The company Brandt Europe, a subsidiary of the American agricultural leader for Europe, the Middle East and Africa, and owner of the assets of the former Tragusa since July 1, 2016, has taken stock of its first year of operation in which it has incorporated the first two managers of the former Tragusa, Lucía Cepeda (Financial Director) and Manuel Gonzalez (General Manager), as partners of Brandt Europe, after acquiring a 25% share package, in a plan encouraged by the parent company, thus showing confidence in the management team of the previous stage as well as favouring their commitment to the new project.
In addition, it has provided the forecast data for the end of the current fiscal year 2017, which will be its first full calendar year IMG_4097 since the acquisition. Specifically, at the end of 2017, Brandt Europe expects to close with a turnover of 20 million euros, a figure which exceeds by 11% the 18 million euros of 2016, in whose first six months it still operated as Tragusa and as Brandt in the second half of the year.
The European subsidiary of the American agricultural giant will grow not only in turnover, but also in gross margin (5% higher), thanks to the incorporation of higher value-added products, especially in the area of fertilizers, based on the powerful R&D&I of the parent company and manufactured in Spain.
Specifically, with American technology, but with the development of its own R&D laboratory, Brandt Europe is manufacturing 20 new fertilizers from its production plant in Carmona, which have diversified the company’s commercial portfolio, previously made up of some 40 phytosanitary products and 10 fertilizers.
The incorporation of these products represents an important qualitative leap in the commercial offer of the company, which used to work mainly in the field of generic products and now enters the market of specialities, more exclusive products, with a greater technological and innovative load, very little competition in the Spanish market, with greater added value for clients and therefore with a better commercial margin. It also represents a commitment to strengthen the fertilizer business line, whose offer has been tripled.
In addition to the diversification of the portfolio, the former Tragusa has made another significant leap in foreign sales, which before the purchase by Brandt represented approximately 10% of turnover, and by the end of 2017 will represent double that, 20%, accessing new markets such as South Africa, Turkey, Ivory Coast, Greece and Italy, which have joined others where the company was already present.
Brandt’s idea is to cover the entire market from its European subsidiary, not only in Europe, but also in the Middle East and Africa, taking advantage of the manufacturing and R&D capacity of the Carmona production centre and laboratory and its privileged logistical situation. Brandt Europe’s facilities include an in-house customs warehouse, one of the few in Spain outside the free trade zone.
In its first year following the purchase of Tragusa, the US-based multinational has also made a strong commitment to quality employment and investment in equipment and machinery. Thus, in terms of employment, it has increased its workforce by 20%, from 50 to 60 people, and has formed an external technical and commercial network of another ten professionals.
The entire management team from the previous stage of Tragusa remains. For its part, in laboratory and production technology, it has made an investment of close to one million euros, reinforcing its capacity to manufacture more technologically advanced products. This investment has been divided between laboratory equipment and manufacturing technology to improve processes and packaging.
Another important “movement” within the company in this first year of operation has been the incorporation of the first two directors of the former Tragusa (Manuel Gonzalez, Managing Director) and Lucia Cepeda (Financial Director) as partners of Brandt Europe, after acquiring a 25% share package, in a plan encouraged by the parent company. Brandt’s largest shareholder, Rick C. Brandt, wanted to show his confidence in the management team from the previous stage and to encourage their commitment to the new project.
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