Agroland Agribusiness posts 28.6 million lei revenues and a net profit of 1.3 million lei in H1 2023

Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, specialized in the sale of inputs for agriculture, posts 28.6 million lei operating revenue in the first half of 2023, an 11% increase compared to H1 2022. In the first six months of this year, EBITDA increased by 9%, reaching 2.2 million lei, while net profit reached 1.3 million lei, a 3% increase.

“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.

Regarding revenues by category, in the first six months of 2023, the largest share in turnover was represented by pesticides, which increased by 25%, up to 11.6 million lei. Also, grain trading registered a 53% advance compared to H1 2022, reaching 4.7 million lei, while sales of input seeds were 6.9 million lei, 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 last year, up to 9.7 million lei, amid the reduced liquidity of farmers caused by the price drop for grains and the increase in the price of inputs. Sales of input fuel were 0.2 million lei, 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 81.8 million lei to 76.6 million lei and the net profit from 3.2 million lei to 2.6 million lei,” added Florin Radu.

In the first half of the year, 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 are 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 29 million lei.