Agricover posts mixed results amid challenging context for local agriculture sector

Agricover, one of Romania's leading agricultural groups, has reported higher financial results for its Agrifinance arm but lower revenues for the Agribusiness division in the first half of 2024 amid mixed market conditions.

Agricover Finance IFN reported substantial growth, with loans and advances granted to local farmers reaching RON 3.36 billion (EUR 676 mln), reflecting a 15.7% increase compared to December 2023. This expansion was accompanied by a 6.2% rise in the number of clients and a 7.1% increase in average exposure per client.

Profit before tax for this segment rose by 4.7% compared with the first half of 2023 to RON 60.2 million.

Agricover Finance currently holds a 7.2% share of the total financing for the local agriculture sector.

Agricover's Agribusiness division generated RON 807 million in revenue, a decrease of 23.8% from the previous year. This decline was largely due to lower agricultural commodity prices and reduced demand for inputs, influenced by difficult macroeconomic and weather conditions.

Despite this, Agricover maintained strong relationships with over 10,000 farmers, ensuring continued support for their evolving needs.

In line with its commitment to innovation, Agricover launched a fully digital credit service targeted at small farmers managing areas between 10 and 100 hectares. This initiative, part of the broader My Agricover platform, allows farmers to quickly and easily access financing, thereby enhancing operational efficiency and customer loyalty.

(Photo source: the company)