Business Forum • 20 February, 2025 at 1:25 PM
Agroland Agribusiness (BVB: AAB), a Romanian entrepreneurial company, part of the Agroland group, specialized in the sale of inputs for agriculture, posts operating revenues of RON 55.2 million in 2024, down 3% compared to the previous year. At the same time, EBITDA reached RON 3.9 million, a 46% increase compared to 2023, while net profit amounted to RON 2 million, up 90%.
”The year 2024 was marked by significant challenges for Romania's agricultural sector, impacting the entire production and distribution chain. However, through operational optimization, efficient capital management, and the results of investments, our company nearly doubled its net profit and recorded a significant increase in EBITDA. In this way, we strengthened our market position, ensuring a solid foundation for long-term stability and growth. This performance is even more remarkable given that it was achieved under extreme weather conditions, characterized by prolonged drought in some regions and excessive rainfall in others, which had major consequences on crops. The 2024 spring crops were the most affected, covering a total area of 2.2 million hectares, with a particularly strong impact on corn and sunflower production. Despite these difficulties, the financial results confirm our business model and our ability to adapt to the ever-evolving realities of the agricultural industry. In this context, in 2025, we will focus on developing customized solutions for farmers by diversifying our product portfolio and expanding partnerships with suppliers," stated Florin Radu, CEO of Agroland Agribusiness.
Regarding the distribution of Agroland Agribusiness revenues by category, in 2024, the largest share of turnover came from the grain trading activity, which recorded revenues of RON 18.8 million, an 8% decrease due to the decline in agricultural production. The pesticides category generated revenues of RON 17.4 million, a 6% increase compared to 2023.
Fertilizer sales totaled RON 15.4 million, an 8% decrease compared to the previous year, driven by lower prices for these products and farmers' lack of liquidity. Input seed revenues increased by 6%, reaching RON 10.3 million, supported by sales of the company's own genetics cereals, launched in 2024. Revenues from input fuel sales amounted to RON 486,000, marking a 6% increase.
Agroland Agribusiness will operationalize the seed and grain conditioning station in Simian, Mehedinti County, in the first half of this year. Currently, the platform, which includes grain silos, warehouses for fertilizers and fuel, as well as other facilities, is undergoing a modernization process. Once completed, the station will enable the company to process seeds and grains, covering the entire process from cleaning, drying, and sorting to treatment, packaging, and storage.
"We are aware that agricultural market volatility will remain a key factor in 2025, given the economic challenges faced by farmers and the lack of legislative predictability. It is anticipated that more farmers will encounter difficulties in accessing the resources needed for crop establishment and input usage, due to persistent financial constraints and the removal of tax incentives in the sector. However, at this stage, the 2024-2025 agricultural year has favorable prospects, supported by a satisfactory level of precipitation. Additionally, estimates indicate a 7% increase in Romania's grain production compared to 2024, while oilseed production is projected to see a significant 51% increase. Our company will continue to adapt its strategies to support sustainable growth while providing clients with the necessary support to optimize their production and enhance competitiveness. At the same time, the modernization and operationalization of the seed and grain conditioning station in Mehedinti County will enable us to develop our own processing capacity, further strengthening our competitive advantage," added Florin Radu.