Agroland Agribusiness posts revenues of 25.9 million lei and 1.2 million lei in net profit, up 53%, in the first half of 2022
Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, specialized in the sale of inputs for agriculture, posts 25.9 million lei operating revenue in the first half of 2022, an 87% increase compared to the same period last year, EBITDA of 2 million lei, a 108% appreciation and 1.2 million lei net profit, a 53% increase compared to the first semester of 2021.
“Listing on the AeRO market has brought us many benefits, but it also pushed us to want more, to create new opportunities for innovation and development. The results recorded in the first six months of the year are due to our teams, who were extremely active and productive. The investments made in the first half of 2022 in the team’s expansion and the product portfolio’s development will bring results in the second half of the year. They will be visible in terms of turnover and the business’s profitability. In this context, we reconfirm the revenue and expenditure budget for 2022: net sales of 47.9 million lei, EBITDA of 4.3 million lei, and net profit of 3.4 million lei,” stated Florin Radu, CEO of Agroland Agribusiness.
The most significant increase in turnover was recorded in the fertilizers category, a 113% increase in the first six months of 2022, up to 10.8 million lei. The second most significant increase was recorded in the pesticide category, which grew by 4%, up to 9.3 million lei, followed by the sale of seeds, with 6.6 million lei, a 39% increase. During this period, the prices of the products sold also increased compared to last year. In addition, in the second quarter of the year, the company started cereal trading, which generated 3.1 million lei in revenues.
In the first six months of 2022, the company focused on expanding its product portfolio. Thus, Agroland Agribusiness expanded range of own products and completed the development of new varieties of wheat, barley, and two-row barley, which will be marketed under own brand. Also, Agroland Agribusiness continued to consolidate its sales and operations team to serve its client portfolio’s continued growth, with the company’s number of employees doubling compared to the same period last year. Agroland Agribusiness billed more than 340 customers in the first six months of 2022, of which 86 new clients were attracted in the second quarter of the year.
“Despite the challenges related to the drought and due to the careful selection of the farmers we collaborate with and deliver products to, we do not have any problems collecting the receivables. Most of the receivables were due on July 30 and September 30, 2022; at this moment, the receivables due at the end of July are collected in proportion of 95%. Our objective for this year is for the receivables not to exceed 55% of the turnover. We believe this threshold is healthy for the business and protects us against a major risk of non-payment, which could negatively impact the continuity of our business. Considering the current level of the receivables, we are optimistic, even if this agricultural year will be difficult,” Florin Radu added.
In the second part of the year, Agroland Agribusiness plans to expand into new regions by increasing the sales team and developing the Trading and Logistics departments. The company will also continue to focus on developing own products, offering nutrition and plant protection.
Agroland Agribusiness SA 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 over 38 million lei.
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.