Serbian fertilizer and chemicals producer Elixir Group more than doubled first-half net profit to around RSD 2.3 billion (€19.6 million), while higher material, energy and transport costs increased pressure across the fertilizer market. Operating revenue reached almost RSD 33 billion (€281 million) in the first six months of 2026, compared with less than RSD 28 billion a year earlier. Domestic revenue from products and services rose about 25% to RSD 8.5 billion, while revenue from foreign markets remained broadly unchanged at around RSD 16.8 billion. Net profit increased from approximately RSD 1 billion in the first half of 2025.
Input costs increase
The earnings growth came as Elixir’s production costs rose significantly. Spending on materials, fuel and energy increased about 25% to RSD 16.5 billion, reflecting higher costs for fertilizer raw materials, logistics and energy. The company has warned that mineral fertilizer prices could rise significantly as transport disruptions and tighter availability of Chinese exports constrain global supply. The combination of stronger sales and higher costs indicates that Elixir has so far absorbed or passed through a substantial part of the increase in its cost base.
Agriculture faces higher fertilizer costs
Fertilizer represents a major variable expense for crop producers, meaning higher prices can directly affect margins for maize, wheat, oilseeds and other crops when agricultural commodity prices do not increase at the same pace.
Farmers facing higher input prices can reduce fertilizer applications or postpone purchases, with potential effects on yields and agricultural production. Continued increases in raw-material costs could put additional pressure on Elixir’s pricing position ahead of the 2027 planting cycle.
Domestic sales gain importance
Elixir’s stronger Serbian sales have increased the contribution of the domestic market to its revenue growth, while foreign-market revenue has remained relatively stable. For agricultural producers, fertilizer costs would add to existing expenses related to labour, fuel, machinery and financing.
Higher working-capital requirements could also increase demand for agricultural financing and feed additional costs into the wider food-processing chain. The first-half results therefore combine stronger earnings at Elixir Group with a fertilizer market facing higher input and supply costs ahead of the 2027 agricultural season.
