The gross value of the loans and advances granted by Agricover to its customers in January-December 2023 stood at RON2.91 billion and the sales of farm inputs reached RON1.85 billion.
The group had more than 10,000 customers at the end of December 2023, 5.3% more than in December 2022.
By business segments, Agricover Credit IFN gross loans and advances stood at RON2.91 billion, an increase of 2.35% year-on-year. Profit before tax reached RON91.1 million, 20.17% higher than in 2022.
Agricover Distribution continued to strengthen its customer base, with the number of farmers served last year reaching 9,100, almost 4% more than in 2022. Farm input sales reached RON1.85 billion, 27.3% lower than in 2022, as a result of the decline in hard commodity (fertilizer and fuel) prices and in the quantities purchased by farmers.
Overall in 2021-2023, a time of breaks in the supply chains and/or political instability, when the company operated higher inventories than before, Agricover Distribution posted RON127.3 million cumulated EBITDA and RON56.6 million net profit, including the 2023 result.
The robust financial performance prompted the group to modify its dividend policy in 2024, going from not paying any to a dividend payout ratio of 30% of the consolidated profit of its operations, after setting aside funds to meet its financing needs and the commitments to its funding providers., as proposed by the Board of Directors.
Agricover Holding called shareholders for April 28 to vote, among others, the distribution of RON11.8 million dividends or RON0.00625/share. Payment will start on May 2, 2024.
(English version by Loredana Fratila-Cristescu)