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October 22, 2021
AGRICULTURE BUSINESS COMPANIES ECONOMY

Holde Agri Invest reports revenues of 47 million lei and a net profit of over 5 million lei in 2020

Holde Agri Invest SA, a Romanian agricultural company operating farmland, reports consolidated revenue of 46.8 million lei and a net profit of 5.3 million lei in 2020.

Last year, the company harvested 24,003 tons of crops from the exploitation of 7,830 hectares, of which 2,320 hectares were in the organic regime. Holde Agri Invest is listed on the AeRO market of the Bucharest Stock Exchange as of October 2020.

“The year 2020 has been transformational for Holde Agri Invest and our shareholders. Despite the challenging local and global context, the results we present today surpass our initial forecast. We came to the market with a promise – to become of the largest farming companies on the local market and, at the same time, to do modern, profitable agriculture. We are already delivering upon this promise. For 2021, our goal is to continue the development of Holde and to reach a turnover of 52 million lei. Consequently, in the spring of this year, we will begin the share capital increase operation to raise 20 million lei from our existing as well as new shareholders,” said Liviu Zagan, CEO of Holde Agri Invest.

In 2020, Holde registered consolidated revenues of 27.3 million lei from the sale of crops. In 2021, additional revenues of 3.5 million lei were generated from the sale of agricultural products from the remaining 2020 harvest. Out of a total harvest of 24,003 tons, Holde produced in 2020 3,400 tons of organic sunflower, wheat, corn, peas, and the rest of conventional crops such as rapeseed, wheat, corn, sunflower, peas, soybeans.

In 2020, capital expenditure amounted to 7.7 million lei, and it included investment in technology start-up AgroCity, acquisition of machinery and farm equipment and arrangement for storage capacity. Moreover, the company invested 37.4 million lei in acquisitions that contributed to the expansion of the business, growing the surface of operated land from 2,800 hectares of land to 9,250 hectares in a span of just a few months. Consequently, at the end of 2020, the company operated three farms located in the vicinity of Bucharest – Rosiorii, Videle and Frumusani.

The 2020 investment program amounted to 45 million lei. It was financed with two private placements for Holde shares carried out in December 2019 and June 2020 in a total amount of 22 million lei, completed with bank loans and financial leasing contracts.

“Last year was intense for Holde. Apart from cultivating the land, we managed to successfully integrate new farms, invested in their modernizations, and floated HAI shares on BVB. 2021 will be at least the same intensity. In the context of our development projects and new acquisitions, we plan to attract in the next weeks fresh capital from investors. Out of 20 million lei that we want to raise from investors, we estimate that we will invest approximately 70% of capital in expanding the land surface. The remaining 30% will be used for modernizing our existing farms,” said Iulian Circiumaru, President of the Board at Holde Agri Invest.

For 2021, Holde Agri Invest management proposes revenues of 52 million lei and an EBIT margin of 20.3%. Apart from increasing the surface of operated land, Holde targets investments in modern equipment and the pilot irrigation project of 150 hectares in the Frumușani farm. Moreover, the plan will include investments in a manure collection and storage platform and a composting station with a capacity of 10,000 tons per year for the Rosiori de Vede farm. Additionally, Holde plans to acquire an additional silo capacity of 6,000 tones for the Frumusani farm and invest in the extension of the Călinești silo with 4,400 tons of storage space specially prepared for organic production. The broker who will intermediate the capital increase operation will be BT Capital Partners.

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