JUN
23
Grup Şerban Holding (stock symbol GSH), the largest entrepreneurial business in agriculture listed on the Bucharest Stock Exchange, ended the first three months of 2024 with a net profit of 4.5 million lei, down 15% compared to the same period in 2023, with revenues of 130 million lei, 7% higher, according to the data from the quarterly financial report published on the BVB.
The company achieved total revenues of 155 million lei in Q1 2024, up 6% compared to Q1 2023, and an EBITDA of 18.2 million lei, 42% higher. During the reference period, Grup Şerban Holding sold 38,152 tons of cereals, 15% less than in Q1 2023, and had a bakery and confectionery production volume of 1,905 tons, up 43%.
"This year, we anticipate a slight improvement in production compared to the previous year, due to the implementation of no-till technology on most non-irrigated plots. In March, we estimate a significantly higher production compared to last year, although unfavorable weather conditions will limit these increases, resulting in productions similar to those of the previous year. We also observe an upward trend in the prices of cereals and vegetables, a development that has already begun and is expected to continue. At the same time, there are positive signals regarding a possible decrease in interest rates, which would be an advantage for the agribusiness sector and bank financing access for GSH," says Nicolae Şerban, founder, CEO, and Chairman of the Board of Directors of the company.
The company has 500 head of cattle, 1,600 head of sheep, and 162,000 tons of storage capacity. The cultivated area is 15,600 hectares.
"We are delighted to have chosen a favorable moment to expand our activities in the livestock sector, focusing on sheep, cattle, and lambs. The rising prices for these products create significant development opportunities. Additionally, the anticipated increase in subsidies will considerably support this sector," adds the CEO.
This year, the company will have 1,000 more hectares of irrigated land, and the livestock farms are also evolving, with a capacity of 1,000 head of Angus beef cattle, 1,600 head of Ile de France sheep, and 4,000 lambs. Additionally, most of the projects from the 20 million euros planned for the years 2024-2025 will be completed.
Among these investments, 60% of which are non-reimbursable European funds, are the construction of new cold storage warehouses with an additional capacity of 15,000 tons, a facility for storing and packaging vegetables equipped with a robotic hall and optical sorting, as well as a free-range laying hen farm with an annual production of 50 million eggs.
"Due to the new investments in completing as many stages of agricultural production processing as possible, we believe that the turnover will increase significantly this year. Although we cannot be certain how EBITDA will evolve, from what we have seen at the beginning of 2024 and our perception of the markets in which we operate, we anticipate an increase in EBITDA due to the stabilization of cereal prices in the market. Overall, in 2024, we are much more confident compared to 2023, and we believe that GSH and most farmers will register significant growth this year," adds Nicolae Şerban.
In addition to the 20 million euros worth of projects that will be implemented in 2024-2025, there are also other major investments planned. The projects currently under approval, valued at 400 million lei (80 million euros), include the expansion of cold storage capacity for vegetables by an additional 35,000 tons, a fully automated hall for the beef cattle fattening facility, a solar panel energy production project, and a potato processing plant with a capacity of 45,000 tons per year for the production of French fries and 15,000 tons per year for the production of potato flakes.
Grup Şerban Holding has a market capitalization of 317 million lei and is 95.8% controlled by Lucian Nicolae Şerban. GSH shares have increased by 13.6% since the beginning of the year, with transactions amounting to 1.6 million lei, according to BVB data.
Source: www.zf.ro
