Press release 2021 Results
Agroserv Măriuța posts a turnover of 68.4 million lei for 2021, an increase of 40%
Bucharest, March 22, 2022 – Agroserv Măriuța (BVB: MILK ), a Romanian agricultural company and owner of the Lăptaria cu Caimac brand, posts a turnover of 68.3 million lei for 2021, an increase of 40% compared to 2020 and a net profit of 1.7 million lei, compared to a loss of 6.2 million lei recorded in 2020. The company recorded an operating income of 104.3 million lei, an appreciation of 42% compared to the previous year.
“The financial results for 2021 are below our expectations, considering that the result for the fourth quarter of 2021 was negative, caused by the impact of inflation on dairy sales prices, especially during the adjustment periods, the winter holidays, coupled with the impossibility of transferring part of this increase to the final consumer – contractual provisions and seasonality. Also, the government measures regarding COVID-19 had a major impact, respectively the introduction of the green certificate for access to large commercial spaces. Thus, the traffic and sales in supermarkets were significantly affected. At the same time, the increase in the prices of agricultural inputs needed in the autumn campaign also had a significant impact on the crop segment. The second year of the pandemic has flattened the growing trend of Lăptăria cu Caimac. Still, we learned a lot in 2021, and we are convinced that these experiences will help us to have an improved performance in 2022,” said Mădălina Cocan, General Manager, Lăptăria cu Caimac.
At a turnover of 68.3 million lei, the largest contribution was made by the dairy processing activity – 55%, followed by the crop farm – 26% and the zootechnical activity – 19%. In terms of sales in stores, during the last year, the company recorded sales of 37.5 million lei, determined by the increase in the sold volumes, the increase in the number of products in stores, and the increase in the number of stores. Also, the revenues related to the work in progress costs increased by 50%, reaching 26.3 million lei.
“In 2021, we navigated through uncertainty and widespread chaos in the market both among business partners – I am referring especially to Lăptăria cu Caimac customers, but also among consumers who have been affected by the second year of the pandemic in extreme ways – either they felt encouraged to live the moment, to go on multiple vacations, to change jobs, to reorganize their priorities, or they felt the need to save, to prepare for the worst, to spend thoughtfully. At the same time, 2021 was marked by a series of major events for all our three business lines – the successful closing of the private placement and the debut of MILK shares on the AeRO market of the Bucharest Stock Exchange, the construction of a production hall, and a cold storage facility, the launch of Lăptăria cu Caimac products, as well as the signing of various partnerships for the sale of our products. Although the crop and zootechnical farm are the traditional activities for the company, in 2021, the milk processing activity continued to be the main business line. Therefore, in 2022 we intend to continue the growth of the Lăptaria cu Caimac brand at a national level by consolidating the position and increasing the number of products present on the shelf in each store,” added Mădălina Cocan.
Regarding the activity of the crop farm, in 2021, Agroserv Măriuța managed approximately 2,639 hectares of land and recorded a total production of approximately 34,000 tons, of which 4,048 tons for wheat, 7,363 tons for corn, 12,895 tons for silo corn, and 3,248 tons of rapeseed. In addition to these crops, lucerne and rye were supplementary. The turnover generated by this activity was 17.9 million lei.
In the zootechnical farm, the number of animals reached almost 2,900 during the last year, with differences from month to month due to the number of calving, sales of heifers and bulls and reforms (cows taken out of production). Approximately 1,000 cows were milked daily, with an average production increase of about 9% in 2021 vs. 2020, reaching a daily average of over 37,000 liters. Of the milk produced, about 56% was used in its production in the Lăptăria cu Caimac factory. The rest was sold to a number of customers, medium and large processors in Romania. The turnover generated by this activity was 12.9 million lei.
The third line of business of the company, Lăptăria cu Caimac, had a significant activity during the past year, being launched four new products: Iaurt Răcoros, brânza Măriuța, Miere și Polen în Iaurt și Rotocol de Cașcaval. The most significant developments in the product categories are represented by the increase in the volume of cheese sales by 71% due mainly to Brânza Proaspătă (which is sold in bulk in IKA), the increase in sales of milk and desserts by 12% due to the Ciocolată-n lapte product but also of cow’s milk. The turnover generated by this activity was 37.5 million lei.
In 2022, the company aims to diversify the offer of products from Lăptăria cu Caimac, mainly by increasing the number of products in the cheese category and starting the production of butter. Also, this year, the company is considering starting the packaging washing station project, the objective being to build a station that will wash approximately 10,000 bottles and jars per hour. Subsequently, the company plans to start installing RVM (Reverse Vending Machine) devices in major cities in Romania. Consumers will be able to enter the used packaging and be rewarded with vouchers and money.
Therefore, considering the development plans for this year, the revenue and expense budget proposed by the company for 2022 estimates a total turnover of 94.4 million lei, an increase of 38% compared to 2021 and a net profit of 2.7 million lei, an appreciation by 56% compared to 2021. Agroserv Măriuța estimates that the activity in the factory will contribute 41 million lei to the total turnover, the zootechnical activity with 29 million lei, and the crop far with 24.4 million lei. The company believes that because 2022 is a year marked by major geopolitical events and coupled with the energy crisis, inflation, paired with the last two years of the pandemic, the market and consumer behavior will be affected in ways that cannot be anticipated.
Agroserv Măriuța shares are listed on the AeRO market as of May 21, 2021, under the MILK symbol. Since the shares’ debut and until December 31, 2021, investors traded MILK shares in 6,230 transactions, totaling over 30 million lei. As of October 2021, the company is included in the BET-AeRO index, the first index for the AeRO market, developed by the Bucharest Stock Exchange.
***
About Agroserv Măriuța
Agroserv Mariuta is a company listed on the AeRO market of the Bucharest Stock Exchange (MILK symbol), which carries out a mixed agricultural activity of crop farming combined with livestock farming. Starting with 2018, the company has a new business line, namely the processing of cow’s milk, respectively obtaining dairy products – whole milk packaged in glass, matured cheeses, acidophilic products. With a desire to expand the family business and identify a market need to find quality dairy products, safe, nutritious, and without additives on the store shelves, the company launched the brand “Laptaria cu Caimac”. For more than three years, Laptaria cu Caimac has been delivering natural milk on the market, without unnecessary additives and powdered milk, and with special care to process milk. These unique products challenge the industry and increase quality standards. Also, Agroserv Mariuta is among the very few companies in Romania with 100% traceability for the raw material, up to the level of treatment of the plants that make up the food.
