Biggest farm in Romania sees record profit in 2021
Agricost, an agricultural company that operates the biggest farm in Romania, increased its turnover and profit in 2021 and maintained a net profit margin of about 20%.
The company reported a record net profit of RON 97.58 million (EUR 19.4 mln) in 2021, almost 10% higher compared to the previous year.
Its turnover went up 18% year-on-year to RON 486 mln (close to EUR 100 mln), the highest level on record, according to public data from the Finance Ministry.
Agricost operates in concession the most fertile farmland in Romania, located on an island on the Danube, known as Insula Mare a Brailei (Great Braila Island). The company works a compact area of 56,000 hectares of land and the concession contract is valid until 2032.
In 2018, the Emirati group Al Dahra took over Agricost from Romanian businessman Constantin Dulute in a deal estimated at EUR 200-250 mln. At that time, the new owner announced it would invest EUR 500 mln within five years in modernizing the business.
Agricost traditionally produced grain and oilseeds its annual production amounting to some 500,000 tons, or close to 5% of Romania’s total seeds production.
The new owners invested in modernizing the farms and decided to diversify the production by producing fodder for sheep. By October 2021, Al Dahra’s investments in Agricost amounted to EUR 120 million, of which EUR 65 mln went into three alfalfa processing plants, according to Ziarul Financiar.
Between 2018 and 2021, Agricost recorded a total turnover of RON 1.65 bln (EUR 335 mln) and net profits of RON 355 mln (EUR 72 mln). Its net profit margin in this period was over 20%, making it one of the most profitable agriculture businesses in Romania.
(Photo source: Al Dahra company blog)