Argentine food companies report improved profitability amid stagnant demand

Major Argentine food companies are reporting improved profitability and operational results compared to the previous year, despite stagnant consumer demand. Companies such as Molinos Río de la Plata, Arcor, Mastellone, and Ledesma have shown more heterogeneous results, with some returning to profitability while others have reduced losses through tighter cost structures.

Molinos Río de la Plata demonstrated a significant turnaround, reporting a net profit of $37,571 million for the first half of 2026, compared to a loss of $26,022 million during the same period in 2025. This improvement occurred despite stable sales volumes, as the company successfully reduced central expenses by 23.4%.

Regarding consumer prices, food and beverage inflation in Argentina reached 1.2% through late August, according to a report by Labour, Capital & Growth (LCG). While prices remained relatively stable in the final week of August with a marginal 0.1% increase, certain categories like seasonings and sugar saw higher rises, while oils and bakery products experienced price decreases.