Grup Serban Holding consolidates its business portfolio with an Angus cattle farm
Grup Serban Holding (BVB: GSH), a Romanian entrepreneurial company active in several areas of agriculture, announces the introduction of a new business segment, the breeding of cattle for meat. In this sense, Interagroaliment, part of Grup Serban Holding, acquired an Angus cattle farm in Sascut, Bacau county. Currently, the farm is home to 450 Angus cattle and covers an area of 135 hectares of land. The investment in the cattle farm amounts to approximately 5 million lei from the initial moment until now.
California and North Dakota states from the USA inspire the cattle farm model, where the natural conditions of the farms are roughly similar to those in Romania. On the Grup Serban farm, the Angus cattle benefit from spacious pastures and a rich and varied feed mainly from the cover crops used in the ecological no-till farming system. Grup Serban’s agricultural policy is based on promoting sustainable and efficient agriculture.
“We turn challenges into opportunities by integrating no-till and cover crop systems for field crops with Angus cattle farm management. Not only do we optimize animal feed costs, but we also manage to capitalize on cover crops in an efficient and even unique way, at the current moment, thus creating a balance between sustainability and productivity”, stated Nicolae Serban, Chairman of the Board of Directors of Grup Serban Holding.
Within the farm, through the conditions created, each Angus cow can raise a 350-kilogram calf with the milk it produces and the grass available on the farm’s pasture. According to the company’s calculations, a calf of this weight can be sold for approximately 1,100 euros at current prices. Regarding the development potential of this business segment, the management of Grup Serban aims to reach a herd of 5,000 Angus cattle by 2025. Considering the live meat market, this development objective will allow the company to produce a significant amount of meat, with potential sales estimated at 9 million euros per year. Also, Grup Serban Holding’s strategy for the farm involves using a pasture rotation system that allows the soil to regenerate naturally without the need for chemical fertilization, thus ensuring a healthy living environment for the animals.
Grup Serban Holding is recognized for developing business segments adjacent to the field of agriculture. Another example in this direction is the development by the company of the program for the delivery of potatoes for chips, Grup Serban being today one of the few agricultural producers in Romania that has the necessary capacities for the production, storage, and delivery of this type of potatoes to top players in the field. Two of the significant European players in this market, for which Grup Serban supplies potatoes for chips, are PepsiCo and Intersnack.
In 2022, Grup Serban Holding recorded a consolidated turnover of 534.4 million lei, an 11% increase compared to 2021, EBITDA of 67.9 million lei, +27%, and a net profit of 33 .8 million lei, an appreciation of 10% compared to 2021. The shares of Grup Serban Holding are listed on the AeRO market of the Bucharest Stock Exchange as of February 28, 2022, and are traded under the symbol GSH. Currently, the company has a market capitalization of approximately 271 million lei.
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About Grup Serban Holding
Grup Serban Holding is a rapidly expanding group of Romanian-owned companies that began its activity in Onești in 1994. The group’s structure is integrated and covers the following fields of activity: agriculture, trade in cereals, oilseeds, and vegetables, poultry farming, bakery, pastry-confectionery, public food service (own chain of stores – Băcăniile Șerban), distribution, and transportation. The mission of Grup Şerban Holding is to provide partners with quality products and services, to create an environment where employees can maximize their potential, and to develop a trusted brand for Romania and beyond.