Grup Șerban Holding posts revenues of 530 million lei in 2021, a 50% increase
Grup Șerban Holding (BVB: GSH), a Romanian entrepreneurial company active in several fields in agriculture, registered in 2021, at a consolidated level, revenues of 530.2 million lei, a 50% increase compared to 2020, a turnover of 481.6 million lei, +55%, EBITDA of 54.2 million lei, a 3% increase and a net profit of 25.8 million lei, a 7% appreciation.
“The results recorded in 2021 confirm our strategic vision for all business lines within the Grup Șerban Holding. In the vegetal sector, we operated a total area of 10,089 hectares, of which over 1,000 ha were irrigated, and we obtained a total production of 58,873 tons of grains, of which 19,551 tons of corn, 8,843 tons of wheat, 8,598 tons of barley, 5,300 tons of high oleic sunflower. During the year, we traded a volume of 257,707 tons of cereals and oil plants, managing to efficiently use the 133,000 tons of storage space. Regarding the bakery products, the volumes made on total assortments exceeded 5,000 tons, the specialties with multigrain weighting 54.1%. Chicken production exceeded 7,250 tons. All these results validate, once again, the partnerships we have with the beneficiaries of the products made by Grup Șerban Holding: PepsiCo, Cargill, Agricola International, Lidl, Nutriva, Fermador,” stated Nicolae Șerban, Chairman of the Board of Grup Șerban Holding.
In terms of the results per business line, within the vegetal production and trade, Grup Șerban registered a turnover of 397 million lei in 2021, a 79% increase compared to 2020, and an EBITDA of 37 million lei. The main income was generated by oilseeds, high oleic sunflower, and sustainable rapeseed. Within the poultry farm, where the company owns five farms in three locations in Bacău and Vaslui counties, with a capacity of 880,000 heads per series, was registered a turnover of 63.7 million lei, a 27% increase compared to 2020 and an EBITDA of 4.9 million lei.
The bakery, pastry, and confectionery business line, under which Grup Șerban operates a bakery, a confectionery laboratory, and five stores under the Băcănia Șerban brand, the company recorded a turnover of 47.1 million lei, a 59% increase compared to 2020. This growth was supported by streamlined production and increased volumes sold through retail chains.
“In 2022, we will continue the development projects of all the businesses within the holding company. We have a vegetal growing project in Lunca Siretului where we are investing in an irrigation system that will cover a total area of 3,000 hectares by 2025. Currently, we are irrigating 1,000 ha, and we estimate that by the end of this year, we will reach 1,500 ha. Our goal is to develop vegetables in rotation with large crops, with a stable crop plan consisting of potatoes, cereals, and other vegetables, including sugar beet, resulting in a production area of 500 ha in the vegetable sector, as a first step, at the end of the agricultural year 2021-2022. We have already concluded contracts for potatoes for industrialization with PepsiCo and vegetables for industrial processing with Comtec. In addition to the planned investments, we also consider projects aimed at increasing the cultivated areas and the grain storage spaces,” stated Ovidiu Bucătaru, Chief Financial Officer of Grup Șerban Holding.
For the agricultural year 2021-2022, Grup Șerban intends to continue converting an area of 6-7,000 ha into a no-till system (without disturbing the soil by processing). Through this system, the company aims to increase large crop areas in a system without plowing, with a low cost of chemical fertilizers, improving soil quality, increasing operating income, and reducing operating costs with a positive impact on the growth of EBITDA.
This year, the group will continue its investments in streamlining the activity within the poultry farm, having ongoing projects with photovoltaic power plants with an installed capacity of 400kWh. Once commissioned, they will provide 21% of the electricity needed by the poultry farms. In addition, once the European funds’ projects are approved, Grup Șerban will start an investment process of 4 million euros, which will ensure the doubling of vegetable storage capacities and their processing and conditioning.
Grup Șerban Holding shares 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 over 340 million lei.
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About Șerban Holding Group
In full expansion, Grup Șerban Holding is a group of companies with Romanian capital, founded in Onești in 1994. The group structure is integrated and has the following fields of activity: agriculture, cereals trading, oil plants and vegetables, poultry farming, bakery, pastry-confectionery, public catering (own chain of stores – Băcăniile Șerban), distribution, and transport. The mission of the Șerban Holding group of companies is to offer its partners quality products and services, create an environment where employees can make the most of their potential, and develop a reliable brand for Romania and beyond.