Agricover Holding S.A. increases the share capital of its subsidiaries with an investment of 63 million lei
The General Meeting of Shareholders of Agricover Holding S.A. approved the financial statements for 2019 and decided to increase the share capital of its subsidiaries Agricover Credit IFN and Abatorul Periș S.A. by RON 10 million for each company, thus reaffirming the shareholders' commitment to the sustainable development of the Group's business, even in the context of the negative economic impact generated by the COVID-19 pandemic.
With this decision, the equity capital of Agricover Credit IFN is increased by 46.8 million lei, representing the net profit achieved in 2019, amounting to 36.8 million lei, fully reinvested, plus the amount of 10 million lei, additionally allocated by Agricover Holding S.A. For Abatorul Periș S.A. the increase in share capital provides continuity to the subsidiary's business strategy and support for the completion of investments in the acquisition of high-performance equipment for environmental protection and increased production capacity.
"The excellent results achieved at Group level led us to decide to reinvest the entire profit obtained in equity to ensure continuity in the development of our innovative business model. The post-pandemic period will produce long-term changes on several levels, and we need to be prepared, to be one step ahead, in order to be able to offer our farmer partners concrete solutions, adapted to the new conditions," said Liviu Dobre, Managing Director, Agricover Holding S.A.
Agricover Credit IFN, the leading financial institution dedicated to the direct financing of Romanian agriculture, granted loans to a total of 3,434 farmers last year, up 23% compared to 2018.
Agricover S.A., a company specializing in the distribution of agricultural inputs, continued to increase the number of clients, reaching a portfolio of 6,362 farmers, continuing the upward trend of recent years.
Abatorul Periș S.A., a subsidiary of Agricover Holding S.A., established in March 2019, owns the most modern pork processing plant in Romania, the second largest in the country, with a slaughtering capacity of over 500,000 pigs per year. Abatorul Periș S.A. has over 600 employees, operates its own chain of 23 retail stores in Bucharest and its surroundings, actively supports over 46 pig farms in Romania and has partnerships with the most important commercial chains in the country. Since its takeover by Agricover in 2015, Abatorul Periș S.A. has benefited from investments of more than 100 million lei, and the production unit has gone through a continuous process of modernization and re-technologization of processing lines, expansion of production capacity and acquisition of a specialized logistics infrastructure to meet the highest standards of food safety and operational efficiency.
Agricover Group's development strategy is based on anticipating the needs of farmers, who are undergoing a complex evolutionary process, continuously optimising the portfolio of products and services for them and developing strategic partnerships.
In October 2019, ADAMA Agriculture BV, a member of the Syngenta Group, one of the recognized global leaders in the production of crop protection products, purchased a minority stake representing 10% of the share capital of Agricover S.A. In November 2017, the European Bank for Reconstruction and Development (EBRD) became a shareholder of Agricover Holding S.A. with a 12.7% stake.
About Agricover Holding S.A.
With over 20 years of activity, Agricover Group is the main player in the Romanian agribusiness. Agricover Holding S.A. is the majority shareholder and investor in Agri-Business, Agri-Finance and Agri-Food activities, carried out through its subsidiaries: Agricover S.A., Agricover Credit IFN and Abatorul Periș S.A. With a strongly integrated and original business model, Agricover Group is the key link that supports the efficiency of the entire agricultural value chain, offering specialized solutions for the development of Romanian farmers' businesses. Currently, more than 1,050 employees work in Agricover Holding S.A. subsidiaries. The group serves a portfolio of more than 6,500 farming clients, who exploit more than 2.4 million hectares of arable land nationwide. For more references visit www.agricover.ro.