Norofert Q1 2024 results: a turnover of RON 11.7 million and profit from the production and sales of inputs

29 May 2024

Bucharest, May 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 its financial results for the first quarter of 2024. The company continued to focus its efforts on investing in operational efficiency and maintaining financial solidity in a volatile agricultural environment. The company recorded a turnover of RON 11.7 million in the first three months of 2024, and individually, Norofert S.A. achieved a positive operational result of RON 1.1 million.

Vlad Popescu, President of the Board, Norofert:

„The financial results for the first three months of 2024 reflect our commitment to improving operational performance and increasing efficiency, even in a challenging economic context. We maintain a prudent approach, aware of the persistent volatility in the agricultural market. Investments in the research laboratory, irrigation system, and the launch of production in the US market will strengthen margins in the future. In March, we marked four years since listing on the BVB, on the AeRO market, and announced a new investment stage: the opening of a fertilizer production line in Watertown, South Dakota.

Since listing on the stock exchange, we have invested RON 17 million in development and innovation projects. Today, the Group has a modern fertilizer production facility in Filipestii de Padure and a unique research laboratory in Romania, and the 1,000-hectare farm in Zimnicea will become a model for sustainable agriculture.”

Key consolidated figures for the first quarter of 2024:

  • The balance of the Group’s fixed assets increased by almost 11%, reaching RON 25 million. These assets are essential for the company’s development strategy, enabling the production of a wider range of products, thus ensuring a better competitive position in the market.
  • Accounts receivable decreased by 38.5% to RON 31.5 million, in line with the turnover, as well as due to a good collection rate.
  • Total liabilities amounting to RON 53.5 million recorded a decrease of almost 15% compared to the same period of the previous year, following the early repayment of certain bank credit facilities last year.
  • The Group’s total revenues reached RON 12.9 million, a decrease of 11% compared to the similar period of the previous year, supported by the production and sale of inputs. The pronounced volatility in the cereal market in 2023 presented a risk that Norofert managed prudently.
  • At the Group level, operational expenses increased by 7.1% compared to the same period of the previous year, reaching nearly RON 12 million, mainly influenced by the increase in the materials and personnel costs (+20%).
  • Given the aforementioned conditions, the net result recorded by the Group in Q1 2024 is RON 1,414, a decrease of 99.9% compared to the result recorded in Q1 2023.

Investments announced in the first three months of 2024

In Romania: In the first quarter of 2024, the company announced the completion of the first stage of the research laboratory in Filipestii de Padure and contracting a loan of RON 4.1 million through the IMM INVEST Plus program for the acquisition of irrigation systems and equipment with pivot system. The funds will be used to complete the irrigation system on 340 hectares out of the 1,000 hectares operated ecologically at Zimnicea Farm. The total value of the investment project is approximately RON 4.9 million, of which the company’s contribution will be 15%.

In USA: The company announced the commencement of the assembly of a fertilizer production line in the US market, in the city of Watertown, South Dakota, one of the most important agricultural areas in the USA. The production will focus on soil health and foliar nutrition range, similar to that in Romania, utilizing bacteria produced in the Filipestii de Padure laboratory. The investment in assembling the fertilizer production line of EUR 250 thousand was conducted through Norofert AG, a company established in partnership with Gary Lamb, an entrepreneur with over 30 years of experience in agribusiness in the Midwest, USA.

The financial results for the first quarter of 2024 are presented both according to RAS (Romanian Accounting Standards) and in accordance with IFRS (International Financial Reporting Standards).

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

The detailed report can be consulted here.

Register for the results videoconference 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.

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