Holde Agri Invest posts total revenues of 62.5 million lei in first half of 2024

Holde Agri Invest SA, one of the largest farmland operators in Romania, posts revenues of 62.5 million lei in the first half of 2024, up 13% compared with the same period last year. In the first half of the year, the company operated an area of 16,321 hectares, +24% compared to H1 2023, of which 1,759 hectares were farmed organically. Production in the first six months of 2024 was 18,867 tons, lower than the previous year due to extreme drought in the areas where Holde farms are located.

“Holde Agri Invest continues to experience significant challenges, mainly caused by the extreme drought, which has seriously affected production throughout the agricultural industry. In an already difficult context, with this being the second consecutive year marked by challenges, we have to rethink our strategic directions for the future by focusing on long-term solutions that will ensure the sustainability and recovery of the company. Thus, we will temporarily suspend plans to expand our operated areas until liabilities reach a sustainable level and access to capital becomes easier. In addition, we will focus our investments in areas that will generate rapid growth in revenues or cost reductions, such as irrigation and processing infrastructure, and explore consolidation opportunities, including through mergers, to benefit from synergies in the industry value chain,” said Iulian Cârciumaru, Chairman of the Board of Holde Agri Invest.

In the first six months of the year, Holde’s portfolio farms conventionally cultivated wheat, rapeseed, sunflower, corn, peas, potatoes, beetroot, barley, as well as organically cultivated wheat, peas and sunflower. As for the 2023-2024 autumn cropping season, it produced total harvests of 43,621 tons, up 8% compared to the previous crop year, of which 2,300 tons were organic crops. The production was negatively affected by unfavorable weather conditions such as lack of rainfall and soil drought.

The company registered EBITDA of -0.9 million lei in H1 2024, compared to a positive figure of 0.7 million lei in H1 2023, mainly due to one-off expenses generated by the integration of new farms and operated areas. These expenses resulted in a net loss of 12.2 million lei, 40% more than in the same period of the previous year. On the other hand, the company decreased its direct expenses, although the operated area increased, and also recorded a decrease in net debt per unit area.

“The announced changes in the executive team for the CEO and CFO positions, as well as the changes that have taken place within the Board of Directors, reflect our adaptation to new realities and our commitment to support the company’s recovery. In the coming period, we will intensify the Board’s engagement to support the executive team in this endeavor. Although we face challenges, we remain confident in the long-term potential of the agricultural industry and in the Holde project we started more than six years ago. Our commitment to this project is reflected by the investments we have made in the company and the number of shares we have accumulated over the years. Therefore, I want to assure all our shareholders of our responsibility and the fact that we are making every effort to turn the company around“, added Iulian Cîrciumaru.

Agri Invest shares are listed on the AeRO market of the Bucharest Stock Exchange as of October 1, 2020, and are traded under the HAI stock symbol.

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 About Holde Agri Invest

Holde Agri Invest is a company initiated by a group of Romanian entrepreneurs with the objective of developing it to become a leader in the field of agriculture in Romania. Founded in 2018, the company operates over 16,300 hectares of farmland, organized into five cores – Rosiori farm located in Rosiori de Vede (Teleorman county), Frumusani (Calarași county), Videle (Teleorman county), Contesti (Dambovita county) and Salcia (Braila county). As of October 2020, Holde Agri Invest is a public company listed on the AeRO market of the Bucharest Stock Exchange with the symbol HAI. As of October 2021, the company is included in the BET-AeRO index of BVB.