“Kernel” plans to keep almost $90 million of profit in the company instead of paying dividends

One of the largest agricultural holdings in Ukraine, Kernel, may refuse to pay dividends for the 2026 fiscal year. The company’s board of directors has proposed to direct $89.55 million of the parent company’s net profit to the next fiscal periods. The final decision will be made by shareholders in December.

This was reported by UkrAgroConsult with reference to USM and information published on the Warsaw Stock Exchange.

Why does the company not plan to pay dividends?

The board of directors of Kernel Holding S.A. suggested that shareholders keep the profit received in the company to ensure financial stability.

The main reasons for this decision are military risks, instability of export logistics and the need for additional investments in infrastructure restoration.

In particular, Russian attacks on Ukrainian ports and restrictions on sea transportation through the Black Sea are forcing the agricultural holding to spend significant resources on restoring damaged assets and developing alternative export routes.

Maintaining profit will allow the company to maintain operating activities and finance necessary expenses without additional distribution of funds to shareholders.

Kernel’s financial results showed growth

Despite difficult operating conditions, the agricultural holding completed the 2026 fiscal year with positive dynamics of key financial indicators.

According to the results of the year ended June 30, 2026:

$322 million — consolidated net profit of the group, which is 35% more than in the previous year.

$4.404 billion — total revenue of the company, which increased by 7%.

$89.55 million — net profit of the parent company, which is proposed to be carried over to subsequent financial periods.

It is important that the amount of $89.55 million applies specifically to the parent company Kernel Holding S.A., and not to the total profit of the entire group.

What other changes are planned in the company?

The general meeting of shareholders scheduled for December 10, 2026, will consider not only the issue of profit distribution, but also changes in corporate governance.

In particular, it is proposed to reduce the number of members of the board of directors from eight to seven. This is due to the decision of Daria-Anna Danylchuk Masri not to extend her term.

At the same time, the mandates of the other seven members of the board of directors are planned to be extended for another year.

In addition, the shareholders will consider the issue of extending the term of the auditor PricewaterhouseCoopers Assurance from Luxembourg.

What does this decision mean for shareholders?

If the proposal of the board of directors is supported, shareholders will not receive dividends from the specified profit for the 2026 financial year.

Instead, the funds will remain at the disposal of the company and can be used to finance its further activities.

For an agricultural holding specializing in the production and export of sunflower oil and grain crops, preserving financial reserves is of particular importance in conditions of war and constant risks to export infrastructure.