The net profit margin reached 15% compared to 9% in 2022, according to the financial statement published at the Bucharest Stock Exchange.
“In 2023, we focused on the investment projects announced for the modernization, digitization, and integration of companies within the group. We prioritized modern soil conservation technology and increased the number of young cattle, in preparation for expanding production capacity at the new farm in Straja. All these efforts contributed to improving the operational performance in 2023. We will continue optimizations in 2024, a year in which we anticipate an increase in net profit, once the young cattle reach maturity and we increase production. We have committed to a strategy of doubling our business by 2027, and the announced strategic initiatives, along with solid operational and financial results, lead to a doubling in the number of shareholders. Starting March 2024, DN AGRAR shares have been included in the MSCI indices,” said Jan Gijsbertus de Boer, Chairman of the Board of Directors and CEO, DN AGRAR Group.
Operating revenue reached RON235 million in 2023, up 14% on the year, and revenue from sold production stood at RON149 million, up 2% on the year. Operating expenses amounted to RON200 million, up 10% on the year, reflecting increased costs of raw materials and consumables linked with the growth in the number of young cattle, directly productive animals on the farm, and cultivated areas to ensure the feed requirements.
Total assets neared RON308 million in 2023, up over 31% on the year, and total liabilities increased by 13% on the year to RON172 million in 2023. Long-term liabilities recorded a slight increase of 3% compared to the end of 2022, reaching RON 96 million, due to ongoing investments at the Apold farm to increase production capacity by 50%.
The main investment project of DN AGRAR for the period 2024-2027 is the new Straja farm, located near the city of Alba Iulia, where construction has started for a future capacity of 5,000 animals. At maximum capacity, this farm will bring about a 40% increase in the Group’s total cattle population and will produce an average of 100,000 liters of milk per day. Other projects include continuing the installation of robots in the existing farms, constructing a compost factory, and diversifying the activity through new business lines.
DN AGRAR Group, consisting of 13 companies, including four farms specialized in dairy cattle breeding and cow milk production, has integrated activities, including logistics and transportation services for cow milk, nationally and in Europe. In the field of cereals, the group cultivates over 7,000 hectares of cereals and fodder, primarily to provide food for more than 14,000 animals within DN AGRAR Group’s farms.
DN Agrar envisages a turnover of RON153.3 million for 2024, slightly above the 2023 level, and net profit of RON30.1 million, up nearly 30% versus 2023, as per calculations by Ziarul Financiar (ZF) daily based on data from the budget of revenue and expenditure.
DN Agrar has a market value of RON256 million and is 74.1%-owned by A.M. Advies. DN shares have gained 25.8% so far in 2024, amid deals worth RON14.2 million, and 122.1% in the last year, as per stock market data.