Agroserv Mariuta posts sales of 42.3 million lei in the first semester of 2024
Agroserv Mariuta (BVB: MILK), a Romanian agricultural company and owner of the Laptaria cu Caimac brand, posts sales of 42.3 million lei in the first six months of 2024, a 17% increase compared to the first half of 2023. The company ended H1 2024 with an operating profit of 1.7 million lei, a 37% decrease compared to the same period last year, and with a net loss of 646 thousand lei.
“The first half of 2024 has looked promising for agriculture in Romania, suggesting a recovery after a difficult year, but subsequent developments have shown that this year will also be challenging. On a positive note, the factory’s performance in the first six months gives us confidence for the coming years, as demand for Laptaria cu Caimac products is on an upward trajectory. Furthermore, the 8% increase in our company’s sales volumes between H1 2023 and H1 2024 surpassed the 4% growth of the local dairy market during this period. There is also significant room for increasing the factory’s production, considering that in H1 2024 it only utilized 60% of the dairy farm’s milk production. For the remainder of 2024, we aim to maximize results from business lines over which we have a high degree of control, such as the processing factory. In the coming period, we will diversify our product range to target new consumer segments,” stated Cornel Dănilă, CEO of Laptaria cu Caimac.
In the first half of 2024, revenues from the sale of dairy products, semi-finished products, and goods reached 30.4 million lei, making the largest contribution to turnover. Revenues from livestock farming amounted to 9.1 million lei, mainly due to the sale of raw milk, at 6.7 million lei, followed by the sale of animals, at 2.1 million lei. In the first half of 2024, the total milk production was 7.6 million liters, similar to the first six months of 2023. The average production in the first half of 2024 was approximately 42 tons/day, comparable to the same period last year. The factory used almost 60% of the farm’s milk production. Also, during this period, the company exported 65 pregnant heifers to Cyprus and Jordan.
Revenues from vegetal activity reached 2.8 million lei in the first six months of 2024, following the cultivation of an area of approximately 2,500 hectares. This year, the company recorded a total production of 11.3 thousand tons, of which wheat crops represented 25%, and rapeseed 10%. Due to the drought in the area cultivated by the company, the entire corn crop, which covers an area of approximately 900 hectares, is 100% damaged.
“The second part of the year, which begins with the harvest of agricultural crops, has again shown below-expected results as a result of the prolonged drought, which caused extreme levels of damage, especially in the southern area of the country, a region where the Agroserv Măriuța farms are also present. For example, our corn crops were 100% damaged due to the drought. This aspect will lead to a reduction in revenues for the entire year, as well as an increase in expenses, necessary for the purchase of feed, which makes it impossible for us to meet the initial budget for 2024,” added Cornel Dănilă.
As a result of the challenges in the Romanian agricultural sector and the drought in the summer of 2024, the company has decided to revise the revenue and expense budget for this year, which includes a turnover of 85.6 million lei and a net loss of 4.8 million lei.
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About Agroserv Mariuta
Agroserv Mariuta is a company listed on the AeRO market of the Bucharest Stock Exchange (MILK symbol), which carries out a mixed agricultural activity of crop farming combined with livestock farming. Starting with 2018, the company has a new business line, namely the processing of cow’s milk, respectively obtaining dairy products – whole milk packaged in glass, matured cheeses, acidophilic products. With a desire to expand the family business and identify a market need to find quality dairy products, safe, nutritious, and without additives on the store shelves, the company launched the brand “Laptaria cu Caimac”. For more than five years, Laptaria cu Caimac has been delivering natural milk on the market, without unnecessary additives and powdered milk, and with special care to process milk. These unique products challenge the industry and increase quality standards. Also, Agroserv Mariuta is among the very few companies in Romania with 100% traceability for the raw material, up to the level of treatment of the plants that make up the food.