Agricover posts net profit of RON 13.2 million in 2018

Aurel Dragan 12/04/2019 | 15:28

Agricover SA, a subsidiary of Agricover Holding, recorded revenues of RON 1.64 billion for the year 2018 and a net profit of RON 13.2 million from agri-business activities (distribution of inputs for agriculture, sowing and trade in cereals and oilseeds ) and agri-food (slaughtering, processing and marketing of pork). EBITDA was up to RON 44.7 million.

Agricover is a newly created legal entity in November 2017 following the merger by absorption of Agricover SRL and Cerealcom SA into the former Agricover SA entity.

The Agricover strategy for agri-business operations aimed at increasing the market share and the efficiency of operations from the logistic point of view. In 2018, the company saw a 25 percent increase in the number of farm customers.

To respond efficiently to customer requirements, the company has developed the most advanced logistics network in Romanian agribusiness. Thus, in 2018 Agricover has completed the implementation of logistic projects designed to reduce response time and ensure prompt delivery of the products to farmers. The company inaugurated a state-of-the-art central warehouse with a surface area of ​​6,000 sqm and at the same time expanded its national warehouse network reaching a total seed and planting stock volume of 22,000 sqm. At the same time, Agricover has invested in the automation of operations by implementing an efficient IT system for inventory management in the national warehouse network.

Through a complete portfolio of inputs – plant protection products, seeds, fertilizers, diesel fuel, innovative solutions to increase the cost of production of partner farmers and an extensive commercial team covering the entire territory of the country, Agricover has strengthened its leadership position holds in the agricultural input market.

Agri-food operations – slaughtering, processing and marketing of pork – recorded a 49 percent increase in volume, reaching 390,500 pig heads processed in its own Peris production unit.

Sierra Peris sells fresh meat and meat products in most retail chains operating in Romania, as well as through its own network of shops located in the main consumer areas in Bucharest and surrounding areas.

Development directions for 2019

Given the specificities of agri-business and agri-food activities, since 2018 the company has decided to divide the two operations by setting up a new legal entity – Peris SA – which will take over the processing and marketing activities of the pork.

The objective of this approach is to establish a sound foundation for the continued accelerated development of the two activities based on specific strategies and objectives and efficient operation management. The splitting process was completed in early April 2019.

For the year 2019, the new company, Peris SA, intends to continue its investment plan to increase production efficiency, optimize the product portfolio and distribution channels, thus aiming to continue the profitable growth of the business.

As far as agri-business operations are concerned, continued under Agricover SA, the company aims to continue healthy growth by expanding its portfolio of specialized solutions, both for the development of new business areas and to further ensure the cost efficiency of production of the partner farmers.

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