Agroland Business System, a Romanian entrepreneurial retail, agriculture, and food group, which owns the largest network of agricultural stores in Romania, targets for 2023, at the consolidated level, net sales of 329.7 million lei, a 17% increase compared to the result achieved in 2022, and a net profit of 11.1 million lei, a 237% growth compared to the previous year.
“After a challenging 2022 for our company, we expect 2023 to be a year of stabilization. Despite increased expenses and pressure on product margins, in 2022, we made several investments across all business lines to strengthen our integrated business model and rebalance the revenue structure for the year. These projects, including the feed factories in Caransebes and Isalnita, the capacity increase at Avicola Mihailesti, as well as the liquid egg production also at Mihailesti, which have been operationalized in the first part of 2023, will generate significant revenues, which will have a significant impact on margins. We have no major investments budgeted for this year, but, as in the past, we will take advantage of every opportunity that arises to generate added value for Agroland’s customers and investors. In terms of revenues and expenses for 2023, our projections are prudent and aim at mitigating price increases to provide more predictability during this year,” stated Horia Cardos, founder and CEO of Agroland Business System.
For this year, Agroland Business System aims to expand the Agroland store network. Thus, the company plans to open four new MEGA stores this year, which will generate a 50% increase in turnover compared to that achieved in 2022, when it reached its target of doubling the turnover of MEGA stores compared to 2021. The company also plans to open another 10 new traditional Agroland stores.
As for Agroland Agribusiness, the subsidiary of Agroland Business System specializing in the sale of agricultural inputs, it targets net sales of 81.8 million lei for 2023, up 29% compared to 2022, and a net profit of 3.2 million lei, +36% compared to the previous year.
“Last year was for us a year of taking things to the next level through organic growth and diversification of traditional revenue streams, all despite a challenging environment in which we managed situations we had never faced before. For 2023, we aim to maintain the upward trend in our results by further developing our product line to offer customers quality alternatives to the options already on the market to increase loyalty. We also intend to expand our Sales and Trading teams by attracting professionals to develop the company further. We remain committed to our principles of providing customers with advice across all lines of business so that we can provide them with quality products at competitive prices,” stated Florin Radu, CEO of Agroland Agribusiness.
Agroland Business System posted consolidated revenues of 305.1 million lei in 2022, a 31% increase compared to 2021, and a net profit of 3.3 million lei, a decrease of 62% compared to the previous year. At the level of Agroland Agribusiness, operating revenues amounted to 63.5 million lei in 2022, up 97%, while net profit was 2.3 million lei, a 4% increase compared to 2021.
Agroland Business System is listed on the AeRO market of the Bucharest Stock Exchange as of March 1, 2021, and is traded under the symbol AG, having a market capitalization of 102 million lei. In addition, Agroland Agribusiness shares 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 30 million lei.