Kernel plans to carry forward nearly $90 mln in profit instead of paying dividends

The Board of Directors of Ukrainian agribusiness holding Kernel has proposed carrying forward $89.55 mln in net profit from its parent company for the 2026 financial year instead of distributing dividends. The proposal will be considered at the General Meeting of Shareholders of Kernel Holding S.A. on December 10, 2026. The company’s financial year ended on June 30, and the proposed profit allocation was published on the Warsaw Stock Exchange.

Despite challenging operating conditions, the agribusiness group reported stronger financial results. In the 2026 financial year, Kernel’s consolidated net profit increased by 35% to $322 mln, while revenue rose by 7% to $4.404 bln. The proposed $89.55 mln profit allocation relates specifically to the parent company rather than the group’s consolidated financial results.

War-related risks and unstable export logistics remain the main reasons behind the recommendation not to pay dividends. In its annual report, the company noted that restrictions on Black Sea shipping and Russian attacks on port infrastructure have created additional financial requirements. In particular, Kernel needs to allocate resources to restoring damaged assets and developing alternative routes for agricultural exports.

Retaining profits is expected to strengthen the company’s financial resilience amid limited access to traditional maritime export routes. For Kernel, one of Ukraine’s largest producers and exporters of sunflower oil and grain, reliable logistics remain essential to its operations. Shareholders will make the final decision on profit allocation at the December meeting.

In addition to financial matters, shareholders will be asked to reduce the Board of Directors from eight members to seven following Daria-Anna Danylchuk Masri’s decision not to renew her mandate. The mandates of the remaining seven directors are proposed to be extended for another year. Shareholders will also consider renewing the appointment of Luxembourg-based auditor PricewaterhouseCoopers Assurance.

Tags: Kernel