REG - Ros Agro PLC - 1st Quarter Financial Results
22/05/2023 08:00
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RNS Number : 0182A Ros Agro PLC 22 May 2023
22 May 2023
ROS AGRO PLC financial results for 1Q 2023
22 May 2023 - 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 2023.
1Q 2023 HIGHLIGHTS
- Sales amounted to RUB 47,395 million (US$ 651 million(1)), a
decrease of RUB 14,111 million (-23%, US$ -63 million) compared to 1Q 2022;
- Adjusted EBITDA(2) amounted to RUB 7,139 million (US$ 98 million), a
decrease of RUB 9,050 million (-56%, US$ -90 million) compared to 1Q 2022;
- Adjusted EBITDA margin decreased to 15% in 1Q 2023 from 26% in 1Q
2022;
- Net profit for the period amounted to RUB 5,417 million (US$ 74
million), an increase of RUB 3,454 million (+176%, US$ +52 million);
- Net debt position(3) as of 31 March 2023 amounted to RUB 83,585
million (US$ 1,084 million);
- Net Debt/Adjusted EBITDA (LTM(4)) as of 31 March 2023 was 2.32x.
Commenting on the results, Timur Lipatov, CEO of Rusagro, said:
"In 1Q 2023 sales of the Group decreased in all business segments except Meat,
mainly due to a decrease in sales prices triggered by a drop in world prices
and USD/RUB exchange rate from a high level in 1Q 2022, as well as the
postponement of sales of agricultural products due to late harvesting.
Adjusted EBITDA declined in line with revenue across all business segments due
to the pressure of lower selling prices. This drop was compensated by the
growth in production volumes both in Primorie after the launch of the pork
production cluster, and due to the efficiency increase in the Central region.
Despite the decline in adjusted EBITDA, Rusagro showed a 176% increase in net
income and a significant decrease in net debt by 16%."
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 consolidated financial performance indicators
in RUB million Three months ended Variance
31 March 2023 31 March 2022 Units %
Sales 47,395 61,506 (14,111) (23)
Gross profit (1) 8,630 14,995 (6,365) (42)
Gross margin, % 18% 24% (6) pp
Adjusted EBITDA (1) 7,139 16,189 (9,050) (56)
Adjusted EBITDA margin, % 15% 26% (11) pp
Net profit for the period (1,2) 5,417 1,963 3,454 176
Net profit margin % 11% 3% 8 pp
(1) Several adjustments were made to the published key financial indicators
for 1Q 2022:
• Gross profit for 1Q 2022 was increased by RUB 352 million, Net
profit by RUB 282 million to reflect the distribution of depreciation expenses
between the quarters of 2022 in Oil and Fat segment;
• Gross profit for 1Q 2022 was decreased by RUB 190 million to
reflect the distribution of depreciation costs between lines of financial
statements for Meat segment;
• Gross profit and adjusted EBITDA for 1Q 2022 were decreased by RUB
698 million, Net profit by RUB 559 million in order to reflect the
distribution of costs of Far East project in Meat segment.
(2) 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.
Key financial performance indicators by segments
in RUB million Three months ended Variance
31 March 2023 31 March 2022 Units %
Sales, incl. 47,395 61,506 (14,111) (23)
Sugar 9,411 11,333 (1,922) (17)
Meat 10,725 9,258 1,467 16
Agriculture 5,896 8,185 (2,289) (28)
Oil and Fat 23,357 35,111 (11,754) (33)
Other 464 208 256 123
Eliminations (2,457) (2,589) 132 5
Gross profit, incl. 8,630 14,995 (6,365) (42)
Sugar 2,815 5,552 (2,736) (49)
Meat 1,143 1,151 (8) (1)
Agriculture (774) 1,736 (2,510) -
Oil and Fat 5,641 6,787 (1,146) (17)
Other 167 (49) 215 -
Eliminations (362) (183) (179) (98)
Adjusted EBITDA, incl. 7,139 16,189 (9,050) (56)
Sugar 2,010 4,679 (2,668) (57)
Meat 447 589 (142) (24)
Agriculture (116) 4,173 (4,290) -
Oil and Fat 4,161 5,303 (1,141) (22)
Other (297) (6) (291) (5,082)
Eliminations 934 1,451 (517) (36)
Adjusted EBITDA margin, % 15% 26% (11) pp
Sugar 21% 41% (20) pp
Meat 4% 6% (2) pp
Agriculture (2%) 51% (53) pp
Oil and Fat 18% 15% 3 pp
SUGAR SEGMENT
In 1Q 2023 Sugar segment earned RUB 2,010 million of adjusted EBITDA (-57%
y-o-y) with 21% margin (-20 pp y-o-y). The financial results of the Sugar
Segment of 1Q 2023 compared to 1Q 2022 are presented in the table below:
Sugar segment 1Q 2023 Financial Results
in RUB million Three months ended Variance
31 March 2023 31 March 2022 Units %
Sales 9,411 11,333 (1,922) (17)
Cost of sales (6,595) (5,781) (814) (14)
Gross profit/ (loss) 2,815 5,552 (2,736) (49)
Gross profit margin 30% 49% (19) pp
Distribution and selling expenses (945) (1,080) 136 13
General and administrative expenses (394) (408) 14 3
Other operating income/ (expenses), net (3) (206) 203 99
incl. other adjustments to 22 (216) 238 -
EBITDA (non-recurring items)
Operating profit 1,473 3,857 (2,384) (62)
Adjusted EBITDA 2,010 4,679 (2,668) (57)
Adjusted EBITDA margin 21% 41% (20) pp
In 1Q 2023 compared to 1Q 2022 Sales of Sugar segment decreased by 17% mainly
due to the decrease in sugar sales volume by 17% down to 148 thousand tons.
The reduction in sales volumes is caused by the decrease in production volumes
in season 2022/2023 compared to season 2021/2022 due to lower sugar content in
sugar beet attributable to bad weather conditions that affected the quality of
sugar beet.
Revenue from sale of beet pulp decreased by RUB 419 million on the back of
lower sales prices, which was partially offset by the increase in sales
volumes due to the extension of the sugar beet processing season to January
and February 2023.
Revenue from sales of molasses, betaine, buckwheat and rice decreased by RUB
183 million.
Production and sales volume of sugar in 1Q 2023
Three months ended Variance
31 March 2023 31 March 2022 Units %
Sugar production volume, thousand tonnes 69 56 13 23
Sales volume, 148 177 (29) (17)
thousand tonnes
Cost of sales in 1Q 2023 increased y-o-y because of the increase in sugar beet
and its processing costs per unit of sugar as the result of decrease in sugar
beet quality.
Distribution and selling expenses in 1Q 2023 decreased mainly due to the
decrease in sugar transportation costs as the result of lower sugar sales
volumes.
Other operating expenses in 1Q 2023 decreased mainly due to the positive
dynamics of operating exchange differences.
MEAT SEGMENT
In 1Q 2023 Meat segment earned RUB 447 million of adjusted EBITDA (-24% y-o-y)
with 4% margin (-2 pp y-o-y). The financial results of the Meat Segment of 1Q
2023 compared to 1Q 2022 respectively are presented in the table below.
Meat segment 1Q 2023 Financial Results
in RUB million Three months ended Variance
31 March 2023 31 March 2022 Units %
Sales 10,725 9,258 1,467 16
Net gain/ (loss) on revaluation of biological assets and agricultural produce 1,327 967 360 37
Cost of sales (10,909) (9,075) (1,834) (20)
Gross profit/ (loss) 1,143 1,151 (8) (1)
Gross profit margin 11% 12% (1) pp
Gross profit excl. effect of biological assets revaluation (184) 183 (367) -
Adjusted gross profit margin -2% 2% (4) pp
Distribution and selling expenses (315) (430) 115 27
General and administrative expenses (601) (447) (154) (34)
Other operating income/ (expenses), net 314 147 167 114
incl. reimbursement of operating costs (government grants) 19 6 14 237
incl. other adjustments to EBITDA (non-recurring items) 98 89 10 11
Operating profit 541 420 121 29
Adjusted EBITDA 447 589 (142) (24)
Adjusted EBITDA margin 4% 6% (2) pp
Sales of the Meat segment increased by 16% in 1Q 2023 compared to the
respective period of 2022. Sales volume increase was caused mainly by the
production outputs growth. Positive dynamics was achieved by gradual increase
in production capacities to the planned level in the Far East and by growth in
production efficiency in the Central Federal District, including the expansion
of deboning capacity.
Production and sales volume of pork products in 1Q 2023
Three months ended Variance
31 March 2023 31 March 2022 Units %
Pigs production, 89 77 11 14
thousand tonnes in live weight
Sales volume, 72 60 11 19
thousand tonnes
Cost of sales increased by 20% in 1Q 2023 compared to the respective period of
2022. Despite the reduction of feed costs (mainly grain and protein
ingredients), the growth of other components of cost of sales had a negative
effect.
Net gain on revaluation of biological assets and agricultural produce in 1Q
2023 resulted from an increase in fair value for consumable livestock pigs and
decrease in costs during the reporting period compared to the respective
figures at the end of 2022.
General and administrative expenses increased in 1Q 2023 compared to the
respective period in 2022 as a result of gradual increase in production
capacities to the planned level in the Primorsky Krai.
An increase in Other operating income in 1Q 2023 in comparison to 1Q 2022 is
mainly attributed to the increase in income from grain elevator services.
AGRICULTURAL SEGMENT
As at 31 March 2022 Rusagro's area of controlled land stands at 668 thousand
hectares
(31 December 2022: 660 thousand hectares). In 1Q 2023 Agriculture segment
earned RUB -116 million of adjusted EBITDA (RUB -4,290 million in comparison
with 1Q 2022) with -2% margin (in comparison with 51% in 1Q 2022). The
financial results of the Agricultural Segment of
1Q 2023 compared to 1Q 2022 respectively are presented below.
Agriculture segment 1Q 2023 Financial Results
in RR million Three months ended Variance
31 March 2023 31 March 2022 Units %
Sales 5,896 8,185 (2,289) (28)
Net gain/ (loss) on revaluation of biological assets and agricultural produce (1,415) (2,845) 1,430 50
Cost of sales (5,254) (3,604) (1,651) (46)
Gross profit/ (loss) (774) 1,736 (2,510) -
Gross profit margin -13% 21% (34) pp
Gross profit excl. effect of biological assets and agricultural produce 641 4,582 (3,940) (86)
revaluation
Adjusted gross profit margin 11% 56% (45) pp
Distribution and selling expenses (1,049) (660) (389) (59)
General and administrative expenses (352) (336) (16) (5)
Other operating income/ (expenses), net 96 433 (337) (78)
incl. reimbursement of 31 1 30 2,625
operating costs (government grants)
incl. other adjustments to EBITDA (non-recurring items) 19 379 (360) (95)
Operating profit (2,079) 1,173 (3,252) -
Adjusted EBITDA (116) 4,173 (4,290) -
Adjusted EBITDA margin -2% 51% (53) pp
In 1Q 2023 in comparison to 1Q 2022 Sales of the Agriculture segment decreased
by 28% to RUB 5,896 million mainly because of the fall in prices for all crops
except corn. Lower volume of wheat, soybean and corn sold was compensated by
higher sales volumes of sugar beet and sunflower.
Sales prices for wheat decreased due to the fall in global wheat prices
because of high grain stocks, as well as the priority sale of feed grains in
1Q 2023. Prices decrease for sunflower and soybean is attributed to the sale
of products of lower class in 1Q 2023 as well the decrease of USD/RUB exchange
rate. The drop in the selling price of sugar beet is caused by the poor
quality of the crop caused by weather conditions during the harvest gathering
period.
Higher sales volume of sugar beet is associated with a shift in the schedule
for harvesting and selling of sugar beets to the beginning of 2023 due to
adverse weather conditions. Drop in soybean sales is caused by the
postponement of harvesting to 2023 due to weather conditions and a shift in
the sales schedule to the next quarters of 2023. Decline in wheat sales volume
is connected with a decrease in demand on domestic market, as well as the
expectation of an increase in the dollar exchange rate and a reduction in duty
or a revision of the mechanism for determining it. Sales volume of corn
decreased, as the entire volume of corn for the 2022/2023 season was
contracted for sale in the 2nd and 3rd quarters of 2023 on more favorable
terms, including for export in connection with the receipt of export quotas.
Sunflower seeds were actively sold in 1Q 2023 in anticipation of lower prices.
Sales volume of crops in 1Q 2023
Thousand tonnes Three months ended Variance
31 March 2023 31 March 2022 Units %
sugar beet 494 59 435 741
soybean 86 102 (16) (15)
wheat 59 79 (20) (26)
sunflower seeds 40 16 25 159
corn 29 101 (72) (71)
The main reason for the increase in Cost of sales is growth of costs caused by
macroeconomic situation during 2022.
The increase in Distribution and selling expenses for 1Q 2023 is caused by
additional storage and processing costs due to the low quality of the
harvested crops.
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. Loss in the 1st quarter of the year is
mainly associated with the sale of the previous year's harvest, and the amount
of the loss is higher if the revaluation gain recognized in the previous
period at the time of harvest was higher.
Net gain/(loss) on revaluation of crops and its subsequent realisation do not
affect the Adjusted EBITDA figure.
A decrease in Other operating income in 1Q 2023 in comparison to 1Q 2022 is
mainly due to the one-off gain from the sale of fixed assets during 1Q 2022.
OIL AND FAT SEGMENT
In 1Q 2023 Oil and Fat segment earned RUB 4,161 million of adjusted EBITDA
(-22 %
y-o-y) with 18% margin (+3 pp y-o-y). The financial results of the Oil and Fat
Segment for
1Q 2023 compared to 1Q 2022 respectively are presented below.
Oil and Fat segment 1Q 2023 Financial Results
in RUBl million Three months ended Variance
31 March 2023 31 March 2022 Units %
Sales 23,357 35,111 (11,754) (33)
Cost of sales (17,716) (28,324) 10,608 37
Gross profit/ (loss) 5,641 6,787 (1,146) (17)
Gross profit margin 24% 19% 5 pp
Distribution and selling expenses (1,907) (1,804) (102) (6)
General and administrative expenses (820) (683) (138) (20)
Other operating income/ (expenses), net (578) (986) 408 41
incl. reimbursement of 1 6 (4) (74)
operating costs (government grants)
incl. Other adjustments to EBITDA (non-recurring items) (702) (898) 196 22
Operating profit/ (loss) 2,336 3,314 (979) (30)
Adjusted EBITDA 4,161 5,303 (1,141) (22)
Adjusted EBITDA margin 18% 15% 3 pp
Sales of the Oil and Fat segment in 1Q 2023 in comparison to 1Q 2022 decreased
by 33% as a result of the decrease in sales volumes of all product categories,
as well as sales prices for oil and fat products, with the exception of
mayonnaise and margarine.
Cost of sales in 1Q 2023 in comparison to 1Q 2022 decreased due to the decline
in sales volumes of oil and fat and dairy products and prices for sunflower
seeds. Cost of sales decreased more than Sales mainly due to the fall in the
cost of sunflower seeds outpacing the decline in the selling price of
sunflower oil.
The growth of General and administrative expenses in 1Q 2023 compared to 1Q
2022 is mainly attributable to higher costs of information and consulting
services.
The decrease in Other operating expenses is due to lower charity expenses in
1Q 2023 compared to the same period in 2022.
Sales volumes of oil and fat and dairy products in 1Q 2023
Thousand tonnes Three months ended Variance
31 March 2023 31 March 2022 Units %
meal 133 149 (16) (11)
crude oil 54 92 (38) (42)
industrial fats 76 79 (3) (4)
dry whey mixes 3 4 (1) (30)
consumer oil&fat products 64 72 (8) (11)
consumer dairy products 3 3 (0) (2)
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 2023 31 March 2022 Units %
Net cash from operating activities, incl. 16,004 (5,130) 21,134 -
Operating cash flow before working capital changes 6,992 16,448 (9,457) (57)
Working capital changes 9,304 (21,249) 30,553 -
Net cash from investing activities, incl. (2,289) (2,267) (23) (1)
Purchases of property plant and equipment and inventories intended for (2,089) (3,088) 999 32
construction
Net cash from financing activities (6,729) 8,925 (15,654) -
Net effect of exchange rate changes on cash and cash equivalents 1,933 (7,960) 9,893 -
Net increase / (decrease) in cash and cash equivalents 8,919 (6,432) 15,350 -
(*) See Appendix 4
The key investments in property, plant and equipment and inventories intended
for construction during 1Q 2023 were made in the Meat segment in the amount of
RUB 665 million (1Q 2022: RUB 1,277 million) mainly due to the purchases
related to the construction project in the Russian Far East. Investments in
the Agriculture segment in the amount of RUB 769 million (1Q 2022: RUB 830
million), Oil and Fat segment in the amount of RUB 520 million (1Q 2022: RUB
815 million), and Sugar segment in the amount of RUB 135 million (1Q 2022: RUB
166 million) mainly relate to purchases of machinery and equipment for
production facilities renewal and maintenance.
Debt position and liquidity management
in RUB million 31 March 2023 31 December 2022 Variance
Units %
Gross debt 210,701 233,390 (22,689) (10)
Short-term borrowings 150,002 172,352 (22,350) (13)
Long-term borrowings 60,699 61,038 (339) (1)
Cash and cash equivalents, bank deposits and bonds (127,116) (133,668) 6,552 5
Short-term cash, deposits and bonds (92,705) (99,697) 6,992 7
Long-term cash, deposits and bonds (34,411) (33,971) (440) (1)
Net debt 83,585 99,723 (16,138) (16)
Short-term borrowings, net 57,297 72,655 (15,358) (21)
Long-term borrowings, net 26,288 27,067 (779) (3)
Adjusted EBITDA (LTM(4)) 35,965 45,015 (9,050) (20)
Net debt/ Adjusted EBITDA (LTM) 2.32 2.22 0.1 pp
Net finance income/ (expense)
in RUB million Three months ended Variance
31 March 2023 31 March 2022 Units %
Net interest expense (1,925) (1,515) (411) (27)
Gross interest expense (4,643) (4,555) (88) (2)
Reimbursement of interest expense 2,718 3,040 (322) (11)
Interest income 2,441 2,308 133 6
Other financial income, net 2,981 (7,885) 10,867 -
Net foreign exchange gain/ (loss) 3,098 (7,829) 10,927 -
Other financial income / (expenses), net (117) (57) (60) (107)
Total net finance income/ (expenses) 3,497 (7,092) 10,589 -
Net debt decreased at 31 December 2022 compared at 31 December 2021 as a
result of a decrease in short-term borrowings.
In 1Q 2023 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 2023 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 expense of 1Q 2022 in the sum of RUB 7,092 million changed to net
finance income in the amount of RUB 3,497 million as the result of positive
dynamics in forex differences.
________________________________
(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 668 thousand hectares of land under control
located in the highly fertile Black Earth region of Russia (in the Belgorod,
Tambov, Voronezh, Kursk, 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 and
corn, sunflower seeds and soybeans. These products are partially consumed by
the Meat and Oil and Fat segments, supporting a synergistic effect and
lowering price change risk.
Oil and Fat:
Rusagro is the leading crude sunflower oil and consumer margarine 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.
Sugar:
Rusagro is one of the leading Russian sugar producers (№3 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 №3 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 2023
financial results for investors and analysts.
Details of the call:
Date: 22 May 2023
Time: 4:00 PM (Moscow) / 2:00 PM (London)
Subject: ROS AGRO PLC 1Q 2023 Financial results
Registration: available up to 3:00 PM Moscow time / 1:00 PM London time on 22 May
https://us06web.zoom.us/webinar/register/WN_
(https://us06web.zoom.us/webinar/register/WN_EXhOe-4iQYaogvwHZY6pUw)
EXhOe-4iQYaogvwHZY6pUw
(https://us06web.zoom.us/webinar/register/WN_EXhOe-4iQYaogvwHZY6pUw)
(https://ib-translations.zoom.us/j/88086186455?pwd=YUtyTlcxREtoSitwSWpCK2ZSWDlVUT09)
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 2023 (in RUB thousand)
Three months ended
31 March
2023 2022
Sales 47,395,456 61,506,160
Net gain/(loss) on revaluation of biological assets and agricultural produce (546,548) (3,097,209)
Cost of sales (38,218,586) (43,414,068)
Gross profit 8,630,322 14,994,883
Distribution and selling expenses (3,580,492) (3,629,180)
General and administrative expenses (2,179,714) (1,562,124)
Other operating income/(expenses), net 791,263 (617,294)
Operating profit / (loss) 3,661,379 9,186,285
Interest expense (1,925,246) (1,514,712)
Interest income 2,441,235 2,308,391
Net gain/(loss) from bonds held for trading - 42
Other financial income/ (expenses), net 2,981,894 (7,885,447)
Profit before income tax 7,159,262 2,094,559
Income tax expense (1,742,313) (131,118)
Profit for the period 5,416,949 1,963,441
Other comprehensive income - -
Total comprehensive income for the period 5,416,949 1,963,441
Profit is attributable to:
Owners of ROS AGRO PLC 5,423,741 1,964,159
Non-controlling interest (6,792) (718)
Profit for the period 5,416,949 1,963,441
Total comprehensive income is attributable to:
Owners of ROS AGRO PLC 5,423,741 1,964,159
Non-controlling interest (6,792) (718)
Total comprehensive income for the period 5,416,949 1,963,441
Earnings per ordinary share for profit attributable to the owners of ROS AGRO 201.58 73.00
PLC, basic and diluted
(in RR per share)
Appendix 2. Segment information for the Three months ended 31 March 2023 (in
RUB thousand)
3M 2023 Sugar Meat Agriculture Oil and Fat Other Eliminations Total
Sales 9,410,732 10,725,385 5,895,911 23,356,939 463,877 (2,457,388) 47,395,456
Net gain/ (loss) on revaluation of biological assets and agricultural produce - 1,327,245 (1,415,057) - - (458,736) (546,548)
Cost of sales (6,595,274) (10,909,413) (5,254,481) (17,716,136) (297,337) 2,554,055 (38,218,586)
incl. Depreciation (547,479) (1,294,785) (524,103) (954,996) (4,405) (7,412) (3,333,180)
Gross profit 2,815,458 1,143,217 (773,627) 5,640,803 166,540 (362,069) 8,630,322
Distribution and Selling, General and administrative expenses (1,339,210) (916,154) (1,400,871) (2,727,121) (466,388) 1,089,538 (5,760,206)
incl. Depreciation (11,259) (36,387) (42,554) (168,472) (39,995) 7,412 (291,255)
Other operating income/(expenses), net (2,794) 314,170 95,860 (578,016) 951,082 10,961 791,263
incl. Reimbursement of operating costs (government grants) - 19,453 31,333 1,441 - - 52,227
incl. Other adjustments to EBITDA (non-recurring items) 21,873 98,353 19,356 (702,271) 992,587 263,130 693,028
Operating profit / (loss) 1,473,454 541,233 (2,078,638) 2,335,666 651,234 738,430 3,661,379
Adjustments:
Depreciation included in Operating Profit 558,738 1,331,172 566,657 1,123,468 44,400 - 3,624,435
Other adjustments to EBITDA (non-recurring items) (21,873) (98,353) (19,356) 702,271 (992,587) (263,130) (693,028)
Net gain/ (loss) on revaluation of biological assets and agricultural produce - (1,327,245) 1,415,057 - - 458,736 546,548
Adjusted EBITDA* 2,010,319 446,807 (116,280) 4,161,405 (296,953) 934,036 7,139,334
* Non-IFRS measure
Appendix 2 (continued). Segment information for the Three months ended 31
March 2022 (in RUB thousand)
3M 2022 Sugar Meat Agriculture Oil and Fat Other Eliminations Total
Sales 11,332,860 9,258,465 8,185,373 35,110,977 207,692 (2,589,207) 61,506,160
Net gain/ (loss) on revaluation of biological assets and agricultural produce - 967,193 (2,845,241) - - (1,219,161) (3,097,209)
Cost of sales (5,780,940) (9,074,483) (3,603,789) (28,324,252) (256,375) 3,625,771 (43,414,068)
incl. Depreciation (594,907) (1,192,225) (467,116) (957,765) (2,607) (713) (3,215,333)
Gross profit 5,551,920 1,151,175 1,736,343 6,786,725 (48,683) (182,597) 14,994,883
Distribution and Selling, General and administrative expenses (1,488,735) (877,620) (996,267) (2,486,756) (11,566) 669,640 (5,191,304)
incl. Depreciation (10,962) (32,123) (66,972) (132,324) (7,897) 713 (249,565)
Other operating income/(expenses), net (206,119) 147,008 433,144 (985,764) 218,592 (224,155) (617,294)
incl. Reimbursement of operating costs (government grants) - 5,772 1,150 5,650 - - 12,572
incl. Other adjustments to EBITDA (non-recurring items) (215,804) 88,790 379,203 (898,432) 174,578 31,216 (440,449)
Operating profit / (loss) 3,857,066 420,563 1,173,220 3,314,205 158,343 262,888 9,186,285
Adjustments:
Depreciation included in Operating Profit 605,869 1,224,348 534,088 1,090,089 10,504 - 3,464,898
Other adjustments to EBITDA (non-recurring items) 215,804 (88,790) (379,203) 898,432 (174,578) (31,216) 440,449
Net gain/ (loss) on revaluation of biological assets and agricultural produce - (967,193) 2,845,241 - - 1,219,161 3,097,209
Adjusted EBITDA* 4,678,739 588,928 4,173,346 5,302,726 (5,731) 1,450,833 16,188,841
* Non-IFRS measure
Appendix 3. Consolidated statement of financial position as at 31 March 2023
(in RUB thousand)
31 March 2023 31 December 2022
ASSETS
Current assets
Cash and cash equivalents 30,391,698 21,473,030
Short-term investments 64,107,093 91,382,536
Trade and other receivables 21,197,132 24,176,680
Prepayments 7,376,175 13,435,149
Current income tax receivable 666,830 832,423
Other taxes receivable 5,681,590 8,360,935
Inventories and short-term biological assets 85,869,883 78,580,317
Other current assets 4,525,567 4,126,715
Total current assets 219,815,968 242,367,785
Non-current assets
Property, plant and equipment 121,070,108 121,165,803
Inventories intended for construction 856,905 864,550
Right-of-use assets 7,143,025 6,916,539
Goodwill 2,364,942 2,364,942
Advances paid for non-current assets 4,384,894 5,482,770
Long-term biological assets 3,066,060 3,240,959
Long-term investments and receivables 42,967,541 42,527,657
Investments in associates 488,916 455,916
Deferred income tax assets 5,382,984 5,964,527
Other intangible assets 1,376,662 1,284,263
Other non-current assets 303,156 190,978
Total non-current assets 189,405,193 190,458,904
Total assets 409,221,161 432,826,689
LIABILITIES and EQUITY
Current liabilities
Short-term borrowings 150,001,793 172,351,514
Lease liabilities 873,686 863,452
Trade and other payables 12,129,760 17,024,472
Provisions 161,754 137,542
Current income tax payable 496,010 76,061
Other taxes payable 5,554,367 8,149,780
Total current liabilities 169,217,370 198,602,821
Non-current liabilities
Long-term borrowings 60,699,106 61,038,393
Government grants 11,329,912 11,153,211
Lease liabilities 5,328,924 5,086,897
Deferred income tax liability 2,567,284 2,283,752
Total non-current liabilities 79,925,226 79,562,253
Total liabilities 249,142,596 278,165,074
Equity
Share capital 12,269 12,269
Treasury shares (490,607) (490,607)
Additional paid-in capital 26,964,479 26,964,479
Other reserves 1,363,177 1,363,177
Retained earnings 132,267,267 126,843,525
Equity attributable to owners of ROS AGRO PLC 160,116,585 154,692,843
Non-controlling interest (38,020) (31,228)
Total equity 160,078,565 154,661,615
Total liabilities and equity 409,221,161 432,826,689
Appendix 4. Consolidated statement of cash flows for the Three months ended 31
March 2023 (in RUB thousand) - NOT IFRS PRESENTATION (*)
Three months ended
31 March 2023 31 March 2022
Cash flows from operating activities
Profit before income tax 7,159,263 2,094,559
Adjustments for:
Depreciation and amortization 3,624,435 3,464,898
Interest expense 4,643,175 4,554,909
Government grants (2,922,447) (3,230,880)
Interest income (2,441,235) (2,308,391)
Loss/ (gain) on disposal of property, plant and equipment (26,635) (438,032)
Net (gain) / loss on revaluation of biological assets and agricultural produce 546,548 3,097,209
Change in provision for impairment of loans issued (50) (70)
Interest expense on leases 66,329 56,386
Change in provision for net realisable value of inventory 409,161 215,607
Change in provision for impairment of receivables and prepayments 64,192 47,807
Foreign exchange (gain) / loss, net (3,958,876) 9,152,911
Net (gain) / loss from bonds held for trading - (42)
Settlement of loans and accounts receivable previously written-off (31,379) -
Change in provision for impairment of advances paid for property, plant and 37,597 (15,330)
equipment
Change in other provisions 24,212 47,998
(Gain)/loss on disposal of other assets - 3,608
Gain on SolPro loans redemption (237,768) (320,080)
Other non-cash and non-operating expenses, net 35,159 25,128
Operating cash flow before working capital changes 6,991,682 16,448,195
Change in trade and other receivables and prepayments (3,504,180) (14,124,633)
Change in other taxes receivable 2,679,345 1,420,541
Change in inventories and biological assets (7,695,258) (5,971,171)
Change in trade and other payables 20,241,772 20,162
Change in other taxes payable (2,417,819) (2,593,539)
Cash generated from operations 16,295,542 (4,800,445)
Income tax paid (291,696) (329,946)
Net cash from operating activities 16,003,846 (5,130,391)
Appendix 4 (continued). Consolidated statement of cash flows the Three months
ended 31 March 2023 (in RUB thousand) - NOT IFRS PRESENTATION (*)
Three months ended
31 March 2023 31 March 2022
Cash flows from investing activities
Purchases of property, plant and equipment (1,999,800) (2,981,847)
Purchases of other intangible assets (289,137) (360,947)
Purchases of land lease rights (7,743) (8,843)
Proceeds from sales of property, plant and equipment 3,407 554,179
Purchases of inventories intended for construction (89,445) (106,466)
Purchases of associates (33,000) (31,000)
Dividends received - 377,269
Other investing activities 126,307 291,096
Net cash from investing activities (2,289,411) (2,266,559)
Cash flows from financing activities
Proceeds from borrowings 4,283,066 21,004,197
Repayment of borrowings (27,907,485) (14,674,650)
Interest paid (1,273,985) (937,229)
Change in cash on bank deposits 16,450,000 5,308,072
Proceeds from sales of bonds with maturity over three months* - 140,783
Loans given* (190,666) (250,000)
Loans repaid* 3,500 (2,328,261)
Interest received* 1,883,193 1,132,611
Proceeds from government grants 47,624 32,198
Dividends paid to owners Ros Agro PLC - (120)
Repayment of lease liabilities - principal (23,784) (502,443)
Other financial activities - 290
Net cash from financing activities (6,728,536) 8,925,448
Net effect of exchange rate changes on cash and cash equivalents 1,932,770 (7,960,139)
Net increase/ (decrease) in cash and cash equivalents 8,918,668 (6,431,641)
Cash and cash equivalents at the beginning of the period 21,473,030 46,462,179
Cash and cash equivalents at the end of the period 30,391,698 40,030,538
(*) For the purpose of conformity with the methodology of the Group's net debt
calculation investments in financial assets related to financial activities
are presented in Cash flows from financing activities in the Group's
management accounts.
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