Holde Agri Invest SA, a Romanian company that exploits agricultural land, reports revenues of 38.2 million lei in the first half of 2022, up 157% compared to the same period last year. In the first half of the year, the company carried out investments totaling 19.8 million lei, financed from its own sources and borrowed capital, in the modernization of existing farms and the expansion of exploited areas. In the first six months of 2022, the company farmed a total area of 12,300 hectares, an increase of 45%, of which 2,005 hectares were cultivated organically.
“In 2022, drought was once again one of the main challenges for local agriculture, with some of Holde's land affected by it. However, our strategy, which is based on a structure of farms divided over several geographical areas, proved its benefits and tipped the balance in our favor, because the drought was not present at the level of the whole country. Therefore, autumn crops - wheat and rapeseed recorded a satisfactory production - 28,752 tons, an increase of 54% compared to the same period last year, of which 1,453 tons was production from organic crops. Combined with market prices, total income from these crops was slightly above expectations. Compared to the yields per hectare obtained in the previous agricultural year, the Roșiori, Frumușani and Videle nuclei obtained marginally lower results, while the Conțești nucleus, operated for the first time this year, provided production above expectations. However, on a general level, we are confident that we will achieve the targeted net profit for this year, of 8.8 million lei, regardless of the challenges we face," said Liviu Zăgan, General Director of Holde Agri Invest.
In the first part of the year, Holde continued to invest in the expansion of exploited areas, and in April completed the purchase of a new farm in Dâmbovița county, in Conțești commune. The company continued the investment process at the level of all four cores, by purchasing state-of-the-art equipment, expanding the irrigation system at the Frumușani farm, from 125 to 275 ha, as well as increasing the storage capacity at Călinești, from 10,000 to 15,000 tons. In August of this year, Holde started work on the company's third silo, within the Frumusani farm, which will have a total capacity of 10,000 tons.
Regarding the activity in the direction of sustainability, in addition to organic cultivation, Holde has concluded partnerships with animal farms this year, in order to collect and compost manure. One such partnership is the one with Toneli Holding, announced at the end of June, which aims to ensure a circular agriculture that includes both grain production and poultry farms for eggs. Under this partnership, Holde Agri Invest will supply grain to Toneli Holding, while the consumer egg producer will supply manure, which Holde will use for crops on its farms. For this year, the company expects to use approximately 15 thousand tons of manure, on an area of approximately 2,000 ha. Holde's main objective in this direction is that through the application of amendments and the addition of organic matter, the fertility of the soil will be increased in the coming years.
In addition to operational activity, in the first semester of 2022, Holde's management was also involved in the preparation of a new round of capital increase. The operation was carried out in two stages, between June and August, and as a result approximately 21 million lei were attracted from investors.
Approximately 65% of the funds raised will be directed towards the expansion of cultivated areas, through the purchase of farms in the counties where Holde is already present, but also in other neighboring counties, or even in other regions of the country. The remaining 35% will be used for investments in the modernization of existing farms – machinery, storage capacities, irrigation systems, but also investments in agri-tech projects. For the purchase of land, Holde intends to combine financing from the funds raised following the increase of the share capital with bank loans.
"Ever since the founding of Holde four years ago, we have accelerated through various successive development stages, many of which have taken place this year. Thus, now, we can say that starting from 2022, Holde is a solid company, which has the necessary resources to overcome the obstacles specific to the field in which we operate, as well as to implement the most difficult projects. As for the challenges, they will continue to exist, but it is important that we have a team that knows how to handle them. We will continue to develop and we are confident that the funds raised through the capital market, as well as bank financing, will contribute to the significant increase in the company's profitability. Regarding bank financing, we expect that by the end of the year the syndicated financing of approximately 164 million lei will already be operational, which will give us flexibility in carrying out investment projects and more," said Iulian Cîrciumaru, President of the Council of Administration of Holde Agri Invest.
As for the agri-tech area, this year the Agrocity solution continued to support the company in managing its operations in optimal conditions, especially thanks to new functionalities that brought more precision in the conduct of activities. Modules have also been developed regarding the production chain as well as the timing of the fertilization plan. At the level of the other agri-tech company in which Holde is involved, Enten Systems, in 2022 solutions also began to be developed for large crops, the company being in the process of placing specific equipment also on plots of Holde farms.
Holde Agri Invest shares are listed on the AeRO market of the Bucharest Stock Exchange from October 1, 2020 and are traded under the stock symbol HAI. The company has a market capitalization of over 120 million lei.
“In 2022, drought was once again one of the main challenges for local agriculture, with some of Holde's land affected by it. However, our strategy, which is based on a structure of farms divided over several geographical areas, proved its benefits and tipped the balance in our favor, because the drought was not present at the level of the whole country. Therefore, autumn crops - wheat and rapeseed recorded a satisfactory production - 28,752 tons, an increase of 54% compared to the same period last year, of which 1,453 tons was production from organic crops. Combined with market prices, total income from these crops was slightly above expectations. Compared to the yields per hectare obtained in the previous agricultural year, the Roșiori, Frumușani and Videle nuclei obtained marginally lower results, while the Conțești nucleus, operated for the first time this year, provided production above expectations. However, on a general level, we are confident that we will achieve the targeted net profit for this year, of 8.8 million lei, regardless of the challenges we face," said Liviu Zăgan, General Director of Holde Agri Invest.
In the first part of the year, Holde continued to invest in the expansion of exploited areas, and in April completed the purchase of a new farm in Dâmbovița county, in Conțești commune. The company continued the investment process at the level of all four cores, by purchasing state-of-the-art equipment, expanding the irrigation system at the Frumușani farm, from 125 to 275 ha, as well as increasing the storage capacity at Călinești, from 10,000 to 15,000 tons. In August of this year, Holde started work on the company's third silo, within the Frumusani farm, which will have a total capacity of 10,000 tons.
Regarding the activity in the direction of sustainability, in addition to organic cultivation, Holde has concluded partnerships with animal farms this year, in order to collect and compost manure. One such partnership is the one with Toneli Holding, announced at the end of June, which aims to ensure a circular agriculture that includes both grain production and poultry farms for eggs. Under this partnership, Holde Agri Invest will supply grain to Toneli Holding, while the consumer egg producer will supply manure, which Holde will use for crops on its farms. For this year, the company expects to use approximately 15 thousand tons of manure, on an area of approximately 2,000 ha. Holde's main objective in this direction is that through the application of amendments and the addition of organic matter, the fertility of the soil will be increased in the coming years.
In addition to operational activity, in the first semester of 2022, Holde's management was also involved in the preparation of a new round of capital increase. The operation was carried out in two stages, between June and August, and as a result approximately 21 million lei were attracted from investors.
Approximately 65% of the funds raised will be directed towards the expansion of cultivated areas, through the purchase of farms in the counties where Holde is already present, but also in other neighboring counties, or even in other regions of the country. The remaining 35% will be used for investments in the modernization of existing farms – machinery, storage capacities, irrigation systems, but also investments in agri-tech projects. For the purchase of land, Holde intends to combine financing from the funds raised following the increase of the share capital with bank loans.
"Ever since the founding of Holde four years ago, we have accelerated through various successive development stages, many of which have taken place this year. Thus, now, we can say that starting from 2022, Holde is a solid company, which has the necessary resources to overcome the obstacles specific to the field in which we operate, as well as to implement the most difficult projects. As for the challenges, they will continue to exist, but it is important that we have a team that knows how to handle them. We will continue to develop and we are confident that the funds raised through the capital market, as well as bank financing, will contribute to the significant increase in the company's profitability. Regarding bank financing, we expect that by the end of the year the syndicated financing of approximately 164 million lei will already be operational, which will give us flexibility in carrying out investment projects and more," said Iulian Cîrciumaru, President of the Council of Administration of Holde Agri Invest.
As for the agri-tech area, this year the Agrocity solution continued to support the company in managing its operations in optimal conditions, especially thanks to new functionalities that brought more precision in the conduct of activities. Modules have also been developed regarding the production chain as well as the timing of the fertilization plan. At the level of the other agri-tech company in which Holde is involved, Enten Systems, in 2022 solutions also began to be developed for large crops, the company being in the process of placing specific equipment also on plots of Holde farms.
Holde Agri Invest shares are listed on the AeRO market of the Bucharest Stock Exchange from October 1, 2020 and are traded under the stock symbol HAI. The company has a market capitalization of over 120 million lei.