May 25 (SeeNews) - Romanian farming products merchant Agroland Agribusiness [BSE:AAB] posted 838,500 lei ($181,000/169,600 euro) profit in the first quarter of 2022, up 110% on the year, it announced on Wednesday.
Agroland Agribusiness revenues soared by an annual 86% to 15.9 million lei during January-March, the company said as part of a report filed to the Bucharest Stock Exchange, BVB.
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The increase in revenues was determined by a 42% appreciation of revenues from the sale of goods, which reached 18.3 million lei, while the commercial discounts granted halved, reaching 2.3 million lei. In the current context of rising inflation, which has led to increasing costs of raw materials, energy, and utilities, prices have also been increased in agribusiness, and the discounts offered by the company to clients have fallen in line with the market, the company added.
Agroland’s Agribusiness EBITDA more than tripled on the year to 1.5 million lei in the first three months of 2022.
"The good results recorded in the first quarter make us confident that we are on the right track in terms of achieving the revenues we promised our shareholders for 2022: net sales of 47.9 million lei, an
EBITDA of 4.3 million lei, and a net profit of 3.4 million lei," said Florin Radu, Agroland Agribusiness CEO.
In the first quarter of 2022, the company focused on building stocks for the entire year to be prepared for further price increases caused by several factors, such as unprecedented global inflation, lack of raw
materials and finished goods, and the war in Ukraine.
Agroland Agribusiness is a division of the Agroland group which operates the company’s organic and conventional agricultural input sales, primarily in south-western Romania. Agroland Agribusiness posted a net profit of 2.7 million lei and a turnover of 31.5 million lei in 2021.
Its shares traded 4.90% up at 32.1 lei/share at 10:00 CET on Wednesday, on the BVB.
(1 euro= 4.9457 Romanian lei)