The operating result was RON12.4 million in the first six months of 2023, up 41% on the year, and the net profit stood at RON7.6 million in January-June 2023, up 22% on the year.
“The first half of 2023 was full of challenges and opportunities for the entire agribusiness industry. For Agroland Agribusiness, this period has meant adaptation, innovation, and constantly reaffirming our commitment to our core values and goals. Our position as the only listed distribution company with a complete agribusiness business in Romania represents a significant competitive advantage in commercial relations. Building strong partnerships remains the engine of our evolution, confirmed by the 12% increase in our client portfolio and the way we develop our relationships in the market through our strong and united team. Thanks to the experience and expertise of our colleagues, we can improve our services and products offered to bring more value to the agricultural market in Romania“, stated Florin Radu, CEO of Agroland Agribusiness.
As regards revenues by category, in the first six months of 2023, the largest share in turnover was held by pesticides, which increased by 25%, up to RON11.6 million. Also, grain trading saw a 53% advance compared to the first half of 2022, reaching RON4.7 million, while sales of input seeds were RON6.9 million, seeing a 4% increase.
As for the rest of the categories, the sale of fertilizers had a 10% decrease in H1/2023 compared to the same period of 2022, up to RON9.7 million, amid farmers’ reduced liquidity caused by grain price drops input price hikes. Input fuel sales were RON0.2 million, a 32% increase.
“Agriculture in Romania continues to go through a difficult period, still being influenced by the effects of last year’s challenges. One of the reasons that led to a general decline in the agribusiness industry was the low price of grains, caused by various reasons, the most important being the high production worldwide. In addition to the drop in prices, combined with drought periods in certain areas of Romania, with an oscillating production for all crops, we will continue to see pressure on the farmers’ revenues, who will start a new season fearful of investments. In this difficult market context, we must revise this year’s revenue and expense budget by decreasing the turnover from RON81.8 million to RON76.6 million and the net profit from RON3.2 million to RON2.6 million,” added Florin Radu.
In the first half of 2023, Agroland Agribusiness invoiced 395 customers, a 12% increase compared to the same period of the previous year, due to consolidating the relationship with existing partners, increasing the company’s visibility and attracting new customers.
Agroland Agribusiness shares have been listed on the AeRO market of the Bucharest Stock Exchange as of June 15, 2021, and are traded under the AAB symbol. Currently, the company has a market capitalization of approximately RON29 million.