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March 23, 2023

Agroland posts a turnover of 186.6 million lei in the first nine months of 2021

Agroland Business System (BVB: AG), Romanian entrepreneurial retail, agriculture, and food group, which has the largest network of agricultural stores in Romania, posts consolidated revenues of 190.6 million lei in the first nine months of 2021, up 13% compared to the same period last year.

Also, the turnover of the Group increased by 10%, up to 186.6 million lei, determined by an increase of 1,446% of the poultry production sold – table eggs and one-day-old chicks from the Avicola Mihăilești platform, which Agroland acquired in October 2020. The company closed the nine months of 2021 with a net profit of 7.7 million lei.

Our business model, which includes the retail component, as well as agriculture and food, helps us to balance our business and, more importantly, to absorb the temporary shocks that may occur – be they economic, health, or operational. In the first nine months of the year, we reached 13 Agroland MEGA stores, with ten more stores than at the end of Q3 2020. The good performance recorded so far by these new locations shows us that our strategy to develop the store network in the vicinity of large urban cities is correct. At the same time, we expect them to be a determining factor for revenues and profits for 2022. Regarding the poultry business line, it performed excellently in Q3 2021. We believe that the investment in the Mihăilești platform was an inspired decision considering that in the context of the food crisis, we are ready to take advantage of the opportunities that arise in 2022, both in terms of the price of table eggs and the price of one-day-old chicks. We want to continue the development of the platform, our goal being to become the largest local producer of non-GMO certified table eggs and poultry meat,” stated Horia Cardos, founder and CEO of Agroland Business System.

In the first nine months of 2021, Agroland operated 246 stores, of which 13 were MEGA stores. Regarding the performance of all stores (excluding MEGA stores performance), the evolution was positive in Q3 2021, registering a 37% increase in net sales and a 35% increase in the number of customers served. This evolution contributed to the result for the first nine months of 2021, the net sales reaching 60.8 million lei, increasing by 17%, while the number of customers served increased by 31%, to 831,084. At the same time, the performance of the same stores (excluding MEGA stores performance) increased by 21% in Q3 2021, net sales reaching 11.1 million lei, driven by a 28% increase in the number of customers served. In the first nine months of 2021, the total sales in MEGA stores amounted to 17,2 million lei.

In parallel, Agroland’s online sales exploded in 2021 compared to the same period in 2020, registering a 129% increase in Q3 2021, amid an 11% increase in the number of customers. The average ticket value for online sales increased by 107% compared to Q3 2020. In total, in the first nine months of this year, online sales reached 5.3 million lei, an increase of 105% compared to the same period from 2020.

In the last quarter of the year, the company expects table eggs sales to grow by more than 80% compared to the previous quarter of 2020 due to increased farm capacity in 2021 and continued increases in food prices in general. Consequently, the company maintains its budgetary objectives for the entire year 2021 – operating revenues of 203.3 million lei, a turnover of 200.7 million lei, and a net profit of 9.8 million lei.

The shares of Agroland Business System have been floating on the AeRO market of the Bucharest Stock Exchange since 1 March 2021 and are traded under the symbol AG. The company has a market capitalization of over 190 million lei. Starting with 11 October 2021, the shares of AG are included in the BET-AeRO index developed by BVB for the AeRO market.


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