Agricover Credit IFN posts RON 22 million profit in 2016, up by 28 pct year-on-year

Agricover Credit IFN, the financing division of Agricover Holding, posted RON 22 million net profit in 2016, up by 28 percent year-on-year.

According to company representatives, the results were obtained on the back of the implementation of a business model based on the knowledge and the understanding of the agriculture sector and the development of customized innovative products that meet the needs of Romanian farmers.

The value of credits offered stood at RON 988 million, representing a 4 percent year-on-year increase. The company’s active clients went up to 1900, up by 12 percent year-on-year.

“2016 was a year of performance and efficiency, both for Agricover Credit and for our farmer clients. By automating operational flows and developing new specialized products we provided access to capital in record time for farmers, supporting this way the development of their businesses,” Robert Rekkers, Agricover Credit IFN General Director said.

Own capital in 2016 stood at RON 148 million, up by 18 percent year-on-year. The company attracted new funds in 2016, alongside the lines already existent, to cover the demand for funding of Romanian farmers. The main new sources of funding in 2016 were the European Investment Bank (the first funding in Romania guaranteed by the European Union under the framework of the European Fund for Strategic Investments in value of EUR 15 million, the European Investment Fund, in value of EUR 10 million), the European Fund for Southeast Europe as well as local banks.

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According to the company, the purchase of diesel fuel with payment after the crops are collected is the newest solution launched by the company at the end of last year. The campaign was designed to support the activity of farmers. In 2016 Agricover Credit IFN also focused on expanding the micro clients portfolio by developing specialized products and building a dedicated team. By the end of 2016, the company had provided funding to 2015 farmers under 100 hectares. In the same period, the number of financial products per active client increased from 1.7 percent in 2015 to 2.2 percent in 2016.

“After a dificult 2015, we had a very good 2016 from the point of view of productivity and profitability of businesses in the agriculture sector. That is why, we believe that 2017 must be a year of investments in increasing performance,” Robert Rekkers, Agricover Credit IFN General Director said. The company is planning to open two new locations to answer increasing demand.