Agroserv Mariuta (BVB: MILK ), a Romanian agricultural company and owner of the Laptaria cu Caimac brand, posts sales of 54.9 million lei in the first nine months of 2022, a slight increase of 4% compared to the same period last year and a net loss of 1 million lei compared to a net profit of 3.4 million lei in 2021, amid challenges such as rising energy and fuel prices, as well as inflation.
However, the net result for the first nine months of the year is improved compared to that of the first half of 2022, when the company recorded a net loss of 1.4 million lei.
“During the first nine months of the year, we faced a series of challenges that we would not have expected in the worst scenario when we decided to list on the AeRO market of the Bucharest Stock Exchange. The war’s beginning led extremely quickly to a chain of unfortunate events that left and still leave their mark on many businesses in Romania, including ours. So instead of just focusing on developing our business, we had to consider how to mitigate as many of the challenges we had and are facing, such as rising energy prices and fuel, as well as inflation. In addition, our business has also been hit by drought, particularly in the spring, which has led to lower overall agricultural production. Considering all these aspects, the results for the year’s first nine months are not positive. The current challenge remains to keep costs under control in all business lines and to increase the sales of dairy products”, stated Madalina Cocan, CEO of Laptaria cu Caimac.
The turnover generated by the sale of dairy products, semi-finished products, and goods reached 30.1 million lei, registering the largest contribution to the total turnover in the first nine months of the year. Revenues from the vegetal activity amounted to 14.7 million lei in the first nine months of 2022, following farming an area of just over 2,500 ha. By the end of September 2022, the company recorded a total crop production of 25,753 tons, of which the silage corn crop represented 47%, wheat 17%, corn 15%, and silage rye 10%.
The revenue from livestock farming recorded a value of 10.1 million lei, mainly due to the sale of raw milk, 7.8 million lei, followed by the sale of animals, 1.2 million lei. In the first nine months of 2022, total milk production was 10.2 million liters, a 1% increase compared to last year. Therefore, the average production in the year’s first nine months was more than 37 tons per day. The peak production of raw milk is between October and April (quarters four and one of the year). The factory used more than half of the farm’s milk production, 58%, up compared to the first half of this year, due to butter production.
“Considering the 2022 context, expenses at the level of our business grew faster than revenues, reaching 78.6 million lei, in the first nine months, due to the significant increase in prices for raw materials and consumables. Although we have been able to pass on some of these costs to customers, the impact is still being seen, and we are still receiving price increases from suppliers, especially those in the EU. As a result, we have had to revise our revenue and expenditure budget for this year through the decrease in turnover from 94.4 to 91.1 million lei, this value also including intra-company transactions. Also, even if we continue to apply strict cost management, this will not be enough, and, thus, we expect to close the current year with a net loss of 1.6 million lei,” added Mădălina Cocan.
In the first nine months of 2022, Agroserv Mariuta opened a new production facility built from the funds obtained from the MILK25E bond issue, which owns the cheese and butter production lines. Also, in August of this year, Laptaria cu Caimac launched Brânza cu Smântână, a 100% natural product that does not contain preservatives, stabilizers, or other additives. By the end of the year, the company plans to launch two more new products.
Agroserv Mariuta is listed on the AeRO market as of May 21, 2021, and currently has a market capitalization of approximately 67 million lei.
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