Romanian group Agroland (AG), the biggest local retailer of hobby farming supplies, recorded a consolidated net profit of RON 10.3 mln (EUR 2.1 mln) in 2020, four times higher than in 2019.

The group’s turnover went up by a third last year, to RON 187.5 mln (EUR 38.5 mln).

The preliminary figures for 2020 pushed up the group’s shares on the Bucharest Stock Exchange (BVB). The AG shares closed the day at RON 21.6, up 4.85% compared to the previous day. The company’s market capitalization thus reached RON 254 mln (EUR 52 mln).

Agroland listed its shares on the Bucharest Stock Exchange’s AeRO market on March 1, after carrying out a private placement through which it raised RON 8 mln (EUR 1.64 mln) from local investors in November 2020. The company’s shares went up more than four times on the first day of trading.

Agroland majority shareholder and CEO Horia Cardos announced that the group plans to carry out a capital increase by which it will distribute three new shares, free of charge, for each existing one – a way of keeping the profit inside the company.

The group also plans to raise more money from the market through another sale of new shares.

The group’s development strategy is centered on opening large format stores with retail areas of 400-600 sqm. It will launch at least eight such stores this year and a total of 30-35 in the next three years, aiming to get to over 50% of its turnover from this modern store format.

The group also focuses on online sales, which were four times higher in 2020 compared to 2019 and should go up by another 50% this year. It also plans to start selling online in Hungary, Bulgaria and Serbia.

(Photo courtesy of Agroland)

andrei@romania-insider.com