Agroserv Mariuta posts sales of RON 80 million in 2023

Agroserv Mariuta, a Romanian agricultural company and owner of the Laptaria cu Caimac brand, posts sales of 80 million lei in 2023, a 10% increase over 2022, and an operating result of 4.3 million lei, a 27% increase compared to the previous year. In the context of challenges in the agricultural and food sectors, the company reported a net loss of 2.3 million lei, compared to a net loss of 1.9 million lei in 2022.

“The year 2023 was a period of contrasts for our company, which saw increases in sales, but profitability was affected due to numerous challenges, ending the year far from the objectives we had set. The processing factory accounted for 69% of the total turnover in 2023, marking a 29% increase compared to 2022, driven by the product mix sold. This growth was negatively influenced by certain legislative changes impacting the food industry, compounded by inflation, especially in the first part of the year. For the second consecutive year, drought had a major impact on agriculture, with corn crops being the most affected, experiencing a calamity rate of 90%. Thus, in terms of vegetal activity, the results in 2023 represented 46% of the forecasted value at the beginning of the year. Regarding the livestock farm, total milk production increased, the number of animals remained stable, and the procedures and practices we implement yield positive results in both the volume and quality of milk produced. However, the profitability of this business line was significantly affected by the negative evolution of vegetal activity, which supplies the feed used on the farm,” stated Cornel Danila, CEO of Laptaria cu Caimac.

In 2023, revenues from the sale of dairy products, semi-finished products, and goods reached a value of 55 million lei, making the largest contribution to the turnover, with a 29% growth compared to 2022. The company processed over 8 million liters of milk in the factory, a 1% increase compared to the previous year. In 2023, revenues from vegetal activities amounted to 7.4 million lei, a 48% decrease, amid lower production per hectare due to drought. Following the cultivation of approximately 2,500 hectares, the company registered a total production of 18,830 tons, of which silage corn accounted for 53% of this production, wheat – 23%, alfalfa – 11%, rape – 10%, and corn – 3%.

Regarding livestock farming, the revenues generated by this division in 2023 amounted to 17.6 million lei, representing a 20% increase compared to the previous year, primarily due to the sale of raw milk, amounting to 13.3 million lei, followed by the sale of animals, approximately 3 million lei. Additionally, the total milk production was approximately 14 million liters, an increase from 2022, with the factory using 57% of this quantity, similar to the previous year.

“For 2024, we plan to expand the product portfolio of Laptaria cu Caimac by launching a completely new product range, adjusting the portfolio based on volume and production efficiency, and entering a new retail network. We also intend to increase the skills of the team by attracting talent and professional development of our colleagues. In terms of vegetal activities, there are positive premises for wheat and rapeseed crops regarding the quantities that can be produced in 2024, although we remain pessimistic about their prices. Additionally, milk production in the early stages of this year has reached over 44 tons per day, with a more stable outlook for raw milk prices compared to the same period last year. This year, our priority is to bring the company back to profitability, so investment projects such as the biogas station and the packaging washing station for reuse, although still important, will only be initiated in the case of developing strategic partnerships, given the lack of non-reimbursable funds,“ added Cornel Danila.

For 2024, according to the revenue and expense budget proposed by the company, Agroserv Mariuta targets a turnover of 89.5 million lei, with a gross margin of 26.1 million lei, EBITDA of 19.3 million lei and a net profit of 703 thousand lei.

Agroserv Mariuta is a company listed on the AeRO market of the Bucharest Stock Exchange (MILK symbol), which carries out a mixed agricultural activity of crop farming combined with livestock farming. Starting with 2018, the company has a new business line, namely the processing of cow’s milk, respectively obtaining dairy products – whole milk packaged in glass, matured cheeses, acidophilic products. With a desire to expand the family business and identify a market need to find quality dairy products, safe, nutritious, and without additives on the store shelves, the company launched the brand “Laptaria cu Caimac”. For more than three years, Laptaria cu Caimac has been delivering natural milk on the market, without unnecessary additives and powdered milk, and with special care to process milk. These unique products challenge the industry and increase quality standards. Also, Agroserv Mariuta is among the very few companies in Romania with 100% traceability for the raw material, up to the level of treatment of the plants that make up the food.