Bucharest, November 6, 2023 – Norofert, the main producer of organic inputs for agriculture in Romania, listed on the Bucharest Stock Exchange on the AeRO market (BVB symbol: NRF ), announces the financial results for the first 9 months of 2023. The company recorded, at consolidated level, according to RAS, a turnover of 32.4 million lei, and a net profit of 1.1 million lei, down 40 % and 85 % respectively compared to the similar period in 2022, in a market context with challenges for the agribusiness industry . The gross margin on sales was 15.6%, supported by optimization of production costs as a result of the investments made in the last 4 years.
Vlad Popescu, president of the Board of Directors, Norofert:
“For the year 2023 we have assumed a prudent approach and in the first 9 months we have made every effort to maintain a healthy financial direction while continuing the investment strategy for development and efficiency. More than 1.7 million lei were allocated this year for investments in the microorganism multiplication laboratory, designed to increase the quantities of raw materials needed for the manufacture of liquid fertilizers and in the expansion production capacity for the state-of-the-art line of soil-applied liquid fertilizers. Investments in the implementation of an irrigation system for 150 hectares at the farm in Zimnicea, worth 250,000 euros, are being contracted . We are well positioned to develop new products to deal with climate change. We are preparing the development of the company for the coming years, with an internationalization strategy focused on the products in our portfolio with high added value.”
The prolonged drought this year, the drop in Romanian grain prices in the context of imports from Ukraine, as well as the high costs of establishing the previous crops, which farmers have not been able to recover this year, have affected the industry in which the company operates. In the first 9 months of 2023, the company’s management took a series of measures to adapt to the context and external pressures that influenced the activity in the sector, among which, the implementation of a stricter policy for managing receivables risks, which led to a limitation of sales and, implicitly, to a decrease in profit for this year. With this approach, Norofert recorded a debt recovery rate of over 95%, significantly exceeding the market average, essential for maintaining a sustainable cash flow. The financial situation of the company was also improved by the advance repayment of some credit facilities in the amount of 15 million lei.
At group level, total assets were 74 million lei. The total expenses were 37 million lei, down by 24%, as a result of the reduction of material expenses and production costs for organic products, through the commissioning of the laboratory in Filipestii de Padure. The microorganism multiplication laboratory fully covers the need for raw material for current production. Total debts amounting to almost 49 million lei were maintained at the same level as in the similar period of the previous year.
The decrease in activity, as a result of factors such as the prolonged drought and the increased volatility of grain prices, led the company’s management to revise the income and expenditure budget for the current year, to a turnover of 52 million lei and a net profit of 2.4 million lei.
The group’s consolidated results include the performances of the parent company, Norofert SA, and the 100% owned subsidiary Agroprod CEV SRL, which operates an ecologically managed 1,000 hectare agricultural land in Zimnicea, Teleorman county.
The financial results statements for the first 9 months of 2023 are presented both in accordance with RAS and in accordance with IFRS (International Financial Reporting Standards).
The detailed report can be consulted here.
Norofert is the main producer of organic inputs for agriculture in Romania, founded in 2000 by the Popescu family.
Norofert has constantly evolved, from an importer and distributor of fertilizers for agriculture, to the most important Romanian producer of inputs and phytosanitary products for organic agriculture. It currently operates in 3 main business lines: research, production and marketing of inputs for organic farming, organic farming and grain trading. In addition to its standard range of ecological products, Norofert is known for the production of customized ecological inputs, adapted to the specifics of the soil, atmospheric conditions and the type of culture practiced.
From 2020 the company is listed on the Bucharest Stock Exchange on the AeRO market and from October 2021 NRF shares are included in the BETAeRO index. During the 3 years of activity in the capital market, Norofert attracted 14 million lei through capital increases and 11.5 million lei 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 5, 2020.
For more information, please visit www.norofert.ro .