Agroland Agribusiness posts operating revenue of RON 15.9 million and a net profit up 110%

Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, specialized in the sale of inputs for agriculture, posts operating revenue of 15.9 million lei in Q1 2022, an 86% increase compared to Q1 2021, an EBITDA of 1.5 million lei, a 201% appreciation and a net profit of 0.84 million lei, a 110% increase compared to Q1 2021.

“The first part of 2022 was a difficult period in agriculture and agri-food sector, with many challenges, but also with many opportunities that I think we managed to exploit to the fullest, as can be seen in the results recorded by the company. The reported increased revenues for Q1 2022 are already above the revenues recorded in 2021 vs. 2020 (+ 75%). Also, the revenues generated in this quarter represent almost half of the total revenues generated by Agroland Agribusiness last year. These results are due to our team, which, although it consists of a relatively small number of employees, 18, is extremely efficient. The good results recorded in Q1 2022 make us confident that we are on the right track in terms of achieving the revenues we promised our shareholders for 2022: net sales of 47.9 million lei, an EBITDA of 4.3 million lei, and a net profit of 3.4 million lei,” stated Florin Radu, CEO of Agroland Agribusiness.

The increase in the company’s revenues in the first quarter of 2022 was determined by a 42% appreciation of the revenues from the sale of goods, which reached 18.3 million lei, while the commercial discounts granted halved, reaching 2.3 million lei, a decrease of 46%. In the current context of rising inflation, which has led to increasing costs of raw materials, energy, and utilities, prices have also been increased in agribusiness, and the discounts offered by the company to clients have fallen in line with the market.

In terms of the split of revenues per category, in Q1 2022, the most significant increase in turnover was recorded in the category of fertilizers, which contributed 137% to total revenues, respectively 7.7 million lei, followed by the category of seed sales, which increased by 41%, reaching 5.9 million lei. In addition, during this period, the prices of products sold increased compared to last year. These categories had the largest contribution due to the specifics of the agricultural campaign in the first quarter of the year when seeding and treatment works are carried out. Sales of pesticides decreased by 19%, to 4.3 million lei, amid the late start of the season and the continued existence of undelivered products compared to the same period of 2021. In 2022 the season started with a delay of 3-4 weeks.

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In the first quarter of 2022, the company focused on building stocks for the entire year to be prepared for further price increases caused by several factors, such as unprecedented global inflation, lack of raw materials and finished goods, and the war in Ukraine. Also, the recovery rate of Agroland Agribusiness is above the industry’s average, and according to the management, it will be maintained this year too.

Regarding the company’s activity on the capital market, during the General Meeting of Shareholders on April 29, 2022, the payment of the cash dividend was approved in the total amount of 826,875 lei from the company’s profits shareholders holding AAB shares on June 7, 2022. The gross dividend, which will be paid on June 23, has a value of 0.735 lei per share. At the same time, Agroland Agribusiness will also issue bonus shares, which will be distributed in proportion to 4 bonus shares for each AAB share held.

The shares of Agroland Agribusiness SA are listed on the AeRO market of the Bucharest Stock Exchange as of June 15, 2021, and are traded under the symbol AAB. Currently, the company has a market capitalization of over 30 million lei.