DN AGRAR Group Achieves RON 8 Million Net Profit in Q1 2024 Despite Falling Milk Prices
Source: The DairyNews
DN AGRAR Group, Romania's largest integrated livestock farm and a leader in cow milk production, reported a robust first quarter in 2024, posting a net profit of RON 8 million on a turnover of RON 40 million. This performance comes despite a 25% drop in milk prices from the same period in 2023.
The company's success is attributed to prior investments in process automation at its farms, which not only bolstered milk production by 18% but also streamlined production costs, significantly benefiting the bottom line. Jan Gijsbertus de Boer, Chairman of the Board and CEO of DN AGRAR Group, highlighted several key achievements during the quarter, including securing financing for the expansion of the Straja farm, which is expected to double the business size within four years. Additionally, DN AGRAR’s shares were included in the MSCI indices, and milk deliveries continued to grow, exceeding 5 million liters per month.
Financial details revealed that while operating revenues held steady at RON 60 million, revenues from sold production saw a 9% decline to RON 40 million. Operating expenses rose slightly by 3%, totaling RON 48 million, due in part to the reevaluation of some agricultural land. The net profit saw a modest 5% decline year-over-year.
Asset-wise, DN AGRAR ended Q1 with total assets valued at RON 316 million, marking a 3% increase since the end of 2023. The total liabilities remained stable with long-term liabilities at RON 96 million and short-term liabilities at RON 77 million as of March 31, 2024.
The livestock count by the end of March stood at over 14,500 heads, up 22% from the previous year, underscoring significant growth in dairy cows and young cattle.
The company's principal investment for the 2024-2027 period is the new Straja farm near Alba Iulia, designed to support a future capacity of 5,000 animals. Funded by a EUR 9.2 million credit facility from Exim Banca Românească and 20.78% from DN AGRAR’s own resources, this project marks a pivotal expansion in the Group’s capacity.
DN AGRAR Group comprises 12 companies, including four farms primarily engaged in dairy cattle breeding and milk production, alongside plant agricultural production spanning over 7,000 hectares across Alba, Sibiu, and Hunedoara counties. The group aims to expand its cultivated area to 10,000 hectares, integrating more farms to bolster both plant and livestock production.
Financial details revealed that while operating revenues held steady at RON 60 million, revenues from sold production saw a 9% decline to RON 40 million. Operating expenses rose slightly by 3%, totaling RON 48 million, due in part to the reevaluation of some agricultural land. The net profit saw a modest 5% decline year-over-year.
Asset-wise, DN AGRAR ended Q1 with total assets valued at RON 316 million, marking a 3% increase since the end of 2023. The total liabilities remained stable with long-term liabilities at RON 96 million and short-term liabilities at RON 77 million as of March 31, 2024.
The livestock count by the end of March stood at over 14,500 heads, up 22% from the previous year, underscoring significant growth in dairy cows and young cattle.
The company's principal investment for the 2024-2027 period is the new Straja farm near Alba Iulia, designed to support a future capacity of 5,000 animals. Funded by a EUR 9.2 million credit facility from Exim Banca Românească and 20.78% from DN AGRAR’s own resources, this project marks a pivotal expansion in the Group’s capacity.
DN AGRAR Group comprises 12 companies, including four farms primarily engaged in dairy cattle breeding and milk production, alongside plant agricultural production spanning over 7,000 hectares across Alba, Sibiu, and Hunedoara counties. The group aims to expand its cultivated area to 10,000 hectares, integrating more farms to bolster both plant and livestock production.
