At the level of preliminary financial results, in 2023, the company recorded total revenues of RON 97 million, down 18% compared to 2022, and a net loss of RON 28.5 million.
"2023 tested our limits and presented us with unprecedented challenges that put us in the position of having the first year since our foundation in which we report an accounting loss. The main reasons are related to the very high costs of establishing crops, much lower harvest capitalization prices, but also the lack of protection tools from the state in the context of market interference amid the war in Ukraine, the Russian exports and subsidies granted by other countries, such as Hungary and Poland. However, thanks to our team's sustained efforts and adaptability, we recorded a notable increase in production and significantly reduced indirect costs per hectare. Therefore, we are confident that the agricultural sector will recover in the coming years, with the support of the state under the pressure of farmers, but also by aligning future prices for cereals with production costs", stated Liviu Zagan, CEO of Holde Agri Invest.
In 2023, Holde continued to expand the cultivated areas. During this period, a new farm with an area of 980 hectares was acquired, which was added to the Contesti core farm. Holde is forming the fifth core farm, which will be located in a new area and will help the company further reduce the risks associated with weather. In addition, this will be a farm where up to about 2,500 hectares can be irrigated. The new core farm will be taken over with an irrigated area of approximately 700 hectares, so the total irrigated area at the group level will reach approximately 1,000 hectares.
In 2024, Holde's management aims to grow irrigated corn and potato chips on the new farm, a crop that performed very well in 2023, and the company is receiving more and more requests.
In the financial report on the preliminary results for 2023, Holde presented to the shareholders the company's strategy, "HOLDE 2030", through which Holde aims to transform the company into the no.1 farm in Romania in agriculture until 2030. The main objective of HOLDE 2030 is to expand the operated farmland to 60,000 hectares and target a series of key indicators that the company intends to achieve by the end of this decade.
These indicators refer to reaching a turnover of €90 million by 2030, an EBITDA of €28 million, as well as a net profit of €12 million.
"To achieve this objective and implicitly to meet the mentioned key indicators, between 2024 and 2028, additional capital contributions amounting to approximately €25 million will be required, as well as the expansion of lending/leasing facilities. These contributions will enable the company to maintain a debt level of 1.5x, thereby maintaining a balance between accelerated growth and financial sustainability. The HOLDE 2030 strategy is based on two main pillars: scaling and a focus on efficiency. By increasing the operated farmland, Holde Agri Invest will consolidate its market position and achieve significant economies of scale. At the same time, by paying more attention to operational and technological efficiency, we aim to optimize costs and increase productivity on each hectare of land," added Liviu Zagan.
According to this strategy, management expects that between 2029 and 2030, the company will have a cash position of approximately €10 million, allowing Holde to choose between debt repayment or dividend distribution to Holde shareholders. This financial flexibility is essential to ensure the company's long-term sustainability and to provide added value to all stakeholders.
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 consolidated preliminary financial results of Holde Agri Invest are unaudited.
