Agricover SA - revenues of 1.64 billion lei and net profit of 13.2 million lei for 2018

Agricover SA, a subsidiary of Agricover Holding, reports for 2018 revenues of 1.64 billion lei and a net profit of 13.2 million lei from Agri-Business (distribution of agricultural inputs, silage services and trade in cereals and oilseeds) and Agri-Food (slaughtering, processing and marketing of pork) activities.

Agricover SA is a newly created legal entity created in November 2017, following the merger by absorption of Agricover SRL and Cerealcom SA into the former entity Agricover SA.

Financial information as at 31 December 2018*:

Turnover: 1.64 billion Lei
EBITDA: 44.9 million Lei
Net profit: 13.2 million Lei
*According to the financial statements of Agricover SA as at 31.12.2018 prepared in accordance with International Financial Reporting Standards (IFRS).

Agricover's strategy in terms of Agri-Business operations was aimed at increasing market share and streamlining activities from an operational-logistical point of view. In 2018 the company recorded a 25% increase in the number of farmer customers.

In order to respond efficiently to the demands of its customers, the company has developed the most efficient logistics network in Romanian agribusiness. Thus, in 2018 Agricover completed the implementation of logistics projects aimed at reducing response time and ensuring prompt delivery of products needed by farmers. The company inaugurated a state-of-the-art central warehouse with an area of 6000 sqm and, at the same time, expanded the national warehouse network reaching a total storage area for seeds and phytosanitary products of 22,000 sqm. At the same time, Agricover invested in automation of operations by implementing a high-performance IT system for stock management in the national network of warehouses.

With a complete portfolio of inputs - plant protection products, seeds, fertilizers, diesel, innovative solutions aimed at making the production cost of partner farmers more efficient and an extensive commercial team covering the whole country, Agricover has consolidated its leading position in the agricultural inputs market.

Agri-Food operations - slaughtering, processing and marketing of pork meat - recorded a 49% increase in volume, reaching 390,500 pigs processed in its own production unit in Peris.

The Peris slaughterhouse markets fresh pork meat and products in most of the retail chains operating in Romania, as well as through its own network of shops located in the main consumer areas in and around Bucharest.

Development directions for 2019

Given the specificity of the Agri-Business and Agri-Food activities, since 2018 the company took the decision to split the two operations by setting up a new legal entity - Abatorul Peris SA - which will take over the pig meat processing and marketing activities.

The objective of this step is to establish a sound foundation for the further accelerated development of the two activities based on specific strategies and objectives and efficient management of the operations. The demerger process was completed in early April 2019.

For 2019, the newly established company Abatorul Peris SA aims to continue its investment plan to streamline the production activity, optimize the product portfolio and distribution channels, thus aiming at further profitable growth of the business.

As for the Agri-Business operations, still carried out under Agricover SA, the company aims to continue its healthy growth by expanding its portfolio of specialized solutions, both for the development of new business areas and to further ensure the efficiency of the cost of production of partner farmers.

About Agricover

Agricover SA is a subsidiary of Agricover Holding - the main player in Romanian agribusiness, with over 19 years of activity in this field. The Holding also includes Abatorul Peris SA, a new entity established in April 2019 for the purpose of carrying out Agri-Food operations within the group, and Agricover Credit IFN SA, through which the Agri-Finance activity is carried out.

With a strongly integrated business model, Agricover is a key link supporting the efficiency of the entire value chain in agriculture, providing specialized solutions for the development of farmers' businesses in Romania.

In 2017 the EBRD became a shareholder in Agricover Holding SA, with an investment of 32 million lei (equivalent to €7 million) in the company's capital to subscribe a stake of almost 13 percent.

Currently, more than 1,000 employees work in Agricover Holding's subsidiaries. In 2018, Agricover Holding's subsidiaries served more than 5,700 farmer customers operating over 1.9 million hectares of arable land nationwide.