Agrogeneration moved its plans to increase land bank to the next year
2012-04-05 14:52:32
The French company AgroGeneration having assets in Ukraine delayed its previously announced plans to increase the cultivated land area by 50% to 100 K ha by the end of 2012, said the company’s President Charles Beigbeder. “We currently cultivate about 51 K ha of land and, I believe, this area will not change this year,” he said.
At the same time, the head of the company pointed out that AgroGeneration still projects to double its cultivated land area and studies the possibility to implement this plan. According to Beigbeder, the Ukrainian regions currently hosting AgroGeneration’s business are of the main interest. When commenting on the preliminary operational results, the President of the agricultural company noted that AgroGeneration managed to boost production to EUR 35 Ml in 2011. He did not announce other indicators of its performance.
Reportedly, AgroGeneration’s net loss halved year-on-year in January-June 2011, down to EUR 1.5 M. Its sales remained almost as high as last year at EUR 1.4 M. AgroGeneration’s profit totaled EUR 2.19 Ml during the six months of 2011 against a total loss of EUR 1.47 M at the same time in 2010. EBITDA amounted to EUR 1.33 M for the six months of 2011, whereas in 2010 this indicator was negative at EUR 3.22 M. AgroGeneration also predicted the cultivated area to increase 50% to 100 K ha by the end of 2012.
AgroInvest comment: Negative macroeconomic outlook as well as certain need for modernization keep the company away from acquiring new assets prior to increasing effectiveness of work with the current ones.
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