REG - Ros Agro PLC - 4th Quarter Financial Results
28/02/2022 08:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220228:nRSb0029Da&default-theme=true
RNS Number : 0029D Ros Agro PLC 28 February 2022
28 February 2022
ROS AGRO financial results for 12M 2021 and 4Q 2021
28 February 2022 - 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 year ended 31 December 2021.
12M 2021 HIGHLIGHTS
- Sales amounted to RUB 222,932 million (US$ 3,027 million(1)), an
increase of RUB 63,961 million (+40%) compared to 12M 2020;
- Adjusted EBITDA(2) amounted to RUB 48,060 million (US$
653 million), an increase of RUB 16,076 million
(+50%) compared to 12M 2020;
- Adjusted EBITDA margin rose from 20% in 12M 2020 to 22% in 12M 2021;
- Net profit for the period amounted to RUB 41,434 million (US$
563 million), an increase of RUB 17,137 million (+71%);
- Net debt position(3) as of 31 December 2021 amounted to RUB
73,409 million (US$ 988 million);
- Net Debt/Adjusted EBITDA (LTM(4)) as of 31 December 2021 was 1.53.
Commenting on the results, Timur Lipatov, CEO of Rusagro, said:
"In 2021 Rusagro achieved impressive results and managed to earn the highest
adjusted EBITDA in the Company's history. In 4Q 2021 Rusagro Sales increased
across all business segments. Revenue growth was supported by positive trend
in sales volume of Sugar segment as well as sugar beet and soybean in
Agriculture segment.
In 4Q 2021 Rusagro showed growth of adjusted EBITDA in all business segments
except Meat. Rusagro improved adjusted EBITDA margin of Agriculture segment
(+7 p.p.) and Sugar segment (+7 p.p.) as Revenue grew higher than
corresponding increase in costs. Adjusted EBITDA of Oil & Fats segment
remained relatively flat (+1 p.p.). Adjusted EBITDA of Meat segment decreased
by 8 p.p. following negative influence of higher costs of feed and animal
health protection as well as additional expenses relating to the start of
operations in Primorye."
Key consolidated financial performance indicators
in RR million Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Sales 222,932 158,971 63,961 40 65,356 50,209 15,147 30
Gross profit (1) 57,093 43,739 13,354 31 11,491 13,296 (1,805) (14)
Gross margin, % 26% 28% (2) pp 18% 26% (8) pp
Adjusted EBITDA 48,060 31,984 16,076 50 17,338 11,789 5,549 47
Adjusted EBITDA margin, % 22% 20% 2 pp 27% 23% 4 pp
Net profit for the period (2)(,)(3) 41,434 24,297 17,137 71 6,012 8,618 (2,606) (30)
Net profit margin % 19% 15% 4 pp 9% 17% (8) pp
(1) Adjustment was made to published 9M and 3Q 2021: Gross profit
increased by RUB 718 million due to reclassification of income from
recognition of sunflower surplus on elevators.
( )
(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.
(3) Adjustment for valuation of SolPro loans made in 4Q20 caused Net profit
to increase by RUB 2,846 compared to the published earlier amount, 12M20
remained unchanged
Key financial performance indicators by segments
in RR million Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Sales, incl. 222,932 158,971 63,961 40 65,356 50,209 15,147 30
Sugar 36,361 28,113 8,248 29 12,248 7,034 5,214 74
Meat 39,628 32,434 7,194 22 11,170 9,588 1,583 16
Agriculture 41,881 34,348 7,534 22 23,170 19,596 3,574 18
Oil and Fat 125,237 79,726 45,510 57 31,278 25,173 6,105 24
Other 719 631 88 14 180 234 (53) (23)
Eliminations (20,894) (16,281) (4,613) (28) (12,690) (11,416) (1,276) (11)
Gross profit, incl. 57,093 43,739 13,354 31 11,491 13,296 (1,805) (14)
Sugar 9,510 6,885 2,625 38 3,686 1,512 2,174 144
Meat 5,513 4,377 1,135 26 (826) (372) (454) (122)
Agriculture 25,717 18,870 6,847 36 5,615 9,614 (3,999) (42)
Oil and Fat 16,381 15,179 1,202 8 3,543 3,809 (267) (7)
Other 348 153 195 127 162 77 85 110
Eliminations (376) (1,725) 1,349 78 (689) (1,344) 655 49
Adjusted EBITDA, incl. 48,060 31,984 16,076 50 17,338 11,789 5,549 47
Sugar 8,962 6,352 2,610 41 3,134 1,347 1,787 133
Meat 5,895 6,473 (579) (9) 860 1,539 (679) (44)
Agriculture 23,251 15,191 8,060 53 13,780 10,176 3,604 35
Oil and Fat 12,786 9,375 3,411 36 2,719 2,008 712 35
Other (2,092) (1,300) (792) (61) (337) (206) (131) (64)
Eliminations (742) (4,107) 3,365 82 (2,818) (3,075) 256 8
Adjusted EBITDA margin, % 22% 20% 2 pp 27% 23% 4 pp
Sugar 25% 23% 2 pp 26% 19% 7 pp
Meat 15% 20% (5) pp 8% 16% (8) pp
Agriculture 56% 44% 12 pp 59% 52% 7 pp
Oil and Fat 10% 12% (2) pp 9% 8% 1 pp
SUGAR SEGMENT
In 12M21 Sugar segment earned RUB 8,962 million of adjusted EBITDA (+41%
y-o-y) with 25% margin (+2 pp y-o-y). The financial results of the Sugar
Segment of 12M21 and 4Q21 compared to 12M20 and 4Q20 respectively are
presented in the table below:
Sugar segment 12M and 4Q 2021 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Sales 36,361 28,113 8,248 29 12,248 7,034 5,214 74
Cost of sales (26,850) (21,238) (5,612) (26) (8,562) (5,522) (3,040) (55)
Net gain/ (loss) from trading derivatives - 11 (11) - - - - -
Gross profit/ (loss) 9,510 6,885 2,626 38 3,686 1,512 2,174 144
Gross profit margin 26% 24% 2 pp 30% 21% 9 pp
Distribution and selling expenses (2,476) (1,964) (512) (26) (1,017) (479) (538) (112)
General and administrative expenses (1,482) (1,436) (46) (3) (353) (389) 35 9
Other operating income/ (expenses), net 677 602 75 12 181 (17) 197 -
incl. reimbursement of operating costs (government grants) 577 180 397 221 150 107 42 39
incl. other adjustments to 106 425 (319) (75) 35 (51) 86 -
EBITDA (non-recurring items)
Operating profit 6,229 4,088 2,142 52 2,496 628 1,868 297
Adjusted EBITDA 8,962 6,352 2,610 41 3,134 1,347 1,787 133
Adjusted EBITDA margin 25% 23% 2 pp 26% 19% 7 pp
In 12M21 in comparison to 12M20 Sales of Sugar segment improved by 29% - RUB
8,248 million. Sugar market showed positive trend in comparison to 12M20.
During the first 9M21 Rusagro's sugar sales price to retail chains in Russia
did not exceed 36 RUB/kg incl. VAT for white sugar in 50 kg bags at the plant.
Sales volumes decreased by 5% y-o-y to 769 thousand mainly due to reduction of
opening sugar balance in 2021 compare to 2020. In 4Q21 sales volumes increased
due to the growth of sugar production (as the result of higher sugar beet
harvest) and limited storage capacity.
In addition, Sugar segment Sales for 12M21 increased due to the growth in
sales of packing and sugar beet processing services offered to customers by
sugar plants of RUB 526 million together with the increase in sales of beet
pulp, molasses and betaine by RUB 216 million. Revenue from sales of buckwheat
and rice decreased by RUB 171 million.
Cost of sales in 12M21 increased y-o-y due to higher sugar beet costs.
Production and sales volume of sugar in 12M and 4Q 2021
Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Sugar production volume, thousand tonnes 791 764 27 4 583 484 99 20
Sales volume, 769 812 (43) (5) 228 142 86 61
thousand tonnes
MEAT SEGMENT
In 12M21 Meat segment earned RUB 5,895 million of adjusted EBITDA (-9% y-o-y)
with 15% margin (-5 pp y-o-y). The financial results of the Meat Segment of
12M21 and 4Q21 compared to 12M20 and 4Q20 respectively are presented in the
table below.
Meat segment 12M and 4Q 2021 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Sales 39,628 32,434 7,194 22 11,170 9,588 1,583 17
Net gain/ (loss) on revaluation of biological assets and agricultural produce (370) (681) 311 46 (1,704) (1,504) (199) (13)
Cost of sales (33,745) (27,376) (6,369) (23) (10,292) (8,455) (1,837) (22)
Gross profit/ (loss) 5,513 4,377 1,135 26 (826) (372) (454) (122)
Gross profit margin 14% 13% 1 pp (7)% (4) % (3)pp
Gross profit excl. effect of biological assets revaluation 5,883 5,059 825 16 878 1,132 (254) (22)
Adjusted gross profit margin 15% 16% (1) pp 8% 12% (4)pp
Distribution and selling expenses (1,670) (1,204) (466) (39) (569) (342) (227) (66)
General and administrative expenses (4,058) (1,509) (2,549) (169) (941) (549) (392) (71)
Other operating income/ (expenses), net 1,353 654 699 107 284 258 26 10
incl. reimbursement of operating costs (government grants) 517 105 412 393 58 42 16 38
incl. other adjustments to EBITDA (non-recurring items) 490 460 30 6 9 181 (172) (95)
Operating profit 1,137 2,318 (1,180) (51) (2,052) (1,005) (1,047) (104)
Adjusted EBITDA 5,895 6,473 (579) (9) 860 1,539 (679) (44)
Adjusted EBITDA margin 15% 20% (5) pp 8% 16% (8) pp
Sales of the Meat segment increased by 22% in 12M21 and by 17% in 4Q21
compared to the respective periods of the prior year mainly due to positive
market dynamics of all meat products except for livestock during 4Q21. The
growth of total sales volume by 1% in 12M21 compared to 12M20 triggered by 1%
pigs production increase achieved as new pig farms in Tambov Region reached
full capacity and start of production in Primorye.
Production and sales volume of pork products in 12M and 4Q 2021
Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Pigs production, 309 308 1 0 82 85 (3) (4)
thousand tonnes in live weight
Sales volume, 249 248 1 0 67 71 (5) (6)
thousand tonnes
Cost of sales increased by 23% in 12M21 and by 22% in 4Q21 compared to the
respective periods of the prior year mainly due to higher costs of feed and
animals health protection.
Net loss on revaluation of biological assets and agricultural produce in 12M21
resulted mainly from higher growth of costs than an increase in fair value for
both bearer and consumable livestock pigs during the reporting period compared
to the respective figures at the end of 2020.
An increase in Distribution and selling expenses in 12M21 in comparison to
12M20 is mainly due to the rise in the costs of advertising and marketing
activities.
General and administrative expenses in 12M21 compared to prior year period
increased mainly due realization of pork production cluster project in the
Primorie Territory.
An increase in Other operating income in 12M21 in comparison to 12M20 is
mainly due to partial reimbursement of feed purchase costs and insurance
costs.
AGRICULTURAL SEGMENT
As at 31 December 2021 Rusagro's area of controlled land stands at 688
thousand hectares (31 December 2020: 641 thousand hectares). In 12M21
Agriculture segment earned RUB 23,251 million of adjusted EBITDA (+53 % y-o-y)
with 56% margin (+12 pp y-o-y). The financial results of the Agricultural
Segment of 12M21 and 4Q21 compared to 12M20 and 4Q20 respectively are
presented below.
Agriculture segment 12M and 4Q 2021 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Sales 41,881 34,348 7,534 22 23,170 19,596 3,574 18
Net gain/ (loss) on revaluation of biological assets and agricultural produce 2,610 3,583 (973) (27) (7,904) (56) (7,848) (14,028)
Cost of sales (18,774) (19,060) 286 2 (9,651) (9,926) 275 3
Gross profit/ (loss) 25,717 18,870 6,847 36 5,615 9,614 (3,999) (42)
Gross profit margin 61% 55% 6 pp 24% 49% (25) pp
Gross profit excl. effect of biological assets and agricultural produce 23,107 15,288 7,820 51 13,519 9,670 3,850 40
revaluation
Adjusted gross profit margin 55% 45% 10 pp 58% 49% 9 pp
Distribution and selling expenses (1,935) (2,370) 435 18 (856) (918) 62 7
General and administrative expenses (1,461) (1,363) (98) (7) (439) (414) (25) (6)
Other operating income/ (expenses), net 598 460 139 30 494 458 36 8
incl. reimbursement of 546 299 247 83 305 188 117 62
operating costs (government grants)
incl. other adjustments to EBITDA (non-recurring items) (38) 71 (109) - 129 109 20 18
Operating profit 22,919 15,597 7,322 47 4,814 8,740 (3,925) (45)
Adjusted EBITDA 23,251 15,191 8,060 53 13,780 10,176 3,604 35
Adjusted EBITDA margin 56% 44% 12 pp 59% 52% 7 pp
In 12M21 in comparison to 12M20 Sales of the Agriculture segment increased by
22% to RUB 41,881 million. Higher volume of sugar beet and wheat sold was
partially compensated by lower sales volumes of barley, corn and sunflower.
Meanwhile, Cost of sales, General and administrative expenses remained
relatively stable.
Higher sales volume of wheat in 12M21 compared to 12M20 was affected by
management decision in 2020 to push sales timing towards 2021, whereas 2019
wheat harvest was mainly sold in 2019. 2021 wheat harvest was mainly sold in
2021.
Sugar beet sales volume increase in 12M21 compared to 12M20 was caused by
higher yield of sugar beet in 2021.
In 4Q21 in comparison to 4Q20 Sales of the Agriculture segment increased by
18% to RUB 23,170 million. Higher volume of sugar beet and soybean was
partially compensated by lower sales volumes of wheat, barley, corn and
sunflower.
Lower sales volume of wheat in 4Q21 compared to 4Q20 was affected by
management decision in 2021 to make sales earlier in the season - in 3Q21.
Higher sales volume of soybean in 4Q21 compared to 4Q20 was affected by
management decision in 2021 to make sales earlier in the 2021 due to
favourable market conditions.
Sales volume of crops in 12M and 4Q 2021
Thousand tonnes Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
sugar beet 3,589 2,952 637 22 2,869 2,120 749 35
wheat 768 653 115 17 184 386 (202) (52)
soybean 330 331 (1) (0) 169 97 72 73
corn 71 149 (78) (52) 14 57 (43) (76)
sunflower seeds 59 78 (19) (24) 51 59 (1) (13)
barley 10 122 (112) (91) 4 30 (26) (88)
Net gain/(loss) on revaluation of biological assets and agricultural produce
depends on revaluation amounts in opening and closing inventory balances.
Revaluation between opening and closing inventory balances grew higher in
12M20 than in 12M21.
Net loss on revaluation of biological assets and agricultural produce in 4Q21
compared to 4Q20 is higher due to realisation of gain from current year
harvest revaluation recognized in 3Q21. In 4Q20 realisation of gain from 2020
year harvest revaluation was neutralised by recognition of additional gain
from revaluation of harvested crops to fair value less estimated point-of-sale
costs.
Net gain/(loss) on revaluation of crops and its subsequent realisation do not
affect the Adjusted EBITDA figure.
Distribution and selling expenses decreased despite overall sales volumes
remaining at the same level, which is caused mainly by changes in sales
channels of soybean, export in 12M2020 vs. domestic in 12M2021.
An increase in Other operating income in 12M21 in comparison to 12M20 is
mainly due to higher government reimbursement of operating costs.
OIL AND FAT SEGMENT
In 12M21 Oil and Fat segment earned RUB 12,786 million of adjusted EBITDA (+36
% y-o-y) with 10% margin (-2 pp y-o-y). The financial results of the Oil and
Fat Segment for 12M21 and 4Q21 compared to 12M20 and 4Q20 respectively are
presented below.
Oil and Fat segment 12M and 4Q 2021 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Sales 125,237 79,726 45,510 57 31,278 25,173 6,105 24
Cost of sales (108,856) (64,547) (44,308) (69) (27,735) (21,363) (6,372) (30)
Gross profit/ (loss) 16,381 15,179 1,202 8 3,543 3,809 (267) (7)
Gross profit margin 13% 19% (6) pp 11% 15% (4) pp
Distribution and selling expenses (5,488) (4,915) (573) (12) (2,097) (1,836) (261) (14)
General and administrative expenses (1,975) (1,816) (159) (9) (553) (321) (231) (72)
Other operating income/ (expenses), net (726) (533) (193) (36) (349) (334) (15) (5)
incl. reimbursement of 496 347 149 43 190 107 83 78
operating costs (government grants)
incl. Other adjustments to EBITDA (non-recurring items) (1,368) (732) (636) (87) (756) (445) (311) (70)
Operating profit/ (loss) 8,192 7,915 277 3 544 1,318 (774) (59)
Adjusted EBITDA 12,786 9,375 3,411 36 2,719 2,008 712 35
Adjusted EBITDA margin 10% 12% (2) pp 9% 8% 1 pp
In 2021 results of Dairy Products segment are included in Oil and Fat segment
due to consolidation of these two businesses. For comparison purpose financial
results of the previous years were corrected accordingly.
Sales volumes to third parties in 12M and 4Q 2021
Thousand tonnes Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Meal 582 589 (7) (1) 139 146 (7) (5)
crude oil 391 384 7 2 71 98 (27) (27)
industrial fats 335 310 25 8 96 91 5 6
dry whey mixes 15 15 - 6 4 4 - 14
consumer oil&fat products 325 341 (16) (5) 91 94 (3) (4)
consumer dairy products 14 13 1 9 4 3 - 11
In 12M21 in comparison to 12M20 Sales of the Oil and Fat segment increased by
57% to RUB 125,237 million partially due to rise of sales volume of
industrial fats, crude oil and consumer dairy products.
Sales price of bottled sunflower oil to retail in Russia did not exceed
established by Russian Government limit of 95 RUB/l incl. VAT at the plant
during the first 9M21.
Cost of sales in 12M21 in comparison to 12M20 increased due to higher
costs of raw materials, including sunflower seeds, sunflower and tropical
oil.
Distribution and selling expenses increased as the result of export duties on
sunflower oil imposed by Russian Government starting from September 2021.
Other adjustments to EBITDA (non-recurring items) in 12M21 changed mainly due
to negative dynamics in forex losses in 12M20 and higher provisions for bad
debts in 12M21.
KEY CONSOLIDATED CASH FLOW INDICATORS (NOT IFRS PRESENTATION*)
The key consolidated cash flow indicators presented according to management
accounts methodology
in mln Roubles Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Net cash from operating activities, incl. 30,733 12,117 18,616 154 (1,522) (12,560) 11,037 88
Operating cash flow before working capital changes 46,821 31,899 14,923 47 16,509 11,528 4,981 43
Working capital changes (12,409) (17,748) 5,340 30 (15,876) (23,041) 7,165 31
Net cash from investing activities, incl. (41,276) (13,494) (27,782) (206) (4,198) (3,627) (570) (16)
Purchases of property plant and equipment and inventories intended for (13,770) (14,066) 296 2 (4,955) (3,976) (979) (25)
construction
Acquisition of SolPro assets (28,735) 0 (28,735) - - - - -
Net cash from financing activities 45,387 10,892 34,494 317 (4,721) 18,512 (23,233) -
Net effect of exchange rate changes on cash and cash equivalents (248) 180 (429) - (62) (111) 49 44
Net increase / (decrease) in cash and cash equivalents 34,595 9,696 24,899 257 (10,502) 2,214 (12,717) -
(*) See Appendix 4
Сash inflow corresponding to loans and interest repaid as the result of
SolPro assets acquisition is included in line Net cash from financing
activities.
The key investments in property, plant and equipment and inventories intended
for construction during 12M21 were made in the Meat segment in the amount of
RUB 8,052 million (12M20: RUB 8,750 million) due to the purchases related to
the construction project in the Russian Far East. Investments in the Oil and
Fat segment in the amount of RUB 2,058 million (12M20: RUB 1,784 million),
Agriculture segment in the amount of RUB 2,660 million (12M20: RUB
2,038 million) and Sugar segment in the amount of RUB 1,000 million (12M20:
RUB 1,494 million) mainly relate to purchases of machinery and equipment for
production facilities renewal and maintenance.
Debt position and liquidity management
in RUB million 31 December 2021 31 December 2020 Variance
Units %
Gross debt 172,724 114,929 57,795 50
Short-term borrowings 108,749 51,753 56,996 110
Long-term borrowings 63,975 63,176 799 1
Cash and cash equivalents, bank deposits and bonds (99,315) (46,029) (53,286) (116)
Short-term cash, deposits and bonds (65,344) (12,064) (53,280) (442)
Long-term cash, deposits and bonds (33,971) (33,965) (6) (0)
Net debt 73,409 68,900 4,509 7
Short-term borrowings, net 43,405 39,689 3,716 9
Long-term borrowings, net 30,004 29,211 793 3
Adjusted EBITDA (LTM(4)) 48,060 31,984 16,076 50
Net debt/ Adjusted EBITDA (LTM) 1.53 2.15 (0.6) pp
Adjusted EBITDA (LTM)(5) without other operating income/expenses 48,314 32,435 15,879 49
Net debt/ Adjusted EBITDA (LTM)(5) without other operating income/expenses 1.52 2.12 (0.6) pp
Net finance income/ (expense)
in RR million Year ended Variance Three months ended Variance
31 December 2021 31 December 2020 Units % 31 December 2021 31 December 2020 Units %
Net interest expense (5,499) (4,805) (694) (14) (1,496) (1,085) (411) (38)
Gross interest expense (10,567) (6,448) (4,119) (64) (3,242) (1,558) (1,685) (108)
Reimbursement of interest expense 5,068 1,643 3,425 208 1,746 473 1,274 269
Interest income 8,611 7,165 1,446 20 2,303 2,535 (232) (9)
Net gain/ (loss) from bonds held for trading (2) (16) 14 87 1 0 0 162
Other financial income, net (705) (1,844) 1,139 62 (216) (353) 137 39
Net foreign exchange gain/ (loss) (111) (1,234) 1,123 91 (61) (116) 55 47
Other financial income / (expenses), net (594) (610) 16 3 (155) (237) 82 35
Total net finance income/ (expenses) 2,405 500 1,905 381 592 1,098 (506) (46)
Net debt increased at 31 December 2021 compared at 31 December 2020 as a
result of an increase in short-term borrowings.
In 12M21 Rusagro continued to enjoy benefits from the state agriculture
subsidies programme. The 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 credits with decreased interest rates,
given by the banks to agricultural producers. In 12M21 IFRS accounts these
credits 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 12M20 in the sum of RUB 500 million increased to RUB
2,405 million in 12M21 as the result of negative dynamics in forex losses in
12M20 and increase in interest income on bank deposits in 12M21, partially
compensated by lower interest income of SolPro loans.
________________________________
(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) The 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".
(5) Starting from the beginning of 2020 part of other operating income and
expensed (recurring items) was included in Adjusted EBITDA calculation.
Figures of 2021 and 2020 calculated using prior periods' logic (excluding
other operating income/expenses) are shown in table Debt position and
liquidity management above and in the diagram with Net debt/ LTM EBITDA trend
analysis for comparative purposes
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 688 thousand hectares of land under control
located in the highly fertile Black Earth region of Russia (in the Belgorod,
Tambov, Voronezh, Kursk, Orel regions), in Saratov region 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 (№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 Cafeand 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 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 12M and 4Q
2021 financial results for investors and analysts.
Details of the call:
Date: 28 February 2022
Time: 10:00 AM (Moscow) / 07:00 AM (London)
Subject: ROS AGRO PLC 12M and 4Q 2021 Financial results
Password: 043773
Link: https://ib-translations.zoom.us/j/88086186455?pwd=YUtyTlcxREtoSitwSWpCK2ZSWDlVUT09
(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
Svetlana Kuznetsova
IR & ESG Director
Phone: +7 495 363 1661,
E-mail: ir@rusagrogroup.ru
Appendix 1. Consolidated statement of comprehensive income for the Year and
Three months ended 31 December 2021 (in RUB thousand)
Year ended Three months ended
31 December 31 December
2021 2020 2021 2020
Sales 222,932,439 158,971,035 65,356,350 50,208,835
Net gain/(loss) on revaluation of biological assets and agricultural produce 3,409,309 5,890,447 (7,160,698) 461,484
Cost of sales (169,248,281) (121,132,658) (46,704,627) (37,374,419)
Net gain/(loss) from trading derivatives (5) 10,552 - -
Gross profit 57,093,462 43,739,376 11,491,025 13,295,900
Distribution and selling expenses (10,475,137) (9,760,841) (4,053,794) (3,252,990)
General and administrative expenses (10,975,898) (7,377,449) (2,653,301) (1,891,956)
Reversal of provision/(provision) for impairment of loans issued 4,574,481 (5,070,598) 924,914 (1,813,877)
Other operating income/(expenses), net 2,334,177 2,293,017 1,132,615 1,110,454
Operating profit / (loss) 42,551,085 23,823,505 6,841,459 7,447,531
Interest expense (5,498,991) (4,804,995) (1,496,062) (1,084,823)
Interest income 8,610,888 7,164,816 2,303,114 2,585,844
Net (loss)/gain from bonds (1,630) (15,698) 732 279
Other financial income/ (expenses), net (705,356) (1,844,130) (215,617) (352,567)
Profit before income tax 44,955,996 24,323,498 7,433,626 8,596,264
Income tax expense (3,522,144) (26,771) (1,421,872) 22,142
Profit for the period 41,433,852 24,296,727 6,011,754 8,618,406
Other comprehensive income
Items that will not be reclassified to profit or loss:
Gains less losses on investments in equity securities at fair value through - 56,556 - 56,556
other comprehensive income
Income tax relating to other comprehensive income - (7,070) - (7,070)
Total comprehensive income for the period 41,433,852 24,346,213 6,011,754 8,667,892
Profit is attributable to:
Owners of ROS AGRO PLC 41,477,865 24,359,786 6,036,405 8,641,489
Non-controlling interest (44,013) (63,059) (24,651) (23,083)
Profit for the period 41,433,852 24,296,727 6,011,754 8,618,406
Total comprehensive income is attributable to:
Owners of ROS AGRO PLC 41,477,865 24,409,272 6,036,405 8,690,975
Non-controlling interest (44,013) (63,059) (24,651) (23,083)
Total comprehensive income for the period 41,433,852 24,346,213 6,011,754 8,667,892
Earnings per ordinary share for profit attributable to the owners of ROS AGRO 1,541.57 905.39 224.35 321.17
PLC, basic and diluted
(in RR per share)
Appendix 2. Segment information for the Year ended 31 December 2021 (in RUB
thousand)
12M 2021 Sugar Meat Agriculture Oil and Fat Other Eliminations Total
Sales 36,360,566 39,628,064 41,881,010 125,236,601 719,452 (20,893,254) 222,932,439
Net gain/ (loss) on revaluation of biological assets and agricultural produce - (370,486) 2,609,949 - - 1,169,846 3,409,309
Cost of sales (26,850,141) (33,744,934) (18,773,771) (108,855,523) (371,867) 19,347,955 (169,248,281)
incl. Depreciation (2,766,162) (3,965,508) (2,547,072) (2,877,234) (9,186) (85,607) (12,250,769)
Net gain/ (loss) from trading derivatives - (5) - - - - (5)
Gross profit 9,510,425 5,512,639 25,717,188 16,381,078 347,585 (375,453) 57,093,462
Distribution and Selling, General and administrative expenses (3,958,396) (5,728,548) (3,396,730) (7,463,073) (2,646,176) 1,741,888 (21,451,035)
incl. Depreciation (72,862) (910,976) (357,854) (348,591) (90,102) 85,607 (1,694,778)
Other operating income/(expenses), net 677,174 1,353,391 598,467 (726,058) 27,175,376 (26,744,173) 2,334,177
incl. Reimbursement of operating costs (government grants) 576,559 516,862 546,424 495,720 - - 2,135,565
incl. Other adjustments to EBITDA (non-recurring items) 105,924 489,812 (37,563) (1,368,049) 27,067,942 (25,805,013) 453,053
Reversal of provision/(provision) for impairment of loans issued - - - - 4,574,481 - 4,574,481
Operating profit / (loss) 6,229,203 1,137,482 22,918,925 8,191,947 29,451,266 (25,377,738) 42,551,085
Adjustments:
Depreciation included in Operating Profit 2,839,024 4,876,484 2,904,926 3,225,825 99,288 - 13,945,547
Other adjustments to EBITDA (non-recurring items) (105,924) (489,812) 37,563 1,368,049 (27,067,942) 25,805,013 (453,053)
Net gain/ (loss) on revaluation of biological assets and agricultural produce - 370,486 (2,609,949) - - (1,169,846) (3,409,309)
Reversal of provision/(provision) for impairment of loans issued - - - - (4,574,481) - (4,574,481)
Adjusted EBITDA* 8,962,303 5,894,640 23,251,465 12,785,821 (2,091,869) (742,571) 48,059,789
* Non-IFRS measure
Appendix 2 (continued). Segment information for the Year ended 31 December
2020 (in RUB thousand)
12M 2020 Sugar Meat Agriculture Oil and Fat Other Eliminations Total
Sales 28,112,519 32,434,214 34,347,506 79,726,251 631,108 (16,280,563) 158,971,035
Net gain/ (loss) on revaluation of biological assets and agricultural produce
- (681,302) 3,582,520 - - 2,989,229 5,890,447
Cost of sales (21,238,160) (27,375,635) (19,059,850) (64,547,430) (477,625) 11,566,042 (121,132,658)
incl. Depreciation (2,605,853) (3,716,132) (2,861,216) (542,826) (10,639) (75,387) (9,812,053)
Net gain/ (loss) from trading derivatives 10,552 - - - - - 10,552
Gross profit 6,884,911 4,377,277 18,870,176 15,178,821 153,483 (1,725,292) 43,739,376
Distribution and Selling, General and administrative expenses (3,399,788) (2,713,324) (3,732,770) (6,730,675) (1,704,354) 1,142,621 (17,138,290)
incl. Depreciation (83,738) (218,146) (386,864) (184,327) (184,305) 75,387 (981,993)
Other operating income/(expenses), net 602,466 653,934 459,868 (533,103) 15,582,175 (14,472,323) 2,293,017
incl. Reimbursement of operating costs (government grants) 179,564 104,836 299,020 347,210 - - 930,630
incl. Other adjustments to EBITDA (non-recurring items) 425,102 459,983 71,372 (732,371) 15,526,199 (13,936,656) 1,813,629
Reversal of provision/(provision) for impairment of loans issued - - - - (5,070,598) - (5,070,598)
Operating profit / (loss) 4,087,589 2,317,887 15,597,274 7,915,043 8,960,706 (15,054,994) 23,823,505
Adjustments:
Depreciation included in Operating Profit 2,689,591 3,934,278 3,248,080 727,153 194,944 - 10,794,046
Other adjustments to EBITDA (non-recurring items) (425,102) (459,983) (71,372) 732,371 (15,526,199) 13,936,656 (1,813,629)
Net gain/ (loss) on revaluation of biological assets and agricultural produce - 681,302 (3,582,520) - - (2,989,229) (5,890,447)
Reversal of provision/(provision) for impairment of loans issued - - - - 5,070,598 - 5,070,598
Adjusted EBITDA* 6,352,078 6,473,484 15,191,462 9,374,567 (1,299,951) (4,107,567) 31,984,073
Appendix 3. Consolidated statement of financial position as at 31 December
2021
(in RUB thousand)
31 December 2021 31 December 2020
ASSETS
Current assets
Cash and cash equivalents 46,462,179 11,866,798
Restricted cash 47 143,637
Short-term investments 21,001,760 19,583,523
Trade and other receivables 12,558,401 9,512,286
Prepayments 5,414,032 2,941,224
Current income tax receivable 1,532,726 646,162
Other taxes receivable 8,321,193 5,506,675
Inventories and short-term biological assets 77,509,033 69,001,368
Total current assets 172,799,371 119,201,673
Non-current assets
Property, plant and equipment 119,159,412 87,519,088
Inventories intended for construction 1,604,570 3,353,330
Right-of-use assets 7,346,538 6,934,567
Goodwill 2,364,942 2,364,942
Advances paid for non-current assets 7,355,467 6,905,003
Long-term biological assets 2,744,863 2,528,128
Long-term investments and receivables 42,527,657 42,692,320
Investments in associates 359,782 257,782
Deferred income tax assets 4,835,268 3,566,168
Other intangible assets 1,144,057 619,793
Other non-current assets 79,125 205,793
Total non-current assets 189,521,681 156,946,914
Total assets 362,321,052 276,148,587
LIABILITIES and EQUITY
Current liabilities
Short-term borrowings 108,748,840 51,753,475
Lease liabilities 1,130,831 943,859
Trade and other payables 15,440,635 16,016,138
Provisions 494,709 179,796
Current income tax payable 464,471 69,546
Other taxes payable 7,454,558 4,096,199
Total current liabilities 133,734,044 73,059,013
Non-current liabilities
Long-term borrowings 63,975,025 63,175,720
Government grants 9,325,530 8,536,899
Lease liabilities 5,535,014 4,855,508
Deferred income tax liability 1,876,244 487,049
Total non-current liabilities 80,711,813 77,055,176
Total liabilities 214,445,857 150,114,189
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 120,080,307 98,185,038
Equity attributable to owners of ROS AGRO PLC 147,929,625 126,034,356
Non-controlling interest (54,430) 42
Total equity 147,875,195 126,034,398
Total liabilities and equity 362,321,052 276,148,587
Appendix 4. Consolidated statement of cash flows for the Year ended 31
December 2021 (in RUB thousand) - NOT IFRS PRESENTATION (*)
Year ended
31 December 2021 31 December 2020
Cash flows from operating activities
Profit before income tax 44,955,996 24,323,498
Adjustments for:
Depreciation and amortization 13,945,546 10,794,046
Interest expense 10,566,994 6,448,154
Government grants (7,846,960) (3,216,290)
Interest income (8,610,888) (7,164,816)
Loss/ (gain) on disposal of property, plant and equipment 4,424 (335,640)
Net (gain) / loss on revaluation of biological assets and agricultural produce (3,409,309) (5,890,447)
Change in provision for impairment of loans issued (4,574,481) 5,070,598
Interest expense on leases 591,558 580,276
The result from early repayment of the loan - 131,363
Realised deferred day-one gain (552,748) (993,558)
Change in provision for net realisable value of inventory 1,240,531 732,238
Change in provision for impairment of receivables and prepayments 824,151 13,592
Foreign exchange (gain) / loss, net (59,354) 1,698,846
Lost / (reversal of) harvest write-off 272,407 188,536
Net (gain) / loss from bonds held for trading 1,630 15,698
Settlement of loans and accounts receivable previously written-off (1) -
Change in provision for impairment of advances paid for property, plant and 26,084 (29,620)
equipment
Change in other provisions 314,918 179,796
Dividend income (754,538) (560,568)
Loss on disposal of other assets 256,144 -
Gain on SolPro loans redemption (515,233) -
Other non-cash and non-operating expenses, net 144,326 (87,031)
Operating cash flow before working capital changes 46,821,197 31,898,671
Change in trade and other receivables and prepayments (1,920,133)
(6,377,712)
Change in other taxes receivable (2,814,518) (1,157,275)
Change in inventories and biological assets (6,577,388) (15,169,512)
Change in trade and other payables 82,068 (209,572)
Change in other taxes payable 3,278,845 708,164
Cash generated from operations 34,412,492 14,150,343
Income tax paid (3,679,541) (2,033,327)
Net cash from operating activities 30,732,951 12,117,016
Appendix 4 (continued). Consolidated statement of cash flows the Year ended 31
December 2021 (in RUB thousand) - NOT IFRS PRESENTATION (*)
Year ended
31 December 2021 31 December 2020
Cash flows from investing activities
Purchases of property, plant and equipment including SolPro assets acquisition (12,405,295)
(42,029,048)
Purchases of other intangible assets (1,042,618) (418,808)
Purchases of land lease rights (68,772) (86,729)
Proceeds from sales of property, plant and equipment 896,286 687,757
Purchases of inventories intended for construction (476,322) (1,660,923)
Purchases of associates (102,000) (92,712)
Purchases of other investments (19,083) -
Movement in restricted cash 140,894 (143,454)
Dividends received 754,600 560,568
Proceeds from sales of other assets 217,591 -
Proceeds from sales of other investments 18,000 -
Other investing activities 434,632 65,938
Net cash from investing activities (41,275,840) (13,493,658)
Cash flows from financing activities
Proceeds from borrowings 107,856,022 77,932,773
Repayment of borrowings (52,668,951) (65,389,365)
Interest paid (4,591,935) (4,196,451)
Change in cash on bank deposits (18,000,000) -
Purchases of bonds with maturity over three months* - (197,523)
Proceeds from sales of bonds with maturity over three months* 220,282 -
Purchases of loans issued* (2,256,313) (13,829)
Loans repaid* 22,959,494 1,012,854
Interest received* 8,786,038 4,808,803
Proceeds from government grants 2,879,218 2,192,483
Purchases of non-controlling interest (66,000) -
Dividends paid to owners Ros Agro PLC (19,417,565) (5,134,426)
Repayment of lease liabilities (335,167) (123,044)
Other financial activities 21,631 -
Net cash from financing activities 45,386,754 10,892,275
Net effect of exchange rate changes on cash and cash equivalents (248,484) 180,386
Net increase/ (decrease) in cash and cash equivalents 34,595,381 9,696,019
Cash and cash equivalents at the beginning of the period 11,866,798 2,170,779
Cash and cash equivalents at the end of the period 46,462,179 11,866,798
(*) 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR BKFBDFBKKQBBRecent news on Ros Agro
See all newsREG - Ros Agro PLC - Depositary change notice to investors
AnnouncementREG - Ros Agro PLC - Submission from the Ministry of Agriculture
AnnouncementREG - Ros Agro PLC - Half-year Report
AnnouncementREG - Ros Agro PLC - Notice of EGM
AnnouncementREG - Ros Agro PLC - Inclusion in the list of ESO
Announcement