February 10 (SeeNews) - Romanian farming products retailer Agroland [BSE:AG] plans to invest 17 million lei ($3.9 million/ 3.4 million euro) in expansion and upgrades this year, it said on Thursday.
The investments will focus on the opening of new stores, expanding the poultry business, modernizing the fodder factory in Caransebes, and developing the online store, Agroland said
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In addition to these investments, Agroland plans to invest in the installation of photovoltaic panels and other renewable energy solutions at its stores, warehouses, and farms. The medium-term goal in this direction is for all Agroland business lines to significantly reduce their carbon footprint by using green energy.
In 2022, the company expects the sales of the 12 Agroland MEGA stores that opened last year to grow as these locations reach their maturity. At the same time, Agroland plans to open 10 more new MEGA stores this year and aims for a double turnover generated by them compared to 2021. In addition, the company intends to open another 10 new traditional Agroland stores.
In terms of store performance in 2022, the traditional stores are expected to contribute 60% to the turnover generated by the retail business line, and MEGA stores will contribute 40%.
Agroland also targets online sales of approximately 10 million lei, an increase of 65% compared to 2021. To reach this figure, the company will invest heavily in developing the online platform.
For the Mihailești poultry farm, the company envisages expanding the production capacity of day-old chicks to 1,000,000 hatching eggs per month and increasing the production capacity of eggs for consumption to a minimum of 180,000 eggs per day. Agroland expects a 50% increase in revenues from this line of business in 2022.
For 2022, Agroland Business System targets a net profit of 13 million lei on a turnover of 241 million lei.
Agroland Business System is a Romanian entrepreneurial company, which owns the largest network of agricultural stores in Romania. The company was founded in 2009 in Timișoara by the entrepreneur Horia Cardoș and today operates a network of 250 stores specializing in the sale of the garden, farm, and pet products. The company also owns the Avicola Mihailesti platform, where it produces table eggs and one-day-old chicks.
Agroland' Business System shares traded 0.26% lower at 3.79 lei as at 1008 CET on Thursday on the Bucharest bourse.
(1 euro=4.9459 lei)