Romanian listed farm operator Holde Agri Invest posts EUR 9.6 mln revenues from 7,800 hectares of land

Romanian group Holde Agri Invest (HAI), a farming business that listed its shares on the Bucharest Stock Exchange's AeRO market in 2020, recorded consolidated operating revenues of RON 46.8 mln (EUR 9.6 mln) last year. The revenues went up 4.8 times compared to 2019, driven by the group's acquisitions.

Holde also posted a net profit of RON 5.3 mln (EUR 1.1 mln) compared to RON 4.5 mln losses in 2019.

Last year, the company harvested 24,003 tons of crops from the exploitation of 7,830 hectares, of which 2,320 hectares were cultivated with organic crops.

"The year 2020 has been transformational for Holde Agri Invest and our shareholders. Despite the challenging local and global context, the results we present today surpass our initial forecast. We came to the market with a promise – to become one of the largest farming companies on the local market and, at the same time, to do modern, profitable agriculture. We are already delivering upon this promise," said Liviu Zagan, CEO of Holde Agri Invest.

"For 2021, our goal is to continue the development of Holde and to reach a turnover of RON 52 million. Consequently, this spring, we will begin the share capital increase operation to raise RON 20 million from our existing as well as new shareholders," he added.

In 2020, Holde registered consolidated revenues of RON 27.3 million from the sale of crops. In 2021, the sale of agricultural products from the remaining 2020 harvest generated additional revenues of RON 3.5 million. Out of a total harvest of 24,003 tons, Holde produced 3,400 tons of organic sunflower, wheat, corn, peas, while the rest were conventional crops such as rapeseed, wheat, corn, sunflower, peas, soybeans.

In 2020, capital expenditure amounted to RON 7.7 million (EUR 1.6 mln), and it included investment in technology start-up AgroCity, acquisition of machinery and farm equipment, and arrangement for storage capacity. Moreover, the company invested RON 37.4 million (EUR 7.7 mln) in acquisitions that contributed to the business expansion, increasing the surface of operated land from 2,800 hectares to 9,250 hectares in just a few months. At the end of 2020, the company operated three farms near Bucharest - Rosiorii de Vede, Videle, and Frumusani.

The 2020 investment program amounted to RON 45 million (EUR 9.3 mln). The company financed it with two private share placements carried out in December 2019 and June 2020, totaling RON 22 million (EUR 4.5 mln), complemented with bank loans and financial leasing contracts.

"Last year was intense for Holde. Apart from cultivating the land, we successfully integrated new farms, invested in their modernizations, and floated the HAI shares on BVB. 2021 will be at least the same intensity. In the context of our development projects and new acquisitions, we plan to attract in the next weeks fresh capital from investors. Out of the RON 20 million that we want to raise from investors, we estimate that we will invest approximately 70% of capital in expanding the land surface. The remaining 30% will be used for modernizing our existing farms," said Iulian Circiumaru, President of the Board at Holde Agri Invest.