Agroland Agribusiness posts revenues of RON 57.1 million in 2023

"2023 was a challenging year for agribusiness companies, being one of the most unpredictable in the last 15 years. Factors such as farmers' lack of cash, which caused declines in the acquisition of inputs, especially fertilizers, the accelerated decline in the selling price of fertilizers, which affected the margins, and the doubling of the transport price during the autumn campaign negatively influenced both the revenues as well as the profitability of the company. Through our commercial policy, which aims to limit sales to customers with delayed payments until the debt is recovered, we managed to reduce the risk of non-collection of receivables, which increased by only 4% throughout 2023. This is due to the collection of approximately 97% of the receivables related to the agricultural year 2022/2023 until the end of 2023, assuming that the collection of debts will reach a similar level this year. Despite these below-expected results in 2023, the company's financial situation continues to be stable, ending 2023 with a cash position of RON 2.1 million, but also with a decrease of RON 3 million in total liabilities compared to the beginning of the year, " stated Florin Radu, CEO of Agroland Agribusiness.

Regarding the revenue split by category, in 2023, the largest share in the turnover was represented by the grain trading activity, which increased by 25% compared to the previous year, up to RON 20.5 million. The increase in revenue occurs even in the context of falling grain prices, with the amount traded being 90% higher in 2023 than the previous year.

Revenues from the sale of fertilizers reached RON 16.8 million in 2023, down 43% compared to the previous year, due to farmers' low liquidity. The pesticides category registered a 13% appreciation to RON 16.5 million, while input seeds generated revenues of RON 9.9 million, a 6% increase compared to 2022. Sales of input fuel increased by 32% in 2023, reaching RON 458 thousand.

"For the following period, there are several reasons for optimism in the agricultural sector. First, autumn crops are promising amid the soil recovery in most areas of the country. Second, fertilizer and grain prices have stabilized with no major oscillations, which gives all players in the field greater predictability. The authorities also promise additional subsidies for disadvantaged farmers in areas with extensive drought or those affected by the low grain prices from Ukraine. Thus, analyzing all the factors with a potential impact on this sector, we are confident that the 2023/2024 agricultural year will be more stable and profitable than the previous one", added Florin Radu.

In 2023, Agroland Agribusiness invoiced 511 customers, 3% less than in 2022, due to the slower collection of receivables in the last part of the year. However, considering the increase in average volumes sold to existing customers, this decrease had a limited impact, particularly on pesticides and input seeds.

Agroland Agribusiness shares are listed on the AeRO market of the Bucharest Stock Exchange as of June 15, 2021, and are traded under the AAB symbol. Currently, the company has a market capitalization of approximately RON 23 million.