Romanian company Agricover records a 55% increase in H1 net profit due to stronger loan provision and input sales.

In the ever-evolving landscape of Romanian agriculture, Agricover Holding, a significant player in the sector, has announced impressive growth figures for the first half of 2025.

Despite the challenges posed by climate volatility, liquidity constraints, and technological adaptation pressures, Agricover has managed to maintain steady growth. The company's consolidated revenues rose by 5.1% year-on-year, reaching RON 850 million.

The growth in revenue was strongest in crop nutrition products (+21.7%) and crop protection chemicals (+12.6%). This upward trend was also reflected in the company's gross loan portfolio, which increased by 14.3%, reaching RON 3.84 billion.

The growth in net profit was attributed to higher lending volumes and a return to profitability in the farm input distribution segment. The net profit for the first six months of 2025 was RON 62.7 million (EUR 12.6 million), marking a 55% increase compared to the same period in the previous year.

Pre-tax profit from lending at Agricover rose by 2.2% to RON 61.5 million. The operating profit of Agricover's input distribution unit was RON 16.8 million, a significant improvement from a RON 4.3 million loss a year earlier.

Liviu Dobre, CEO of Agricover Holding, stated that despite a year with good harvests but low revenues and tight liquidity, Agricover managed to grow its credit portfolio and bring input distribution back to profit. He attributed this success to the company's integrated model, combining financing with input supply, which helped it gain market share despite subdued farmer incomes and low crop prices.

It's worth noting that Agricover holds a 7.8% share of Romania's agricultural financing market. The company serves more than 10,000 farmers nationwide and has over 25 years of experience in the Romanian agricultural sector.

Non-performing loans at Agricover stand at 3.2%, below the sector average. This indicates a strong credit management strategy and a commitment to responsible lending practices.

Looking ahead, Agricover aims to continue its growth trajectory and strengthen its role as a key financier of Romanian agriculture. The company's resilience and adaptability in the face of challenges make it a vital player in the sector's future.