Consolidated sales were down by 14%, with all segments down, most significantly chemicals and agriculture due to price cuts.
PRAGUE, 4. July 2024 – The consolidated net profit of the AGROFERT Group fell to CZK 2.09 billion in 2023 compared to CZK 12.97 billion in 2022. The main reason is weaker group's performance, especially in the chemical and agricultural segments.
In 2023, the AGROFERT Group supplied its customers with goods, products and services worth CZK 212 billion. Compared to the previous year, its consolidated turnover fell by 14%. The decrease in sales recorded by all segments of the AGROFERT Group is mainly due to a reduction in sales prices in the chemical and agricultural segment as a reaction to price developments on the relevant markets.
Consolidated Balance Sheet of the AGROFERT Group increased from CZK 187 billion to CZK 214.8 billion year-on-year, mainly due to the increase in long-term assets.
“AGROFERT has long been among the largest Czech investors in Slovakia, Germany and Hungary. Last year's acquisition of the Borealis nitrogen fertilizer production division – now, the LAT Nitrogen Group - ranked us among the most important Czech investors in Austria and France. The Group's total sales from abroad already exceeded 60% of our income,” said Zbyněk Průša, chairman of the board of directors of the AGROFERT Group.
The amount of bank and other loans increased year-on-year by CZK 14.8 billion, mainly due to the acquisition of LAT Nitrogen group companies. Approximately four-fifths of the loans of the AGROFERT Group (in the total amount of CZK 47.1 billion) are currently in foreign currencies, mainly in EUR. Only approximately one fifth of loans are in CZK.
The number of employees of the companies of the AGROFERT Group in 2023 was 32,000 on average, of which the Czech companies of the group employed 20,445 people. Accordingly, the group confirmed its leading position among the largest Czech private employers.
“We value the work of our employees. We paid out more than CZK 10.5 billion in wages in the Czech Republic last year, in total, it was almost CZK 20 billion worldwide,” said chairman of the board of directors of the AGROFERT Group.
The AGROFERT Group is based on the fact that the money it earns in the Czech Republic is also taxed here and the net profit is invested. Last year, AGROFERT invested a total of CZK 6.7 billion in the Czech Republic. In all the countries where it operates, it was a total of CZK 12.2 billion. Most (CZK 6.2 billion) went to the chemical industry, followed by agriculture (CZK 3 billion) and food industry (CZK 1.6 billion).
“We are proud to be a Czech company. We take it for granted that the money we earn here, we will also tax here. Last year, we paid more than CZK four billion in taxes and levies in the Czech Republic,” stressed chairman of the board of directors of the AGROFERT Group.
Investment in sustainability
In 2023, the companies of the AGROFERT Group invested CZK 2.2 billion in the ecology of their operations. Chemical industry companies invested the most, almost CZK 1.5 billion. For example, LAT Nitrogen invested almost CZK 211 million in a new wastewater treatment plant. Duslo invested a total of CZK 142 million in reducing the emission footprint of nitric acid production, and for example, PREOL invested CZK 38 million in BIOCHAR chaff pyrolysis.
Investment in 2024
In 2024, we suppose realizing a year-on-year higher volume of investments, which we plan to significantly exceed the level of depreciation. Investments will be focused mainly on energy savings and further higher environmental friendliness of production, for example, the construction of a raw water retention tank to supply PRECHEZA or the completion of the BIOCHAR chaff pyrolysis production unit and a small photovoltaic power plant in PREOL. Among the biggest planned events, there are the start of the construction of a new buns line for McDonald's at the Lieken company, the completion of the construction of a new distribution centre in SKW company, the start of the construction of a new chicken slaughterhouse in Vodňany, the expansion of the premises in Drebkau of the AGROFERT Deutschland company and the construction of several new cowsheds incl. dairy farms in the Czech Republic and Slovakia.
„We will keep on investing in the modernization of our chemical, food, agricultural, wood and other operations,“ added Zbyněk Průša, chairman of the board of directors of the AGROFERT Group.
AGROFERT also maintains its focus on further development through acquisitions. It will thus follow on from last year's successful acquisitions of three Czech primary agricultural products with a total area of 5,700 hectares or the completed acquisition of the Romanian agricultural commodity trader East Grain. AGROFERT is continuously looking for suitable investment opportunities in the segments of its operations, especially in the regions of Central and Southern Europe. This year, we continue to acquire primary agriculture productions that fit well into our agricultural division.
A more favourable outlook for 2024
This year, AGROFERT's board of directors expects improved performance, especially in the fertilizer production segment, for which 2023 was difficult due to lower demand for fertilizers and also due to a significant decrease in fertilizer sales prices in 2023.
“We expect a more significant improvement especially for the newly incorporated LAT Nitrogen group, where we already expect positive effects from the implemented synergistic measures. We also expect improved performance in the specialty chemicals segment. In the food production segment, we expect performance to remain at a similar level as last year. In the agriculture segment, we expect a slight year-on-year deterioration in performance due to low market prices of plant commodities on the European market and also due to declining support for conventional agriculture from European and national funds,” stated Zbyněk Průša, chairman of the board of directors of the AGROFERT Group.
Note:
As of December 31, 2023, all of 628 common shares of AGROFERT, a.s., with which 100% of the voting rights and share capital of the company are associated, are transferred into trust funds AB private trust I, svěřenský fond, and AB private trust II, svěřenský fond.
About AGROFERT group
AGROFERT is the largest group in the Czech and Slovak agriculture and food industry, it is the second largest domestic chemical group, the second largest producer of nitrogen fertilizers in Europe, and AGROFERT also ranks third among the largest domestic exporters.
In terms of investments, AGROFERT ranks among the largest Czech investors in the Czech Republic, Slovakia, Germany, Austria, and France and is also an important investor in Hungary.
Today, AGROFERT Group employs 32,000 people and is the largest Czech private employer. According to the latest published results of the CZECH TOP 100 ranking, AGROFERT is the fourth most important company in the Czech Republic.
The companies of the AGROFERT Group are active in the fields of chemistry, agriculture and primary production, food, forestry and timber, ground technologies and engineering, logistics and transportation, and renewable resources. The equity capital of the concern amounts to CZK 109 billion. More information at www.agrofert.cz.