Grup Serban Holding post consolidated revenues with 71% increase in the first half of 2022 compared to 2021

Grup Serban Holding, a Romanian entrepreneurial company active in several fields in agriculture, post consolidated revenues of 275.2 million lei in the first half of 2022, a 71% increase compared to the same period last year, a 240 million lei turnover, +97%, EBITDA of 20.5 million lei, a 13% increase and a net profit of 6.8 million lei, a 40% appreciation compared to the first six months of last year.

“We are pleased with the first half of 2022 results, considering the difficult agricultural year characterized by drought and price increases at all levels. Within the vegetal activity, in the first six months of the year, we operated a total area of 11,157 hectares and traded a volume of 87,719 tons of cereals and oilseeds, effectively using the 162,402 tons of storage capacity. Regarding bakery products, the volumes achieved exceeded 2,300 tons, while poultry production exceeded 4,000 tons. The results presented today prove that Grup Șerban has the necessary skills to successfully overcome such a difficult period, which are based on the constant investments made over the years in the development of the group,” stated Nicolae Serban, Chairman of the Board of Directors of Grup Serban Holding.

Regarding the results by business lines, within the vegetal and trade production, Grup Serban recorded a turnover of 173.8 million lei in the first semester of 2022, double compared to the same period last year, and an EBITDA of 11.7 million lei, a 28% increase compared to 2021. The main revenues were generated, mainly by the sales of corn and sunflower, which increased by 112%. The poultry business line, where the company owns five farms in three locations in Bacau and Vaslui counties, with a capacity of 880,000 heads per series, registered a turnover of 50 million lei, a 131% increase compared to the first semester of 2021 and an EBITDA of 3 million lei, a 3% appreciation.

In the business line focused on bakery, pastry, and confectionery, where Grup Serban owns a bakery, a confectionery laboratory, and five stores under the Bacania Serban brand, the company recorded a turnover of 20.7 million lei in the first six months of the year, a 16% increase compared to the same period in 2021. This increase was supported by the 24% increase in sold production, representing the volumes traded through retail chains, the update of prices in contracts, and the 8% increase, up to 8.8 million lei, of revenues from the sale of products sold through Bacania Serban.

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“In agriculture, there is no year without challenges. Whether we are talking about economic or natural challenges, our experience in the industry has taught us that every challenge should be treated as a lesson to improve our business. We expected a potential drought, reduced production, and rising prices this year. However, the productions obtained in the first semester of 2022 confirm that our plan to reconvert an area of 6-7,000 ha in the no-till system works at the parameters we wanted. Thus, we have increased the areas of large crops in the system without plowing, with a reduced cost of chemical fertilizers, improving the quality of the soil, increasing the operating income, and decreasing the operating expenses. The impact of these measures is emphasized at the EBITDA level, which increased by 28% in the first half of the year,” stated Ovidiu Bucataru, CFO of Grup Serban Holding.

Considering the performance related to the first half of the year, Grup Serban Holding maintains the revenue and expenditure budget at the consolidated level, as approved by the shareholders during the Ordinary General Meeting of Shareholders in April 2022, which targets a turnover of 540.9 million lei and a net profit of 33.9 million lei.

Grup Serban Holding shares are listed on the AeRO market of the Bucharest Stock Exchange as of February 28, 2022, and are traded under the symbol GSH. Currently, the company has a market capitalization of over 325 million lei.