Holde Agri Invest posts total revenues of 80 million lei for the first nine months of 2024

Holde Agri Invest SA, one of Romania’s largest agricultural land operators, posts revenues of 80 million lei for the first nine months of 2024, marking a 5% increase compared to the same period last year. During this timeframe, the company managed a total of 16,321 hectares, a 24% increase compared to 9M 2023, out of which 1,759 hectares were cultivated under organic farming practices.

“The results for the first nine months confirm that the measures announced this autumn are starting to positively impact our financial performance. Reduced losses, improved EBITDA, and lower operational costs are the first signs of recovery, aligned with the strategy announced at the beginning of October this year. Temporarily suspending expansion plans and focusing on optimizing existing activities have allowed us to stabilize our financial situation in an exceptionally challenging context for the agricultural industry. Furthermore, the support of our financial partners and the commitment of our team in implementing these measures are vital to this recovery process. Looking ahead, our primary goal is to maintain this positive trajectory and ensure a sustainable return to profitability. We will continue to focus on prudent decisions that directly impact financial results while preparing the company for new growth opportunities when the context becomes favorable,” stated Iulian Circiumaru, Chairman of the Board of Directors of Holde Agri Invest.

During the first nine months of the year, Holde’s farms cultivated wheat, rapeseed, sunflower, corn, peas, potatoes, sugar beet, and barley under conventional farming practices, as well as wheat, peas, and sunflower under organic farming practices. In 2024, the group achieved a total production of 51,310 tons, including 2,720 tons of organic crops, compared to a total production of 56,550 tons in 2023. The autumn crop campaign for the 2023-24 agricultural year yielded a total harvest of 8,523 tons, down by 51% compared to the same period last year, including 420 tons of organic crops, representing a 12% decrease. The yields were negatively impacted by unfavorable weather conditions, such as lack of rainfall and soil drought.

The company recorded EBITDA of 3 million lei in the first nine months of 2024, compared to a negative value of 12.8 million lei as of September 30, 2023. This improvement was primarily driven by a significant reduction in production costs, particularly fertilizer costs. Additionally, the company optimized logistical costs compared to 2023 by employing more cost-effective alternatives such as barge and rail transport instead of road transport. The number of employees was also reduced through production process optimization and the completion of integration efforts for farms acquired in 2023.

The net loss of 16.1 million lei recorded in the first nine months of 2024 represents a 30% reduction compared to the same period last year, primarily driven by lower operating expenses, operational cost optimization, and workforce reductions.

For the final quarter of the year, based on the information currently available, the company estimates that it will conclude 2024 with a total agricultural land area under operation of 16,321 hectares, operating revenues between 95 and 100 million lei, and positive EBITDA ranging from 5 to 7 million lei.

In October this year, Holde Agri Invest’s management announced the implementation of concrete measures aimed at the group’s recovery and ensuring its long-term positive development. These measures were introduced in response to the significant challenges faced over the past two years, during which agricultural companies in Romania, including Holde Agri Invest, encountered overlapping crises that led to substantial losses and decapitalization. While the measures taken by the management team have already begun to show effects, their full implementation requires additional time, with the major impact expected to be felt in 2025.

Holde Agri Invest’s shares are listed on the AeRO market of the Bucharest Stock Exchange since October 1, 2020, trading under the ticker symbol HAI.

###

Despre 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.