DN AGRAR Group (BVB: DN), one of the leading integrated agrifood companies in Romania and the largest dairy milk producer in Europe, closed the first semester of 2026 with a turnover of RON 90.3 million, EBITDA of RON 36 million and a net profit of RON 13.7 million. 

The EBITDA margin stood at 40%, with the impact of lower milk prices partially offset by higher production volumes. According to the company, the financial results recorded reflect the level of milk prices across Europe compared with the strong levels recorded in the first half of 2025, as well as continued pressure from operating costs and unfavorable foreign exchange movements. 

“The turnover recorded a moderate decline, while profitability was lower, primarily reflecting the decline in milk prices by 30% and the unfavorable movements of the exchange rate. We had anticipated this market adjustment when preparing our 2026 budget, considering the volatility of the European dairy market, inflationary pressures and the broader geopolitical environment,” said Peter de Boer, CEO, DN AGRAR Group.

“Nevertheless, we remained focused on the factors within our control: increasing production, improving operational efficiency, maintaining cost discipline and executing our major investment projects. We invested more than EUR 6 million in the first six months of the year and secured approximately EUR 20 million in financing,” he added. 

The company’s operating revenue reached RON 158 million, the same level as last year. Revenues from production sold amounted to RON 90 million, down 9% year-on- year, with milk sales remaining the group’s main source of revenue, having also contributions from compost and the sale of young cattle.

Revenues from operating subsidies increased by 49% to RON 22 million, driven by higher support levels for milk production and animal welfare, including a non-recurring component, as well as the inclusion of the Straja farm in the eligible subsidy base.

Operating expenses reached RON 132 million, up 10%, mainly reflecting the expansion of the group’s operations. EBITDA reached RON 36 million, with an EBITDA margin of 40%. Net profit reached RON 13.7 million, down 49%, reflecting a 30% lower milk selling price and a negative impact of RON 8.5 million on the financial result, driven by higher foreign exchange losses arising from the revaluation of the group’s foreign currency-denominated loan balances.

Total assets reached RON 477 million, up by 8% compared to the end of the previous year. Total liabilities amounted to RON 244 million, up by 10% compared to the end of 2025. Long-term liabilities were roughly RON 138 million, up by 4% compared to the end of the previous year. In accordance with IFRS standards, the company reported an EBITDA of RON 41.6 million and a net profit of RON 21.3 million.

During H1 2026, DN AGRAR continued to execute its 2025–2030 Development Strategy, securing approximately EUR 20 million in financing and advancing all major strategic projects. Key milestones included completing the new milk processing facility, securing financing for the CUT 2 farm and two new composting facilities, advancing the vertical wheatgrass farm and Food Cluster initiative, and signing a binding offer for the acquisition of Panorganic Vitavit. 

The biomethane project also progressed according to plan, the company said. 

radu@romania-insider.com

(Photo source: company photo)