The company also reported a profit of RON3.4 million, compared with a loss of RON263,274 registered in the first half of 2019.
“We have a busy second half of the year ahead of us – even though we managed to reach the revenue target for this year as approved by shareholders in April, we will still increase it further in order to meet the profit targets we have planned for this year. However,as always for our sector of activity, our full year result will heavily depend on circumstances not dependent on us – the weather,” said Vlad Popescu, Norofert CEO and chairman of the board.
While the COVID19 pandemic did not have a significant impact on Norofert’s business, the severe drought did and and it resulted in a lower profit margin on sales this year, the company said.
On a group level, Norofert’s operating revenues grew 596% on the year in the first half. Enhanced production, increased sales capacity and market recognition contributed to higher sales. Controlled cost increases and the considerable resizing of the business contributed to an operating profit of RON4.5 million, the company said.
Norofert expects sales to rise during autumn agricultural campaign and targets additional investments in production capacity.
The group is also continuing expansion in the United States after opening a subsidiary in Ohio in April. Norofert received certification allowing it to sell four of its products in the state of Ohio, USA, for one year starting July 1.