REG - Ros Agro PLC - 1st Quarter Financial Results
13/05/2024 08:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240513:nRSM1314Oa&default-theme=true
RNS Number : 1314O 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 million(1)), an
increase of RUB 20,913 million (+44%) compared to 1Q 2023;
- Adjusted EBITDA(2) 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 position(3) as of 31 March 2024 amounted to RUB 62,765
million (US$ 680 million);
- Net Debt/Adjusted EBITDA (LTM(4)) 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 1,740 5,417 (3,677) (68)
period (1)
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, 129 69 60 88
thousand tonnes
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 1,056 (184) 1,240 -
revaluation
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, 73 89 (15) (17)
thousand tonnes in live weight
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 597 641 (44) (7)
revaluation
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 (6,271) (2,089) (4,181) (200)
construction
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 (LTM(4)) 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
(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 2023
Sales 68,308,926 47,395,456
Net gain / (loss) on revaluation of biological assets and agricultural produce (1,969,483) (546,548)
Cost of sales (52,516,237) (38,218,586)
Gross profit 13,823,206 8,630,322
Distribution and selling expenses (7,406,739) (3,580,492)
General and administrative expenses (2,899,295) (2,179,714)
Other operating income/(expenses), net (1,222,331) 791,263
Operating profit 2,294,841 3,661,379
Interest expense (1,420,180) (1,925,246)
Interest income 2,269,809 2,441,235
Other financial income/ (expenses), net (33,386) 2,981,894
Profit / (loss) before taxation 3,111,084 7,159,262
Income tax expense (1,371,055) (1,742,313)
Profit for the period 1,740,029 5,416,949
Other comprehensive income:
Total comprehensive income/ (loss) for the period 1,740,029 5,416,949
Profit / (loss) is attributable to:
Owners of ROS AGRO PLC 525,992 5,423,741
Non-controlling interest 1,214,037 (6,792)
Profit / (loss) for the period 1,740,029 5,416,949
Total comprehensive income/ (loss) is attributable to:
Owners of ROS AGRO PLC 525,992 5,423,741
Non-controlling interest 1,214,037 (6,792)
Total comprehensive income/ (loss) for the period 1,740,029 5,416,949
Earnings per ordinary share for profit attributable to the equity holders of 19.55 201.58
ROS AGRO PLC, basic and diluted (in RR per share)
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 6,706 37,597
equipment
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.
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 QRFUOUNRSUUVARRRecent news on Ros Agro
See all newsREG - Ros Agro PLC - Inclusion in the list of ESO
AnnouncementREG - Ros Agro PLC - Notice of change of the GDR program depositary
AnnouncementREG - Ros Agro PLC - Announcement of Intended Cancellation of Listing
AnnouncementREG - Ros Agro PLC - BoD's member has bought the Company's GDRs
AnnouncementREG - Ros Agro PLC - 1st Quarter Financial Results
Announcement