Contract strengthens MBF Group’s position in unrefined oil market

Our company, acting as an importer and distributor of vegetable oils in Poland and European Union countries, announced a few days ago that it had signed a significant contract for the sale and delivery of 1,500 tons of unrefined rapeseed oil. The contract, worth about PLN 4.966 million (€1.15 million), is a significant step in the company’s development and strengthens our position in the vegetable oil market.

The subject of the contract is the supply of 1,500 tons of unrefined rapeseed oil, which will be used in various industries. The agreement was concluded with an entity based in Warsaw and covers the supply of unrefined rapeseed oil with parameters in accordance with the recipient’s requirements (phosphorus and KOH acidity levels, sulfur and other metal content, etc.).. The oil can be used in the production of biofuels, an important step toward sustainability and reducing greenhouse gas emissions. In the feed industry, rapeseed oil is a valued ingredient that improves the nutritional value of animal feed, contributing to better health and productivity of livestock.

On the other hand, in the industrial sector, rapeseed oil is used to produce lubricants that are essential for the proper functioning of machinery and equipment, providing them with longer life and efficiency. In addition, canola oil is widely used in the cosmetics industry, where it is used as a natural ingredient in the production of creams, lotions, soaps and other skin care products. Thanks to its moisturizing and nourishing properties, canola oil is valued for its ability to improve the condition of skin and hair.

The introduction of rapeseed oil into these different market segments not only increases the diversification of the product’s uses, but also highlights its versatility and ecological qualities, which can contribute to increased demand and sales stability. All of these applications underscore the strategic importance of this contract for MBF Group, strengthening our position as an important player in the vegetable oil sector.

Notwithstanding the above, the signing of the contract is an event of instotional importance for MBF Group for the following reasons:

  • Increases revenue and profitability: The contract generates significant revenue for the Company, which has a positive impact on its profitability and financial ratios. The additional revenue from this contract allows for better management of operating costs and investment in technological and logistical development. This in turn translates into higher profit margins and better financial stability for the company.
  • Strengthening market position: The agreement with a major customer strengthens MBF Group’s position in the vegetable oil market and opens up new business development opportunities. With this contract, the Company can gain a competitive advantage by increasing its presence in key market segments. This also creates opportunities for further strategic partnerships and enables the company to expand its product range.
  • Diversification of customer portfolio: Signing a contract with a new customer diversifies the Company’s customer portfolio, which reduces the risk of dependence on single customers. Diversification of the customer base makes MBF Group less vulnerable to fluctuations in demand from individual customers, which stabilizes revenues and allows for more sustainable growth. Diversity of customers also increases a company’s resilience to market and economic changes.
  • Image improvement: Successive contracts are building a positive image of MBF Group as a reliable and trustworthy business partner. Each completed contract confirms the Company’s ability to deliver quality products within the agreed deadlines. A positive image attracts new customers and business partners, which in the long run can lead to more orders and long-term business relationships.

The main contract opportunities include:

  • Opportunity to increase orders: Customer satisfaction with the quality of the oil supplied can lead to increased orders in the future.
  • Rising demand for rapeseed oil: Rising demand for rapeseed oil in the global market may result in an increase in rapeseed oil prices, which has a positive impact on the Company’s margins.

The main risks associated with the contract include:

  • Supply chain disruptions: Delays in the delivery of raw materials or logistical problems can make it difficult or impossible to complete a contract on time.
  • Change in rapeseed oil prices: A decline in rapeseed oil prices in the global market may negatively affect the Company’s margins.
  • Increased competition: Increased competition in the vegetable oil market may make it more difficult to attract new customers and retain existing ones.

MBF Group has agreed to supply canola oil according to the schedule and specifications in the contract. In case of delays in deliveries, the Company is obliged to pay contractual penalties. The contract has no termination clauses and remains in effect until fully executed.

The signing of this important contract is a success for us and represents an important step in the company’s development. The Company is confident that the reliable implementation of the agreement will strengthen its position in the market and benefit both the Company and its shareholders.