"The first half of this year brought a fluctuating development of the agricultural sector in Romania, although the first quarter looked very promising, with cereals and rapeseed starting to grow well, which offered the premises for very good yields. Subsequently, spring crops were planted under good climatic conditions and also made a good start to vegetation. However, as a result of low cereal prices, there was a major reluctance on farmers' side in Q1 2024 to use more advanced technologies. During the second quarter, drought and heat waves affected all crops, both fall crops, which had lower yields per hectare than expected, and spring crops. Despite the unfavorable developments in the agricultural sector, due to business strategies tailored to the current needs of farmers, our company registered an increase in revenues and profits compared to 2023. All revenue categories showed a positive trend, although the increases were marginal due to the difficult financial situation of farmers," stated Florin Radu, CEO of Agroland Agribusiness.
Regarding the revenue of Agroland Agribusiness split by category, in the first semester of 2024, the largest share in turnover was the sale of pesticides, which increased by 4% compared to H1 2023, to RON 12 million. Revenue from the sale of fertilizers reached RON 10.7 million, up 10% compared to the same period last year.
Input seeds recorded sales of RON 7.5 million, a 10% increase compared to the first six months of 2023. In addition, grain trading activity generated sales of RON 4.9 million, +4%, while input fuel sales increased by 4% compared to H1 2023 to RON 216,000.
For the coming period, Agroland Agribusiness will focus on improving internal processes, strengthening its geographic presence and expanding its area of activity in the western part of Romania. In terms of product portfolio, the company will continue to bring new products to the Romanian market, with technological solutions adapted to the specific Romanian market and climate. Starting this year, through collaborations with the farmers in its portfolio, the company will start the production of its own genetics with exclusive varieties of cereal straw - wheat, barley and triticale.
"Although the situation of the agri-food sector in Romania remains precarious as a result of the prolonged drought, there are still opportunities that we have not exploited so far and that will become a priority in our future strategy. We are confident that, despite all these external influences, the Romanian farmer is looking for solutions and products that will enable him to face the current challenges. In this respect, we are meeting their needs again this year with solutions that are adapted and adaptable to the new pedoclimatic conditions, both in terms of genetics-seeds and inputs. We already have the necessary experience to properly navigate through this volatile period for farmers and we will continue to support our customers in achieving profitable crops," added Florin Radu.
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.
Agroland Agribusiness is a Romanian entrepreneurial company specializing in selling inputs for agriculture. The company is currently active in the southern part of the country, namely in the counties of Dolj, Olt, Mehedinti, Arges, Teleorman, Valcea, Gorj, Dambovita, Ilfov, Ialomita, Giurgiu, Calarasi, Tulcea, Braila and Constanta. The main agricultural inputs sold by Agroland Agribusiness are fertilizers, pesticides, seeds, and fuels. Thus, the company trades the entire set of inputs needed by farmers. On a secondary level, Agroland Agribusiness is also involved in grain trading. It purchases grain from farmers and sells it to large traders who operate only in fixed points or ports.
