UBM Holding Nyrt closed a successful half year

The country’s largest feed raw material trader and market-leading feed manufacturing company group intends to continue its investments and international expansion, and would increase the proportion of small investors in the ownership structure. For the latter, they plan to split UBM shares at a ratio of 1:20, they wrote. According to the announcement, the group’s sales revenue is expected to grow by 9-15 percent per year in 2023-2025 – assuming the current price environment – and reach HUF 350 billion per year by the end of the period. “Based on the results of the last six months, we see that the market position of UBM Plc. and its related subsidiaries is stable, UBM is an indispensable player in Hungarian agriculture, the number one feed producer, the conditions for regional expansion are met, and the annual production of one million tons of feed is achievable, as well as the trade of two million tons of feed raw materials”, they said.

According to the report, regional presence primarily means the countries of the Carpathian Basin

That is, in addition to Hungary, Slovakia, Ukraine, Romania and Serbia. Bulgaria, Bosnia-Herzegovina, Montenegro and Albania were identified as additional strategic targets. In these countries, the conditions for intensive animal husbandry have not yet developed, but this will change in the next five to ten years, and by dynamically joining this, it is possible to build up the farm network that can cover the resulting feed demand – they noted.

In addition to Hungary, the company group has production facilities in Romania and Slovakia

Last year, they handed over their new feed mixing plant in Hernádcsány, Slovakia. Thanks to the EUR 6.7 million investment, which was partially realized from tender funds, the group’s feed production capacity increased by a tenth, to 840 thousand tons per year.

Thanks to this development, UBM’s export activities can also expand further

The company currently exports products to 15 countries – primarily Italy, Romania and Austria – from which approximately 46.5 percent of its sales revenue comes. The UBM Group, which has approximately 390 employees, has seven production sites in Szelesté, Környé, Töké, Mátészalká, Szentesé, Hernádcsány and Kerelőszentpál, and its head office is located in Pilisvörösvár. Based on the report, the company’s equity amounted to approximately HUF 14 billion on December 31, 2022. UBM’s shares are listed in the BÉT’s standard category. They were last traded at HUF 29,400, which was also the highest price of the past year, while the lowest was HUF 24,000.

MTI