Molinos Agro improved its profit by 20% and closed the quarter with a result of $ 45.961 million

Molinos Agro reported a 20% increase in its net profit for the first quarter of its fiscal year, ending with earnings of $45.961 million. The agribusiness company achieved this result between April and June of 2026, compared to $38.306 million recorded during the same period last year. According to the company, the growth was linked to milling margins for soybeans and sunflowers that exceeded historical averages, along with full-capacity industrial operations. The figures come from the financial statement presented by the company before the Buenos Aires Stock Exchange. Measured in dollars, the functional currency used by the firm, net profit rose from $25 million to $33 million over the past year. The operating result saw even greater improvement, reaching $65.838 million, up 25% from the same quarter of the previous fiscal year. This was made possible by milling margins "above average historically" and industrial activity functioning at "full capacity," during a period marked by record production and the start of the harvest season. Revenue from sales reached $1.078.350 million, a 6.7% increase compared to $1.010.855 million recorded in the same quarter of 2025. Of the total, 88% came from exports and the rest from operations conducted in the domestic market. Net profit represented 4.3% of sales for the period, a figure the company highlighted when presenting its results. According to the company, the improvement in net contribution, the difference between revenue obtained and costs directly related to production, was one of the main factors explaining the rise in profits. Gross profit increased from $74.683 million to $86.381 million, representing a 15.7% increase. However, part of this improvement was offset by rising costs, particularly variable expenses related to energy. That category grew from $16.626 million to $22.114 million, a 33% increase. The best results were achieved despite slightly lower physical movement than the previous year. During the quarter, the milling of oilseeds and the receipt of grains totaled 1.770.065 tons, down from 1.804.374 tons recorded a year earlier. In other words, the company improved its results with a volume similar, albeit somewhat lower. Financial income dropped from $42.122 million to $31.367 million, but financial costs also fell sharply, decreasing from $40.800 million to $21.508 million. Income tax had a greater impact: the company accounted for $29.736 million, nearly double the $15.573 million recorded in the same period of 2025. The balance sheet also showed an improvement in the company's equity situation. Net worth grew from $150.936 million to $201.130 million between March and June of 2026, mainly driven by the profit earned during the quarter. Total assets reached $1.160.594 million, compared to $1.025.333 million recorded at the end of March. The increase was largely due to inventory, which rose from $299.180 million to $470.814 million during the beginning of the harvest season, when the company receives and stores grains later used in its industrial and commercial activities. On the debt side, total financial indebtedness decreased slightly, from $537.696 million to $522.851 million. Its composition also changed: loans in pesos, with rates up to 22% annually, declined, while pre-financing for dollar-denominated exports, with rates ranging from 2.18% to 7% annually, increased. Beyond the quarterly numbers, the balance sheet noted a new development after the close. On July 8, Molinos Agro agreed to The company’s performance reflects a combination of favorable market conditions and operational efficiency. Despite challenges such as higher energy costs, the firm managed to boost profitability through stronger milling margins and full utilization of its industrial capacity. These factors contributed to a notable increase in both gross profit and net income, although the latter was partially offset by rising expenses. The shift in the company’s debt structure indicates a strategic move towards more favorable financing options, reducing reliance on high-interest peso loans and increasing access to lower-cost foreign currency pre-financing. This adjustment could have long-term implications for the company’s financial stability and flexibility. The increase in inventory levels suggests that Molinos Agro is preparing for future operations, possibly anticipating demand or securing raw materials ahead of time. This strategy might help mitigate risks associated with supply chain disruptions or price fluctuations in agricultural commodities. The company’s improved financial position, reflected in higher net worth and total assets, positions it well for future investments and expansion opportunities. However, the continued impact of income taxes and the need to manage rising energy costs remain critical areas of focus. The agreement reached on July 8 adds another layer to the company’s recent developments, potentially signaling further strategic initiatives or partnerships aimed at enhancing its competitive edge in the agribusiness sector. As the company moves forward, its ability to sustain these positive trends will depend on maintaining efficient operations, managing costs effectively, and adapting to evolving market dynamics.