The UBM Group closed the 2022-2023 business year with a pre-tax profit of over HUF 913 million

According to the announcement sent to MTI, at the general meeting of UBM Holding Nyrt. on Tuesday, the shareholders accepted the company’s annual report, the company group achieved a consolidated sales revenue of HUF 231.6 billion, which is an increase of 17.8 percent on an annual basis. The increase is due to the investments of the UBM group in addition to the increased raw material prices. Among other things, in 2022, they modernized their factory in Slovakia with a capacity of 88,000 tons per year, which started production at the beginning of this year, with an investment of 5.9 million euros. In the announcement, CEO Péter Horváth was quoted as saying that the first milestone of their growth strategy announced in March this year was successfully achieved, as the company group’s sales revenue and EBITDA (HUF 9.6 billion) both reached a historic peak. They also mentioned that UBM continued its expansion in Romania in the closed business year: the company group’s subsidiary, UBM Agri Trade SRL, bought a logistics base with a floor area of more than 104,000 square meters in the city of Budesti.

The UBM Group outlined its growth strategy and business plan for the 2025/26 business year

Among its main objectives is that the company, which operates a total of 6 feed factories in Hungary, Slovakia and Romania, continues its expansion in Central and Eastern Europe with further acquisitions and green field investments, they wrote. In addition, they indicated that the company group will build the most modern pig farm in Europe by 2026 and will produce 350-500 thousand fattening pigs annually. Among the goals, it was also mentioned that the UBM Group will continue to expand its continental commercial activities by opening new commercial offices by 2025, so that within two years it will be able to serve all markets within a 2,000-kilometer radius of Hungary. As a result of all this, the UBM group intends to expand its current feed production of 0.6 million tons per year to 1 million tons by 2025, and increase its annual feed raw material trade from 1.5 million tons to 2 million tons. According to Péter Horváth, with the realization of the objectives, the sales revenue of the UBM group will show an average annual growth of 9-15 percent in the years 2023-2025, so assuming the price environment of December 2022, it could reach HUF 350 billion by the end of this period.

In the business year that ended on June 30 this year, the 1:20 division of the ordinary shares of UBM Holding Nyrt., which is listed as the only agribusiness company on the BÉT, was successfully completed

The company group’s general assembly decided on this in order to increase the marketability of the common shares, as the company wants to significantly expand the range of institutional and private investors that belong to its ownership in the next one year. UBM’s shares are listed in the BÉT’s standard category. The price of the shares did not change on Tuesday afternoon compared to Monday’s closing value, it still stands at HUF 1,460. The lowest price of the past year was HUF 1,270, while the highest was HUF 1,480.

MTI