Holde Agri Invest SA, a Romanian company that farmland, posts 55.3 million lei revenues in the first six months of 2023, up 45% compared to the same period last year. In the first half of the year, the company operated 13,200 hectares, +7%, of which 1,923 hectares were organically cultivated. The total production was approximately 41,000 tons and included crops of wheat, rapeseed, and peas, which were harvested as of June and in July, after the end of the reporting period related to the first semester.
“While Holde has demonstrated maturity in its internal organization, successfully operating large areas and multiple teams, the broader context in agriculture is much more challenging. This year has highlighted the agricultural sector’s difficulties, from supply chains to farmers. Distribution companies have been unable to maintain the same sales volumes as in previous years, and farmers are in the difficult position of having production stalled due to low grain prices in the market. In response to this uncertainty, we decided to store or sell the production at an open price at Holde. We do not know how prices will evolve, but we must adapt and take precautions whenever necessary. In parallel, we continue our efforts, focusing on the sunflower harvesting campaign and already starting the plans for the next agricultural year, according to the agricultural calendar, with the completion of rapeseed seeding,” stated Liviu Zagan, CEO of Holde Agri Invest.
In the first six months of the year, the company has harvested wheat and rapeseed, obtaining satisfactory yields in line with the annual average that Holde is targeting. Thus, the company obtained 3.5 tons per hectare of rapeseed, an average of approximately 2,900 hectares, and 5.8 tons of wheat per hectare, an average of roughly 4,400 hectares. The farms in Teleorman and Dambovita were more productive this year than in Calarasi due to the higher precipitation in these areas.
In addition, Holde harvested organic peas with an above-average yield of 2.5 tons per hectare. During this period, the company also cultivated a significant area of potatoes, 60 hectares, after implementing a pilot project in this direction last year. The yield achieved was satisfactory for both Holde and the client.
In the first half of the year, the company carried out investments totaling 13.9 million lei, financed from its own sources and borrowed capital, to modernize existing farms and expand the operated farmland. Regarding extending the operated farmland, Holde acquired a new farm in Dambovita County in March of this year. It has an area of approximately 980 hectares and is integrated into the Contesti core farm.
Also, at the investment level, the company recently completed the construction of a silo with a storage capacity of 10,000 tons in the Frumusani farm in Calarasi County. With a value of 8 million lei, this investment increases Holde’s total storage capacity to 25,000 tons. The investment from Frumusani represents the project’s first phase to develop storage capacities within this farm. The company is preparing to start the second stage of development, which aims to build five new cells of 500 tons each, install a seed selection and treatment station, and storage halls.
At the financing level, in May of this year, Holde obtained a syndicated loan in the amount of 30.5 million lei and 26.7 million euros, capital that will be used for the growth and diversification of the portfolio, ensuring at the same time the liquidity necessary for the company’s current activity.
To continue the company’s development and transform it into one of the largest farmers in Romania in terms of operated farmland, Holde recently announced the approval by the Board of Directors of a new share capital increase of up to 40 million lei. Through this increase, Holde aims to continue expanding the farmland area by acquiring new farms, implementing the current investment plan, and ensuring the additional working capital needed for long-term production storage.
Holde Agri Invest shares are listed on the AeRO market of the Bucharest Stock Exchange as of October 1, 2020, and are traded under the HAI stock symbol. The company has a market capitalization of approximately 115 million lei.