Top Seeds posts a turnover of 249 million lei in 2021, a 40% increase

Top Seeds, a Romanian entrepreneurial company specialized in providing integrated solutions in agriculture, posts a turnover of 249 million lei in 2021, a 40% increase compared to the previous year, EBITDA of 17.1 million lei, +10%, and a net profit of 9 million lei, a 24% appreciation compared to 2020.

“2021 marked a strong recovery of agriculture, after 2020 in which the sector was significantly impacted by the drought that affected all regions of Romania. This recovery is also observed in our results, last year being one of the best years from the perspective of the company’s profitability, one of the main financial indicators we are following. At the end of last year, we announced our intention to become a listed company on the stock exchange, and we planned to go forward with this plan in the first part of this year. This was no longer possible due to the events that took place during this period, which created a state of uncertainty for investors. Even if the current context is difficult for most economic sectors, we believe that agriculture is still one of the main pillars of growth for the Romanian economy. Therefore, listing on the stock exchange remains a goal we want to achieve this year. Currently, the development potential of our company is significant. We want to continue growing, developing new services and quality products for farmers, and expanding our client portfolio. To achieve these, we want to bring next to us partners such as investors from the Bucharest Stock Exchange and develop the company together,” stated Daniel Baja, founder, and CEO of Top Seeds.

In terms of financial results for 2021, the increase in turnover was due to the increase in sales of grains and products in the category of inputs. At the same time, record grain sales in 2021 also contributed to the recovery of receivables in 2020, a year in which farmers had to reschedule payments due to the severe drought at the national level. In 2021, the sales of fertilizers and pesticides amounted to 74.9 million lei, representing 30% of the total turnover.

In 2022, Top Seeds will continue to consolidate its business lines by implementing a plan to increase sales of high-margin products, such as the distribution of agricultural inputs, which ensures a higher net margin than grain trading. In 2021, the company developed its products for nutrition – growth stimulants and foliar fertilizers to expand its product portfolio. Considering the positive feedback received from farmers regarding these products, the company will continue to invest in this direction in the coming years, estimating significant growth in this business area.

“We see significant potential in the development of the grain storage business line, especially in the context of the geopolitical conflict in Ukraine, which has significantly increased the demand for grain storage in Romania. As the war in Ukraine persists, and its effects will continue in the coming years, we intend to expand in this segment as well. This investment will significantly impact our results in the coming years and will also bring benefits to our future shareholders,” added Daniel Baja.

The company intends to carry out a private placement for its shares this year to raise approximately 10 million lei through a capital increase operation to expand its activities nationwide. The capital raised will be used for investments in certified seed production and processing line under its brand, purchase of a micro-farm that will ensure the flow of its seed production and the test of the products from its portfolio, and investments in developing grain storage capacity.