The agricultural cooperative TURIEC, based in Dubovo, is emerging from the worst of its financial problems. Three years after the entry of a new owner, the SANAGRO group, after six years it again reported a positive operating result EBITDA, i.e. profit before taxes, depreciation, amortization and interest.
Last year, EBITDA amounted to EUR 124 467, whereas the year before EBITDA was negative, namely EUR -69 878. The cooperative is still undergoing a complete recovery process, as the accumulated loss from previous years before SANAGRO's arrival amounted to more than 2.5 million euros.
"Our company entered Dubové at a time of its serious financial problems. Therefore, it was necessary to invest about one million euros in the recovery process and to stabilise the cooperative," says Tomáš Kohút, CEO of SANAGRO Group, which is dedicated to investments in agriculture and which included the cooperative in Dubovo in its portfolio in 2016. The funds were mainly directed towards the payment of outstanding liabilities, the purchase of seeds and fertilisers, the repair of non-functioning assets and machinery, but mainly towards the rehabilitation of land, not only owned but also rented, which at the time of the takeover of the cooperative was achieving below-average yields per hectare.
In three years, SANAGRO has thus managed to improve the condition of the soil to such an extent that agricultural land can once again be fertile. "Although it seems like a long time, the process of returning the soil to its quality and fertility is lengthy and difficult. Not only time-consuming, but also financially. The gradual streamlining of the cooperative's operations is having its first visible positive results. It is not only a higher yield and soil quality, but also a positive EBITDA for 2018, i.e. profit before taxes, depreciation, amortization and interest, which the cooperative last reported in 2012," emphasized Tomáš Kohút, CEO of SANAGRO.
The Agricultural Cooperative TURIEC based in Dubovo is still in the recovery process. Revenues have grown continuously over the last three years, amounting to EUR 1.2 million in 2018. At the same time, the cooperative's loss has been gradually decreasing. Last year, it decreased by 57 percent and amounted to 48 thousand euros. "I am happy that the cooperative is on the rise. I also appreciate the efforts of the original unit holders who share the successes and failures with us. Currently, seven original unit holders also share with us, as the majority owner, in the functioning of the cooperative," added Tomáš Kohút, CEO of SANAGRO.
Continue reading: https://www.webnoviny.sk/nasvidiek/druzstvo-turiec-v-dubovom-zvysilo-zisk-pomohla-zmena-vlastnika/
Source: webnoviny.sk
Photo: illustration, Thinkstock
