The Agroland Business System, operator of the biggest chain of farming supply stores in Romania, has issued its second round of registered, dematerialized, unsecured, and non-convertible bonds on the Bucharest Stock Exchange. The total amount for this bond issuance stands at RON 6.92 million (approximately EUR 1.4 million).
The bonds feature a standard fixed coupon rate of 9.75% per annum, paid out every six months, with the principal scheduled for repayment on October 2, 2028, as stated in Agroland's communication to investors.
As stated in the released memorandum, the funds obtained from the issuance were utilized to support the company's ongoing operations.
Specifically, the acquired funds were allocated toward purchasing raw materials necessary for the upcoming three months for the facilities located in Ișalnița and Caransebei. This choice was made considering Agroland’s leadership forecasting a rise in cereal costs over this time frame.
In March, Agroland declared plans to expand the Agroland MEGA chain across the country with the addition of Store No. 28, which opened in Arad.
In 2024, Agroland’s proprietary outlets, encompassing conventional and MEGA locations, reported net revenues totaling RON 112.8 million, marking a rise of 21% from the previous year. This growth can be attributed to two factors: a surge in customer count by 17%, amounting to 1.4 million individuals, along with a boost in the mean transaction value by 3%, bringing it up to RON 79.
The firm boasts a capitalization of RON 103 million (approximately EUR 20 million). In 2024, the conglomerate recorded a net profit of RON 7.7 million, marking an increase of 63% over the prior year’s financial outcome. Revenue climbed by 7%, totaling RON 315.7 million, whereas operational costs escalated by 5%, reaching RON 298.7 million. Consequently, the operating profit surged to RON 17 million, reflecting a rise of 53% compared to the same period last year.
(Photo: the company)
iulian@romania-insider.com
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