Agroland Agribusiness posts 63.5 million lei revenue and a net profit of 2.3 million lei in 2022
Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, specialized in the sale of inputs for agriculture, posts operating revenue of 63.5 million lei in 2022, a 97% increase compared to 2021, EBITDA of 4 million lei, a 47% appreciation and a net profit of 2.3 million lei, a 3% increase compared to 2021.
“In 2022, the activity of Agroland Agribusiness moved to the next level. Our attention focused on two lines of activity – the traditional one, selling inputs, but, at the same time, we also focused on grain trading. We recorded a 35% increase at the client level, up to 475. In terms of turnover, the highest growth recorded by our company was in fertilizers, a 72% increase compared to 2021, followed by the activity of grain trading, which generated revenues of 16.4 million lei, a 50-fold increase. Pesticides made the third largest revenue contribution, 14.6 million lei, a 12% increase, followed by the sale of seeds, with 9.4 million lei, 35% appreciation,” stated Florin Radu, CEO of Agroland Agribusiness.
Currently, agriculture in Romania is strongly affected by the war in Ukraine, which caused the drop in grain prices last year. In this context, there is an unprecedented situation compared to the previous decades, namely, the existence of a significant inventory of grain, which farmers have refused to sell.
At the same time, amid the currency fluctuation in the fourth quarter of 2022 and the fluctuation of fertilizer prices, which increased in the third quarter of 2022 but fell significantly in the fourth quarter, farmers decided not to sell the harvested products, limiting their liquidity. Thus, considering that the autumn crops were not fertilized at the same level as in previous years, the probability of lower yields in the 2023 harvest season increases.
“The agricultural sector in Romania needs financing and faces a cash deficit of approximately 500 million euros, compared to 2021 due to unsold grain inventory. The last quarter of 2022 came with many challenges for agribusiness, and we had to face and manage unique situations which we had not encountered before. However, the team’s experience has helped us maintain relationships with our suppliers and farmers and even start developing partnerships that we anticipate will be profitable and long-lasting,” added Florin Radu.
During the past year, the company completed a significant project on developing new genetics for several types of wheat. The result of the project was followed by the promotion and sale under the Agroland Agribusiness brand of certain seed varieties obtained as a result of a selection program of the Osijek Agricultural Institute in Croatia. At the same time, in the last quarter of 2022, Agroland Agribusiness launched three new products in the biostimulants and plant nutrition category.
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 33 million lei.
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About Agroland Agribusiness
Agroland Agribusiness is a Romanian entrepreneurial company specialized in the sale of inputs for agriculture. The company is currently operating in the southern part of the country, respectively in the counties of Dolj, Olt, Mehedinți, Argeș, Teleorman, Vâlcea, Gorj, Dâmbovița, Ilfov, Ialomița, Călărași, Tulcea, Brăila and Constanța. The main agricultural inputs sold 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. It purchases grain from farmers and capitalizes it on large traders who operate only at fixed points or only in ports. Thus, Agroland Agribusiness operates as a supplier for farmers 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 as of June 15, 2021, under the symbol AAB.