1st Quarter Financial Results

Ros Agro PLC
13 May 2024
 

 

 

13 May 2024

 

ROS AGRO PLC financial results for 1Q 2024

 

13 May 2024 - Today ROS AGRO PLC (the "Company"), the holding company of Rusagro Group (the "Rusagro"), a leading Russian diversified food producer with vertically integrated operations, has announced the financial results for the three months ended 31 March 2024.

 

 

1Q 2024 HIGHLIGHTS:

 

-     Sales amounted to RUB 68,309 million (US$ 753 million1), an increase of RUB 20,913 million (+44%) compared to 1Q 2023;

-     Adjusted EBITDA2 amounted to RUB 7,303 million (US$ 80 million), an increase of RUB 163 million (+2%) compared to 1Q 2023;

-     Adjusted EBITDA margin decreased to 11% in 1Q 2024 from 15% in 1Q 2023;

-     Net profit for the period amounted to RUB 1,740 million (US$ 19 million), a decrease of RUB 3,677 million (-68%);

-     Net debt position3 as of 31 March 2024 amounted to RUB 62,765 million (US$ 680 million);

-     Net Debt/Adjusted EBITDA (LTM4) as of 31 March 2024 was 1.11x.

 

Commenting on the results, Timur Lipatov, CEO of Rusagro, said:

 

"In 1Q 2024 Rusagro's revenue significantly increased mainly following the growth in production of crude oil and meal in Oil and Fat business and due to consolidation of NMGK Group results starting from the second half of 2023. Additionally, the dynamics of pork market prices and the growth of sugar sales volumes following the growth of processed volumes of sugar beet positively impacted the revenue. Decrease in revenue of Agricultural segment is attributable to the difference in carryover stocks because of prolonged harvesting in 2022 due to adverse weather conditions.

Group's adjusted EBITDA demonstrated the increase of 2%. The growth of adjusted EBITDA in Meat business following positive market conditions and the consolidation of NMGK completely compensated the decrease in other segments under the pressure of increased costs.

Net debt decreased by 6% and the ratio of net debt to adjusted EBITDA has also improved.
Net profit decrease is mainly due to the dynamics of exchange differences
."

 


 

 

Key consolidated financial performance indicators

in RUB million

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

Sales

 68,309

 47,395

 20,913

 44

Gross profit

 13,823

 8,630

 5,193

 60

Gross margin, %

20%

18%

2 pp

 

Adjusted EBITDA

 7,303

 7,139

 163

 2

Adjusted EBITDA margin, %

11%

15%

(4) pp

 

Net profit for the
period 1

 1,740

 5,417

(3,677)

(68)

Net profit margin %

3%

11%

(8) pp

 

 

 

1 Net profit for the period is affected by non-cash income/(loss) on revaluation of biological assets and agricultural produce. See details in business sections below.


 

Note: since some indicators and percentages in the press release were rounded to the nearest whole number, the sum of the rounded values may not fully match the totals.

 

 

Key financial performance indicators by segments

in RUB million

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

 





Sales, incl.

68,309

47,395

20,913

44

Sugar

12,429

9,411

3,018

32

Meat

10,607

10,725

(119)

(1)

Agriculture

4,306

5,896

(1,590)

(27)

Oil and Fat

29,856

23,357

6,499

28

NMGK

14,520

-

14,520

-

Other

505

464

41

9

Eliminations

(3,913)

(2,457)

(1,455)

(59)






Gross profit, incl.

13,823

8,630

5,193

60

Sugar

1,590

2,815

(1,225)

(44)

Meat

2,012

1,143

869

76

Agriculture

(82)

(774)

691

89

Oil and Fat

4,567

5,641

(1,074)

(19)

NMGK

4,884

-

4,884

-

Other

60

167

(107)

(64)

Eliminations

792

(362)

1,154

-






Adjusted EBITDA, incl.

7,303

7,139

163

2

Sugar

784

2,010

(1,226)

(61)

Meat

1,153

447

706

158

Agriculture

(1,792)

(116)

(1,675)

(1,441)

Oil and Fat

2,209

4,161

(1,952)

(47)

NMGK

2,694

-

2,694

-

Other

(600)

(297)

(303)

(102)

Eliminations

2,854

934

1,920

206






Adjusted EBITDA margin, %

11%

15%

(4) pp

 

Sugar

6%

21%

(15) pp

 

Meat

11%

4%

7 pp

 

Agriculture

(42%)

(2%)

(40) pp

 

Oil and Fat

7%

18%

(10) pp

 

NMGK

19%

 

 

 

 

SUGAR SEGMENT

In 1Q 2024 Sugar segment adjusted EBITDA comprised RUB 784 million (-61% y-o-y) with 6% margin (-15 pp y-o-y).

The financial results of the Sugar segment of 1Q 2024 compared to 1Q 2023 are presented in the table below:

Sugar segment 1Q 2024 Financial Results

in RUB million

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

Sales

12,429

9,411

3,018

32

Cost of sales

(10,838)

(6,595)

(4,243)

(64)

Gross profit

1,590

2,815

(1,225)

(44)

Gross profit margin

13%

30%

(17) pp

 

Distribution and selling expenses

(961)

(945)

(17)

(2)

General and administrative expenses

(505)

(394)

(111)

(28)

Other operating income/ (expenses), net

(47)

(3)

(44)

(1,587)

incl. other adjustments to EBITDA (non-recurring items)

21

22

(1)

(4)

Operating profit

77

1,473

(1,396)

(95)

 





Adjusted EBITDA

784

2,010

(1,226)

(61)

Adjusted EBITDA margin

6%

21%

(15) pp

 

In 1Q 2024 compared to the respective period of 2023 Sales of Sugar segment increased by 32% mainly due to the growth of sugar sales volumes supported by the growth of market prices. The dynamics of sales volume is due to the increase in the volume of sugar beet processing in the 2023/2024 season, which affected the amount of sugar produced.

The Сost of sales for 1Q 2024 increased following an increase in production volumes and prices for sugar beet in the 2023/2024 season.

Production and sales volume of sugar in 1Q 2024

 

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

Sugar production volume,
thousand tonnes

60

88

Sales volume, thousand tonnes

187

148

39

26



 

MEAT SEGMENT

In 1Q 2024 Meat segment earned RUB 1,153 million of adjusted EBITDA (+158% y-o-y) with 11% margin (+7 pp y-o-y).

The financial results of the Meat segment of 1Q 2024 compared to 1Q 2023 respectively are presented in the table below.

 

Meat segment 1Q 2024 Financial Results

in RUB million

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

Sales

10,607

10,725

(119)

(1)

Net gain/ (loss) on revaluation of biological assets and agricultural produce

956

1,327

(371)

(28)

Cost of sales

(9,551)

(10,909)

1,359

12

Gross profit

2,012

1,143

869

76

Gross profit margin

19%

11%

8 pp

 

Gross profit excl. effect of biological assets and agricultural produce revaluation

1,056

(184)

1,240

-

Adjusted gross profit margin

10%

(2%)

12 pp

 

Distribution and selling expenses

(432)

(315)

(117)

(37)

General and administrative expenses

(570)

(601)

31

5

Other operating income/ (expenses), net

118

314

(196)

(62)

incl. Reimbursement of operating costs (government grants)

-

19

(19)

-

incl. Other adjustments to EBITDA (non-recurring items)

(6)

98

(104)

-

Operating profit

1,128

541

587

108

 





Adjusted EBITDA

1,153

447

706

158

Adjusted EBITDA margin

11%

4%

7 pp

 

 

Sales of the Meat segment decreased by 1% in 1Q 2024 compared to the respective period of 2023. Decrease of sales volumes is partially compensated by the increase in sales prices for both meat products and livestock.


 

 

Production and sales volume of pork products in 1Q 2024


Three months ended

Variance


31 March 2024

31 March 2023

Units

%

Pigs production,
thousand tonnes in live weight

73

89

(15)

(17)

Sales volume, thousand tonnes

58

72

(14)

(19)

 

Cost of sales decreased by 12% in 1Q 2023 compared to the respective period of 2023 due to lower sales volumes.

Net gain on revaluation of biological assets and agricultural produce in 1Q 2024 resulted from the increase in fair value of consumable livestock pigs while costs for consumable livestock pigs decreased by the reporting date compared to the respective figures at the beginning of 2024.

 



 

AGRICULTURAL SEGMENT

As at 31 March 2024 Rusagro's area of controlled land stands at 689 thousand hectares
(31 December 2023: 685 thousand hectares).

In 1Q 2024 Agriculture segment amounted to RUB -1,792 million of adjusted EBITDA     (in comparison with RUB -116 million in 1Q 2023) with -42% margin (in comparison with -2% in 1Q 2023).

The financial results of the Agricultural segment of 1Q 2024 compared to 1Q 2023 respectively are presented below.

Agriculture segment 1Q 2024 Financial Results

in RUB million

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

Sales

4,306

5,896

(1,590)

(27)

Net gain/ (loss) on revaluation of biological assets and agricultural produce

(679)

(1,415)

736

52

Cost of sales

(3,709)

(5,254)

1,546

29

Gross profit

(82)

(774)

691

89

Gross profit margin

(2%)

(13%)

11 pp

 

Gross profit excl. effect of biological assets and agricultural produce revaluation

597

641

(44)

(7)

Adjusted gross profit margin

14%

11%

3 pp

 

Distribution and selling expenses

(1,484)

(1,049)

(435)

(41)

General and administrative expenses

(480)

(352)

(128)

(36)

Other operating income/ (expenses), net

(471)

96

(567)

-

incl. Reimbursement of operating costs (government grants)

224

31

193

616

incl. Other adjustments to EBITDA (non-recurring items)

53

19

33

171

Operating profit

(2,517)

(2,079)

(438)

(21)

 





Adjusted EBITDA

(1,792)

(116)

(1,675)

(1,441)

Adjusted EBITDA margin

(42%)

(2%)

(40) pp

 

 

In 1Q 2024 in comparison to 1Q 2023 Sales of the Agriculture segment decreased by 27% to RUB 4,306 million mainly due to a decrease in sales volumes for all crops except wheat caused by the difference in stocks at the beginning of the reporting periods.

The decrease in sales of soybean and sunflower in 1Q 2024 compared to 1Q 2023 is due to the difference in stocks at the beginning of the reporting periods caused by adverse weather conditions in 4Q 2022 and prolonged harvesting in 1Q 2023.

There were no sales of sugar beet during 1Q 2024. Sugar beet sales in 1Q 2023 were the result of the shift of harvesting to January-February 2023 due to adverse weather conditions in 4Q 2022.

The dynamics of wheat sales in 1Q 2024 compared to the same period in 2023 is due to higher sales during the period of price reduction and in order to release the storage for the new year's harvest.

Sales volumes of crops in 1Q 2024

Thousand tonnes

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

sugar beet

-

494

(494)

(100)

wheat

155

59

96

163

soybean

46

86

(40)

(47)

corn

19

29

(10)

(34)

sunflower seeds

5

40

(35)

(87)

 

The main reason for the decrease in Cost of sales is the decrease in sales volumes.

Net gain/(loss) on revaluation of biological assets and agricultural produce depends on revaluation amounts in opening and closing inventory balances. As agricultural produce matures and at the point of harvest, a gain on revaluation of agricultural produce to fair value less costs to sell is recognized. During subsequent sale, a loss from the revaluation of agricultural products sold in the reporting period is recognized in the amount of the previously recognized gain.

Net loss in 1Q 2024 and 1Q 2023 resulted from the realization of gain on revaluation of agricultural produce to fair value less costs to sell recognized in 2023 and 2022 correspondingly. In 1Q 2024 the loss from gain realization is lower compared to 1Q 2023 following the decrease in sales volumes.

Net gain/ (loss) on revaluation of biological assets and agricultural produce and its subsequent realisation do not affect the Adjusted EBITDA figure.

OIL AND FAT SEGMENT

In 1Q 2024 Oil and Fat segment earned RUB 2,209 million of adjusted EBITDA (-47 %
y-o-y) with 7% margin (-10% y-o-y).

The financial results of the Oil and Fat segment for 1Q 2024 compared to 1Q 2023 are presented below.

Oil and Fat segment 1Q 2024 Financial Results

in RUB million

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

Sales

29,856

23,357

6,499

28

Cost of sales

(25,289)

(17,716)

(7,573)

(43)

Gross profit

4,567

5,641

(1,074)

(19)

Gross profit margin

15%

24%

(9) pp

 

Distribution and selling expenses

(2,548)

(1.907)

(641)

(34)

General and administrative expenses

(720)

(820)

101

12

Other operating income/ (expenses), net

120

(578)

698

-

incl. Other adjustments to EBITDA (non-recurring items)

241

(702)

944

-

Operating profit

1,419

2,336

(916)

(39)

 





Adjusted EBITDA

2,209

4,161

(1,952)

(47)

Adjusted EBITDA margin

7%

18%

(10) pp

 

 

In 1Q 2024 Sales of Oil and Fat segment increased in comparison to 1Q 2023 mainly because of the increase in sales volumes of bulk oil and meal after the completion of modernization of oil extraction plant in Balakovo, which led to growth in production capacity and production volumes. Also Sales increased due to the higher volumes and prices of industrial fats and mayonnaise. The growth was partially compensated by the decrease in sales prices of bulk oil.


Sales volumes of oil and fat and dairy products in 1Q 2024

Thousand tonnes

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

meal

190

133

56

42

crude oil

111

54

57

106

industrial fats

78

76

2

3

dry whey mixes

4

3

1

30

consumer oil&fat products

72

65

7

11

consumer dairy products

4

3

1

34

 

The growth of Cost of sales in 1Q 2024 compared to the same period of the previous year is mainly due to the increase in sales volumes as well as the growth of palm oil prices.

The growth of Distribution and selling expenses in 1Q 2024 compared to the same period of the previous year is mainly attributable to higher transportation costs.



 

NMGK

At the end of 2Q 2023 the Company acquired 50% of the shares and control over the NMGK group of companies. The Company's financial results include the financial results of the NMGK Group starting from the acquisition date.

For 1Q 2024 the revenue of the NMGK Group of companies amounted to RUB 14,520 million, adjusted EBITDA amounted to RUB 2,694 million with a margin of 19%.

The financial results of NMGK as a part of Rusagro for 1Q 2024 are presented in the table below.

NMGK 1Q 2024 Financial Results



in RUB million

Three months ended

31 March 2024

31 March 2023

Sales

14,520

-

Cost of sales

(9,635)

-

Gross profit

4,884

-

Gross profit margin

34%

-

Distribution and selling expenses

(2,189)

-

General and administrative expenses

(535)

-

Other operating income/ (expenses), net

(24)

-

incl. Other adjustments to EBITDA (non-recurring items)

(26)

-

Operating profit

2,136

-

 



Adjusted EBITDA

2,694

-

Adjusted EBITDA margin

19%

-

 

Sales volumes of NMGK oil and fat products in 1Q 2024

Thousand tonnes

Three months ended

31 March 2024

31 March 2023

Meal

80

-

Crude oil

60

-

Industrial fats

16

-

Oil & fat products

49

-

 


 

KEY CONSOLIDATED CASH FLOW INDICATORS (NOT IFRS PRESENTATION*)

The key consolidated cash flow indicators presented according to management accounts methodology

 

in RUB million

Three months ended

Variance

 31 March 2024

 31 March 2023

Units

%

Net cash from operating activities, incl.

 10,248

 16,004

(5,756)

(36)

Operating cash flow before working capital changes

 8,405

 6,992

 1,414

 20

Working capital changes

 3,423

 9,304

(5,881)

(63)

Net cash from investing activities, incl.

(6,321)

(2,289)

(4,032)

(176)

Purchases of property, plant and equipment and inventories intended for construction

(6,271)

(2,089)

(4,181)

(200)

Net cash from financing activities

(13,619)

(6,729)

(6,891)

(102)

Net effect of exchange rate changes on cash and cash equivalents

(100)

 1,933

(2,033)

 -

Net (decrease) / increase in cash and cash equivalents

(9,792)

 8,919

(18,711)

 -

 

 

(*) See Appendix 4

 

 

Debt position and liquidity management





in RUB million

31 March 2024

31 December 2023

Variance

Units

%

Gross debt

128,433

127,533

900

1

Short-term borrowings

66,769

68,035

(1,266)

(2)

Long-term borrowings

61,664

59,498

2,166

4

Cash and cash equivalents, bank deposits and bonds

(65,668)

(61,057)

(4,611)

(8)

Short-term cash, deposits and bonds

(31,253)

(27,086)

(4,167)

(15)

Long-term cash, deposits and bonds

(34,415)

(33,971)

(444)

(1)

Net debt

62,765

66,477

(3,712)

(6)

Short-term borrowings, net

35,516

40,949

(5,433)

(13)

Long-term borrowings, net

27,249

25,527

1,722

7

Adjusted EBITDA (LTM4)

56,723

56,560

163

0

Net debt/ Adjusted EBITDA (LTM)

1.11

1.18

(0.1)

 

 

Net finance income / (expense):

 




in RUB million

Three months ended

Variance

31 March 2024

31 March 2023

Units

%

Net interest expense

(1,420)

(1,925)

 505

 26

Gross interest expense

(3,396)

(4,643)

 1,247

 27

Reimbursement of interest expense

 1,975

 2,718

(742)

(27)

Interest income

 2,270

 2,441

(171)

(7)

Net gains / (losses) from bonds held for trading

 -

 -

 -

 -

Other financial expenses, net

(33)

 2,982

(3,015)

 -

Net foreign exchange gains / (losses)

(13)

 3,098

(3,112)

 -

Other financial income/ (expenses), net

(20)

(117)

 97

 83

Total net finance income / (expense)

 816

 3,498

(2,682)

(77)

 

Net debt decreased at 31 March 2024 compared at 31 December 2023 by 6%.

In 1Q 2024 Rusagro continued to enjoy benefits from the state agriculture subsidies programme. Rusagro continued to receive bank loans with decreased preferential interest rates under the programme of government support. Under this programme, the government provides subsidies to the banks to compensate the loss of income on borrowings with decreased interest rates, given by the banks to agricultural producers. In 1Q 2024 IFRS accounts these borrowings are accounted according to its face value with no adjustments to prevailing market rates. The differences between nominal and market interest rate is recognized as either government grants in a statement of financial position for borrowings received with the purpose to finance investment projects or interest expenses in a statement of comprehensive income for general purpose borrowings.

 

 

 

 

 

Net finance income of 1Q 2024 in the sum of RUB 816 million decreased in the amount of RUB 2,682 million compared to 1Q 2023 mainly as the result of decrease in forex differences income.

________________________________

(1) The exchange rates used for translation of RUB amounts into USD represent average Central Bank official exchange rate for the respective reporting period for income, expenses and profits and the Central Bank official exchange rate as at the reporting date for balance figures.

(2) Adjusted EBITDA is defined as operating profit before taking into account (i) depreciation included in operating profit, (ii) net gain/ (loss) on revaluation of biological assets and agricultural produce, (iii) non-recurring components of other operating income/ (expenses), net, (iv) share-based remuneration, (v) provision for impairment of loans issued (see Appendix 2 for the detailed calculation of Adjusted EBITDA). Adjusted EBITDA is not a measure of financial performance under IFRS. It should not be considered as an alternative to profit for the period as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and therefore comparability may be limited. We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of subsidiaries and other investments and our ability to incur and service debt.

(3) Rusagro determines the net debt as short-term borrowings and long-term borrowings less cash and cash equivalents, bank deposits, bank promissory notes and bonds held for trading.

(4) LTM - The abbreviation for the "Last twelve months".



NOTE

ROS AGRO PLC (LSE, MOEX: AGRO) - a holding company of Rusagro Group, a leading Russian diversified food producer with vertically integrated operations in the following branches:

Agricultural:

Rusagro currently controls one of the largest land banks among Russian agriculture producers, with 689 thousand hectares of land under control located in the highly fertile Black Earth regions of Russia (in the Belgorod, Tambov, Voronezh, Kursk, Saratov, Tula and Orel regions) and in the Far East Primorye Region. Land and production sites are strategically located within the same regions to optimize efficiency and minimize logistical costs. Rusagro is one of the major sugar beet producers in Russia, but it also produces wheat, barley and corn, sunflower seeds and soybeans. These products are partially consumed by the Sugar, Meat and Oil and Fat segments, supporting a synergistic effect and lowering price change risk.

 

Oil and Fat:

Rusagro together with NMGK is the leading crude sunflower oil and consumer margarine and mayonnaise producer, second largest industrial fats and mayonnaise producer in Russia with products sold under eleven key brands, such as EZhK, Schedroye Leto, Mechta Khozyaiki, umbrella brand Ya Lublu Gotovit (includes Moskovskiy Provansal, Novosibirskiy Provansal and Saratovskiy Provansal), Rossiyanka and Saratovskiy Slivochniy, Benefitto, Maslava and Leto Krasno (红色夏日), which is sold on the Chinese market. Rusagro also produces dry industrial mixes, cheeses, butter and cream sold under three brands: Milie, Syrnaya Kultura and Ya Lublu Gotovit. Rusagro owns four crushing and two oil & fats plants and leases two milk processing plants. Owning its sunflower and soy oil production allows Rusagro to control the source of the sunflower and soybean oil required to produce oil and fats products.

Rusagro finalized the acquisition of 50% of NMGK Group in 2023. NMGK Group owns an oil and fat plant in Nizhny Novgorod, a fat plant in Samara, oil extraction factories in Uryupinsk and Sorochinsk, as well as elevators in the Volgograd, Orenburg, Samara, Saratov regions and the Republic of Bashkortostan. The company produces mayonnaise and sauces "Ryaba", "Sdobri", sauces and ketchups "Astoria", margarine "Khozyayushka", Slivochnik, spread "Kremlevskoe", coconut oil "Delicato", soap "Moy malysh" and "Retsepty chistoty".

 

Sugar:

Rusagro is one of the leading Russian sugar producers (№2 in Russia and №1 on cube white sugar market), producing sugar from sugar beet at nine production sites in four regions. Group produces white and brown sugar sold under the brands Russkii Sakhar, Chaikofsky, Mon Café and Brauni. The Sugar segment is vertically integrated and sugar beets are supplied by Rusagro's Agriculture segment, which ensures a consistent supply. The sugar segment also operates a cereal plant and sells buckwheat and rice under the brand Tyoplye Traditsii.

Meat:

Rusagro is №2 largest pork producer in Russia. It operates large commercial pig breeding complexes adhering to best practices regarding biosecurity standards, nucleus farms, compound feed plants, slaughterhouses and meat processing plants in Tambov and Belgorod Regions and in the Russian Far East. Since 2016, Rusagro sells retail products under its own brand Slovo Myasnika (Butcher's word).

 

 

 

CONFERENCE CALL

Rusagro management is organizing a conference call on Company's 1Q 2024 financial results for investors and analysts.

Details of the call:

Date:

13 May 2024

Time:

4:00 PM (Moscow) / 2:00 PM (London)

 

Subject:

ROS AGRO PLC 1Q 2024 IFRS Financial results

 

 

 

Registration:

available up to 3:00 PM Moscow time / 1:00 PM London time on 13 May

https://us06web.zoom.us/webinar/register/WN_OYvYIBqIScehso38FyaF9w

 


 

 

FORWARD-LOOKING STATEMENTS

This announcement includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements do not relate to historical or current events,
or to any future financial or operational activity of the Group.

 

By their nature, forward-looking statements involve risk and uncertainty because they relate
to future events and circumstances, a number of which are beyond the Rusagro Group's control. As a result, actual future results may differ materially from the plans and expectations set out
in these forward-looking statements.

 

The Group undertakes no obligation to release the results of any revisions to any forward-looking statements that may occur due to any change in its expectations or to reflect events
or circumstances after the date of this document.

 


 

 

CONTACTS

 

Alexey Kulchitskiy

Director M&A, IR, ESG

Phone:  +7 495 363 1661

E-mail: ir@rusagrogroup.ru

 

 

Appendix 1. Consolidated statement of comprehensive income for the Three months ended 31 March 2024 (in RUB thousand)

 


Three months ended
31 December

 

2024

 



Sales

68,308,926

47,395,456

Net gain / (loss) on revaluation of biological assets and agricultural produce

(1,969,483)

(546,548)

Cost of sales

(52,516,237)

(38,218,586)

Gross profit

13,823,206

8,630,322

 



Distribution and selling expenses

(7,406,739)

(3,580,492)

General and administrative expenses

(2,899,295)

(2,179,714)

Other operating income/(expenses), net

(1,222,331)

791,263

Operating profit

2,294,841

3,661,379

 



Interest expense

(1,420,180)

(1,925,246)

Interest income

2,269,809

2,441,235

Other financial income/ (expenses), net

(33,386)

2,981,894

Profit / (loss) before taxation

3,111,084

7,159,262

 



Income tax expense

(1,371,055)

(1,742,313)

Profit for the period

1,740,029

5,416,949

 



Other comprehensive income:

 


Total comprehensive income/ (loss) for the period

 1,740,029

 5,416,949

 



Profit / (loss) is attributable to:

 


Owners of ROS AGRO PLC

 525,992

 5,423,741

Non-controlling interest

 1,214,037

(6,792)

Profit / (loss) for the period

 1,740,029

 5,416,949

 



Total comprehensive income/ (loss) is attributable to:

 


Owners of ROS AGRO PLC

 525,992

 5,423,741

Non-controlling interest

 1,214,037

(6,792)

Total comprehensive income/ (loss) for the period

 1,740,029

 5,416,949

 



Earnings per ordinary share for profit attributable to the equity holders of ROS AGRO PLC, basic and diluted (in RR per share)

19.55

201.58

Appendix 2. Segment information for the Three months ended 31 March 2024 (in RUB thousand)

 

3М 2024

Sugar

Meat

Agriculture

Oil and Fat

NMGK

Other

Eliminations

Total

Sales

 12,428,869

 10,606,608

 4,305,857

 29,856,098

 14,519,735

 504,575

(3,912,816)

 68,308,926

Net gain/ (loss) on revaluation of biological assets and agricultural produce

 -

 955,847

(679,101)

 -

 -

 -

(2,246,229)

(1,969,483)

Cost of sales

(10,838,383)

(9,550,706)

(3,708,905)

(25,289,083)

(9,635,435)

(444,605)

 6,950,880

(52,516,237)

incl. Depreciation

(708,763)

(956,912)

(53,092)

(891,791)

(447,028)

(6,033)

(6,615)

(3,070,234)

Gross profit / (loss)

 1,590,486

 2,011,749

(82,149)

 4,567,015

 4,884,300

 59,970

 791,835

 13,823,206

Distribution and Selling, General and administrative expenses

(1,466,363)

(1,002,026)

(1,963,988)

(3,267,369)

(2,724,694)

(589,530)

 707,936

(10,306,034)

incl. Depreciation

(19,605)

(17,797)

(45,826)

(139,264)

(84,622)

(6,054)

 6,615

(306,553)

Other operating income/(expenses), net

(47,128)

 118,475

(470,909)

 119,583

(24,065)

 19,858

(938,145)

(1,222,331)

incl. Reimbursement of operating costs (government grants)

 -

 -

 224,437

 -

 -

 -

 -

 224,437

incl. Other adjustments to EBITDA (non-recurring items)

 21,049

(6,085)

 52,543

 241,284

(26,380)

 102,087

(46,162)

 338,336

Operating profit / (loss)

 76,995

 1,128,198

(2,517,046)

 1,419,229

 2,135,541

(509,702)

 561,626

 2,294,841

Adjustments:

 








Depreciation included in Operating profit

 728,368

 974,709

 98,918

 1,031,055

 531,650

 12,087

 -

 3,376,787

Other adjustments to EBITDA (non-recurring items)

(21,049)

 6,085

(52,543)

(241,284)

 26,380

(102,087)

 46,162

(338,336)

Net gain/ (loss) on revaluation of biological assets and agricultural produce

 -

(955,847)

 679,101

 -

 -

 -

 2,246,229

 1,969,483

Adjusted EBITDA*

 784,314

 1,153,145

(1,791,570)

 2,209,000

 2,693,571

(599,702)

 2,854,017

 7,302,775

 

 

 

 

 

Appendix 2 (continued). Segment information for the Three months ended 31 March 2023 (in RUB thousand)

 

3М 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 / (loss)

 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 3. Consolidated statement of financial position as at 31 March 2024
(in RUB thousand)

 


31 March 2024

31 December 2023

ASSETS

 


Current assets

 


Cash and cash equivalents

16,144,849

25,936,781

Short-term investments

16,601,995

2,288,852

Trade and other receivables

47,392,831

47,861,374

Prepayments

7,747,331

10,814,811

Current income tax receivable

264,233

132,186

Other taxes receivable

7,282,734

9,006,784

Inventories and short-term biological assets

95,999,624

100,617,833

Other current assets

943,617

2,718,720

Total current assets

192,377,214

199,377,341

Non-current assets

 


Property, plant and equipment

143,546,670

141,897,092

Inventories intended for construction

493,123

465,830

Right-of-use assets

6,756,917

6,392,885

Goodwill

3,840,150

3,840,150

Advances paid for non-current assets

3,802,523

2,867,735

Long-term biological assets

2,737,818

2,736,644

Long-term investments and receivables

42,971,384

42,527,657

Investments in associates

562,323

562,323

Deferred income tax assets

4,347,441

2,532,975

Other intangible assets

7,618,702

7,765,853

Total non-current assets

216,677,051

211,589,144

Total assets

409,054,265

410,966,485

 

 


Appendix 3 (continued). Consolidated statement of financial position as at 31 March 2024 (in RUB thousand)

 


31 March 2024

31 December 2023

LIABILITIES and EQUITY

 


Current liabilities

 


Short-term borrowings

66,769,316

68,034,977

Lease liabilities

1,096,904

1,098,135

Trade and other payables

29,354,516

39,452,813

Provisions

294,770

123,212

Current income tax payable

336,397

555,913

Other taxes payable

2,131,652

5,458,529

Total current liabilities

99,983,555

114,723,579

Non-current liabilities

 


Long-term borrowings

61,663,671

59,498,119

Government grants

13,325,638

12,860,211

Lease liabilities

4,895,837

4,325,136

Deferred income tax liability

4,588,407

2,502,074

Total non-current liabilities

84,473,553

79,185,540

Total liabilities

184,457,108

193,909,119

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

173,838,399

173,344,692

Equity attributable to owners of ROS AGRO PLC

201,687,717

201,194,010

Non-controlling interest

22,909,440

15,863,356

Total equity

224,597,157

217,057,366

Total liabilities and equity

409,054,265

410,966,485

 




Appendix 4. Consolidated statement of cash flows for the Three months ended 31 March 2024 (in RUB thousand) - NOT IFRS PRESENTATION (*)


Three months ended

 

31 March 2024

31 March 2023

Cash flows from operating activities

 


Profit/(loss) before income tax

 3,111,084

 7,159,263

Adjustments for:

 


Depreciation and amortization

 3,376,787

 3,624,433

Interest expense

 3,396,000

 4,643,175

Government grants

(2,002,257)

(2,922,447)

Interest income

(2,269,809)

(2,441,236)

Loss/ (gain) on disposal of property, plant and equipment

(13,219)

(26,635)

Net (gain) / loss on revaluation of biological assets and agricultural produce

 1,969,483

 546,548

Change in provision for impairment of loans issued

(15)

(50)

Interest expense on leases

 120,467

 66,329

Change in provision for net realisable value of inventory

 555,695

 409,161

Change in provision for impairment of receivables and prepayments

 110,335

 64,192

Foreign exchange (gain) / loss, net

(492,843)

(3,958,876)

Lost / (reversal of) harvest write-off

 425,839

 -

Settlement of loans and accounts receivable previously written-off

 -

(31,379)

Change in provision for impairment of advances paid for property, plant and equipment

 6,706

 37,597

Change in other provisions

 171,557

 24,212

Loss on disposal of other assets

 27,007

 -

Gain on SolPro loans redemption

 -

(237,768)

Other non-cash and non-operating expenses, net

(87,596)

 35,163

Operating cash flow before working capital changes

 8,405,221

 6,991,682

Change in trade and other receivables and prepayments

 4,212,448

(3,504,180)

Change in other taxes receivable

 1,612,082

 2,679,345

Change in inventories and short-term biological assets

 3,013,161

(7,695,258)

Change in trade and other payables

(4,788,175)

 20,241,772

Change in other taxes payable

(2,553,227)

(2,417,819)

Change on other current assets

 1,926,698

 -

Cash generated from operations

 11,828,208

 16,295,542

Income tax paid

(1,580,066)

(291,696)

Net cash from operating activities

 10,248,142

 16,003,846

 


 

Appendix 4. Consolidated statement of cash flows for the Three months ended 31 March 2024 (in RUB thousand) - NOT IFRS PRESENTATION (*)


Three months ended

 

31 March 2024

31 March 2023

Cash flows from investing activities

 


Purchases of property, plant and equipment

(6,224,351)

(1,999,800)

Purchases of other intangible assets

(122,708)

(289,137)

Purchases of land lease rights

(7,560)

(7,743)

Proceeds from sales of property, plant and equipment

 41,779

 3,407

Purchases of inventories intended for construction

(46,271)

(89,445)

Purchases of associates

 -

(33,000)

Other investing activities

 37,975

 126,307

Net cash from investing activities

(6,321,136)

(2,289,411)

Cash flows from financing activities

 


Proceeds from borrowings

 5,327,310

 4,283,066

Repayment of borrowings

(5,389,418)

(27,907,485)

Interest paid

(983,694)

(1,273,985)

Change in cash on bank deposits

(13,433,635)

 16,450,000

Loans given*

(896)

(190,666)

Loans repaid*

 65

 3,500

Interest received*

 1,267,470

 1,883,193

Proceeds from government grants

 358

 47,624

Purchases of non-controlling interest

(5)

 -

Repayment of lease libilities - principal

(406,745)

(23,783)

Net cash from  financing activities

(13,619,190)

(6,728,536)

Net effect of exchange rate changes on cash and cash equivalents

(99,748)

 1,932,769

Net increase/ (decrease) in cash and cash equivalents

(9,791,932)

 8,918,668

Cash and cash equivalents at the beginning of the period

 25,936,781

 21,473,030

Cash and cash equivalents at the end of the period

 16,144,849

 30,391,698

 

 


 

 

(*) 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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