REG - Ros Agro PLC - 4th Quarter Financial Results
06/03/2023 07:30
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230306:nRSF9833Ra&default-theme=true
RNS Number : 9833R Ros Agro PLC 06 March 2023
06 March 2023
ROS AGRO financial results for 12M 2022 and 4Q 2022
6 March 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 year ended 31 December 2022.
12M 2022 HIGHLIGHTS
- Sales amounted to RUB 240,230 million (US$ 3,504 million(1)), an
increase of RUB 17,298 million (+8%) compared to 12M 2021;
- Adjusted EBITDA(2) amounted to RUB 45,015 million (US$ 657 million),
a decrease of RUB 3,044 million (-6%) compared to 12M 2021;
- Adjusted EBITDA margin decreased to 19% in 12M 2022 from 22% in 12M
2021;
- Net profit for the period amounted to RUB 6,787 million (US$ 99
million), a decrease of RUB 34,647 million (-84%);
- Net debt position(3) as of 31 December 2022 amounted to RUB 99,723
million (US$ 1,418 million);
- Net Debt/Adjusted EBITDA (LTM(4)) as of 31 December 2022 was 2.22.
Commenting on the results, Timur Lipatov, CEO of Rusagro, said:
"In 2022 sales of the Group improved by 8%. Revenue increased in all business
segments except Agriculture. Sales growth was supported by the launch of
operations in Primorie, start of the wheat export trading activities and
positive market dynamic on the Russian sugar and oil&fats markets. Revenue
of Agriculture segment decreased as the result of lower sales prices and
complex harvesting season caused by weather conditions. In terms of Adjusted
EBITDA the Group showed good results in Sugar and Oil and Fats segments
following the prices growth while costs of goods sold did not rise as much.
Meat and Agriculture segments showed a decrease of adjusted EBITDA mostly due
to lower exchange rates and unfavorable market conditions in Agriculture. Net
profit decreased by 84% due to the negative influence of forex losses caused
by cash blocking by European banks and revaluation of biological assets on the
back of dropping market prices and rising cost of sales."
Key consolidated financial performance indicators
in RR million Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Sales 240,230 222,932 17,298 8 58,204 65,356 (7,153) (11)
Gross profit 47,252 57,093 (9,842) (17) 7,149 11,491 (4,342) (38)
Gross margin, % 20% 26% (6) pp 12% 18% (6) pp
Adjusted EBITDA 45,015 48,060 (3,044) (6) 9,645 17,338 (7,693) (44)
Adjusted EBITDA margin, % 19% 22% (3) pp 17% 27% (10) pp
Net profit for the period (1) 6,787 41,434 (34,647) (84) 5,450 6,012 (562) (9)
Net profit margin % 3% 19% (16) pp 9% 9% 0 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.
Key financial performance indicators by segments
in RR million Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Sales, incl. 240,230 222,932 17,298 8 58,204 65,356 (7,153) (11)
Sugar 49,584 36,361 13,223 36 11,904 12,248 (344) (3)
Meat 43,705 39,628 4,077 10 11,910 11,170 740 7
Agriculture 31,993 41,881 (9,888) (24) 14,870 23,170 (8,300) (36)
Oil and Fat 133,369 125,237 8,132 6 31,003 31,278 (275) (1)
Other 1,408 719 689 96 495 180 315 174
Eliminations (19,829) (20,893) 1,064 5 (11,980) (12,691) 711 6
Gross profit, incl. 47,252 57,093 (9,842) (17) 7,149 11,491 (4,342) (38)
Sugar 19,941 9,510 10,430 110 3,800 3,686 114 3
Meat (2,539) 5,513 (8,051) - (2,519) (826) (1,693) (205)
Agriculture 7,195 25,717 (18,522) (72) (2,447) 5,615 (8,062) -
Oil and Fat 23,418 16,381 7,037 43 8,720 3,543 5,178 146
Other 447 348 99 29 250 162 87 54
Eliminations (1,211) (375) (836) (223) (655) (689) 34 5
Adjusted EBITDA, incl. 45,015 48,060 (3,044) (6) 9,645 17,338 (7,693) (44)
Sugar 15,695 8,962 6,733 75 1,640 3,134 (1,494) (48)
Meat 1,622 5,895 (4,273) (72) 612 860 (248) (29)
Agriculture 9,755 23,251 (13,496) (58) 3,010 13,780 (10,770) (78)
Oil and Fat 15,950 12,786 3,164 25 5,239 2,719 2,520 93
Other (1,331) (2,092) 761 36 (255) (337) 82 24
Eliminations 3,325 (743) 4,068 - (600) (2,817) 2,216 79
Adjusted EBITDA margin, % 19% 22% (3) pp 17% 27% (10) pp
Sugar 32% 25% 7 pp 14% 26% (12) pp
Meat 4% 15% (11) pp 5% 8% (3) pp
Agriculture 30% 56% (26) pp 20% 59% (39) pp
Oil and Fat 12% 10% 2 pp 17% 9% 8 pp
SUGAR SEGMENT
In 12M22 Sugar segment earned RUB 15,695 million of adjusted EBITDA (+75%
y-o-y) with 32% margin (+7 pp y-o-y). The financial results of the Sugar
Segment of 12M22 and 4Q22 compared to 12M21 and 4Q21 respectively are
presented in the table below:
Sugar segment 12M and 4Q 2022 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Sales 49,584 36,361 13,223 36 11,904 12,248 (344) (3)
Cost of sales (29,643) (26,850) (2,793) (10) (8,104) (8,562) 458 5
Gross profit/ (loss) 19,941 9,510 10,430 110 3,800 3,686 114 3
Gross profit margin 40% 26% 14 pp 32% 30% 2 pp
Distribution and selling expenses (4,833) (2,476) (2,356) (95) (2,151) (1,017) (1,135) (112)
General and administrative expenses (1,757) (1,482) (275) (19) (498) (353) (144) (41)
Other operating income/ (expenses), net (294) 677 (972) - 31 181 (150) (83)
incl. reimbursement of operating costs (government grants) 158 577 (419) (73) 14 150 (136) (91)
incl. other adjustments to (305) 106 (410) - 74 35 38 108
EBITDA (non-recurring items)
Operating profit 13,056 6,229 6,827 110 1,182 2,496 (1,315) (53)
Adjusted EBITDA 15,695 8,962 6,733 75 1,640 3,134 (1,494) (48)
Adjusted EBITDA margin 32% 25% 7 pp 14% 26% (12) pp
In 12M22 in comparison to 12M21 Sales of Sugar segment improved by 36% by RUB
13,223 million. The events in the 1st half of 2022 created an increased
demand, and sugar market showed positive market trend. 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 increased by 11% y-o-y to 853 thousand mainly because of the
higher sugar beet yield per hectare in the season 2021/2022.
In addition, Sugar segment Sales for 12M22 increased due to the growth in
sales of beet pulp by RUB 490 million mainly due to the extension of sugar
beet processing period to January 2022 as well as higher sugar beet harvest,
which was partially offset by the shift in sales in 4Q 2022 to 1H 2023.
Packing and sugar beet processing services offered to customers by sugar
plants decreased by RUB 433 million. Sales of molasses, betaine, buckwheat and
rice decreased by RUB 322 million.
Revenue of Sugar segment decreased in 4Q22 in comparison with 4Q21 by 3%
mainly due to transfer of sugar beet pulp sales to 1H 2023 while lengthening
of the logistics route for the sale of pulp due to sanctions restrictions and
a change in the geography of sales.
Production and sales volume of sugar in 12M and 4Q 2022
Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Sugar production volume, thousand tonnes 770 791 (20) (3) 492 583 (91) (16)
Sales volume, 853 769 84 11 217 228 (11) (5)
thousand tonnes
Cost of sales in 12M22 increased y-o-y lower than revenues because it was
mainly formed out of sugar beet purchased in the 2H21, but overall sugar beet
costs in 12M22 were higher than in 12M21.
Distribution and selling expenses increased because of the general rise in
transportation costs as well as extension of some logistics routes.
Other operating income in 12M21 changed to other operating expense in 12M22
mainly due to the absence of one-off 2021 government support and negative
dynamics in operating forex losses.
MEAT SEGMENT
In 12M22 Meat segment earned RUB 1,622 million of adjusted EBITDA (-72% y-o-y)
with 4% margin (-11 pp y-o-y). The financial results of the Meat Segment of
12M22 and 4Q22 compared to 12M21 and 4Q21 respectively are presented in the
table below.
Meat segment 12M and 4Q 2022 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Sales 43,705 39,628 4,077 10 11,910 11,170 740 7
Net gain/ (loss) on revaluation of biological assets and agricultural produce (2,094) (370) (1,724) (465) (1,764) (1,704) (60) (4)
Cost of sales (44,149) (33,745) (10,404) (31) (12,665) (10,292) (2,373) (23)
Gross profit/ (loss) (2,539) 5,513 (8,051) - (2,519) (826) (1,693) (205)
Gross profit margin -6% 14% (20) pp (21%) (7%) (14) pp
Gross profit excl. effect of biological assets revaluation (444) 5,883 (6,327) - (755) 878 (1,633) -
Adjusted gross profit margin -1% 15% (16) pp -6% 8% (14) pp
Distribution and selling expenses (1,716) (1,670) (45) (3) (442) (569) 127 22
General and administrative expenses (1,923) (4,058) 2,135 53 (220) (941) 721 77
Other operating income/ (expenses), net 1,389 1,353 35 3 693 284 409 144
incl. reimbursement of operating costs (government grants) 418 517 (99) (19) 403 58 345 599
incl. other adjustments to EBITDA (non-recurring items) 676 490 186 38 133 9 124 1,317
Operating profit (4,789) 1,137 (5,926) - (2,489) (2,052) (436) (21)
Adjusted EBITDA 1,622 5,895 (4,273) (72) 612 860 (248) (29)
Adjusted EBITDA margin 4% 15% (11) pp 5% 8% (3) pp
Sales of the Meat segment increased by 10% in 12M22 and by 7% in 4Q22 compared
to the respective periods of the prior year. Sales volumes increase was caused
mainly by outputs growth attributed to the launch of pork production in
Primorie.
Production and sales volume of pork products in 12M and 4Q 2022
Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Pigs production, 336 309 28 9 91 82 9 11
thousand tonnes in live weight
Sales volume, 281 249 32 13 77 67 10 15
thousand tonnes
Cost of sales increased by 31% in 12M22 compared to 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 12M22
resulted 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 2021.
General and administrative expenses in 12M2021 include mainly costs related to
realisation of Primorie project. In 12M22 General and administrative expenses
decreased compared to prior year period due to start of production in
Primorie.
An increase in Other operating income in 4Q22 in comparison to 4Q21 is mainly
attributed to partial reimbursement of feed purchase costs by government.
AGRICULTURAL SEGMENT
As at 31 December 2022 Rusagro's area of controlled land stands at 660
thousand hectares (31 December 2021: 688 thousand hectares). In 12M22
Agriculture segment earned RUB 9,755 million of adjusted EBITDA (-58 % y-o-y)
with 30% margin (-26 pp y-o-y). The financial results of the Agricultural
Segment of 12M22 and 4Q22 compared to 12M21 and 4Q21 respectively are
presented below.
Agriculture segment 12M and 4Q 2022 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Sales 31,993 41,881 (9,888) (24) 14,870 23,170 (8,300) (36)
Net gain/ (loss) on revaluation of biological assets and agricultural produce (4,312) 2,610 (6,922) - (5,697) (7,904) 2,207 28
Cost of sales (20,485) (18,774) (1,712) (9) (11,620) (9,651) (1,969) (20)
Gross profit/ (loss) 7,195 25,717 (18,522) (72) (2,447) 5,615 (8,062) -
Gross profit margin 22% 61% (39) pp -16% 24% (40) pp
Gross profit excl. effect of biological assets and agricultural produce 11,508 23,107 (11,599) (50) 3,250 13,519 (10,269) (76)
revaluation
Adjusted gross profit margin 36% 55% (19) pp 22% 58% (36) pp
Distribution and selling expenses (2,788) (1,935) (853) (44) (1,017) (856) (161) (19)
General and administrative expenses (1,852) (1,461) (391) (27) (693) (439) (254) (58)
Other operating income/ (expenses), net 1,246 598 648 108 647 494 153 31
incl. reimbursement of 446 546 (100) (18) 384 305 78 26
operating costs (government grants)
incl. other adjustments to EBITDA (non-recurring items) 550 (38) 588 - 219 129 90 70
Operating profit 3,801 22,919 (19,118) (83) (3,510) 4,814 (8,324) -
Adjusted EBITDA 9,755 23,251 (13,496) (58) 3,010 13,780 (10,770) (78)
Adjusted EBITDA margin 30% 56% (26) pp 20% 59% (39) pp
In 12M22 in comparison to 12M21 Sales of the Agriculture segment decreased by
24% to RUB 31,993 million. Lower volume of sugar beet, soybean, sunflower and
barley sold was partially compensated by higher sales volumes of wheat and
corn.
Higher sales volume of wheat in 12M22 compared to 12M21 was achieved thanks to
the launch of trading business.
Negative change in sugar beet sales volumes was attributable to the transfer
of sales to the beginning of 2023 as the result of adverse climate conditions,
which led to delays in harvest delivery from the fields.
Lower sales volumes of oil crops (soybean, sunflower) was also the result of
sales transfer to 2023, following prolongation of harvesting period due to
weather conditions as well as anticipation of favourable market conditions.
In 4Q22 in comparison to 4Q21 Sales of the Agriculture segment decreased by
36% to RUB 14,870 million for the same reasons as listed above for the 12M22.
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 fell down in 12M22
than in 12M21 due to the changes in fair value less point-of-sale costs at the
point of harvest for the inventories remaining unsold at the year-end.
Net loss on revaluation of biological assets and agricultural produce in 4Q22
compared to 4Q21 is lower due to realisation of gain from current year harvest
revaluation recognized in 3Q22 and 3Q21. Gain in 3Q21 was higher than in 3Q 22
which caused higher loss in 4Q21 when the sales took place.
Net gain/(loss) on revaluation of crops and its subsequent realisation do not
affect the Adjusted EBITDA figure.
Distribution and selling expenses increased despite overall sales volumes
decrease because of the customs duties for the export sales.
An increase in Other operating income in 12M22 in comparison to 12M21 is
mainly due to the changes in the one-off gain/loss from the disposal of
non-current assets.
Sales volume of crops in 12M and 4Q 2022
Thousand tonnes Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
sugar beet 3,247 3,589 (342) (10) 2,458 2,869 (411) (14)
wheat 817 768 49 6 524 184 340 184
corn 162 71 91 127 27 14 13 100
soybean 148 330 (182) (55) 4 169 (165) (98)
sunflower seeds 23 59 (37) (62) 1 51 (50) (97)
barley 5 10 (6) (53) 5 4 1 22
OIL AND FAT SEGMENT
In 12M22 Oil and Fat segment earned RUB 15,950 million of adjusted EBITDA (+25
% y-o-y) with 12% margin (+2 pp y-o-y). The financial results of the Oil and
Fat Segment for 12M22 and 4Q22 compared to 12M21 and 4Q21 respectively are
presented below.
Oil and Fat segment 12M and 4Q 2022 Financial Results
in RR million Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Sales 133,369 125,237 8,132 6 31,003 31,278 (275) (1)
Cost of sales (109,951) (108,856) (1,095) (1) (22,283) (27,735) 5,452 20
Gross profit/ (loss) 23,418 16,381 7,037 43 8,720 3,543 5,178 146
Gross profit margin 18% 13% 5 pp 28% 11% 17 pp
Distribution and selling expenses (9,038) (5,488) (3,550) (65) (3,033) (2,097) (936) (45)
General and administrative expenses (3,080) (1,975) (1,105) (56) (885) (553) (332) (60)
Other operating income/ (expenses), net (2,158) (726) (1,432) (197) 325 (349) 674 -
incl. reimbursement of 322 496 (174) (35) 78 190 (113) (59)
operating costs (government grants)
incl. Other adjustments to EBITDA (non-recurring items) (2,266) (1,368) (898) (66) 147 (756) 903 -
Operating profit/ (loss) 9,141 8,192 949 12 5,127 544 4,583 843
Adjusted EBITDA 15,950 12,786 3,164 25 5,239 2,719 2,520 93
Adjusted EBITDA margin 12% 10% 2 pp 17% 9% 8 pp
In 12M22 in comparison to 12M21 Sales of the Oil and Fat segment increased by
6% to RUB 133,369 million mainly due to the positive dynamics of the oil and
fats market. Lower sales volumes of crude oil are mainly attributed to the
lower crude oil production output in 2022. Sales volumes of consumer products
dropped because Rusagro reduced its sales of bottled oil focusing on more
profitable products.
Cost of sales in 12M22 in comparison to 12M21 increased due to higher costs of
raw materials, including sunflower seeds, sunflower and tropical oil. The
growth rate of cost is lower than the growth rate of revenue due to part of
volume of products sold during 2022 was made out of cheap previous season's
raw materials and costs of palm oil purchased during 1H 2022 were fixed.
Distribution and selling expenses increased as the result of export duties on
sunflower oil imposed by Russian Government from September 2021 to October
2022 and an increase of prices for transportation and storage services.
An increase in General and administrative expenses in 12M22 in comparison to
12M21 is mainly due to higher costs of information and consulting, as well as
banking services.
Other operating expenses in 12M22 changed mainly due to negative dynamics in
forex losses.
Sales volumes to third parties in 12M and 4Q 2022
Thousand tonnes Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Meal 601 582 19 3 131 139 (8) (6)
crude oil 369 391 (22) (6) 84 71 13 19
industrial fats 298 337 (39) (12) 84 96 (12) (13)
dry whey mixes 16 15 1 6 4 4 (1) (13)
consumer oil&fat products 301 325 (24) (7) 94 91 3 3
consumer dairy products 15 15 - - 4 4 (0) (7)
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 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Net cash from operating activities, incl. 4,423 30,874 (26,451) (86) (3,495) (1,381) (2,114) (153)
Operating cash flow before working capital changes 41,074 46,821 (5,747) (12) 8,647 16,509 (7,862) (48)
Working capital changes (34,205) (12,268) (21,937) (179) (11,209) (15,735) 4,526 29
Net cash from investing activities, incl. (11,967) (41,417) 29,450 71 (5,214) (4,339) (876) (20)
Purchases of property plant and equipment and inventories intended for (11,973) (13,770) 1,797 13 (4,331) (4,955) 623 13
construction
Acquisition of SolPro assets - (28,735) 28,735 - - - - -
Net cash from financing activities (6,572) 45,387 (51,959) - (35,320) (4,721) (30,600) (648)
Net effect of exchange rate changes on cash and cash equivalents (10,873) (248) (10,625) (4,276) 6,303 (62) 6,365 -
Net increase / (decrease) in cash and cash equivalents (24,989) 34,595 (59,585) - (37,727) (10,502) (27,224) (259)
(*) See Appendix 4
The key investments in property, plant and equipment and inventories intended
for construction during 12M 2022 were made in the Meat segment in the amount
of RUB 4,097 million (12M 2021: RUB 8,052 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 3,448 million (12M 2021 : RUB
2,660 million), Oil and Fat segment in the amount of RUB 3,216 million (12M
2021 : RUB 2,058 million excluding acquisition of SolPro assets), and Sugar
segment in the amount of RUB 1,212 million (12M 2021 : RUB 1,000 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 2022 31 December 2021 Variance
Units %
Gross debt 233,390 172,724 60,666 35
Short-term borrowings 172,352 108,749 63,603 58
Long-term borrowings 61,038 63,975 (2,937) (5)
Cash and cash equivalents, bank deposits and bonds (133,668) (99,315) (34,353) (35)
Short-term cash, deposits and bonds (99,697) (65,344) (34,353) (53)
Long-term cash, deposits and bonds (33,971) (33,971) - -
Net debt 99,723 73,409 26,314 36
Short-term borrowings, net 72,655 43,405 29,250 67
Long-term borrowings, net 27,067 30,004 (2,937) (10)
Adjusted EBITDA (LTM(4)) 45,015 48,060 (3,045) (6)
Net debt/ Adjusted EBITDA (LTM) 2.22 1.53 0.7 pp
Net finance income/ (expense)
in RR million Year ended Variance Three months ended Variance
31 December 2022 31 December 2021 Units % 31 December 2022 31 December 2021 Units %
Net interest expense (7,865) (5,499) (2,366) (43) (2,090) (1,496) (593) (40)
Gross interest expense (20,784) (10,567) (10,217) (97) (5,851) (3,242) (2,609) (80)
Reimbursement of interest expense 12,919 5,068 7,851 155 3,762 1,746 2,016 115
Interest income 9,398 8,611 787 9 2,848 2,303 545 24
Net gain/ (loss) from bonds held for trading 1 (2) 3 - 1 1 0 39
Other financial income, net (12,188) (705) (11,483) (1,628) 5,964 (216) 6,180 -
Net foreign exchange gain/ (loss) (11,510) (111) (11,399) (10,269) 6,213 (61) 6,274 -
Other financial income / (expenses), net (678) (594) (84) (14) (249) (155) (94) (61)
Total net finance income/ (expenses) (10,654) 2,405 (13,059) - 6,724 592 6,132 1,035
Net debt increased at 31 December 2022 compared at 31 December 2021 as a
result of an increase in short-term borrowings.
In 12M 2022 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 12M 2022 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 12M 2021 in the sum of RUB 2,405 million changed to net
finance expense in the amount of RUB 10,654 million in 12M 2022 mainly as the
result of negative dynamics in forex losses in 12M 2022.
________________________________
(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".
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 660 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 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
2022 financial results for investors and analysts.
Details of the call:
Date: 6 March 2023
Time: 4:00 PM (Moscow) / 1:00 PM (London)
Subject: ROS AGRO PLC 12M and 4Q 2022 Financial results
Registration: (available up to 3:00 PM Moscow time / 12:00 AM London time on 6
March)
https://us06web.zoom.us/webinar/register/WN_E1--ZisNRTu_j5p8_2APFw
(https://us06web.zoom.us/webinar/register/WN_E1--ZisNRTu_j5p8_2APFw)
(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 Shakaryan (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 2022 (in RUB thousand)
Year ended Three months ended
31 December 31 December
2022 2021 2022 2021
Sales 240,230,251 222,932,439 58,203,644 65,356,350
Net gain/(loss) on revaluation of biological assets and agricultural produce (8,542,435) 3,409,309 (6,455,205) (7,160,698)
Cost of sales (184,436,046) (169,248,281) (44,599,720) (46,704,627)
Net gain/(loss) from trading derivatives - (5) - -
Gross profit 47,251,770 57,093,462 7,148,719 11,491,025
Distribution and selling expenses (16,851,961) (10,475,137) (5,883,086) (4,053,794)
General and administrative expenses (9,071,112) (10,975,898) (2,335,716) (2,653,301)
Other operating income/(expenses), net (2,194,559) 2,334,177 1,903,742 1,132,615
Reversal of provision/(provision) for impairment of loans issued (74,356) 4,574,481 (74,356) 924,914
Operating profit / (loss) 19,059,782 42,551,085 759,303 6,841,459
Interest expense (7,865,190) (5,498,991) (2,089,513) (1,496,062)
Interest income 9,397,651 8,610,888 2,848,254 2,303,114
Net gain/(loss) from bonds 1,063 (1,630) 1,021 732
Other financial income/ (expenses), net (12,187,973) (705,356) 5,963,935 (215,617)
Profit before income tax 8,405,333 44,955,996 7,483,000 7,433,626
Income tax expense (1,618,793) (3,522,144) (2,033,181) (1,421,872)
Profit for the period 6,786,540 41,433,852 5,449,819 6,011,754
Other comprehensive income - - - -
Total comprehensive income for the period 6,786,540 41,433,852 5,449,819 6,011,754
Profit is attributable to:
Owners of ROS AGRO PLC 6,763,338 41,477,865 5,466,818 6,036,405
Non-controlling interest 23,202 (44,013) (16,999) (24,651)
Profit for the period 6,786,540 41,433,852 5,449,819 6,011,754
Total comprehensive income is attributable to:
Owners of ROS AGRO PLC 6,763,338 41,477,865 5,466,818 6,036,405
Non-controlling interest 23,202 (44,013) (16,999) (24,651)
Total comprehensive income for the period 6,786,540 41,433,852 5,449,819 6,011,754
Earnings per ordinary share for profit attributable to the owners of ROS AGRO 251.37 1,541.57 203.18 224.35
PLC, basic and diluted
(in RR per share)
Appendix 2. Segment information for the Year ended 31 December 2022 (in RUB
thousand)
12M 2022 Sugar Meat Agriculture Oil and Fat Other Eliminations Total
Sales 49,583,897 43,705,021 31,993,259 133,369,020 1,408,265 (19,829,211) 240,230,251
Net gain/ (loss) on revaluation of biological assets and agricultural produce - (2,094,398) (4,312,350) - - (2,135,687) (8,542,435)
Cost of sales (29,643,242) (44,149,262) (20,485,426) (109,950,614) (961,422) 20,753,920 (184,436,046)
incl. Depreciation (2,271,228) (4,951,716) (1,695,446) (3,761,053) (18,175) (175,609) (12,873,227)
Gross profit 19,940,655 (2,538,639) 7,195,483 23,418,406 446,843 (1,210,978) 47,251,770
Distribution and Selling, General and administrative expenses (6,590,185) (3,638,654) (4,640,663) (12,118,669) (2,001,255) 3,066,353 (25,923,073)
incl. Depreciation (62,973) (39,905) (496,419) (781,207) (83,424) 175,609 (1,288,319)
Other operating income/(expenses), net (294,339) 1,388,504 1,246,170 (2,158,484) 15,093,839 (17,470,249) (2,194,559)
incl. Reimbursement of operating costs (government grants) 157,532 417,824 445,978 322,154 - - 1,343,488
incl. Other adjustments to EBITDA (non-recurring items) (304,560) 675,718 549,976 (2,266,102) 14,972,443 (16,804,668) (3,177,193)
Reversal of provision/(provision) for impairment of loans issued - - - - (74,356) - (74,356)
Operating profit / (loss) 13,056,131 (4,788,789) 3,800,990 9,141,253 13,465,071 (15,614,874) 19,059,782
Adjustments:
Depreciation included in Operating Profit 2,334,201 4,991,621 2,191,865 4,542,260 101,599 - 14,161,546
Other adjustments to EBITDA (non-recurring items) 304,560 (675,718) (549,976) 2,266,102 (14,972,443) 16,804,668 3,177,193
Net gain/ (loss) on revaluation of biological assets and agricultural produce - 2,094,398 4,312,350 - - 2,135,687 8,542,435
Reversal of provision/(provision) for impairment of loans issued - - - - 74,356 - 74,356
Adjusted EBITDA* 15,694,892 1,621,512 9,755,229 15,949,615 (1,331,417) 3,325,481 45,015,312
* Non-IFRS measure
Appendix 2 (continued). 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
Appendix 3. Consolidated statement of financial position as at 31 December
2022
(in RUB thousand)
31 December 2022 31 December 2021
ASSETS
Current assets
Cash and cash equivalents 21,473,030 46,462,179
Short-term investments 91,382,536 21,001,760
Trade and other receivables 24,176,680 12,558,401
Prepayments 13,435,149 5,414,032
Current income tax receivable 832,423 1,532,726
Other taxes receivable 8,360,935 8,321,193
Inventories and short-term biological assets 78,580,317 77,509,033
Other current assets 4,126,715 47
Total current assets 242,367,785 172,799,371
Non-current assets
Property, plant and equipment 121,165,803 119,159,412
Inventories intended for construction 864,550 1,604,570
Right-of-use assets 6,916,539 7,346,538
Goodwill 2,364,942 2,364,942
Advances paid for non-current assets 5,482,770 7,355,467
Long-term biological assets 3,240,959 2,744,863
Long-term investments and receivables 42,527,657 42,527,657
Investments in associates 455,916 359,782
Deferred income tax assets 5,964,527 4,835,268
Other intangible assets 1,284,263 1,144,057
Other non-current assets 190,978 79,125
Total non-current assets 190,458,904 189,521,681
Total assets 432,826,689 362,321,052
LIABILITIES and EQUITY
Current liabilities
Short-term borrowings 172,351,514 108,748,840
Lease liabilities 863,452 1,130,831
Trade and other payables 17,024,472 15,440,635
Provisions 137,542 494,709
Current income tax payable 76,061 464,471
Other taxes payable 8,149,780 7,454,558
Total current liabilities 198,602,821 133,734,044
Non-current liabilities
Long-term borrowings 61,038,393 63,975,025
Government grants 11,153,211 9,325,530
Lease liabilities 5,086,897 5,535,014
Deferred income tax liability 2,283,752 1,876,244
Total non-current liabilities 79,562,253 80,711,813
Total liabilities 278,165,074 214,445,857
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 126,843,525 120,080,307
Equity attributable to owners of ROS AGRO PLC 154,692,843 147,929,625
Non-controlling interest (31,228) (54,430)
Total equity 154,661,615 147,875,195
Total liabilities and equity 432,826,689 362,321,052
Appendix 4. Consolidated statement of cash flows for the Year ended 31
December 2022 (in RUB thousand) - NOT IFRS PRESENTATION (*)
Year ended
31 December 2022 31 December 2021
Cash flows from operating activities
Profit before income tax 8,405,333 44,955,996
Adjustments for:
Depreciation and amortization 14,161,546 13,945,546
Interest expense 20,783,744 10,566,994
Government grants (14,935,568) (7,846,960)
Interest income (9,397,651) (8,610,888)
Loss/ (gain) on disposal of property, plant and equipment (340,308) 4,424
Net (gain) / loss on revaluation of biological assets and agricultural produce 8,542,435 (3,409,309)
Change in provision for impairment of loans issued 74,356 (4,574,481)
Interest expense on leases 690,914 591,558
Realised deferred day-one gain - (552,748)
Change in provision for net realisable value of inventory 657,857 1,240,531
Change in provision for impairment of receivables and prepayments 23,385 824,151
Foreign exchange (gain) / loss, net 13,066,836 (59,354)
Lost / (reversal of) harvest write-off 598,041 272,407
Net (gain) / loss from bonds held for trading (1,063) 1,630
Settlement of loans and accounts receivable previously written-off - (1)
Change in provision for impairment of advances paid for property, plant and 32,076 26,084
equipment
Change in other provisions (357,167) 314,918
Dividend income (397,362) (754,538)
(Gain)/loss on disposal of other assets (21,698) 256,144
Gain on SolPro loans redemption (563,487) (515,233)
Other non-cash and non-operating expenses, net 51,701 144,326
Operating cash flow before working capital changes 41,073,920 46,821,197
Change in trade and other receivables and prepayments (21,003,370) (6,377,712)
Change in other taxes receivable (39,742) (2,814,518)
Change in inventories and biological assets (9,841,732) (6,577,388)
Change in trade and other payables 1,414,887 82,068
Change in other taxes payable 993,307 3,278,845
Change in other current assets (5,727,866) 140,894
Cash generated from operations 6,869,404 34,553,386
Income tax paid (2,446,340) (3,679,541)
Net cash from operating activities 4,423,064 30,873,845
Appendix 4 (continued). Consolidated statement of cash flows the Year ended 31
December 2022 (in RUB thousand) - NOT IFRS PRESENTATION (*)
Year ended
31 December 2022 31 December 2021
Cash flows from investing activities
Purchases of property, plant and equipment including SolPro assets acquisition (11,718,704) (42,029,048)
Purchases of other intangible assets (925,855) (1,042,618)
Purchases of land lease rights (358,879) (68,772)
Proceeds from sales of property, plant and equipment 486,542 896,286
Purchases of inventories intended for construction (254,665) (476,322)
Purchases of associates (96,134) (102,000)
Purchases of other investments - (19,083)
Dividends received 722,768 377,331
Proceeds from sales of other assets - 217,591
Proceeds from sales of other investments - 18,000
Other investing activities 178,281 811,901
Net cash from investing activities (11,966,646) (41,416,734)
Cash flows from financing activities
Proceeds from borrowings 151,465,684 107,856,022
Repayment of borrowings (93,010,994) (52,668,951)
Interest paid (7,028,058) (4,591,935)
Change in cash on bank deposits (58,841,928) (18,000,000)
Proceeds from sales of bonds with maturity over three months* 141,804 220,282
Loans given* (24,866,023) (2,256,313)
Loans repaid* 15,504,119 22,959,494
Interest received* 8,692,280 8,786,038
Proceeds from government grants 1,837,714 2,879,218
Purchases of non-controlling interest - (66,000)
Dividends paid to owners Ros Agro PLC - (19,417,565)
Repayment of lease liabilities (466,795) (335,167)
Other financial activities (119) 21,631
Net cash from financing activities (6,572,316) 45,386,754
Net effect of exchange rate changes on cash and cash equivalents (10,873,251) (248,484)
Net increase/ (decrease) in cash and cash equivalents (24,989,149) 34,595,381
Cash and cash equivalents at the beginning of the period 46,462,179 11,866,798
Cash and cash equivalents at the end of the period 21,473,030 46,462,179
(*) 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 UNABROBUORRRRecent 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