Renewed Potato Delivery Partnership Between Grup Șerban Holding and PepsiCo Romania
Grup Șerban Holding recently announced the signing of a significant contract with PepsiCo Romania regarding the development of the program for the delivery of potatoes for Lay’s chips produced in Romania.
According to the supplier, this is the third year of collaboration between the two companies.
“We are pleased to continue our collaboration with PepsiCo and thank them for their trust. Chips for potatoes represent a niche for Romanian agriculture, and the fact that Grup Șerban is already entering the third year of collaboration with PepsiCo confirms the excellent quality of our production and adherence to the highest international standards in this field. Signing this contract means improving the financial performance in the medium term, taking into account the predictability and evolution of capitalization prices. The production of processing potatoes contributes to the increase of the group’s turnover, and therefore to the profit and cash flow, bringing an income of more than EUR10,000 per hectare. One hectare of chipping potatoes generates the same income as four hectares of cereals or oilseeds. Also, with the renewal of this collaboration, we plan to shorten the supply chain by adding storage services for 35% of production,” Ovidiu Bucătaru, Chief Financial Officer of Șerban Holding Group said.
To increase production capacity for this intensive crop, Grup Șerban Holding is investing in an irrigation system adapted to the new directions of the European Green Pact. Under the new system, irrigation is carried out by drip, a method by which water consumption is reduced by 50%, energy costs by 30%, and the use of fertilizers and pesticides are reduced by 50% and 25%, respectively. The cost of such investment amounts to approximately EUR4,000 per hectare.
Grup Șerban shares will debut on the AeRO market of the Bucharest Stock Exchange under the symbol of the GSH stock exchange on February 28, 2022.
At the end of 2021, the company attracted EUR2.5m from investors in a private placement for its shares. The attracted capital should contribute to the continuation of the development projects of the group. With the listing of GSH shares on the AeRO market of the Bucharest Stock Exchange on February 28, 2022, Grup Șerban aims to continue using the financing mechanisms through the capital market for the further development of the company’s business. Grup Șerban plans to continue attracting between EUR5.06m and EUR10.1m in funding each year to develop all the group’s business lines.
In 2020, Grup Șerban Holding registered, at a consolidated level, a turnover of EUR63.1m and a net profit of EUR4.8m.
