Romania's Agroland Agribusiness 2023 net profit down 56%

Agroland Agribusiness' sales fell by 10% to 57.1 million lei in 2023 due to a drop by 40-50% in fertiliser prices, the company said in a preliminary financial report filed with the Bucharest Stock Exchange.

The highest share in sales in 2023 was generated by the grain trading category, which rose 25% to 20.5 million lei. The fertilisers category dropped by 43% to 16.8 million lei, while the sale of pesticides increased by an annual 13% to 16.5 million lei in 2023.

Sale of seeds last year generated 9.9 million lei, up by 6%, while fuel sales rose 32% to almost 460,000 lei.

Agroland Agribusiness' earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by an annual 34% in 2023, to 2.65 million lei.

The company is optimistic about the upcoming period in view of the stabilisation of fertiliser and cereal prices. Also, separate routes and terminals in the Port of Constanta introduced for Ukrainian cereal in 2024 will alleviate congestion and associated costs for Romanian exports, the CEO of Agroland Agribusiness, Florin Radu, was quoted as saying.

The company's shares traded flat at 4.08 lei by 1607 CET on Wednesday, bourse data showed.

(1 euro=4.9767 lei)