Grup Șerban Holding signs a contract with PepsiCo Romania

Grup Șerban Holding (ticker symbol GSH), a Romanian entrepreneurial company active in several areas in agriculture, announces the signing of a significant contract with PepsiCo Romania regarding the development of the program for the delivery of potatoes for Lay’s chips produced in Romania. This is the third year of collaboration between the company and PepsiCo. Grup Șerban shares will float on the AeRO market of the Bucharest Stock Exchange under the ticker symbol GSH on February 28, 2022.

“We look forward to continuing to work with PepsiCo and thank them for their trust. Potato chips represent a niche for Romanian agriculture. Grup Șerban is already entering the third year of collaboration with PepsiCo, confirming our production’s excellent quality and compliance to the highest international standards in this field. Signing this contract means improving the financial performance in the medium term, considering the predictability and evolution of capitalization prices. The production of potatoes for industrialization contributes to the increase of the group’s turnover and, therefore, the profit and cash flow, bringing an income of RON 50k per ha. One hectare of potato chips generates the same income as four hectares of cereals or oilseeds. Also, with the renewal of this collaboration, we plan to shorten the supply chain by adding storage services for 35% of production,” stated Ovidiu Bucătaru, CFO of Grup Șerban Holding.

To increase production capacity for this intensive crop, Grup Șerban Holding is investing in an irrigation system adapted to the new directions of the European Green Deal. Under the new system, irrigation is carried out by dripping, a method by which water consumption is reduced by 50%, energy costs by 30%, and fertilizers and pesticides are reduced by 50% and 25%, respectively. The cost of such an investment amount to approximately RON 20k/ha.  

At the end of 2021, the company raised 12.7 million lei from investors in a private placement for its shares. The raised capital will contribute to the continuation of the group’s development projects. With the listing of GSH shares on the AeRO market of the Bucharest Stock Exchange on February 28, 2022, Grup Șerban aims to continue using the financing mechanisms through the capital market for the further development of the company’s business lines. Grup Șerban plans to continue raising between 25 and 50 million lei in funding each year to develop all the group’s business lines.