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August 13, 2022

Agroland Agribusiness posts a 332% increase in net profit in the first nine months of the year

Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, posts an operating revenue of 22.2 million lei, a 53% increase compared to the same period last year. Also, the company recorded a net profit of 1.2 million lei, a 332% surge compared to the first nine months of 2020.

2021 has been an excellent year for agribusiness. As the prices rose for the cereals, reaching historical highs, the Romanian farmers have registered good financial results and consequently were able to pay the amounts due ahead of the deadlines. In the first nine months of the year, we have recorded the largest increase in absolute value on the sales of fertilizers, which have doubled compared to last year, and a 20% increase in the sales of pesticides, which reached 9.3 million lei. We believe that the high prices will be maintained in the future. We want to leverage this to our advantage and increase the profit margin even further. We believe that our strong cash position, partially due to the capital raised from BVB through share capital increase and the bond issuance from earlier this year, paired with the good level of collections of the amounts due from clients, will help us in reaching this target,” stated Florin Radu, General Manager at Agroland Agribusiness.

In the first nine months of 2021, the operating revenue increase recorded by Agroland Agribusiness was primarily driven by a 49% increase in the income from the sale of goods which reached 27.2 million lei and was offset by 5.7 million lei in commercial discounts that were granted to the clients, in line with the standards in the agriculture industry for the products that were paid in time. Additionally, Agroland Agribusiness booked in the first nine months of 2021 income subsidies. In the total value of 0.7 million lei, the subsidy is the grant for working capital provided under Measure 2 by the Romanian Ministry of the Economic, Entrepreneurship, and Tourism.

In terms of the revenue category, fertilizers have contributed the most to the total sales – 10.7 million lei, a 110% surge compared to the same period of last year. Sales of pesticides increased 20%, to 9.9 million lei, while sales of seeds increased 23%, reaching 5.7 million lei in sales.

The company expects to end 2021 with good results and continue the accelerated growth recorded in the first three quarters of the year. In 2022, Agroland Agribusiness is considering expanding its territorial presence to reach farmers in new regions such as the South, South-East, and West of Romania. This aspect will contribute to the further increase of the company’s turnover. Also, in the next period, Agroland Agribusiness will introduce some of the company’s key products in Agroland stores. The objective is that through the network of stores of the parent company, the respective products reach new areas in Romania.

Agroland Agribusiness shares have been floating on the AeRO market of the Bucharest Stock Exchange since June 15, 2021, and are traded under the ticker AAB. The company has a market capitalization of over 30 million lei, and starting with October 11, 2021, the AAB shares are included in the BET-AeRO index developed by BVB for the AeRO market.

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