Agricover Holding SA reports significant growth in 2024, supported by strategic investments and effective risk management

Key financial results for 2024:

• Consolidated operating profit: RON 92.4 million, +66.5% compared to 2023
• EBITDA in Agribusiness: RON 20.3 million, 3 times higher than RON 6.5 million in 2023
• Net interest margin in Agrifinance: 8.05%, stable compared to the previous year
• Loans and advances to customers: RON 3.17 billion, +9.2% compared to 2023
•  non-performing loan (NPL) ratio: 3.48%, below the market average of 4.7% for SMEs

Bucharest, March 31, 2025 - The Agricover Group, a strategic player in the development of Romanian agriculture, ended 2024 with a significant increase in consolidated operating profit from continuing operations, up 66.5% over the previous year, reaching RON 92.4 million. The performance reflects the group's ability to successfully navigate a challenging market environment, leveraging growth in the financing segment and operational efficiencies in the inputs distribution segment.

In a year marked by drought and difficult macroeconomic conditions, Agricover succeded to consolidate its position on the market, offering farmers financial and technological solutions adapted to the challenges. The results confirm the effectiveness of the strategy adopted and the soundness of the group's integrated business model.

"Throug the solutions offered, Agricover support the performance and adaptability of Romanian farmers in an increasingly complex and dynamic sector. We have supported the expansion of customized financing according to the real needs on the ground, while achieving a solid recovery of margins in the Agribusiness segment. At the same time, we rigorously managed risks, optimized our capital structure and prepared for the challenges of 2025. We remain firmly committed to standing by our farmers and continue to pursue a strategy that anticipates and responds to the needs of our partners," says Liviu Dobre, CEO of Agricover Holding.

The Agrifinance segment continued to grow, with the loan portfolio increasing by 9.2% to RON 3.17 billion. Prudent risk management led to a 32% decrease in net credit losses while the net interest margin remained solid at 8.05%.

After a difficult year in 2023, the Agribusiness segment reports earnings before depreciation and amortization, interest and taxes (EBITDA) of RON 20.3 million, 3 times higher than RON 6.5 million in 2023. This performance was due to an efficient sourcing strategy and cost optimization, amid a stabilization of agricultural input prices. Although farmers faced a significant drop in grain prices and a prolonged drought, Agricover responded with competitive solutions for seeds, crop nutrition and protection products.

Agricover has accelerated its investment in digitalization by launching the "My Agricover" platform, which allows quick access to financing, reduces bureaucracy and facilitates online credit approval in less than 24 hours. My Agricover is an efficient technological solution developed by Agricover to facilitate access to financing for small and micro farmers, who usually have the biggest difficulties in accessing resources.

Outlook to 2025

Agricover will continue to invest in innovation and sustainable growth, focusing on the following strategic directions:

• Expanding financial and digital services to support farmers;
• Maintain prudent risk management to ensure financial stability;
• Optimize the capital structure to support future expansion;
• Accelerating digital transformation to make services more efficient and accessible.

About Agricover

Agricover is a benchmark in the agricultural sector in Romania, serving almost 10,000 farmers nationwide. With 25 years of experience in the field and an entrepreneurial approach to business development, Agricover generates innovative solutions that transform both the business and the lives of farmers in the long term.

Agricover Holding include:

• Agricover Credit IFN, one of the largest non-banking financial institutions in Romania, specialized in financing farmers' operations and investments;
• Agricover Distribution and Agricover Commodities, companies specialized in the distribution of agricultural inputs - fuels, certified seeds, as well as products for plant protection and nutrition.