Agroland Agribusiness posts 19 million lei revenues and a net profit of 0.5 million lei in the first quarter of 2023
Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland Group, specialized in the sale of agricultural inputs, posts operating revenues of 19 million lei in the first quarter of 2023, a 19% increase compared to the same period last year. In the first three months of this year, expenses increased by 23% compared to the first quarter of 2022 due to inflationary pressure, resulting in a 19% decrease in EBITDA to 1.2 million lei, while net profit fell by 36% compared to the same period last year, reaching 0.5 million lei.
“Considering that the first quarter in agribusiness, especially for companies dealing with inputs, is primarily marked by costs, a profitable start to the year is a positive sign, especially considering the volatile and difficult situation for farmers in the second half of 2022. As approved in the General Shareholders’ Meeting from April 28, 2023, for this year, Agroland Agribusiness targets net sales of 81.8 million lei and a net profit of 3.2 million lei. Our goal is to continue developing our own product line to offer quality alternatives to market products, aiming to increase customer loyalty. Also, we will continue to develop our sales and trading teams to remain close to our customers and offer them competitive consulting and offers across all business lines. We are confident that we can turn the challenges of the coming period into opportunities due to our strong team, our innovative products, and thanks to the partners who trust us,” stated Florin Radu, CEO of Agroland Agribusiness.
In the first quarter of the year, Agroland Agribusiness invoiced 320 customers, a 23% increase compared to the same period last year, due to consolidating relationships with existing partners, increasing the company’s visibility, and attracting new customers.
In terms of revenue by categories, in the first three months of 2023, the company recorded the highest increase in pesticides, a 47% increase, up to 6.4 million lei. The second most significant growth was recorded at the level of input seeds, which generated revenues of 6.1 million lei, a 3% increase. In the first quarter of 2023, the grain trading activity generated revenues of 2.1 million lei.
Regarding other categories, a decrease of 7% was recorded at the level of fertilizers, down to 7.1 million lei, caused by the volatility of prices which increased in the third quarter of 2022, but dropped massively in the last quarter of last year, generating an atypical behavior from the farmers. They decided not to sell their harvested products, limiting their liquidity and, implicitly, the possibility of purchasing fertilizers.
On June 14, 2023, Agroland Agribusiness will pay dividends to shareholders who hold AAB shares on the registration date of May 26, 2023. The total gross amount of the dividend is 843,750 lei from the profits recorded in 2022, and the gross dividend per share is 0.15 lei.
Agroland Agribusiness shares are listed on the AeRO market of the Bucharest Stock Exchange as of June 15, 2021, and are traded under the symbol AAB. Currently, the company has a market capitalization of approximately 30 million lei.
____________________
About Agroland Agribusiness
Agroland Agribusiness is a Romanian entrepreneurial company, specialized in the sale of agricultural inputs. The company currently operates in the southern region of the country, specifically in the counties of Dolj, Olt, Mehedinti, Arges, Teleorman, Valcea, Gorj, Dambovita, Ilfov, Ialomita, Calarasi, Tulcea, Braila, and Constanta. The main agricultural inputs sold by Agroland Agribusiness are fertilizers, pesticides, seeds, and fuels, thus, the company sells the entire set of inputs needed by farmers. In addition, Agroland Agribusiness is also involved in grain trading, an activity in which it purchases grains from farmers and valorizes them towards large traders who operate only at fixed points or only in ports. Therefore, Agroland Agribusiness operates as a provider for farmers, both through the inputs it sells, and as a potential buyer of the farmers’ crops. Agroland Agribusiness shares have been listed on the AeRO market of the Bucharest Stock Exchange as of June 15, 2021, under the symbol AAB.