminal in Chornomorsk, agricultural equipment, backup power equipment, and grain railcars.
As of the end of 2025, Kernel’s total debt amounted to $782 million, up 8% from the previous quarter. The increase was mainly due to more active use of credit lines to finance seasonal working capital requirements.
Net debt increased 3.4 times compared to the previous quarter to $451 million, while the leverage ratio as of December 31, 2025, decreased to 1.1 times net debt to EBITDA.
Overall, in the first half of FY 2026, consolidated revenue decreased by 1% compared to the same period in FY 2025, to $1 billion 924 million, EBITDA decreased by 14%, to $247 million, and net profit decreased by 33%, to $119 million.
The National Bank of Ukraine has increased the deadline for settlements on agricultural and specialized equipment export transactions carried out from March 1, 2026, from 180 to 270 days.
This applies to goods classified under UKT VED codes 8424, 8428, 8432, and 8716.
The NBU specifies that the decision was made following consultations with the Ministry of Economy, Environment, and Agriculture and taking into account the government’s proposals (Cabinet of Ministers Order No. 573-r of June 21, 2024).
The changes were approved by NBU Board Resolution No. 18 dated February 26, 2026, which comes into force on February 28, 2026.
The Ministry of Economy believes that extending the deadline “from 180 to 270 calendar days” will help exporters avoid the risks of reduced supplies due to long production cycles and the specifics of fulfilling foreign economic contracts, as well as support the continuity of contracts and the inflow of foreign currency earnings.
AGRICULTURAL MACHINERY, EXPORTS, foreign currency earnings, NBU, REGULATION
Kyiv ranked 254th out of 304 cities in the Quality of Life Index by City 2026 ranking published by Numbeo, with an index of 118.0 points.
The Hague in the Netherlands topped the ranking with a score of 230.1, followed by other Dutch cities in the top ten, including Utrecht, Eindhoven, Groningen, Rotterdam, and Amsterdam, as well as Luxembourg, Vienna, Ghent, and Nuremberg.
At the bottom of the list are Colombo (56.1), Manila (53.2), and Lagos (0.0).
Numbeo emphasizes that the 2026 version is a “historical snapshot” and is published periodically as a snapshot of data at a specific point in time, while the “current” ranking is updated continuously.
The Numbeo Quality of Life Index is a composite indicator calculated based on sub-indices of purchasing power, safety, healthcare, cost of living, housing affordability, travel time, pollution, and climate. The index is based on data and user surveys/contributions from website visitors, with Numbeo stating that it filters out potential spam and requires a sufficient number of participants for each location; the formula uses the Math.max(0, …) restriction, which may result in outsiders being assigned a value of 0.0.
From March 1, pensions in Ukraine will be indexed by 12%. The recalculation will be carried out automatically, so no applications need to be submitted, according to Denis Ulyutin, Minister of Social Policy, Family, and Unity of Ukraine
“The indexation will affect all pensioners, except those whose pensions are scheduled to be paid in 2025 and early 2026. The recalculation will be done automatically. No applications need to be submitted. Funds for the indexation have been allocated,” the minister’s press service quoted him as saying on Saturday.
As noted in a statement received by Interfax-Ukraine, all recalculations will be carried out in a timely manner and in full. The state will ensure that the indexation is carried out even under martial law. The financial resources for this have been allocated. In addition to indexation, work is continuing on comprehensive pension reform.
“We are currently finalizing the final calculations. It is important for us that the new pension system is financially sustainable for decades to come,” Ulyutin said.
According to him, a comprehensive bill is being prepared that will cover the solidarity system, professional pensions, and the voluntary accumulative part. The ministry plans to complete the preparation of the bill, hold public discussions, and submit the document to the Verkhovna Rada this year.
Several major oil companies have already suspended crude oil and fuel shipments through the Strait of Hormuz, and the price of Brent crude could rise from $73 to around $80 per barrel, Reuters reports.
“Four sources said on Saturday that some major oil companies and leading trading houses have suspended crude oil and fuel shipments through the Strait of Hormuz,” the agency said in a statement.
On Friday, Brent crude traded at around $73 per barrel, which is already 20% higher than at the beginning of the year.
William Jackson, chief economist for emerging markets at Capital Economics, said that even if the conflict is localized, the price of Brent crude could rise to around $80, which was the peak during the 12-day war in Iran in June last year.
On Saturday, the US and Israel launched strikes against Iran, targeting its leadership. “The strikes have caused concern in neighboring Arab oil-producing countries in the Persian Gulf, as fears of an escalation of the conflict have intensified, and Tehran has responded by firing missiles toward Israel,” the agency notes.
Iran is a major oil producer and is located across the Strait of Hormuz from the oil-rich Arabian Peninsula, through which about 20% of the world’s oil supplies pass. The conflict could limit oil supplies to the world market and cause prices to rise, Reuters writes.
On Sunday, OPEC+ may consider increasing oil production more than already planned.
The International Monetary Fund (IMF), in cooperation with Ukraine, is working to improve corporate governance in all state-owned enterprises, not just selected ones. This work includes transparency in the formation of supervisory boards, improving the efficiency of the decision-making process, and transparency, as reflected in the new four-year Extended Fund Facility (EFF) program, said Suchanan Tambunleurtchai, Deputy Head of the IMF Mission to Ukraine.
“One of the commitments made by the authorities is to start publishing the financial statements of key state-owned enterprises in order to make these key performance indicators available to the public so that the public and other stakeholders can also assess the performance of these state-owned enterprises,” she said at a briefing on Friday.
At the same time, Tambunleurtchai clarified that the IMF does not have specific quantitative targets for state-owned enterprises under the program.
According to Ukraine’s economic and financial policy memorandum published by the Fund on Friday, the publication of financial statements of leading state-owned enterprises in accordance with IFRS standards will resume by the end of June 2026, with appropriate edits to protect critical infrastructure and an extended publication period of up to one year.
“We will introduce mandatory annual financial audits for leading state-owned enterprises, for which adequate funding will be provided, by making appropriate legislative changes if necessary. We will ensure the publication of audit reports, starting with the 2025 financial audits, by the end of August 2026,” the memorandum also states.
By the end of June 2026, the development of an annual report for state-owned enterprises will also begin in accordance with the requirements of the Standard Operating Procedure (SOP), which will be appropriately expanded to include information on the financial performance of leading state-owned enterprises using a common set of indicators, payments to the state budget and fiscal support, specific PSO obligations, and quasi-fiscal activities of each enterprise. Such a report will be published annually, starting at the end of September 2026 for 2025, and will be gradually expanded to cover more state-owned enterprises.
In addition, Ukraine has committed to ensuring the publication of financial statements reflecting the separation of PSO-related and non-PSO-related activities for all state-owned enterprises subject to PSOs by the end of June 2027.
“We will amend the State Property Policy and the Law ”On Joint Stock Companies” (2465-IX) to provide that all charters of state-owned enterprises require a simple majority of votes for supervisory board decisions, except for the approval of the strategic development plan, and we will avoid provisions allowing veto or dominant majority requirements by the end of June 2026,” the memorandum also states.
According to the memorandum, all nominations and dismissals of CEOs of state-owned enterprises will be decided by a simple majority vote of the supervisory boards, with corresponding amendments to the charter, if necessary.
“We will ensure that a comprehensive financial audit, compliance audit, and performance audit for all non-defense state-owned enterprises by reputable independent auditors is initiated by the end of June 2026,” the document states.
Another commitment is to publish a revised State Ownership Policy by the end of May 2026, which will more closely align with the OECD Guidelines for Corporate Governance of State-Owned Enterprises, as recommended in the 2025 OECD Review.
The government also noted that, in close consultation with international partners, it is exploring options for improving the management of state-owned enterprises, which also includes the potential introduction of a centralized model. This involves, in particular, defining the roles and mandates of key state institutions involved in the management of state-owned enterprises, such as the Ministry of Finance, the Ministry of Economy, the Cabinet of Ministers, other relevant sectoral ministries, and the State Property Fund (SPF).
“We will ensure a strong role for the Ministry of Finance as the body responsible for financial oversight of state-owned enterprises, limit quasi-fiscal risks, and help protect debt sustainability. It is important that any new system of state-owned enterprise management should not erode the government’s authority over dividend policy, ensuring that dividends from state-owned enterprises are directed to the state budget and reported transparently to ensure accountability and oversight,” the memorandum also notes.
Overall, the ultimate goal of centralizing state-owned enterprise ownership should be to professionalize the state’s ownership function, and any centralized management system should operate with caution, the memorandum says.
“This should be based on a clear legal mandate, ensure proper oversight by the Ministry of Finance and fiscal transparency, include reliable safeguards against political interference to ensure professional merit-based management, and require strict, internationally agreed reporting and accountability,” the memorandum emphasizes.
