FES-Agro has expanded its customer base by 40%
FES-Agro has summed up its financial results (according to Russian Accounting Standards) for 2019: the revenue increased by 36% to 6.367 billion rubles ($ 98.5 million), while net profit decreased by 4% to 210 million rubles ($ 3.25 million).
“I am pleased to share our work results for the full year 2019,” said Alexander Mikhailov, President of FES-Agro. “2019 was a successful year for our company. We acquired the status of a public company and entered the stock market. The annual sales plan, what we had promised the market, was completed in nine months. The number of customers the company successfully works with increased by 40% from 1,777 to 2,498. During the year, we opened eight sales offices in new territories. The fact that we significantly exceeded the planned indicators proves the chosen development strategy right and is the result of the excellent work of our entire team. The main factors of business growth were the strengthening of positions in the current regions, the beginning of work in new territories and a significant improvement in the agricultural consultancy and support service for our clients.”
A slight decrease in net profit is associated with the company’s decision to invest additionally in its development. The decision on additional investments was made in the Q4 of 2019, when FES-Agro development strategy began to show quick positive results. The effect of the investments can be observed in the steady growth in the current year trade turnover.
In support of the above statement, FES-Agro reported that as of March 26, 2020, the amount of concluded contracts with customers amounted to 6.855 billion rubles (with value added tax) (more than $ 88 million), which is comparable to the size of the trade turnover of the whole of 2019.
“In 2020, we will continue to follow our strategy, responding to the situation that our country faced this year,” added Alexander Mikhailov. “All our employees and myself understand that the year will not be easy. But the agro-industrial sector is one of the unique sectors, which, of course, experiences difficulties during the crisis, but suffers the least, since the demand for food products in difficult times does not decline, but even grows. This factor, as well as many years of experience in top management, increase confidence that we can do it, and this year will be another successful year for our company.”
FES-Agro distributes seeds, plant protection products and micronutrients.