13 May
2024
ROS AGRO PLC financial
results for 1Q
2024
13
May
2024 -
Today ROS AGRO PLC (the "Company"), the holding company of Rusagro
Group (the "Rusagro"), a leading Russian diversified food producer
with vertically integrated operations, has announced the financial
results for the three months ended 31 March
2024.
1Q 2024 HIGHLIGHTS:
- Sales amounted to
RUB 68,309 million (US$ 753 million1), an
increase of RUB 20,913 million (+44%) compared
to 1Q 2023;
- Adjusted
EBITDA2 amounted to RUB 7,303 million
(US$ 80 million), an increase of RUB 163
million (+2%) compared to 1Q 2023;
- Adjusted EBITDA
margin decreased to 11% in 1Q 2024 from
15% in 1Q 2023;
- Net profit for the
period amounted to RUB 1,740 million (US$ 19
million), a decrease of RUB 3,677 million
(-68%);
- Net debt
position3 as of 31 March 2024 amounted to RUB
62,765 million
(US$ 680 million);
- Net Debt/Adjusted
EBITDA (LTM4) as of 31 March 2024
was 1.11x.
Commenting on the results, Timur Lipatov, CEO
of Rusagro, said:
"In 1Q 2024 Rusagro's revenue significantly
increased mainly following the growth in production of crude oil
and meal in Oil and Fat business and due to consolidation of NMGK
Group results starting from the second half of 2023. Additionally,
the dynamics of pork market prices and the growth of sugar sales
volumes following the growth of processed volumes of sugar beet
positively impacted the revenue. Decrease in revenue of
Agricultural segment is attributable to the difference in carryover
stocks because of prolonged harvesting in 2022 due to adverse
weather conditions.
Group's adjusted EBITDA demonstrated the
increase of 2%. The growth of adjusted EBITDA in Meat business
following positive market conditions and the consolidation of NMGK
completely compensated the decrease in other segments under the
pressure of increased costs.
Net debt decreased by 6% and the ratio of net
debt to adjusted EBITDA has also improved.
Net profit decrease is mainly due to the dynamics of exchange
differences."
Key
consolidated financial performance indicators
|
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Sales
|
68,309
|
47,395
|
20,913
|
44
|
Gross profit
|
13,823
|
8,630
|
5,193
|
60
|
Gross margin, %
|
20%
|
18%
|
2 pp
|
|
Adjusted EBITDA
|
7,303
|
7,139
|
163
|
2
|
Adjusted EBITDA margin, %
|
11%
|
15%
|
(4) pp
|
|
Net
profit for the
period 1
|
1,740
|
5,417
|
(3,677)
|
(68)
|
Net profit margin %
|
3%
|
11%
|
(8) pp
|
|
1
Net profit for
the period is affected by non-cash income/(loss) on revaluation of
biological assets and agricultural produce. See details in business
sections below.
Note: since some indicators and percentages in the press
release were rounded to the nearest whole number, the sum of the
rounded values may not fully match the totals.
Key
financial performance indicators by segments
|
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
|
|
|
|
|
Sales, incl.
|
68,309
|
47,395
|
20,913
|
44
|
Sugar
|
12,429
|
9,411
|
3,018
|
32
|
Meat
|
10,607
|
10,725
|
(119)
|
(1)
|
Agriculture
|
4,306
|
5,896
|
(1,590)
|
(27)
|
Oil and Fat
|
29,856
|
23,357
|
6,499
|
28
|
NMGK
|
14,520
|
-
|
14,520
|
-
|
Other
|
505
|
464
|
41
|
9
|
Eliminations
|
(3,913)
|
(2,457)
|
(1,455)
|
(59)
|
|
|
|
|
|
Gross profit, incl.
|
13,823
|
8,630
|
5,193
|
60
|
Sugar
|
1,590
|
2,815
|
(1,225)
|
(44)
|
Meat
|
2,012
|
1,143
|
869
|
76
|
Agriculture
|
(82)
|
(774)
|
691
|
89
|
Oil and Fat
|
4,567
|
5,641
|
(1,074)
|
(19)
|
NMGK
|
4,884
|
-
|
4,884
|
-
|
Other
|
60
|
167
|
(107)
|
(64)
|
Eliminations
|
792
|
(362)
|
1,154
|
-
|
|
|
|
|
|
Adjusted EBITDA, incl.
|
7,303
|
7,139
|
163
|
2
|
Sugar
|
784
|
2,010
|
(1,226)
|
(61)
|
Meat
|
1,153
|
447
|
706
|
158
|
Agriculture
|
(1,792)
|
(116)
|
(1,675)
|
(1,441)
|
Oil and Fat
|
2,209
|
4,161
|
(1,952)
|
(47)
|
NMGK
|
2,694
|
-
|
2,694
|
-
|
Other
|
(600)
|
(297)
|
(303)
|
(102)
|
Eliminations
|
2,854
|
934
|
1,920
|
206
|
|
|
|
|
|
Adjusted EBITDA margin, %
|
11%
|
15%
|
(4) pp
|
|
Sugar
|
6%
|
21%
|
(15) pp
|
|
Meat
|
11%
|
4%
|
7 pp
|
|
Agriculture
|
(42%)
|
(2%)
|
(40) pp
|
|
Oil and Fat
|
7%
|
18%
|
(10) pp
|
|
NMGK
|
19%
|
-
|
-
|
|
SUGAR
SEGMENT
In 1Q 2024 Sugar segment adjusted
EBITDA comprised RUB 784 million
(-61% y-o-y) with 6% margin (-15
pp y-o-y).
The financial results of the Sugar segment
of 1Q 2024 compared to 1Q 2023 are presented in the
table below:
Sugar segment 1Q 2024 Financial Results
|
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Sales
|
12,429
|
9,411
|
3,018
|
32
|
Cost of sales
|
(10,838)
|
(6,595)
|
(4,243)
|
(64)
|
Gross profit
|
1,590
|
2,815
|
(1,225)
|
(44)
|
Gross profit margin
|
13%
|
30%
|
(17) pp
|
|
Distribution and selling
expenses
|
(961)
|
(945)
|
(17)
|
(2)
|
General and administrative
expenses
|
(505)
|
(394)
|
(111)
|
(28)
|
Other operating income/ (expenses),
net
|
(47)
|
(3)
|
(44)
|
(1,587)
|
incl. other adjustments to EBITDA (non-recurring
items)
|
21
|
22
|
(1)
|
(4)
|
Operating profit
|
77
|
1,473
|
(1,396)
|
(95)
|
|
|
|
|
|
Adjusted EBITDA
|
784
|
2,010
|
(1,226)
|
(61)
|
Adjusted EBITDA margin
|
6%
|
21%
|
(15) pp
|
|
In 1Q 2024 compared to the respective period of 2023
Sales of Sugar segment
increased by 32% mainly due to the growth of sugar sales volumes
supported by the growth of market prices. The dynamics of sales
volume is due to the increase in the volume of sugar beet
processing in the 2023/2024 season, which affected the amount
of sugar produced.
The Сost of sales for 1Q 2024 increased
following an increase in production volumes and prices for
sugar beet in the 2023/2024 season.
Production and sales volume of sugar in 1Q
2024
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Sugar production volume,
thousand tonnes
|
129
|
69
|
60
|
88
|
Sales volume, thousand tonnes
|
187
|
148
|
39
|
26
|
MEAT
SEGMENT
In 1Q 2024 Meat segment earned
RUB 1,153 million of adjusted EBITDA
(+158% y-o-y) with 11% margin (+7
pp y-o-y).
The financial results of the Meat segment of
1Q 2024 compared to 1Q 2023 respectively are presented in the table
below.
Meat segment 1Q 2024 Financial Results
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Sales
|
10,607
|
10,725
|
(119)
|
(1)
|
Net gain/ (loss) on revaluation of
biological assets and agricultural produce
|
956
|
1,327
|
(371)
|
(28)
|
Cost of sales
|
(9,551)
|
(10,909)
|
1,359
|
12
|
Gross profit
|
2,012
|
1,143
|
869
|
76
|
Gross profit margin
|
19%
|
11%
|
8 pp
|
|
Gross profit excl. effect of biological assets and
agricultural produce revaluation
|
1,056
|
(184)
|
1,240
|
-
|
Adjusted gross profit margin
|
10%
|
(2%)
|
12 pp
|
|
Distribution and selling
expenses
|
(432)
|
(315)
|
(117)
|
(37)
|
General and administrative
expenses
|
(570)
|
(601)
|
31
|
5
|
Other operating income/ (expenses),
net
|
118
|
314
|
(196)
|
(62)
|
incl. Reimbursement of operating costs (government
grants)
|
-
|
19
|
(19)
|
-
|
incl. Other adjustments to EBITDA (non-recurring
items)
|
(6)
|
98
|
(104)
|
-
|
Operating profit
|
1,128
|
541
|
587
|
108
|
|
|
|
|
|
Adjusted EBITDA
|
1,153
|
447
|
706
|
158
|
Adjusted EBITDA margin
|
11%
|
4%
|
7 pp
|
|
Sales of
the Meat segment decreased by 1% in 1Q 2024 compared to the
respective period of 2023. Decrease of sales volumes is partially
compensated by the increase in sales prices for both meat products
and livestock.
Production and sales volume of pork products in 1Q
2024
|
Three months
ended
|
Variance
|
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Pigs production,
thousand tonnes in live
weight
|
73
|
89
|
(15)
|
(17)
|
Sales volume, thousand tonnes
|
58
|
72
|
(14)
|
(19)
|
Cost of
sales decreased by 12% in 1Q 2023 compared to the respective
period of 2023 due to lower sales volumes.
Net gain on
revaluation of biological assets and agricultural produce in
1Q 2024 resulted from the increase in fair value of consumable
livestock pigs while costs for consumable livestock pigs decreased
by the reporting date compared to the respective figures at the
beginning of 2024.
AGRICULTURAL
SEGMENT
As at 31 March 2024 Rusagro's
area of controlled land stands at 689 thousand hectares
(31 December 2023: 685 thousand hectares).
In 1Q 2024 Agriculture segment amounted to RUB
-1,792 million of adjusted EBITDA (in
comparison with RUB -116 million in 1Q 2023) with -42%
margin (in comparison with -2% in 1Q
2023).
The financial results of the Agricultural
segment of 1Q 2024 compared to 1Q 2023
respectively are presented below.
Agriculture segment 1Q 2024 Financial
Results
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Sales
|
4,306
|
5,896
|
(1,590)
|
(27)
|
Net gain/ (loss) on revaluation of
biological assets and agricultural produce
|
(679)
|
(1,415)
|
736
|
52
|
Cost of sales
|
(3,709)
|
(5,254)
|
1,546
|
29
|
Gross profit
|
(82)
|
(774)
|
691
|
89
|
Gross profit margin
|
(2%)
|
(13%)
|
11 pp
|
|
Gross profit excl. effect of biological assets and
agricultural produce revaluation
|
597
|
641
|
(44)
|
(7)
|
Adjusted gross profit margin
|
14%
|
11%
|
3 pp
|
|
Distribution and selling
expenses
|
(1,484)
|
(1,049)
|
(435)
|
(41)
|
General and administrative
expenses
|
(480)
|
(352)
|
(128)
|
(36)
|
Other operating income/ (expenses),
net
|
(471)
|
96
|
(567)
|
-
|
incl. Reimbursement of operating costs (government
grants)
|
224
|
31
|
193
|
616
|
incl. Other adjustments to EBITDA (non-recurring
items)
|
53
|
19
|
33
|
171
|
Operating profit
|
(2,517)
|
(2,079)
|
(438)
|
(21)
|
|
|
|
|
|
Adjusted EBITDA
|
(1,792)
|
(116)
|
(1,675)
|
(1,441)
|
Adjusted EBITDA margin
|
(42%)
|
(2%)
|
(40) pp
|
|
In 1Q 2024 in comparison to 1Q 2023
Sales of the Agriculture
segment decreased by 27% to RUB 4,306 million mainly due to a
decrease in sales volumes for all crops except wheat caused by the
difference in stocks at the beginning of the reporting periods.
The decrease in sales of soybean and sunflower in 1Q
2024 compared to 1Q 2023 is due to the difference in stocks at the
beginning of the reporting periods caused by adverse weather
conditions in 4Q 2022 and prolonged harvesting in 1Q 2023.
There were no sales of sugar beet during 1Q 2024.
Sugar beet sales in 1Q 2023 were the result of the shift of
harvesting to January-February 2023 due to adverse weather
conditions in 4Q 2022.
The dynamics of wheat sales in 1Q 2024 compared to
the same period in 2023 is due to higher sales during the period of
price reduction and in order to release the storage for the new
year's harvest.
Sales volumes of crops in 1Q 2024
Thousand
tonnes
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
sugar beet
|
-
|
494
|
(494)
|
(100)
|
wheat
|
155
|
59
|
96
|
163
|
soybean
|
46
|
86
|
(40)
|
(47)
|
corn
|
19
|
29
|
(10)
|
(34)
|
sunflower seeds
|
5
|
40
|
(35)
|
(87)
|
The main reason for the decrease
in Cost of sales is
the decrease in sales volumes.
Net
gain/(loss)
on revaluation of
biological assets and agricultural produce
depends on revaluation amounts in opening and closing
inventory balances. As agricultural produce matures and at
the point of harvest, a gain on revaluation of agricultural produce
to fair value less costs to sell is recognized. During subsequent
sale, a loss from the revaluation of agricultural products sold in
the reporting period is recognized in the amount of the previously
recognized gain.
Net loss in 1Q 2024 and 1Q 2023 resulted from the
realization of gain on revaluation of agricultural produce to fair
value less costs to sell recognized in 2023 and 2022
correspondingly. In 1Q 2024 the loss from gain realization is lower
compared to 1Q 2023 following the decrease in sales volumes.
Net gain/ (loss)
on revaluation of biological assets and agricultural produce
and its subsequent realisation do not affect the Adjusted
EBITDA figure.
OIL AND FAT
SEGMENT
In 1Q 2024 Oil and Fat segment
earned RUB 2,209 million of adjusted EBITDA (-47 %
y-o-y) with 7% margin (-10% y-o-y).
The financial results of the Oil and Fat
segment for 1Q 2024 compared to 1Q 2023
are presented below.
Oil and Fat segment 1Q 2024 Financial
Results
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Sales
|
29,856
|
23,357
|
6,499
|
28
|
Cost of sales
|
(25,289)
|
(17,716)
|
(7,573)
|
(43)
|
Gross profit
|
4,567
|
5,641
|
(1,074)
|
(19)
|
Gross profit margin
|
15%
|
24%
|
(9) pp
|
|
Distribution and selling
expenses
|
(2,548)
|
(1.907)
|
(641)
|
(34)
|
General and administrative
expenses
|
(720)
|
(820)
|
101
|
12
|
Other operating income/ (expenses),
net
|
120
|
(578)
|
698
|
-
|
incl. Other adjustments to EBITDA (non-recurring
items)
|
241
|
(702)
|
944
|
-
|
Operating profit
|
1,419
|
2,336
|
(916)
|
(39)
|
|
|
|
|
|
Adjusted EBITDA
|
2,209
|
4,161
|
(1,952)
|
(47)
|
Adjusted EBITDA margin
|
7%
|
18%
|
(10) pp
|
|
In 1Q 2024 Sales of Oil and Fat segment increased
in comparison to 1Q 2023 mainly because of the increase in sales
volumes of bulk oil and meal after the completion of modernization
of oil extraction plant in Balakovo, which led to growth in
production capacity and production volumes. Also Sales increased due to the higher
volumes and prices of industrial fats and mayonnaise. The growth
was partially compensated by the decrease in sales prices of bulk
oil.
Sales volumes of oil and fat and dairy products in 1Q
2024
Thousand
tonnes
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
meal
|
190
|
133
|
56
|
42
|
crude oil
|
111
|
54
|
57
|
106
|
industrial fats
|
78
|
76
|
2
|
3
|
dry whey mixes
|
4
|
3
|
1
|
30
|
consumer oil&fat
products
|
72
|
65
|
7
|
11
|
consumer dairy products
|
4
|
3
|
1
|
34
|
The growth of Cost of sales in 1Q 2024 compared
to the same period of the previous year is mainly due to the
increase in sales volumes as well as the growth of palm oil
prices.
The growth of Distribution and selling
expenses in 1Q 2024 compared to the same period of the
previous year is mainly attributable to higher transportation
costs.
NMGK
At the end of 2Q 2023 the Company acquired 50% of
the shares and control over the NMGK group of companies. The
Company's financial results include the financial results of the
NMGK Group starting from the acquisition date.
For 1Q 2024 the revenue of the NMGK Group of
companies amounted to RUB 14,520 million, adjusted EBITDA amounted
to RUB 2,694 million with a margin of 19%.
The financial results of NMGK as a part of Rusagro
for 1Q 2024 are presented in the table below.
NMGK
1Q 2024 Financial Results
|
|
|
in RUB
million
|
Three months
ended
|
31 March
2024
|
31 March
2023
|
Sales
|
14,520
|
-
|
Cost of sales
|
(9,635)
|
-
|
Gross profit
|
4,884
|
-
|
Gross profit margin
|
34%
|
-
|
Distribution and selling
expenses
|
(2,189)
|
-
|
General and administrative
expenses
|
(535)
|
-
|
Other operating income/ (expenses),
net
|
(24)
|
-
|
incl. Other adjustments to EBITDA (non-recurring
items)
|
(26)
|
-
|
Operating profit
|
2,136
|
-
|
|
|
|
Adjusted EBITDA
|
2,694
|
-
|
Adjusted EBITDA margin
|
19%
|
-
|
Sales volumes of NMGK oil and fat products in 1Q
2024
Thousand
tonnes
|
Three months
ended
|
31 March
2024
|
31 March
2023
|
Meal
|
80
|
-
|
Crude oil
|
60
|
-
|
Industrial fats
|
16
|
-
|
Oil & fat products
|
49
|
-
|
KEY
CONSOLIDATED CASH FLOW INDICATORS (NOT IFRS
PRESENTATION*)
The key
consolidated cash flow indicators presented according to management
accounts methodology
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Net
cash from operating activities, incl.
|
10,248
|
16,004
|
(5,756)
|
(36)
|
Operating cash flow before working capital
changes
|
8,405
|
6,992
|
1,414
|
20
|
Working capital changes
|
3,423
|
9,304
|
(5,881)
|
(63)
|
Net
cash from investing activities, incl.
|
(6,321)
|
(2,289)
|
(4,032)
|
(176)
|
Purchases of property, plant and equipment and inventories
intended for construction
|
(6,271)
|
(2,089)
|
(4,181)
|
(200)
|
Net
cash from financing activities
|
(13,619)
|
(6,729)
|
(6,891)
|
(102)
|
Net
effect of exchange rate changes on cash and cash
equivalents
|
(100)
|
1,933
|
(2,033)
|
-
|
Net
(decrease) / increase in cash and cash
equivalents
|
(9,792)
|
8,919
|
(18,711)
|
-
|
(*) See Appendix 4
Debt
position and liquidity management
|
|
|
|
|
in RUB
million
|
31 March
2024
|
31 December
2023
|
Variance
|
Units
|
%
|
Gross debt
|
128,433
|
127,533
|
900
|
1
|
Short-term borrowings
|
66,769
|
68,035
|
(1,266)
|
(2)
|
Long-term borrowings
|
61,664
|
59,498
|
2,166
|
4
|
Cash and cash equivalents, bank deposits and
bonds
|
(65,668)
|
(61,057)
|
(4,611)
|
(8)
|
Short-term cash, deposits and bonds
|
(31,253)
|
(27,086)
|
(4,167)
|
(15)
|
Long-term cash, deposits and bonds
|
(34,415)
|
(33,971)
|
(444)
|
(1)
|
Net
debt
|
62,765
|
66,477
|
(3,712)
|
(6)
|
Short-term borrowings, net
|
35,516
|
40,949
|
(5,433)
|
(13)
|
Long-term borrowings, net
|
27,249
|
25,527
|
1,722
|
7
|
Adjusted EBITDA (LTM4)
|
56,723
|
56,560
|
163
|
0
|
Net
debt/ Adjusted EBITDA (LTM)
|
1.11
|
1.18
|
(0.1)
|
|
Net
finance income / (expense):
|
|
|
|
|
in RUB
million
|
Three months
ended
|
Variance
|
31 March
2024
|
31 March
2023
|
Units
|
%
|
Net
interest expense
|
(1,420)
|
(1,925)
|
505
|
26
|
Gross interest expense
|
(3,396)
|
(4,643)
|
1,247
|
27
|
Reimbursement of interest expense
|
1,975
|
2,718
|
(742)
|
(27)
|
Interest income
|
2,270
|
2,441
|
(171)
|
(7)
|
Net
gains / (losses) from bonds held for trading
|
-
|
-
|
-
|
-
|
Other financial expenses, net
|
(33)
|
2,982
|
(3,015)
|
-
|
Net foreign exchange gains / (losses)
|
(13)
|
3,098
|
(3,112)
|
-
|
Other financial income/ (expenses), net
|
(20)
|
(117)
|
97
|
83
|
Total net finance income / (expense)
|
816
|
3,498
|
(2,682)
|
(77)
|
Net
debt decreased at 31 March 2024
compared at 31 December 2023 by 6%.
In 1Q 2024 Rusagro continued to enjoy benefits
from the state agriculture subsidies programme. Rusagro continued
to receive bank loans with decreased preferential interest rates
under the programme of government support. Under this programme,
the government provides subsidies to the banks to compensate the
loss of income on borrowings with decreased interest rates, given
by the banks to agricultural producers. In 1Q 2024 IFRS accounts
these borrowings are accounted according to its face value with no
adjustments to prevailing market rates. The differences between
nominal and market interest rate is recognized as either government
grants in a statement of financial position for borrowings received
with the purpose to finance investment projects or interest
expenses in a statement of comprehensive income for general purpose
borrowings.
Net
finance income of 1Q 2024 in the sum of
RUB 816 million decreased in the amount of RUB 2,682 million
compared to 1Q 2023 mainly as the result of decrease
in forex differences income.
________________________________
(1) The exchange rates used for
translation of RUB amounts into USD represent average Central Bank
official exchange rate for the respective reporting period for
income, expenses and profits and the Central Bank official exchange
rate as at the reporting date for balance
figures.
(2) Adjusted EBITDA is defined as operating profit before
taking into account (i) depreciation included in operating profit,
(ii) net gain/ (loss) on revaluation of biological assets and
agricultural produce, (iii) non-recurring components of other
operating income/ (expenses), net, (iv) share-based remuneration,
(v) provision for impairment of loans issued (see Appendix 2 for
the detailed calculation of Adjusted EBITDA). Adjusted EBITDA is
not a measure of financial performance under IFRS. It should not be
considered as an alternative to profit for the period as a measure
of operating performance or to cash flows from operating activities
as a measure of liquidity. Our calculation of Adjusted EBITDA may
be different from the calculation used by other companies and
therefore comparability may be limited. We believe that Adjusted
EBITDA provides useful information to investors because it is an
indicator of the strength and performance of our ongoing business
operations, including our ability to fund discretionary spending
such as capital expenditures, acquisitions of subsidiaries and
other investments and our ability to incur and service
debt.
(3) Rusagro determines the net debt as short-term borrowings
and long-term borrowings less cash and cash equivalents, bank
deposits, bank promissory notes and bonds held for
trading.
(4) LTM - The abbreviation for the "Last twelve
months".
NOTE
ROS AGRO PLC
(LSE, MOEX: AGRO) - a holding company of
Rusagro Group, a leading Russian diversified food producer with
vertically integrated operations in the following
branches:
Agricultural:
Rusagro currently controls one of the largest
land banks among Russian agriculture producers, with 689 thousand
hectares of land under control located in the highly fertile Black
Earth regions of Russia (in the Belgorod, Tambov, Voronezh, Kursk,
Saratov, Tula and Orel regions) and in the Far East Primorye
Region. Land and production sites are strategically located within
the same regions to optimize efficiency and minimize logistical
costs. Rusagro is one of the major sugar beet producers in Russia,
but it also produces wheat, barley and corn, sunflower seeds and
soybeans. These products are partially consumed by the Sugar, Meat
and Oil and Fat segments, supporting a synergistic effect and
lowering price change risk.
Oil and
Fat:
Rusagro together with NMGK is the leading
crude sunflower oil and consumer margarine and mayonnaise producer,
second largest industrial fats and mayonnaise producer in Russia
with products sold under eleven key brands, such as EZhK, Schedroye Leto, Mechta Khozyaiki,
umbrella brand Ya Lublu Gotovit (includes Moskovskiy Provansal, Novosibirskiy
Provansal and Saratovskiy
Provansal), Rossiyanka and Saratovskiy Slivochniy, Benefitto,
Maslava and Leto
Krasno (红色夏日), which is
sold on the Chinese market. Rusagro also produces dry industrial
mixes, cheeses, butter and cream sold under three brands:
Milie, Syrnaya Kultura and Ya
Lublu Gotovit. Rusagro owns four crushing and two oil &
fats plants and leases two milk processing plants. Owning its
sunflower and soy oil production allows Rusagro to control the
source of the sunflower and soybean oil required to produce oil and
fats products.
Rusagro finalized the acquisition of 50% of
NMGK Group in 2023. NMGK Group owns an oil and fat plant in Nizhny
Novgorod, a fat plant in Samara, oil extraction factories in
Uryupinsk and Sorochinsk, as well as elevators in the Volgograd,
Orenburg, Samara, Saratov regions and the Republic of
Bashkortostan. The company produces mayonnaise and sauces "Ryaba",
"Sdobri", sauces and ketchups "Astoria", margarine "Khozyayushka",
Slivochnik, spread "Kremlevskoe", coconut oil "Delicato", soap "Moy
malysh" and "Retsepty chistoty".
Sugar:
Rusagro is one of the leading Russian sugar
producers (№2 in Russia and №1 on cube white sugar market),
producing sugar from sugar beet at nine production sites in four
regions. Group produces white and brown sugar sold under the brands
Russkii Sakhar, Chaikofsky, Mon
Café and Brauni.
The Sugar segment is vertically integrated and sugar beets are
supplied by Rusagro's Agriculture segment, which ensures a
consistent supply. The sugar segment also operates a cereal plant
and sells buckwheat and rice under the brand Tyoplye Traditsii.
Meat:
Rusagro is №2 largest pork
producer in Russia. It operates large commercial pig breeding
complexes adhering to best practices regarding biosecurity
standards, nucleus farms, compound feed plants, slaughterhouses and
meat processing plants in Tambov and Belgorod Regions and in the
Russian Far East. Since 2016, Rusagro sells retail products under
its own brand Slovo Myasnika
(Butcher's word).
CONFERENCE
CALL
Rusagro management is organizing a conference
call on Company's 1Q 2024 financial results for
investors and analysts.
Details of the
call:
FORWARD-LOOKING
STATEMENTS
This
announcement includes statements that are, or may be deemed to be,
forward-looking statements. These forward-looking statements do not
relate to historical or current events,
or to any future financial or operational activity of the
Group.
By their
nature, forward-looking statements involve risk and uncertainty
because they relate
to future events and circumstances, a number of which are beyond
the Rusagro Group's control. As a result, actual future results may
differ materially from the plans and expectations set out
in these forward-looking statements.
The Group
undertakes no obligation to release the results of any revisions to
any forward-looking statements that may occur due to any change in
its expectations or to reflect events
or circumstances after the date of this document.
CONTACTS
Alexey Kulchitskiy
Director M&A, IR,
ESG
Phone: +7 495 363
1661
E-mail:
ir@rusagrogroup.ru
|
Appendix 1.
Consolidated statement of comprehensive income for the Three months
ended 31 March 2024 (in RUB thousand)
|
Three months ended
31 December
|
|
2024
|
2023
|
|
|
|
Sales
|
68,308,926
|
47,395,456
|
Net gain / (loss) on revaluation of
biological assets and agricultural produce
|
(1,969,483)
|
(546,548)
|
Cost of sales
|
(52,516,237)
|
(38,218,586)
|
Gross profit
|
13,823,206
|
8,630,322
|
|
|
|
Distribution and selling
expenses
|
(7,406,739)
|
(3,580,492)
|
General and administrative
expenses
|
(2,899,295)
|
(2,179,714)
|
Other operating income/(expenses),
net
|
(1,222,331)
|
791,263
|
Operating profit
|
2,294,841
|
3,661,379
|
|
|
|
Interest expense
|
(1,420,180)
|
(1,925,246)
|
Interest income
|
2,269,809
|
2,441,235
|
Other financial income/ (expenses),
net
|
(33,386)
|
2,981,894
|
Profit / (loss) before taxation
|
3,111,084
|
7,159,262
|
|
|
|
Income tax expense
|
(1,371,055)
|
(1,742,313)
|
Profit for the period
|
1,740,029
|
5,416,949
|
|
|
|
Other comprehensive income:
|
|
|
Total comprehensive income/ (loss) for the
period
|
1,740,029
|
5,416,949
|
|
|
|
Profit / (loss) is attributable to:
|
|
|
Owners of ROS AGRO PLC
|
525,992
|
5,423,741
|
Non-controlling interest
|
1,214,037
|
(6,792)
|
Profit / (loss) for the period
|
1,740,029
|
5,416,949
|
|
|
|
Total comprehensive income/ (loss) is attributable
to:
|
|
|
Owners of ROS AGRO PLC
|
525,992
|
5,423,741
|
Non-controlling interest
|
1,214,037
|
(6,792)
|
Total comprehensive income/ (loss) for the
period
|
1,740,029
|
5,416,949
|
|
|
|
Earnings per ordinary share for
profit attributable to the equity holders of ROS AGRO PLC, basic
and diluted (in RR per share)
|
19.55
|
201.58
|