One of Hungary’s largest agricultural groups achieved notable financial results in the first six months of the 2023-2024 fiscal year, Index reports. With sales revenue totaling HUF 105.34B (EUR 267.5M) and a profit before tax of HUF 1.03B (EUR 26B), the UBM Group continued its expansion efforts, particularly in international markets.
In August 2023, the group ventured into the livestock segment and inaugurated a trading office in Italy. During this period, UBM Group saw a significant uptick in its export activities, with export sales comprising 54.3% (HUF 57.25B / EUR 145.3M) of total sales, up from 47.5% (HUF 58.25B / EUR 147.9M) in the corresponding period of the previous fiscal year.
Notably, Italy, Austria, Germany, and Romania emerged as the group’s primary export markets, contributing to four-fifths of its total export sales.
Despite facing challenges stemming from a substantial decline in prices, particularly in feed maize and wheat (decreasing by over 50% and around 40%, respectively) the UBM Group managed to maintain robust financial performance. CEO Péter Horváth emphasized that achieving a sales revenue of HUF 105.34B (EUR 267.5M) amid such market conditions was commendable.
Moreover, the group’s traditional businesses demonstrated growth, with the commodity trading business witnessing a 16.9% increase in traded goods volume compared to the previous fiscal year.
Similarly, the feed materials trading business experienced a substantial rise in sales volume.
Looking ahead, the UBM Group unveiled its growth strategy for the 2025-2026 fiscal year, aiming to produce one million tons of feed annually and trade two million tons of feed materials yearly. To achieve this, the group plans to expand its continental trading activities and establish new trading offices by 2025, enabling it to serve markets within a two-thousand-kilometer radius of Hungary.
Mr. Horváth reiterated the group’s ambition to become one of the top three feed producers in both the Romanian and Serbian markets within three years, while also increasing its continental market share through continuous development initiatives.
