DN AGRAR reports net profit of 8 million RON, up 172 percent in first quarter

DN AGRAR Group, the largest integrated zootechnical farm in Romania and a leader in dairy cow production, revealed its financial results for the first quarter of 2023. The turnover reached 44 million RON, a 48 percent increase compared to Q1 2022, and the net profit amounted to 8 million RON, a 172 percent advance compared to the same period of the previous year. The results were primarily driven by the increase in the production capacity and prices of the milk delivered.

Jan Gijsbertus De Boer, President of the Board of Directors at DN AGRAR GROUP: “The results achieved in the first quarter of the year are due to previous investments and the synergies obtained within the Group. We have sustainably increased our production capacity and renewed our livestock, continuing the development of our operations. The quantity of milk delivered increased by 13 percent in the first quarter of the year compared to the same period of 2022, and we expect to maintain the growth trend in production. We have optimized the costs and streamlined our operations, a process that will continue throughout the year.”

Key elements of the profit and loss account and balance sheet in Q1 2023:

• Operating revenues amounted to 60 million RON, a 43 percent increase compared to the same period of  last year. Revenues from sold production reached 44 million RON, a 48 percent increase compared to the same period in 2022. The second-largest contribution came from revenues from operating subsidy, which increased due to the adoption of new PNRR regulations. The impact is positive for DN AGRAR, as the reference for granting subsidies for milk production and owned animals was changed from 2013 to 2018;

• Operating expenses increased to 47 million RON, a 26 percent increase, in the context of the growing number of directly productive animals in the farms and ensuring the necessary feed;

• The net result achieved was 8 million RON, a 172 percent increase;

• DN AGRAR’s total assets reached 244 million RON as of March 31, 2023, 4 percent more than in December 31, 2022;

• The total level of liabilities remained constant. Short-term liabilities decreased by 12 percent, while long-term liabilities increased by 9 percent.

The daily milk production in DN AGRAR farms reached 150,000 liters in Q1 2023. The quantity of milk delivered  increased by 13 percent compared to the same period of the previous year, following the increase of the number of directly productive animals in the farms. The company currently totals nearly 12,000 milking cows and young cattle.

The DN AGRAR Group includes 15 companies, including 4 farms whose main activity is dairy cattle breeding (Prodlact Farm), dairy cow production (Cut, Lacto Agrar, and Apold Farms), as well as plant agricultural production.

In the field of cereals, the companies within the DN AGRAR Group currently cultivate over 7,000 hectares, located in the counties of Alba, Sibiu, and Hunedoara. The objective is to reach a cultivated area of 10,000 hectares through the acquisition of other farms with plant agricultural and/or livestock production. The yields obtained from the established crops are primarily used to provide feed for the company’s own farms.