Fertilizer manufacturer Rosier, active among other things with liquid fertilizers for greenhouse farming, is having a hard time financially. In recent days, the listed company with branches in the Netherlands and Belgium issued two communiqués. The war in Ukraine is affecting the company.
Rosier reports a 'significant increase' in raw material and energy costs. It is expected that these costs will continue to rise for some time. The company also lacks 'crucial raw materials', such as potash, for its operations. Because of the European sanctions, trade relations with suppliers in Russia and Belarus have been suspended. 18% of Rosier's supplies came from both countries in 2021.
Furthermore, Rosier reports a 'greatly reduced-order book'. Deliveries of products to important Ukrainian customers of the company cannot be completed and are blocked. The company fears a further reduction of its activities in Ukraine in the coming months. By 2021, Rosier was deriving about 10% of its revenue from Ukraine.
Rescue package
Rosier is currently evaluating the impact of the recent developments on its operations. Rosier is looking into different measures to address the current situation, such as obtaining a bridge loan to cover Rosier's short-term liquidity needs, finding alternatives for Ukrainian and Russian customers and reducing operational costs. These measures would come on top of the rescue package already announced on 9 February 2022. That rescue package included a capital increase. This was postponed on 14 March, at an extraordinary general meeting, as had been proposed.
For more information:
Rosier
www.rosier.eu/nl/