BVB-listed Grup Serban Holding signs deal with Intersnack to supply potatoes for Chio chips

Grup Serban Holding (BVB: GSH), a Romanian agriculture group listed on the Bucharest Stock Exchange’s AeRO market, has signed a contract with Intersnack to supply potatoes for the Chio chips range in Romania. The initial agreement is valid for three years and can be extended afterwards.

In early 2022, Grup Serban Holding also extended its collaboration with PepsiCo, to which it has been supplying potatoes for the Lay’s chips.

“Potato production for industrialization represents one of the differentiators of Grup Şerban in the field of agriculture in Romania. In everything we do, our goal is to achieve excellent product quality and constantly use the most advanced technologies in the field. The partnership with Intersnack Romania means recognizing the quality and efforts made by Grup Şerban in developing potato production and, implicitly, Romanian agriculture,” said Nicolae Şerban, Chairman of the Board of Directors of Grup Şerban Holding.

“This also represents a new opportunity to expand our business and increase financial performance in the medium and long term. Through this partnership, we can ensure a stable and predictable revenue stream, allowing us to plan future investments and develop the business sustainably,” he added.

Amid the growing demand for chips globally, potato cultivation for chips has become an increasingly attractive niche. Although producing such potatoes requires specialized technologies and is costlier, the yields and prices obtained are significantly higher than traditional cereal crops. One hectare of potatoes for chips generates approximately the same level of income as four hectares of cereals or oilseeds. In 2022, the company cultivated approximately 500 hectares of such potatoes.

As part of the partnership with Intersnack Romania, Grup Şerban is set to deliver 5,000 tons of potatoes in the first year, and increase the quantities in the following years.

In 2022, Grup Şerban Holding recorded a consolidated turnover of RON 534 mln (EUR 108 mln), an 11% increase compared to 2021, and a net profit of RON 33.8 mln (EUR 6.85 mln), up 10% compared to 2021. Currently, the company has a market capitalization of approximately RON 300 mln (EUR 61 mln).

(Photo source: Grup Serban Holding)