Business Forum • 26 February, 2025 at 12:09 PM
Holde Agri Invest SA, one of the largest farmland operators in Romania, posts preliminary revenues of RON 107.1 million in 2024, an 8% increase compared to the same period last year. Over the past year, the company operated a total area of 16,321 hectares, up 19% from 2023, of which 1,759 hectares were cultivated under organic farming practices.
"For Holde Agri Invest, 2024 was a year of restructuring and adaptation. Since the beginning of autumn 2024, we have implemented operational efficiency measures, strict cost control, and suspended expansion plans to focus on stabilizing our existing operations. Currently, at the management team level, we have a clear recovery strategy centered on increasing productivity and implementing solutions that will stabilize the company in the medium term while laying a solid foundation for long-term growth. Our focus will be on improving agricultural productivity, reducing operational costs, and diversifying funding sources to strengthen the company's position in Romania's agricultural market. Although challenges will not disappear overnight, we believe that the measures implemented and our team's determination will enable Holde Agri Invest to gradually return to a path of sustainable growth. I want to thank all our shareholders for their trust during this challenging period. We remain committed to building an efficient, resilient business model capable of generating long-term value," stated Bogdan Serghiescu, CEO of Holde Agri Invest.
In 2024, the farms within Holde's portfolio cultivated conventional wheat, rapeseed, sunflower, corn, peas, potatoes, sugar beet, and barley, as well as organic wheat, peas, and sunflower. The group achieved a total production of 51,538 tons in 2024, of which 2,712 tons came from organic crops, compared to a total production of 56,550 tons in 2023. The autumn crop campaign for the 2023-24 agricultural year yielded a total of 30,608 tons, down 21% from the same period last year, of which 1,818 tons were from organic crops, marking a 5% increase. Production levels were negatively impacted by unfavorable weather conditions, including a lack of rainfall and soil drought.
The EBITDA indicator for 2024 amounted to RON 3.3 million, compared to a negative value of RON 9.7 million in 2023, with the improvement mainly driven by a significant reduction in production costs, primarily due to lower input costs, particularly fertilizer expenses. Another contributing factor was the optimization of logistics costs compared to 2023, achieved by using more cost-effective alternatives such as barge and rail transport instead of road transport. Additionally, the number of employees was reduced through production process optimization and the completion of the integration of farms acquired in 2023.
The net loss of RON 23.8 million recorded in 2024 represents a 30% reduction compared to 2023, primarily due to lower operating expenses, cost optimization, and workforce reduction.
The year 2024 was one of the most challenging in Holde Agri Invest's recent history and for Romania's entire agricultural sector. Romanian agriculture has been significantly impacted by a combination of external and internal factors over the past two years, putting pressure on farmers and industry operators. Major challenges included the sharp increase in fertilizer prices in 2022, followed by the decline in agricultural product prices in 2023, which failed to cover production costs. In 2024, the drought affecting southern Romania severely impacted all five Holde Agri Invest farm core farms, further worsening the group's situation.