Agroland Business System registers significant growth in feed and consumer egg production in Q2 2024
Agroland Business System (BVB: AG), the Romanian entrepreneurial retail, agriculture, and food group that owns the largest network of agricultural stores in Romania, announces significant growth in the production of feed and consumer eggs in the second quarter of 2024. The Mihailesti poultry platform sold 15.3 million consumer eggs in Q2 2024, an 80% increase compared to the same period last year, while feed production in the second quarter of the year reached 4,842 tons, a 233% increase compared to Q3 2023. Agroland’s own stores also saw a 14% increase in the number of customers, while the average bill value increased by 3% compared to Q2 2023.
“The positive evolution of our company continued in the second quarter of the year, with improvements in the operational indicators we track. This success is due to the effective investments made in recent years, both in the development of the feed and consumer egg production segment and in the constant adjustment of the retail network, by keeping profitable stores and opening new MEGA stores in areas with commercial potential. Our current and future investments are aimed at the domestic market, as Romania has been facing a significant trade deficit for several years, caused by the export of cheap raw materials and the import of more expensive finished products. In order to reverse this trend, it is necessary to increase domestic production to meet local demand, with the surplus of finished products to be exported afterward. On the positive side, we note that in recent years there are more and more entrepreneurs who, like the Agroland group, have invested in local production capacities using local raw materials, and over time these companies have the potential to become major regional players,” stated Horia Cardos, founder and CEO of Agroland Business System.
Production of consumer eggs increased from a monthly average of 2.8 million eggs in the second quarter of 2023 to 5.1 million eggs in Q2 2024, an 80% increase. In the first half of 2024, 30.7 million consumer eggs were produced at the Mihailesti poultry platform, +70% compared to the first six months of last year.
In terms of feed production, in 2023, Agroland Business System operationalized the Isalnita feed plant and introduced a new packaging line at the Caransebes compound feed plant. Thus, feed production increased by 233% to 4,842 tons in Q2 2024, compared to 1,454 tons in Q3 2023, when these investments were fully operationalized. In addition, in the first six months of the year, feed production increased by 102% compared to the second half of 2023, from 4,241 tons in H2 2023 to 8,570 tons in H1 2024.
In Q2 2024, within its 84 owned stores, including 70 traditional stores and 14 MEGA stores, Agroland registered a 14% increase in the number of customers compared to Q2 2023, to approximately 583 thousand people. The average value of the bill also increased in Q2 2024 by 3% compared to the same period last year, reaching 91 lei. The company expects franchised stores to achieve comparable results, given the goods purchased in the first quarter.
Agroland Business System is listed on the AeRO market of the Bucharest Stock Exchange as of March 1, 2021, and trades under the symbol AG.
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About Agroland Business System
Agroland Business System (BVB: AG) is a Romanian entrepreneurial company owning Romania’s largest network of agricultural stores. The company was founded in 2009 in Timișoara by entrepreneur Horia Cardoș and today operates a network of over 240 specialized stores selling products for the garden, farm, and pets. Also, the company owns the Mihăilești Avicola platform, which produces consumer eggs and day-old chicks. This platform comprises six farms spread over 30 hectares in Giurgiu County. The shares of Agroland Business System have been listed on the AeRO market of the Bucharest Stock Exchange since March 1, 2021, under the symbol AG.