Agricover Holding, the main player in Romanian agribusiness, reports revenues for 2017 of RON 1.43 billion obtained from the sale of specialized products and services, including the financing of farmers, carried out through the subsidiaries Agricover SA and Agricover Credit IFN. Agricover SA is a newly created legal entity in November 2017 following the merger by absorption of Agricover SRL and Cerealcom SA into the former Agricover SA entity.
Agricover Holding brings together Agri-Business activities (distribution of inputs for agriculture, sowing and grain and oil trade), Agri-Finance (farm financing services) and Agri-Food (slaughtering, processing and marketing of meat pig).
Financial information at 31 December 2017:
- Turnover: RON 1.43 billion
- EBITDA: RON 57.1 million
- Net profit: RON 29.6 million
- Investment value: RON 23.7 million
- Number of partner farmers: 4.750.
By the end of 2017, the EBRD became a shareholder in Agricover Holding SA with a RON 32 million investment in the company’s capital to subscribe almost 13 percent. The capital increase was directed to Agricover Credit IFN and Agricover SA in order to support the performance of the three main business pillars by: increasing the funding provided to farmers, expanding the agribusiness (development of inputs and grain utilization) and developing investment in processing pork meat.
One of the innovative solutions from 2017, very well received by partner farmers, was the sale of paid-for-sale diesel. This unique facility offered to farmers was a strong point of differentiation that generated a 55 percent increase in the volume of traded diesel, reaching 55,000 cubic meters delivered. Regarding the trade and storage of cereals and oilseeds, Agricover has continued the strategy of streamlining and developing strategic partnerships with local processors interested in long-term storage and maintaining a high quality of stored goods.
In 2017, Agricover provided funding worth RON 1.37 billion to 2,350 farmers. The 39 percent increase in the volume of credits granted confirms that Romanian agriculture needs specialized and innovative lending solutions to develop and increase performance. One of the novelties of the year 2017 was to complement the specialized financing solutions with products dedicated to animal husbandry, especially for cows and dairy cows.
Continuing to invest in its own slaughterhouse
Agricover acquired 345,150 pig heads from the Romanian producers in 2017, and more than 80 percent of the purchased pigs were slaughtered in their own pork processing unit. The company started the slaughtering and processing of pork in 2015 after a large investment program in the Periş production facility. The investments made in 2017 exceeded RON 19 million and in the investment program for 2018 the company will allocate another RON 20 million.
Fresh pork products are made available to the end consumer through both large retail chains and Agricover’s own retail network. In 2018, the company plans to expand its sales network to a total of 30 stores located in the main consumer areas in Bucharest and surrounding areas.
For the year 2018 Agricover will continue to support the development of agriculture by continuously expanding its portfolio of innovative solutions and facilitating farmers’ access to specialized services and products. The company aims to continue the growth rate achieved in 2017 by increasing the volume of business and the number of customers especially in the small and medium-sized farmers segment.