By Beata Socha
Warsaw - Polish producer of grain silos Feerum is becoming increasingly active in the Ukrainian market, where – apart from existing contracts – they now plan to invest an additional $8.2 million.
“The potential of the Ukrainian market is significant. In the next two-three years, we expect to see further growth there. We have established cooperation with new partners experienced in agriculture. We believe it will significantly strengthen our position in Ukraine,” said Feerum CEO Daniel Janusz.
The company is also entering a number of tenders for contracts in Lithuania, Latvia and Estonia, where investments receive EU support, similarly to Poland. The firm estimates the potential of the Baltic state contracts at almost $8 million.
Other Eastern European markets the company is present in include Romania, Russia and Kazakhstan. It plans on expanding its activity into Slovakia and the Czech Republic.
Outside of Europe, Feerum is also active in Tanzania, where it is currently carrying out a $33.1 million investment of five grain silo and warehouse complexes.
Feerum’s exports increased in the first quarter of the year by 517 percent y/y, from PLN 3.5 million to PLN 21.6 million.
In Q1 2018 the company reported EBITDA of PLN 7.2 million, marking an increase of 65 percent y/y, while its revenue grew 41 percent y/y from PLN 19.5 million in Q1 2017 to PLN 27.6 million in the first quarter of this year. Consolidate net profit came in at PLN 2.08 million, compared to PLN 2.04 a year earlier, while Operational profit stood at PLN 2.6 million, up from PLN 2.4 million in Q1 2017.
This article is republished, with permission, from the Warsaw Business Journal.