2023 Results: Norofert has focused on increasing the collection rate and investments, for a new development stage for the Group

29 Mar 2024

Bucharest, March 29th, 2024 – Norofert, the leader in regenerative agriculture research and one of the largest input producers in Romania, listed on the Bucharest Stock Exchange on the AeRO market (BVB symbol: NRF), announces the financial results for 2023. The company continued to focus its efforts on investing in operational efficiency and maintaining financial strength in a volatile and challenging economic environment for the agriculture sector.

Despite the challenging period, the company managed to maintain liquidity through a collection rate of over 97%, which improved cash flow compared to the previous year and enabled the repayment of loans totalling RON 19.4 million to banks in the second half of 2023. The company’s turnover was RON 40.3 million, a 43% decrease compared to 2022, primarily influenced by the lack of liquidity in the agribusiness market. All crops were affected by drought, while the selling prices of cereals decreased.

Vlad Popescu, President of the Board, Norofert:

“From our perspective, 2023 was one of the most challenging years in the last two decades, but we have managed to take important steps in consolidating the business. We were forced to make decisions to ensure the health of our company, prioritizing the collection rate and liquidity, as well as strengthening the management team. Thus, we are preparing the group for long-term sustainable development, on solid grounds. Investments will continue in 2024, we will start production at the factory in the USA, and we will have about 340 hectares irrigated at the Zimnicea Farm. We expect a recovery in local agricultural businesses, but it will be slow, and we will need to be cautious.”

Mircea Fulga, CEO Norofert:

“In 2023 we focused on investments in the research laboratory, unique in Romania, in high-performance agricultural machinery and irrigation at the farm in Zimnicea and we improved the production flow in the Filipestii de Padure factory for special products, based on microorganisms.”

The group concluded the year 2023 with total debts amounting to RON 47 million, a decrease of almost 9% compared to the previous year. At the Group level, operational expenses decreased by over 26% to RON 46 million. The costs for materials decreased by approximately 36% compared to the same period in 2022, to RON 26 million, influenced by the decrease of the production costs for the range of organic products based on microorganisms, as a result of the commissioning of the laboratory in Filipestii de Padure. The laboratory fully covers the raw material needs for the current production and represents an advanced technological space that is well-equipped, in which the company has invested about RON 3 million. Given the above, the consolidated net result was negative, at RON 3.9 million, mainly caused by increased financing costs, as well as by the decreasing revenues as farmers choose not to invest in autumn crops.

The consolidated results of the group include both the performance of the parent company, Norofert S.A., and its wholly-owned subsidiary, Agroprod CEV SRL. Agroprod CEV practices organic farming on 1,000 hectares of agricultural land in Zimnicea, Teleorman County.

The financial results for the year 2023 are presented according to both RAS (Romanian Accounting Standards) and IFRS (International Financial Reporting Standards).

The detailed report can be consulted HERE.


About Norofert:

Norofert is the leader in regenerative agriculture research and one of the largest producers of inputs in Romania, founded in 2000 by the Popescu family. In the midst of expanding the production facilities to support sustainable agricultural practices, internationally, Norofert demonstrates commitment to the goal of climate neutrality and the ability to innovate in an area crucial to the future of agriculture and food security.

With a mix of business lines, Norofert has developed in recent years its production capacities both in the area of inputs and agricultural farming, lines that will see development in the coming years. With 65 products in its portfolio, the company caters to both conventional and organic farmers, with a new niche of liquid conventional products in growing demand.

From 2020 the company is listed on the Bucharest Stock Exchange on the AeRO market and from October 2021 Norofert shares are included in the BETAeRO index. During the 4 years of activity in the capital market, Norofert raised RON 14 million through capital increases and RON 11.5 million through a private placement of corporate bonds. The company’s corporate bonds are traded​ ​on the AeRO market of the Bucharest Stock Exchange under the symbol NRF25 starting June 5th, 2020.

For more information, we invite you to visit www.norofert.ro.