Agroland Agribusiness aims to become the leading supplier for the Romanian organic farming market by 2023
Craiova, 7 February 2022 – Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, specialized in the sale of inputs for conventional and organic agriculture, targets net sales of RON 47.9 million, EBITDA of RON 4.2 million and a net profit of RON 3.3 million in 2022. The company aims to become the leading supplier for the organic farming market in Romania by 2023.
“In 2022, we aim to consolidate our position on the Romanian agricultural market and become one of the most important suppliers of products for farmers who grow organically. At the company level, we have established a strategy focused on several levels of development, such as team growth, geographical expansion, partnerships with suppliers in Romania and abroad, and launching a range of new products in the category of pesticides, fertilizers, and more. However, we expect to face several challenges this year, especially inflation and rising costs, particularly of energy. The prices of agricultural inputs have increased significantly; in the category of fertilizer products, we see an increase in prices of about 250% to 300%. Consequently, the need for financing for farmers has increased exponentially. Nonetheless, considering the current upward trend in pricing of the food, the farmers can expect to be compensated through the high sell price of agricultural products,” stated Florin Radu, CEO of Agroland Agribusiness.
The figures targeted by the company in 2022 were published in a current report on the Bucharest Stock Exchange, which presents the revenue and expenditure budget of Agroland Agribusiness for the current year. The company will continue to grow its team as it targets to hire ten new employees as part of the strategy of geographical expansion which includes opening two new regional offices and warehouses in Bucharest and Timisoara. The new locations will expand the coverage area in Romania’s South, South-East, and West regions. Agroland Agribusiness currently operates in the South-West part of the country, respectively, in the counties of Dolj, Olt, Mehedinți, Argeș, Teleorman, Vâlcea, and Gorj.
Also, this year, Agroland Agribusiness is considering investments in the retail division by developing a range of organic products for small farmers and households. The line will feature selected products that are sold to large farmers but will be commercialized in specialized packages that are smaller in size and thus suitable for their needs. Subsequently, these products will be introduced in the Agroland network of stores.
In 2022, the management intends to pay great attention to debt collection from farmers. Due to the efforts made in this direction over the last years, Agroland Agribusiness has currently a high debt collection rate of 99%, which contributes to the stability of the business and a solid cash flow.
The shares of Agroland Agribusiness SA floated on the AeRO market of the Bucharest Stock Exchange on June 15th, 2021 and are traded under the symbol AAB. The company has a market capitalization of over RON 30 million. As of October 11th, 2021, AAB shares are included in the BET-AeRO index developed by the Bucharest Stock Exchange that includes companies listed on the AeRO market.
About Agroland Agribusiness
Agroland Agribusiness is a Romanian entrepreneurial company specializing in the sale of inputs for conventional and organic agriculture. The company is currently operating in the South-West part of the country, respectively, in Dolj, Olt, Mehedinți, Argeș, Teleorman, Vâlcea, and Gorj and aims to expand throughout the South of the country, but also in the West. The main agricultural inputs marketed by Agroland Agribusiness are fertilizers, pesticides, seeds, and fuels, so the company sells the entire set of inputs needed by farmers. Secondly, Agroland Agribusiness is also involved in grain trading. The company purchases grain from farmers and capitalizes it on large traders who operate only in fixed points or ports. Thus, Agroland Agribusiness operates as a supplier for farmers, both through the inputs it sells and as a potential buyer of farmers’ crops. Agroland Agribusiness shares are listed on the AeRO market of the Bucharest Stock Exchange starting with June 15, 2021, under the ticker AAB.