Holde Agri Invest posts growing production in 2023, an unprecedented year for agriculture in Romania

Holde Agri Invest SA, one of the largest farmland operators in Romania, posts 56,500 tons of production in 2023, up 31% compared to 2022, on a total of 13,725 hectares of operated farmland, up 11% compared to the previous year.

At the level of preliminary financial results, in 2023, the company recorded total revenues of 97 million lei, down 18% compared to 2022, and a net loss of 28.5 million lei.

“2023 tested our limits and presented us with unprecedented challenges that put us in the position of having the first year since our foundation in which we report an accounting loss. The main reasons are related to the very high costs of establishing crops, much lower harvest capitalization prices, but also the lack of protection tools from the state in the context of market interference amid the war in Ukraine, the Russian exports and subsidies granted by other countries, such as Hungary and Poland. However, thanks to our team’s sustained efforts and adaptability, we recorded a notable increase in production and significantly reduced indirect costs per hectare. Therefore, we are confident that the agricultural sector will recover in the coming years, with the support of the state under the pressure of farmers, but also by aligning future prices for cereals with production costs“, stated Liviu Zagan, CEO of Holde Agri Invest.

In 2023, Holde continued to expand the cultivated areas. During this period, a new farm with an area of 980 hectares was acquired, which was added to the Contesti core farm. Holde is forming the fifth core farm, which will be located in a new area and will help the company further reduce the risks associated with weather. In addition, this will be a farm where up to about 2,500 hectares can be irrigated. The new core farm will be taken over with an irrigated area of approximately 700 hectares, so the total irrigated area at the group level will reach approximately 1,000 hectares.

In 2024, Holde’s management aims to grow irrigated corn and potato chips on the new farm, a crop that performed very well in 2023, and the company is receiving more and more requests.

In the financial report on the preliminary results for 2023, Holde presented to the shareholders the company’s strategy, “HOLDE 2030”, through which Holde aims to transform the company into the no.1 farm in Romania in agriculture until 2030. The main objective of HOLDE 2030 is to expand the operated farmland to 60,000 hectares and target a series of key indicators that the company intends to achieve by the end of this decade.

These indicators refer to reaching a turnover of 90 million euros by 2030, an EBITDA of 28 million euros, as well as a net profit of 12 million euros.

“To achieve this objective and implicitly to meet the mentioned key indicators, between 2024 and 2028, additional capital contributions amounting to approximately 25 million euros will be required, as well as the expansion of lending/leasing facilities. These contributions will enable the company to maintain a debt level of 1.5x, thereby maintaining a balance between accelerated growth and financial sustainability. The HOLDE 2030 strategy is based on two main pillars: scaling and a focus on efficiency. By increasing the operated farmland, Holde Agri Invest will consolidate its market position and achieve significant economies of scale. At the same time, by paying more attention to operational and technological efficiency, we aim to optimize costs and increase productivity on each hectare of land,” added Liviu Zagan.

According to this strategy, management expects that between 2029 and 2030, the company will have a cash position of approximately EUR 10 million, allowing Holde to choose between debt repayment or dividend distribution to Holde shareholders. This financial flexibility is essential to ensure the company’s long-term sustainability and to provide added value to all stakeholders.

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. The consolidated preliminary financial results of Holde Agri Invest are unaudited.

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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 13,700 hectares of farmland, organized into four cores – Rosiori farm located in Rosiori de Vede (Teleorman county), Frumusani (Calarași county), Videle (Teleorman county) and Contesti (Dambovita 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, having the second largest weight.