News

The Los Grobo group, one of the largest players in the agribusiness sector, expects to invoice US$100 million more this year compared to 2021. It will jump from US$650 million to 750 million dollars.

This was expressed in dialogue with LA NACION Enrique Flaiban, CEO of the company. Flaiban, who among other companies gained experience in Petrocuyo and Ecogas, took over the company in the middle of last year.

Today, 76% of the agro-industrial firm is controlled by the investment group Victoria Capital Partners (VCP), while the remaining 24% is held by producer Gustavo Grobocopatel and his sister Matilde. VCP entered the company in 2016. It has disbursed about US$350 million.

The company has an expansion plan for three to five years that contemplates a progressive growth of the planted area, the opening of new branches for the sale of inputs and the origination of more grains for its commercialization.

In this line, indicated the CEO, it is planting 250,000 hectares and aims to jump to 350,000 hectares. Today the crops are made in a model of association with producers. Many put their fields and others, for example, the inputs. Los Grobo looks for a business based on the alternatives with the producers. Today they have 74 partners.

"We need to double the number of partners," said Flaiban in relation to the planting expansion plan.

On the other hand, it originates and markets some 2.5 million tons. In this case, the goal is also to grow, to 3.5 million tons. For that there will be expansion of storage plants and new ones in other regions.

As mentioned, in 2021 it billed US$650 million. The deal as such left US$70 million. With that, interest on the debt is paid and a part is used for investments.

Strictly speaking, the firm comes from refinancing a debt of US$150 million. 80% was refinanced to 2024/2025. It is worth remembering that Los Grobo Agropecuaria and Agrofina, another agrochemical input company that it controls, upgraded their long-term issuer rating from BBB+(arg) to A-(arg) with a stable outlook. This was reported by the company based on a report from the FIX risk rating agency.
Strategy

The company knew how to be strongly present in the markets of Uruguay and Brazil. In the latter, for example, it became associated with the Japanese giant Mitsubishi Corporation, to whom it ended up selling the entire share package in Brazil.

The firm no longer operates in foreign markets and, from what the CEO pointed out, for now it is not the intention to return to the countries of the region.

"We focus on consolidating in the country," Flaiban said. Indeed, in the firm they believe that in Argentina there is space to precisely “consolidate” the business beyond the internal reality.

Apart from this, they are enthusiastic about the association model with producers. Strictly speaking, they also highlight that many of them, once a crop has been harvested, end up marketing their production via the company.

In this context, they are also aiming to open more branches for the sale of inputs. There are already 33 in Buenos Aires, Entre Ríos, Córdoba, Santa Fe and La Pampa. The plan contemplates opening another 15 more. → www.lanacion.com.ar

Automatic translation from spanish.