Dénes Laczkó: The key to our success is our dedicated team

UBM Feed Romania has shown dynamic growth in the five years since its foundation, and 2024 has brought particularly significant milestones in the company’s life. The factory in Romania has reached full capacity, production volumes are approaching record levels, while financial indicators also reflect outstanding results. All this has been made possible by a highly committed and effective team, professionally, also as people. We spoke to Dénes Laczkó, Managing Director of UBM Feed Romania, about 2024’s key successes, how the company is tackling the challenges, and what the future business goals are.

What have been the main successes and milestones in 2024?

In the fifth year since our establishment, our Romanian factory has reached full capacity, and by the end of the year, we will be close to 180 thousand tonnes of production. 2024 is also a particular highlight for us in terms of financial indicators, as we expect to exceed €65 million in turnover and cross the €5 million EBITDA and €3 million after-tax threshold.

We have achieved all this with a small but highly efficient and committed team of just over 50 people, who are not only the best in their field but also provide a family atmosphere on a day-to-day basis. It is a particular pride to lead this youthful team, with an average age of 35, which also includes a dog and an AI robot… 😊

What challenges have you faced and how have you dealt with them?

Over the years, we have become used to operating in a very volatile economic environment. Starting with the difficulties caused by the COVID-19 epidemic and the supply chain crisis, continuing with the energy crisis as a result of the war, and then inflationary pressures, the challenges have been constant. The past few years in agriculture have not been without their challenges.

In addition, we have had to face a new challenge, with the introduction of the 1% sales tax in Romania, which has placed a significant burden on us, while maintaining profitability. Now, the political crisis around the Romanian elections and the instability that this has created is another challenge. All this adds to uncertainty. But our adaptability and forward planning will help us to overcome these difficulties.

Are there any areas where you have seen significant growth during 2024?

In 2024, there was growth in all aspects. We have seen a significant increase in volumes produced and our profitability has reached record levels. The quality of our products is widely recognized in the market, and our results on the farms are also exemplary, with several record-breaking results. These successes are a testament to the hard work of recent years and confirm that we are on the right track.

What are your key business objectives for 2025?

We see 2025 as a period of consolidation and preparation for expansion. Having maximized the capacities of the Kerelőszentpál factory in all respects so far, our next objective will be geographical expansion, with the first steps to be taken in 2025. Within Romania, we plan to build new production capacity, which will allow us to reach additional regions and further strengthen our market position in the sector.

How do you plan to deal with possible economic uncertainties or risks in the future?

The challenges of recent years have strengthened us and taught us how to become more resilient and prepared. In this spirit, we try to respond to all expected economic and environmental impacts with foresight. We build on our experience in managing risk, our in-depth market analysis, and our exceptional adaptability. We aim to continue to build on solid foundations and turn difficulties into opportunities to ensure our continued growth.

The interview was published in Hungarian in December 2024.

If you have any questions, please do not hesitate to contact us at investors@ubm.hu.

THIS BLOG POST IS FOR COMMUNICATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER, A REQUEST FOR PROPOSAL, ADVICE ON INVESTMENT, LEGAL, FINANCIAL OR PUBLIC TAX MATTERS, OR DETAILED INVESTMENT OR FINANCIAL ANALYSIS. WE HAVE CREATED OUR BLOG SOLELY FOR INFORMATIONAL AND EDUCATIONAL PURPOSES IN AN EFFORT TO BUILD A COMMUNITY. THE INFORMATION CONTAINED IN THIS BLOG POST IS NOT EXHAUSTIVE.