The agribusiness company of the Budapest Stock Exchange (BÉT) continues its expansion in Romania
UBM Holding Nyrt, Hungary’s largest trader of feed raw materials and market leader in the feed production sector, continues its expansion in Romania. UBM Agri Trade SRL, the Group’s Romanian subsidiary, acquired a storage facility for 30-50 thousand tonnes of agricultural produce in Budești, with a total area of more than 104 thousand square meters. As a result of the acquisition, UBM Agri Trade SRL, which generated revenues of RON 261.02 million, i.e. nearly HUF 20 billion in the previous financial year ending 30 June 2022, will be able to further increase the profitability of its activities.
Until now, UBM Agri Trade SRL was exclusively active in the trade of feed raw materials. The new warehouse will be used by UBM’s Bucharest-based subsidiary to store its own grain and other feed raw materials acquired during its trading activities, which are constantly growing in volume, and to keep them for its contracted partners when capacity is available. In line with its expansion strategy, UBM financed the acquisition from its own capital.
UBM, known as the agricultural company of the Budapest Stock Exchange, entered the Romanian market in 2018 when it opened a grain trading office in Bucharest, which had already generated revenues of RON 261.02 million, equivalent to nearly HUF 20 billion, in the previous financial year that ended on 30 June 2022. The next stage in the group’s expansion in Romania was the inauguration in 2019 of a feed mixer owned by UBM Feed Romania SRL in Kerelőszentpál, Maros County. Romania’s largest independent feed mill, with a total investment of €15.6 million, has an annual capacity of 220,000 tonnes and is one of the most modern plants in Europe.
Founded in 1996, the UBM Group presented its growth strategy for the 2025/26 financial year on 9 March this year, according to which the group, which operates 6 feed mills in Hungary, Slovakia, and Romania, will continue its expansion in Central and Eastern Europe through further acquisitions and greenfield investments, and will develop its regional logistics infrastructure within the commodity business.
“Our aim is to further increase UBM’s regional market share in manufacturing and trading through continued acquisitions, which will make the company an inescapable player in the agricultural sector in the countries of the Carpathian Basin with its extensive trading and manufacturing network,” said Péter Horváth, CEO of UBM Group.
As the only agribusiness company on the Budapest Stock Exchange (BÉT), UBM is the 7th largest player on the BÉT in terms of turnover, excluding the Xtend market and the financial sector.
Budapest, 16 June 2023
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