Agroland Agribusiness posts revenues of 44.4 million lei and a net profit of 1.5 million lei in the first nine months of 2024
Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, specialized in the sale of inputs for agriculture, posts operating revenues of 44.4 million lei in the first nine months of 2024, a 4% decrease compared to the same period last year. At the same time, EBITDA reached 2.9 million lei, an 2% growth compared to the first nine months of 2023, while net profit amounted to 1.5 million lei, up 13%.
“The first nine months of 2024 were challenging for agriculture in Romania, marked by unprecedented difficulties that affected the entire agribusiness sector, from farmers to input producers. Extreme weather conditions, including the most severe drought in the last 10 years, significantly compromised agricultural production. Over 80% of the country’s surface area was categorized as a critical situation, with sunflower and corn crops in the southern and eastern regions completely affected on non-irrigated lands, while irrigated areas also suffered due to the intense heat. These conditions directly impacted farmers, many of whom faced payment defaults due to low production and a lack of liquidity. Additionally, the number of insolvencies among farmers doubled compared to a normal agricultural year, highlighting the severity of the situation. Despite these challenges, our company maintained operational and financial stability, demonstrating our adaptability and resilience in a difficult economic and climatic context,” stated Florin Radu, CEO of Agroland Agribusiness.
Regarding the revenue of Agroland Agribusiness split by category in the first nine months of 2024, the largest share of turnover came from pesticide sales, which generated revenues of 13.7 million lei, an increase of 1% compared to the same period last year. The grain trading activity registered sales of 13.6 million lei, a 23% decrease due to the reduced agricultural production this year.
The fertilizer category recorded sales of 12.4 million lei, up 7% compared to the same period in 2023. Input seeds generated revenues of 9.8 million lei, an increase of 9% compared to the first nine months of the previous year, driven by the sale of the company’s own genetics cereals launched this year. Revenues from the sale of input fuel rose by 24%, reaching 370 thousand lei.
Recently, Agroland Agribusiness announced the acquisition of a seed and grain conditioning station in Simian, Mehedinti County. This facility is located on a plot of land with a total area of 8,257 sqm and includes cereals silos, storage facilities for fertilizers and fuel, as well as other amenities.
“Given the unfavorable evolution of the agricultural sector in Romania, with reduced production significantly impacting the grain trading activity and the financial difficulties faced by many farmers, which have strained their ability to purchase inputs, we find it necessary to revise the revenue and expense budget for 2024. Thus, we estimate closing this year with a turnover of 62.3 million lei and a net profit of 1.9 million lei. Looking ahead, we are confident that by diversifying our product portfolio and making strategic investments, we will strengthen our market position. We believe our success is closely tied to the performance of our partners, motivating us to continuously seek solutions that add value to agricultural activities. Through operational optimization, investments in technology, and sustainable collaborations, we remain committed to providing tangible support to farmers, even under the most challenging conditions,” added Florin Radu.
Agroland Agribusiness shares are listed on the AeRO market of the Bucharest Stock Exchange as of June 15, 2021, and are traded under the AAB symbol.
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About Agroland Agribusiness
Agroland Agribusiness is a Romanian entrepreneurial company specializing in selling inputs for agriculture. The company is currently active in the southern part of the country, namely in the counties of Dolj, Olt, Mehedinti, Arges, Teleorman, Valcea, Gorj, Dambovita, Ilfov, Ialomita, Giurgiu, Calarasi, Tulcea, Constanta, Caras-Severin, Timis and Arad. The main agricultural inputs sold by Agroland Agribusiness are fertilizers, pesticides, seeds, and fuels. Thus, the company trades the entire set of inputs needed by farmers. On a secondary level, Agroland Agribusiness is also involved in grain trading. It purchases grain from farmers and sells it to large traders who operate only in fixed points or ports. Thus, Agroland Agribusiness operates as a supplier to farmers through its inputs 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 AAB symbol.