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DN AGRAR reports RON 83 million turnover and RON 35 million EBITDA in H1 2024
DN AGRAR Group , the largest integrated livestock farm in Romania, leader in cow milk production, concluded the first quarter of 2024 with a 4% increase in turnover compared to the same period last year, reachingRON 83 million. The company’s net profit remained stable at RON 15 million, similar to the first half of 2023, despite a 12% decrease in the average milk price.
Jan Gijsbertus de Boer, Chairman of the Board, CEO, DN AGRAR Group: “We have made significant steps in strengthening our market position and have achieved solid operational and financial results, supported by optimizations of the activity and costs following strategic investments in modernization, digitalization, and the integration of group companies. The quantity of milk delivered increased by 17%, maintaining a steady pace of over 5 million liters per month, positively impacting the company’s financial results. In a volatile market context, EBITDA advanced by 10%, reaching RON 35 million. We are on track with the announced investment projects. We completed the installation of robots in DN AGRAR farms, significantly reducing manual labor, and progressed with the Straja farm project, where we expect to have 900 productive cows by the end of the year. The compost plant at the Apold farm will become operational in the third quarter. Our strategic initiatives, along with the operational consolidations, will help us adapt to the evolving market and capitalize on new opportunities.“
Key elements of the profit and loss account and balance sheet in H1 2024:
• Operating revenues amounted to RON 132 million, a 6% increase compared to H1 2023.
• Revenues from sold production increased to RON 83 million, a 4% advance compared to H1 2023.
• Operating expenses increased by 8%, reaching RON 109 million, influenced by the revaluation of fixed assets in DN AGRAR’s farms and the rise in personnel expenses following the expansion of the activity.
• The net profit recorded was RON 15 million, at the same level as in H1 2023.
• The total assets reached RON 329 million, a 7% increase compared to the end of 2023. Fixed assets were RON 227 million, a 7% advance, due to the registration as fixed assets of the young dairy cows that entered the milk production process and the acquisition of agricultural equipment.
• Total liabilities increased by 4%, reaching RON 179 million compared to the end of 2023. As of June 30, 2024, long-term liabilities stood at RON 101 million and short-term liabilities at RON 78 million.
At the end of June 2024, the livestock owned by DN AGRAR, consisting of dairy cows and young cattle, and reached approximately 14,700 heads.
DN AGRAR’s main investment project for the 2024-2027 period is the new Straja farm, located near Alba Iulia, where construction has started for a future capacity of 5,000 animals. The financing of this project was approved by the shareholders in March 2024.
So far, the foundations, part of the main hall, and the manure collection lagoon have been completed. We are raising young cattle for this new farm at the Prodlact farm.
The DN AGRAR Group includes 11 companies, including 4 farms whose main activity is dairy cattle breeding (Prodlact Farm), dairy cow production (Cut, Lacto Agrar, and Apold Farms), as well as plant agricultural production.
In the field of cereals, the companies within the DN AGRAR Group currently cultivate over 7,000 hectares, located in the counties of Alba, Sibiu, and Hunedoara. The objective is to reach a cultivated area of 10,000 hectares through the acquisition of other farms with plant agricultural and/or livestock production. The yields obtained from the established crops are primarily used to provide food for the company’s own farms.