15 November 2021
ROS AGRO financial results for 9M 2021 and 3Q 2021
15 November 2021 - 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 nine months ended 30 September 2021.
9M 2021 HIGHLIGHTS
- Sales amounted to RUB 157,576 million (US$ 2,129 million1), an increase of RUB 48,814 million (+45%) compared to 9M 2020;
- Adjusted EBITDA2 amounted to RUB 30,722 million (US$ 415 million), an increase of RUB 10,527 million (+52%) compared to 9M 2020;
- Adjusted EBITDA margin remained at the same level 19% in 9M 2021 as in 9M 2020;
- Net profit for the period amounted to RUB 35,422 million (US$ 479 million), an increase of RUB 19,744 million (+126%);
- Net debt position3 as of 30 September 2021 amounted to RUB 69,452 million (US$ 955 million);
- Net Debt/Adjusted EBITDA (LTM4) as of 30 September 2021 was 1.63x.
Commenting on the results, Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO of Rusagro, said:
"In 3Q 2021 Rusagro Sales increased across all business segments. Revenue growth was supported by positive trend in sales volume of Oil & Fats segment as well as wheat in Agriculture segment.
In 3Q 2021 Rusagro adjusted EBITDA margin decreased by 7 p.p. following negative influence of higher costs of feed and animal health protection as well as additional expenses relating to the start of operations in Primorye for Meat segment (-11 p.p.) and higher cost of raw materials in Oil & Fats segment, particularly sunflower seeds, sunflower and tropical oil (-9 p.p.).
Adhering to its mission of making people's lives longer and better, Rusagro continued to participate in the market initiative to provide Russians with affordable food supplies and limited its sales price of sugar and bottled sunflower oil to retail. Thus, sales price of 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 and sales price for bottled sunflower oil at the plant didn't exceed 95 roubles/litre including VAT.
Meanwhile, Rusagro improved adjusted EBITDA margin of Agriculture segment: Revenue grew higher than corresponding increase in costs (+10 p.p.). EBITDA margin of Sugar segment has not changed (0 p.p.)."
Key consolidated financial performance indicators
in RR million |
Nine months ended |
Variance |
Three months ended |
Variance |
||||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
|||
Sales 1 |
157,576 |
108,762 |
48,814 |
45 |
53,204 |
36,6011 |
16,603 |
45 |
||
Gross profit1 |
44,885 |
30,4431 |
14,442 |
47 |
20,506 |
10,1871 |
10,319 |
101 |
||
Gross margin, % |
28% |
28% |
0 pp |
|
39% |
28% |
11 pp |
|
||
Adjusted EBITDA 1 |
30,722 |
20,1951 |
10,527 |
52 |
8,603 |
8,2931 |
310 |
4 |
||
Adjusted EBITDA margin, % |
19% |
19% |
0 pp |
|
16% |
23% |
(7) pp |
|
||
Net profit for the period 1,2 |
35,422 |
15,6781 |
19,744 |
126 |
17,822 |
5,9481 |
11,873 |
200 |
||
Net profit margin % |
22% |
14% |
8 pp |
|
33% |
16% |
17 pp |
|
||
1 Several adjustments were made to the published 9M and 3Q 2020 indicators:
• Due to Revenue cut-off adjustment Sales for 3Q20 decreased by RUB 925 million; Gross profit decreased by RUB 391 million; Adjusted EBITDA and Net profit decreased by RUB 119 million;
• Adjusted EBITDA, Gross profit and Net profit for 9M20 was decreased by RUB 545 million due to revaluation procedure, performed at the year end, the same indicators for 3Q20 decreased by RUB 202 million;
• Revaluation of biological assets led to decrease of Gross profit and Net profit for 3Q20 in amount of RUB 4,792 million;
• Net profit for 9M20 decreased by RUB 63 million because of other reserves;
• Valuation difference for SolPro operations caused Net profit to decrease by RUB 3,436 million for 9M20;
• Effect on income tax expense of adjustments above RUB +704 million for 9M20 and RUB +42 million for 3Q20.
2 Net profit for the period is affected by non-cash income/(loss) on revaluation of biological assets and agricultural produce. See details in business-sections below.
Key financial performance indicators by segments
in RR million |
Nine months ended |
Variance |
Three months ended |
Variance |
|||||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
||||
|
|
|
|
|
|
|
|
|
|||
Sales, incl. |
157,576 |
108,762 |
48,814 |
45 |
53,204 |
36,601 |
16,603 |
45 |
|||
Sugar |
24,112 |
21,078 |
3,034 |
14 |
7,727 |
6,809 |
917 |
13 |
|||
Meat |
28,458 |
22,847 |
5,611 |
25 |
10,276 |
8,767 |
1,509 |
17 |
|||
Agriculture |
18,711 |
14,751 |
3,959 |
27 |
6,824 |
6,750 |
74 |
1 |
|||
Oil and Fat |
93,959 |
54,554 |
39,405 |
72 |
32,390 |
17,822 |
14,568 |
82 |
|||
Other |
539 |
397 |
142 |
36 |
143 |
109 |
34 |
31 |
|||
Eliminations |
(8,202) |
(4,865) |
(3,337) |
(69) |
(4,155) |
(3,657) |
(499) |
(14) |
|||
|
|
|
|
|
|
|
|
|
|||
Gross profit, incl. |
44,885 |
30,443 |
14,442 |
47 |
20,506 |
10,187 |
10,319 |
101 |
|||
Sugar |
5,825 |
5,373 |
452 |
8 |
1,424 |
1,491 |
(67) |
(4) |
|||
Meat |
6,339 |
4,749 |
1,589 |
33 |
2,368 |
2,301 |
68 |
3 |
|||
Agriculture |
20,102 |
9,256 |
10,846 |
117 |
13,507 |
2,896 |
10,611 |
366 |
|||
Oil and Fat |
12,121 |
11,369 |
752 |
7 |
2,429 |
3,930 |
(1,501) |
(38) |
|||
Other |
185 |
76 |
109 |
143 |
77 |
33 |
44 |
134 |
|||
Eliminations |
313 |
(381) |
694 |
- |
701 |
(463) |
1,164 |
- |
|||
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA, incl. |
30,722 |
20,195 |
10,527 |
52 |
8,603 |
8,293 |
310 |
4 |
|||
Sugar |
5,829 |
5,005 |
823 |
16 |
1,589 |
1,451 |
138 |
9 |
|||
Meat |
5,035 |
4,935 |
100 |
2 |
1,941 |
2,588 |
(647) |
(25) |
|||
Agriculture |
9,472 |
5,016 |
4,456 |
89 |
3,609 |
2,882 |
727 |
25 |
|||
Oil and Fat |
10,067 |
7,367 |
2,700 |
37 |
2,591 |
2,946 |
(355) |
(12) |
|||
Other |
(1,755) |
(1,094) |
(661) |
(60) |
(1,103) |
(479) |
(625) |
(130) |
|||
Eliminations |
2,074 |
(1,035) |
3,109 |
- |
(24) |
(1,096) |
1,072 |
98 |
|||
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA margin, % |
19% |
19% |
0 pp |
|
16% |
23% |
(7) pp |
|
|||
Sugar |
24% |
24% |
0 pp |
|
21% |
21% |
0 pp |
|
|||
Meat |
18% |
22% |
(4) pp |
|
19% |
30% |
(11) pp |
|
|||
Agriculture |
51% |
34% |
17 pp |
|
53% |
43% |
10 pp |
|
|||
Oil and Fat |
11% |
14% |
(3) pp |
|
8% |
17% |
(9) pp |
|
|||
SUGAR SEGMENT
In 9M21 Sugar segment earned RUB 5,829 million of adjusted EBITDA (+16% y-o-y) with 24% margin (+0 pp y-o-y). The financial results of the Sugar Segment of 9M21 and 3Q21 compared to 9M20 and 3Q20 respectively are presented in the table below:
Sugar segment 9M and 3Q 2021 Financial Results
in RR million |
Nine months ended |
Variance |
Three months ended |
Variance |
||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2021 |
Units |
% |
|
Sales |
24,112 |
21,078 |
3,034 |
14 |
7,727 |
6,809 |
917 |
13 |
Cost of sales |
(18,288) |
(15,716) |
(2,572) |
(16) |
(6,302) |
(5,318) |
(984) |
(19) |
Net gain/ (loss) from trading derivatives |
- |
11 |
(11) |
- |
- |
- |
- |
- |
Gross profit |
5,825 |
5,373 |
452 |
8 |
1,424 |
1,491 |
(67) |
(4) |
Gross profit margin |
24% |
25% |
(1) pp |
|
18% |
22% |
(4) pp |
|
Distribution and selling expenses |
(1,460) |
(1,485) |
26 |
2 |
(495) |
(395) |
(100) |
(25) |
General and administrative expenses |
(1,129) |
(1,047) |
(81) |
(8) |
(370) |
(361) |
(9) |
(2) |
Other operating income/ (expenses), net |
496 |
619 |
(123) |
(20) |
447 |
71 |
376 |
526 |
incl. other adjustments to EBITDA (non-recurring items) |
71 |
476 |
(405) |
(85) |
108 |
23 |
85 |
373 |
Operating profit |
3,733 |
3,459 |
274 |
8 |
1,006 |
806 |
200 |
25 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
5,829 |
5,005 |
823 |
16 |
1,589 |
1,451 |
138 |
9 |
Adjusted EBITDA margin |
24% |
24% |
0 pp |
|
21% |
21% |
0 pp |
|
In 9M21 in comparison to 9M20 Sales of Sugar segment improved by 14% - to RUB 24,112 million. Sugar market showed positive trend in comparison to 9M20. During the 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. Rusagro decreased sugar sales volume by 19% y-o-y to 541 thousand tonnes due to reduction of brought forward sugar stocks driven by production volumes decrease as the result of lower sugar beet harvest in Russia in season 2020/2021 in comparison to the season 2019/2020. In 3Q21 sugar sales also increased.
Sugar revenue growth for 9M21 was partially offset by the decrease in sales of beet pulp of RUB 518 million.
Cost of sales in 9M21 increased in line with Sales y-o-y due to higher sugar beet price.
Production and sales volume of sugar in 9M and 3Q 2021
|
Nine months ended |
Variance |
Three months ended |
Variance |
||||||||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
|||||||
Sugar production volume, thousand tonnes |
208 |
280 |
(72) |
(26) |
169 |
171 |
(2) |
(1) |
||||||
Sales volume, thousand tonnes |
541 |
670 |
(130) |
(19) |
179 |
205 |
(26) |
(12) |
||||||
MEAT SEGMENT
In 9M21 Meat segment earned RUB 5,035 million of adjusted EBITDA (+2% y-o-y) with 18% margin (-4 pp y-o-y). The financial results of the Meat Segment of 9M21 and 3Q21 compared to 9M20 and 3Q20 respectively are presented in the table below.
Meat segment 9M and 3Q 2021 Financial Results
in RR million |
Nine months ended |
Variance |
Three months ended |
Variance |
||||||||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
|||||||
Sales |
28,458 |
22,847 |
5,611 |
25 |
10,276 |
8,767 |
1,509 |
17 |
||||||
Net gain/ (loss) on revaluation of biological assets and agricultural produce |
1,333 |
823 |
510 |
62 |
66 |
229 |
(163) |
(71) |
||||||
Cost of sales |
(23,453) |
(18,920) |
(4,532) |
(24) |
(7,974) |
(6,696) |
(1,278) |
(19) |
||||||
Gross profit |
6,339 |
4,749 |
1,589 |
33 |
2,368 |
2,301 |
68 |
3 |
||||||
Gross profit margin |
22% |
21% |
1 pp |
|
23% |
26% |
(3) pp |
|
||||||
Gross profit excl. effect of biological assets revaluation |
5,005 |
3,926 |
1,079 |
27 |
2,302 |
2,072 |
231 |
11 |
||||||
Adjusted gross profit margin |
18% |
17% |
1 pp |
|
22% |
24% |
(2) pp |
|
||||||
Distribution and selling expenses |
(1,102) |
(863) |
(239) |
(28) |
(351) |
(304) |
(47) |
(15) |
||||||
General and administrative expenses |
(3,117) |
(960) |
(2,157) |
(225) |
(1,447) |
(179) |
(1,268) |
(707) |
||||||
Other operating income/ (expenses), net |
1,070 |
396 |
674 |
170 |
350 |
142 |
208 |
147 |
||||||
incl. reimbursement of operating costs (government grants) |
459 |
63 |
396 |
628 |
204 |
64 |
140 |
220 |
||||||
incl. other adjustments to EBITDA (non-recurring items) |
480 |
279 |
201 |
72 |
144 |
75 |
69 |
91 |
||||||
Operating profit |
3,190 |
3,323 |
(133) |
(4) |
920 |
1,959 |
(1,039) |
(53) |
||||||
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA |
5,035 |
4,935 |
100 |
2 |
1,941 |
2,588 |
(647) |
(25) |
||||||
Adjusted EBITDA margin |
18% |
22% |
(4) pp |
|
19% |
30% |
(11) pp |
|
||||||
Sales of the Meat segment increased by 25% in 9M21 and by 17% in 3Q21 compared to the respective periods of the prior year mainly due to positive market dynamics of all meat products. The growth of total sales volume by 3% in 9M21 compared to 9M20 triggered by 3% pigs production increase achieved as new pig farms in Tambov Region reached full capacity.
Production and sales volume of pork products in 9M and 3Q 2021
|
Nine months ended |
Variance |
Three months ended |
Variance |
||||||||||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
|||||||||
Pigs production, thousand tonnes in live weight
|
226 |
222 |
4 |
2 |
75 |
76 |
(1) |
(1) |
||||||||
Sales volume, thousand tonnes |
182 |
177 |
5 |
3 |
61 |
61 |
0 |
1 |
||||||||
Cost of sales increased by 24% in 9M21 and by 19% in 3Q21 compared to the respective periods of the prior year mainly due to higher costs of feed and animals health protection.
Net gain on revaluation of biological assets and agricultural produce in 9M21 resulted mainly from an increase in fair value for both bearer and consumable livestock pigs during the reporting period compared to fair value at the end 2020. Gain on revaluation of biological assets in 3Q20 is higher than in 3Q21 due to significant increase fair value in 3Q20 compared to 2Q20 and gradual growth during 9M21.
An increase in Distribution and selling expenses in 9M21 in comparison to 9M20 is mainly due to the rise in the costs of marketing activities.
General and administrative expenses in 9M21 compared to prior year period increased mainly due realization of pork production cluster project in the Primorie Territory.
An increase in Other operating income in 9M21 in comparison to 9M20 is mainly due to partial reimbursement of feed purchase costs and insurance costs.
AGRICULTURAL SEGMENT
As at 30 September 2021 Rusagro's area of controlled land stands at 691 thousand hectares (30 September 2020: 642 thousand hectares). In 9M21 Agriculture segment earned RUB 9,472 million of adjusted EBITDA (+89 % y-o-y) with 51% margin (+17 pp y-o-y). The financial results of the Agricultural Segment of 9M21 and 3Q21 compared to 9M20 and 3Q20 respectively are presented below.
Agriculture segment 9M and 3Q 2021 Financial Results
in RR million |
Nine months ended |
Variance |
Three months ended |
Variance |
|||||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
||||
Sales |
18,711 |
14,751 |
3,959 |
27 |
6,824 |
6,750 |
74 |
1 |
|||
Net gain/ (loss) on revaluation of biological assets and agricultural produce |
10,514 |
3,638 |
6,876 |
189 |
10,266 |
127 |
10,139 |
7,993 |
|||
Cost of sales |
(9,123) |
(9,133) |
11 |
0 |
(3,583) |
(3,981) |
398 |
10 |
|||
Gross profit |
20,102 |
9,256 |
10,846 |
117 |
13,507 |
2,896 |
10,611 |
366 |
|||
Gross profit margin |
107% |
63% |
44 pp |
|
198% |
43% |
155 pp |
|
|||
Gross profit excl. effect of biological assets and agricultural produce revaluation |
9,588 |
5,618 |
3,970 |
71 |
3,241 |
2,769 |
472 |
17 |
|||
Adjusted gross profit margin |
51% |
38% |
13 pp |
|
47% |
41% |
6 pp |
|
|||
Distribution and selling expenses |
(1,079) |
(1,452) |
372 |
26 |
(119) |
(474) |
355 |
75 |
|||
General and administrative expenses |
(1,023) |
(949) |
(74) |
(8) |
(388) |
(330) |
(58) |
(18) |
|||
Other operating income/ (expenses), net |
104 |
2 |
102 |
4,827 |
17 |
83 |
(65) |
(79) |
|||
incl. reimbursement of operating costs (government grants) |
241 |
111 |
130 |
118 |
108 |
50 |
58 |
117 |
|||
incl. other adjustments to EBITDA (non-recurring items) |
(167) |
(38) |
(129) |
(340) |
(252) |
(33) |
(219) |
(661) |
|||
Operating profit |
18,105 |
6,858 |
11,247 |
164 |
13,017 |
2,174 |
10,843 |
499 |
|||
|
|
|
|
|
|
|
|
|
|||
Adjusted EBITDA |
9,472 |
5,016 |
4,456 |
89 |
3,609 |
2,882 |
727 |
25 |
|||
Adjusted EBITDA margin |
51% |
34% |
17 pp |
|
53% |
43% |
10 pp |
|
|||
In 9M21 in comparison to 9M20 Sales of the Agriculture segment increased by 27% to RUB 18,711 million which was partially due to significantly higher sales volume of wheat compensated by sales volume decrease of all other crops, especially soybean. Meanwhile, Cost of sales, General and administrative expenses remained relatively stable.
Higher sales volume of wheat in 9M21 compared to 9M20 were affected by management decision in 2020 to push sales timing towards 2021, whereas 2019 wheat harvest was mainly sold in 2019.
Opposite situation with soybean, lower sales volume in 9M21 compared to 9M20 were affected by management decision in 2019 to push sales timing towards 2020, whereas 2020 soybean harvest was partially realized in 2020.
Sugar beet sales volume decrease in 9M21 compared to 9M20 was caused by the shift in launch dates of sugar plants in 3Q 2021, also by sale of remaining 2019 stock balances in 1Q 2020.
In 3Q21 in comparison to 3Q20 Sales of the Agriculture segment increased by 1% to RUB 6,824 million because of the same reasons mentioned above.
Sales volume of crops in 9M and 3Q 2021
Thousand tonnes |
Nine months ended |
Variance |
Three months ended |
Variance |
|||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
||
sugar beet |
720 |
832 |
(112) |
(13) |
720 |
769 |
(49) |
(6) |
|
wheat |
583 |
268 |
315 |
118 |
223 |
186 |
37 |
20 |
|
soybean |
161 |
234 |
(73) |
(31) |
19 |
46 |
(27) |
(59) |
|
corn |
58 |
92 |
(34) |
(37) |
- |
20 |
(20) |
(100) |
|
sunflower seeds |
8 |
18 |
(10) |
(57) |
0 |
0 |
(0) |
(69) |
|
barley |
7 |
92 |
(85) |
(93) |
2 |
41 |
(39) |
(96) |
|
Net loss/gain on revaluation of biological assets and agricultural produce in 9M21 and 9M20 changes mainly caused by two opposite-directed factors. Gain from current year harvested and unharvested crops revaluation to fair value less estimated point-of-sale costs equals to RUB 15,714 million in 9M21 against RUB 5,339 million in 9M20. The second factor is the realisation of gain from crops revaluation, recognised in the previous year financial statements and remained unrealised as at the year-end, equals to RUB 5,143 million loss recognised in 9M21 against RUB 1,773 million loss in 9M20, significant loss increase caused by higher revaluation amounts in 2020.
Net gain/(loss) on revaluation of crops and its subsequent realisation do not affect the Adjusted EBITDA figure.
Distribution and selling expenses decreased despite overall sales volumes remaining at the same level, which is caused mainly by changes in sales channels of soybean, export in 9M2020 vs. domestic in 9M2021.
OIL AND FAT SEGMENT
In 9M21 Oil and Fat segment earned RUB 10,067 million of adjusted EBITDA (+37 % y-o-y) with 11% margin (-3 pp y-o-y). The financial results of the Oil and Fat Segment for 9M21 and 3Q21 compared to 9M20 and 3Q20 respectively are presented below.
Oil and Fat segment 9M and 3Q 2021 Financial Results
in RR million
|
Nine months ended |
Variance |
Three months ended |
Variance |
||||||||||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
|
||||||||
Sales |
93,959 |
54,554 |
39,405 |
72 |
32,390 |
17,822 |
14,568 |
82 |
||||||||
Cost of sales |
(81,837) |
(43,184) |
(38,653) |
(90) |
(29,961) |
(13,892) |
(16,068) |
(116) |
||||||||
Gross profit |
12,121 |
11,369 |
752 |
7 |
2,429 |
3,930 |
(1,501) |
(38) |
||||||||
Gross profit margin |
13% |
21% |
(8) pp |
|
7% |
23% |
(16) pp |
|
||||||||
Distribution and selling expenses |
(2,674) |
(3,079) |
405 |
13 |
(511) |
(872) |
360 |
41 |
||||||||
General and administrative expenses |
(1,423) |
(1,495) |
72 |
5 |
(409) |
(432) |
24 |
5 |
||||||||
Other operating income/ (expenses), net |
(377) |
(199) |
(178) |
(89) |
(519) |
(28) |
(491) |
(1,735) |
||||||||
incl. Other adjustments to EBITDA (non-recurring items) |
(612) |
(288) |
(324) |
(113) |
(636) |
(181) |
(455) |
(251) |
||||||||
Operating profit/ (loss) |
7,648 |
6,597 |
1,051 |
16 |
990 |
2,598 |
(1,607) |
(62) |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
10,067 |
7,367 |
2,700 |
37 |
2,591 |
2,946 |
(355) |
(12) |
||||||||
Adjusted EBITDA margin |
11% |
14% |
(3) pp |
|
8% |
17% |
(9) pp |
|
||||||||
In 2021 results of Dairy Products segment are included in Oil and Fat segment due to consolidation of these two businesses. For comparison purpose financial results of the previous years were corrected accordingly.
Sales volumes to third parties in 9M and 3Q 2021
Thousand tonnes
|
Nine months ended |
Variance |
Three months ended |
Variance |
|||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
||
meal |
443 |
443 |
- |
- |
138 |
126 |
12 |
9 |
|
crude oil |
319 |
287 |
32 |
11 |
121 |
60 |
62 |
103 |
|
industrial fats |
243 |
221 |
22 |
10 |
85 |
88 |
(3) |
(4) |
|
dry whey mixes |
11 |
11 |
- |
- |
4 |
4 |
0 |
9 |
|
consumer oil&fat products |
234 |
247 |
(13) |
(5) |
72 |
80 |
(8) |
(10) |
|
consumer dairy products |
11 |
10 |
1 |
12 |
4 |
3 |
1 |
17 |
|
In 9M21 in comparison to 9M20 Sales of the Oil and Fat segment increased by 72% to RUB 39,405 partially due to rise of sales volume of crude oil, industrial fats and consumer dairy products. Sales price of bottled sunflower oil to retail in Russia did not exceed established by Russian Government limit of 95 RUB/l incl. VAT at the plant.
Cost of sales in 9M21 in comparison to 9M20 increased due to higher costs of raw materials, including sunflower seeds, sunflower and tropical oil.
Decrease in Distribution and selling expenses in 9М21 compared to 9M20 was caused by income from recognition of sunflower surplus on elevators.
Change in Other net operating expenses in 9M21 was due to negative dynamics in forex losses in 9M20 and higher provisions for bad debts.
KEY CONSOLIDATED CASH FLOW INDICATORS (NOT IFRS PRESENTATION*)
The key consolidated cash flow indicators presented according to management accounts methodology
in mln Roubles |
Nine months ended |
Variance |
Three months ended |
Variance |
||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
|
Net cash from operating activities, incl. |
32,255 |
24,677 |
7,578 |
31 |
10,907 |
5,623 |
5,284 |
94 |
Operating cash flow before working capital changes |
30,312 |
20,370 |
9,942 |
49 |
7,570 |
7,730 |
(160) |
(2) |
Working capital changes |
3,467 |
5,292 |
(1,825) |
(34) |
4,225 |
(1,380) |
5,605 |
- |
Net cash from investing activities, incl. |
(37,078) |
(9,866) |
(27,212) |
(276) |
(19,667) |
(5,101) |
(14,566) |
(286) |
Purchases of property plant and equipment and inventories intended for construction |
(8,816) |
(10,090) |
1,275 |
13 |
(2,594) |
(5,266) |
2,672 |
51 |
Acquisition of SolPro assets |
(28,735) |
0 |
(28,735) |
- |
(17,046) |
0 |
(17,046) |
- |
Net cash from financing activities |
50,108 |
(7,620) |
57,727 |
- |
13,735 |
5,788 |
7,947 |
137 |
Net effect of exchange rate changes on cash and cash equivalents |
(187) |
291 |
(478) |
- |
(85) |
118 |
(203) |
- |
Net increase / (decrease) in cash and cash equivalents |
45,098 |
7,482 |
37,616 |
503 |
4,890 |
6,428 |
(1,538) |
(24) |
(*) See Appendix 4
During 9M21 the Company started to acquire SolPro assets, cash inflow corresponding to loans and interest repaid as the result of SolPro assets acquisition is included in line Net cash from financing activities.
The key investments in property, plant and equipment and inventories intended for construction during 9M21 were made in the Meat segment in the amount of RUB 4,916 million (9M20: RUB 5,725 million) due to the purchases related to the construction project in the Russian Far East. Investments in the Oil and Fat segment in the amount of RUB 1,266 million (9M20: RUB 1,242 million), Agriculture segment in the amount of RUB 1,885 million (9M20: RUB 1,755 million) and Sugar segment in the amount of RUB 749 million (9M20: RUB 1,368 million) mainly relate to purchases of machinery and equipment for production facilities renewal and maintenance.
Debt position and liquidity management
in RUB million |
30 September 2021 |
31 December 2020 |
Variance |
|
|
Units |
% |
|
|||
Gross debt |
190,236 |
114,929 |
75,307 |
66 |
|
Short-term borrowings |
125,764 |
51,753 |
74,011 |
143 |
|
Long-term borrowings |
64,471 |
63,176 |
1,295 |
2 |
|
Cash and cash equivalents, bank deposits and bonds |
(120,784) |
(46,029) |
(74,755) |
(162) |
|
Short-term cash, deposits and bonds |
(86,363) |
(12,064) |
(74,299) |
(616) |
|
Long-term cash, deposits and bonds |
(34,421) |
(33,965) |
(456) |
(1) |
|
Net debt |
69,452 |
68,900 |
552 |
1 |
|
Short-term borrowings, net |
39,402 |
39,689 |
(287) |
(1) |
|
Long-term borrowings, net |
30,051 |
29,211 |
840 |
3 |
|
Adjusted EBITDA (LTM4) |
42,511 |
31,984 |
10,527 |
33 |
|
Net debt/ Adjusted EBITDA (LTM) |
1.63 |
2.15 |
(0.5) pp |
|
|
Adjusted EBITDA (LTM)5 without other operating income/expenses |
42,855 |
32,435 |
10,420 |
32 |
|
Net debt/ Adjusted EBITDA (LTM)5 without other operating income/expenses |
1.62 |
2.12 |
(0.5) pp |
|
Net finance income/ (expense)
in RR million |
Nine months ended |
Variance |
Three months ended |
Variance |
||||
30 September 2021 |
30 September 2020 |
Units |
% |
30 September 2021 |
30 September 2020 |
Units |
% |
|
Net interest expense |
(4,003) |
(3,720) |
(283) |
(8) |
(1,496) |
(1,138) |
(358) |
(31) |
Gross interest expense |
(7,325) |
(4,891) |
(2,434) |
(50) |
(3,550) |
(1,534) |
(2,017) |
(132) |
Reimbursement of interest expense |
3,322 |
1,170 |
2,151 |
184 |
2,054 |
396 |
1,659 |
419 |
Interest income |
6,308 |
4,579 |
1,729 |
38 |
2,585 |
1,058 |
1,527 |
144 |
Net gain/ (loss) from bonds held for trading |
(2) |
(16) |
14 |
85 |
(1) |
1 |
(2) |
- |
Other financial income, net |
(490) |
(1,492) |
1,002 |
67 |
(326) |
(140) |
(186) |
(133) |
Net foreign exchange gain/ (loss) |
(50) |
(1,118) |
1,068 |
96 |
(78) |
97 |
(175) |
- |
Other financial income / (expenses), net |
(440) |
(374) |
(66) |
(18) |
(248) |
(237) |
(11) |
(5) |
Total net finance income/ (expenses) |
1,813 |
(649) |
2,461 |
- |
762 |
(219) |
980 |
- |
Net debt increased at 30 September 2021 compared at 31 December 2020 as a result of an increase in short-term borrowings.
In 9M21 Rusagro continued to enjoy benefits from the state agriculture subsidies programme. The Rusagro continued to receive bank loans with decreased preferential interest rates under the programme of government support. Under this programme, the government provides subsidies to the banks to compensate the loss of income on credits with decreased interest rates, given by the banks to agricultural producers. In 9M21 IFRS accounts these credits are accounted according to its face value with no adjustments to prevailing market rates. The differences between nominal and market interest rate is recognized as either government grants in a statement of financial position for borrowings received with the purpose to finance investment projects or interest expenses in a statement of comprehensive income for general purpose borrowings.
Net finance expenses of 9M20 in the sum of RUB 649 million changed to net finance income in the amount of RUB 1,813 million in 9M21 as the result of negative dynamics in forex losses in 9M20 and increase in interest income on bank deposits in 9M21.
________________________________
(1) The exchange rates used for translation of RUB amounts into USD represent average Central Bank official exchange rate for the respective reporting period for income, expenses and profits and the Central Bank official exchange rate as at the reporting date for balance figures.
(2) Adjusted EBITDA is defined as operating profit before taking into account (i) depreciation included in operating profit, (ii) net gain/ (loss) on revaluation of biological assets and agricultural produce, (iii) non-recurring components of other operating income/ (expenses), net, (iv) share-based remuneration, (v) provision for impairment of loans issued (see Appendix 2 for the detailed calculation of Adjusted EBITDA). Adjusted EBITDA is not a measure of financial performance under IFRS. It should not be considered as an alternative to profit for the period as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and therefore comparability may be limited. We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of subsidiaries and other investments and our ability to incur and service debt.
(3) The Rusagro determines the net debt as short-term borrowings and long-term borrowings less cash and cash equivalents, bank deposits, bank promissory notes and bonds held for trading.
(4) LTM - The abbreviation for the "Last twelve months".
(5) Starting from the beginning of 2020 part of other operating income and expensed (recurring items) was included in Adjusted EBITDA calculation. Figures of 2021 and 2020 calculated using prior periods' logic (excluding other operating income/expenses) are shown in table Debt position and liquidity management above and in the diagram with Net debt/ LTM EBITDA trend analysis for comparative purposes
NOTE
ROS AGRO PLC (LSE, MOEX: AGRO) - a holding company of Rusagro Group, a leading Russian diversified food producer with vertically integrated operations in the following branches:
Agricultural:
Rusagro currently controls one of the largest land banks among Russian agriculture producers, with 691 thousand hectares of land under control located in the highly fertile Black Earth region of Russia (in the Belgorod, Tambov, Voronezh, Kursk, Orel regions), in Saratov regionand 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 barley, sunflower seeds and soybeans. These products are partially consumed by the Meat segment, supporting a synergistic effect and lowering price change risk.
Oil and Fat:
Rusagro is the leading crude sunflower oil and consumer margarine producer, second largest industrial fats and mayonnaise producer in Russia with products sold under eleven key brands, such as EZhK, Schedroye Leto, Mechta Khozyaiki, umbrella brand Ya Lublu Gotovit (includes Moskovskiy Provansal, Novosibirskiy Provansal and Saratovskiy Provansal), Rossiyanka and Saratovskiy Slivochniy, Benefitto, Maslava and Leto Krasno (红色夏日), which is sold on the Chinese market. Rusagro also produces dry industrial mixes, cheeses, butter and cream sold under three brands: Milie, Syrnaya Kultura and Ya Lublu Gotovit. Rusagro owns four crushing and two oil & fats plants and leases two milk processing plants. Owning its sunflower and soy oil production allows Rusagro to control the source of the sunflower and soybean oil required to produce oil and fats products.
Sugar:
Rusagro is one of the leading Russian sugar producers (№2 in Russia and №1 on cube white sugar market), producing sugar from sugar beet at nine production sites in four regions. Group produces white and brown sugar sold under the brands Russkii Sakhar, Chaikofsky, Mon Cafeand Brauni. The Sugar segment is vertically integrated and sugar beets are supplied by Rusagro's Agriculture segment, which ensures a consistent supply. The sugar segment also operates a cereal plant and sells buckwheat and rice under the brand Tyoplye Traditsii.
Meat:
Rusagro is №3 largest pork producer in Russia in Russia. It operates large commercial pig breeding complexes adhering to best practices regarding biosecurity standards, nucleus farms, compound feed plants, slaughterhouses and meat processing plants in Tambov and Belgorod Regions and in the Russian Far East. Since 2016, Rusagro sells retail products under its own brand Slovo Myasnika (Butcher's word).
CONFERENCE CALL
Rusagro management is organizing a conference call on Company's 9M and 3Q 2021 financial results for investors and analysts.
Details of the call:
Date: |
15 November 2021 |
Time: |
4:00 PM (Moscow) / 1:00 PM (London) |
Subject: |
ROS AGRO PLC 9M and 3Q 2021 Financial results
|
Password: |
066909 |
Link: |
|
https://ib-translations.zoom.us/j/89195110472?pwd=eThuZTZ0ajc5NDF2b3FJK0RjeEF0Zz09
FORWARD-LOOKING STATEMENTS
This announcement includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements do not relate to historical or current events,
or to any future financial or operational activity of the Group.
By their nature, forward-looking statements involve risk and uncertainty because they relate
to future events and circumstances, a number of which are beyond the Rusagro Group's control. As a result, actual future results may differ materially from the plans and expectations set out
in these forward-looking statements.
The Group undertakes no obligation to release the results of any revisions to any forward-looking statements that may occur due to any change in its expectations or to reflect events
or circumstances after the date of this document.
CONTACTS
Svetlana Kuznetsova IR & ESG Director Phone: +7 495 363 1661, E-mail: ir@rusagrogroup.ru |
Appendix 1. Consolidated statement of comprehensive income for the Nine and Three months ended 30 September 2021 (in RUB thousand)
|
Nine months ended 30 September |
Three months ended 30 September |
||
|
2021 |
2020 |
2021 |
2020 |
Sales |
157,576,090 |
108,762,200 |
53,204,321 |
36,600,754 |
Net gain/(loss) on revaluation of biological assets and agricultural produce |
10,570,007 |
5,428,963 |
11,004,819 |
1,018,637 |
Cost of sales |
(123,260,634) |
(83,758,239) |
(43,702,667) |
(27,432,074) |
Net gain/(loss) from trading derivatives |
(5) |
10,552 |
- |
(3) |
Gross profit |
44,885,458 |
30,443,476 |
20,506,473 |
10,187,314 |
|
|
|
|
|
Distribution and selling expenses |
(5,704,363) |
(6,507,851) |
(1,386,012) |
(1,919,802) |
General and administrative expenses |
(8,322,598) |
(5,485,493) |
(3,681,761) |
(1,803,461) |
Reversal of provision/(provision) for impairment of loans issued |
3,649,567 |
(3,256,721) |
1,797,273 |
- |
Other operating income/(expenses), net |
1,201,562 |
1,182,563 |
168,752 |
(61,056) |
Operating profit / (loss) |
35,709,626 |
16,375,974 |
17,404,725 |
6,402,995 |
|
|
|
|
|
Interest expense |
(4,002,929) |
(3,720,172) |
(1,495,908) |
(1,137,894) |
Interest income |
6,307,773 |
4,578,972 |
2,585,169 |
1,058,041 |
Net (loss)/gain from bonds |
(2,362) |
(15,977) |
(1,000) |
1,025 |
Other financial income/ (expenses), net |
(489,739) |
(1,491,563) |
(326,330) |
(140,318) |
Profit before income tax |
37,522,369 |
15,727,234 |
18,166,656 |
6,183,849 |
|
|
|
|
|
Income tax expense |
(2,100,271) |
(48,913) |
(345,043) |
(235,565) |
Profit for the period |
35,422,098 |
15,678,321 |
17,821,613 |
5,948,284 |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
Total comprehensive income for the period |
35,422,098 |
15,678,321 |
17,821,613 |
5,948,284 |
|
|
|
|
|
Profit is attributable to: |
|
|
|
|
Owners of ROS AGRO PLC |
35,441,460 |
15,718,297 |
17,811,214 |
5,943,141 |
Non-controlling interest |
(19,362) |
(39,976) |
10,399 |
5,143 |
Profit for the period |
35,422,098 |
15,678,321 |
17,821,613 |
5,948,284 |
|
|
|
|
|
Total comprehensive income is attributable to: |
|
|
|
|
Owners of ROS AGRO PLC |
35,441,460 |
15,718,297 |
17,811,214 |
5,943,141 |
Non-controlling interest |
(19,362) |
(39,976) |
10,399 |
5,143 |
Total comprehensive income for the period |
35,422,098 |
15,678,321 |
17,821,613 |
5,948,284 |
|
|
|
|
|
Earnings per ordinary share for profit attributable to the owners of ROS AGRO PLC, basic and diluted |
1,317.22 |
584.22 |
661.97 |
220.88 |
Appendix 2. Segment information for the Nine months ended 30 September 2021 (in RUB thousand)
9M 2021 |
Sugar |
Meat |
Agriculture |
Oil and Fat |
Other |
Eliminations |
Total |
Sales |
24,112,366 |
28,457,927 |
18,710,584 |
93,958,669 |
539,010 |
(8,202,466) |
157,576,090 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce |
- |
1,333,291 |
10,514,328 |
- |
- |
(1,277,612) |
10,570,007 |
Cost of sales |
(18,287,704) |
(23,452,588) |
(9,122,627) |
(81,837,276) |
(353,887) |
9,793,448 |
(123,260,634) |
incl. Depreciation |
(2,112,959) |
(2,959,106) |
(1,540,086) |
(1,576,825) |
(6,929) |
(14,242) |
(8,210,147) |
Net gain/ (loss) from trading derivatives |
- |
(5) |
- |
- |
- |
- |
(5) |
Gross profit |
5,824,662 |
6,338,625 |
20,102,285 |
12,121,393 |
185,123 |
313,370 |
44,885,458 |
Distribution and Selling, General and administrative expenses |
(2,588,217) |
(4,218,594) |
(2,102,186) |
(4,096,259) |
(2,098,613) |
1,076,908 |
(14,026,961) |
incl. Depreciation |
(53,597) |
(699,441) |
(175,144) |
(229,359) |
(80,853) |
14,242 |
(1,224,152) |
Other operating income/(expenses), net |
496,365 |
1,069,839 |
104,406 |
(376,784) |
19,425,136 |
(19,517,400) |
1,201,562 |
incl. Reimbursement of operating costs (government grants) |
427,047 |
459,224 |
241,097 |
305,395 |
- |
- |
1,432,763 |
incl. Other adjustments to EBITDA (non-recurring items) |
70,568 |
480,429 |
(166,546) |
(611,998) |
19,354,119 |
(18,923,887) |
202,685 |
Reversal of provision/(provision) for impairment of loans issued |
- |
- |
- |
- |
3,649,567 |
- |
3,649,567 |
Operating profit / (loss) |
3,732,810 |
3,189,870 |
18,104,505 |
7,648,350 |
21,161,213 |
(18,127,122) |
35,709,626 |
Adjustments: |
|
|
|
|
|
|
|
Depreciation included in Operating Profit |
2,166,556 |
3,658,547 |
1,715,230 |
1,806,184 |
87,782 |
- |
9,434,299 |
Other adjustments to EBITDA (non-recurring items) |
(70,568) |
(480,429) |
166,546 |
611,998 |
(19,354,119) |
18,923,887 |
(202,685) |
Net gain/ (loss) on revaluation of biological assets and agricultural produce |
- |
(1,333,291) |
(10,514,328) |
- |
- |
1,277,612 |
(10,570,007) |
Reversal of provision/(provision) for impairment of loans issued |
- |
- |
- |
- |
(3,649,567) |
- |
(3,649,567) |
Adjusted EBITDA* |
5,828,798 |
5,034,697 |
9,471,953 |
10,066,532 |
(1,754,691) |
2,074,377 |
30,721,666 |
* Non-IFRS measure
Appendix 2 (continued). Segment information for the Nine months ended 30 September 2020 (in RUB thousand)
9M 2020 |
Sugar |
Meat |
Agriculture |
Oil and Fat |
Other |
Eliminations |
Total |
Sales |
21,078,432 |
22,846,644 |
14,751,307 |
54,553,615 |
397,453 |
(4,865,251) |
108,762,200 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce |
- |
823,030 |
3,638,467 |
- |
- |
967,466 |
5,428,963 |
Cost of sales |
(15,716,077) |
(18,920,291) |
(9,133,386) |
(43,184,229) |
(321,393) |
3,517,137 |
(83,758,239) |
incl. Depreciation |
(1,961,133) |
(2,552,374) |
(1,561,901) |
(354,210) |
(7,860) |
(15,048) |
(6,452,526) |
Net gain/ (loss) from trading derivatives |
10,552 |
- |
- |
- |
- |
- |
10,552 |
Gross profit |
5,372,907 |
4,749,383 |
9,256,388 |
11,369,386 |
76,060 |
(380,648) |
30,443,476 |
Distribution and Selling, General and administrative expenses |
(2,532,701) |
(1,822,449) |
(2,400,957) |
(4,573,097) |
(1,318,468) |
654,328 |
(11,993,344) |
incl. Depreciation |
(60,979) |
(161,437) |
(197,050) |
(127,617) |
(131,521) |
15,048 |
(663,556) |
Other operating income/(expenses), net |
619,005 |
396,263 |
2,119 |
(198,907) |
9,003,368 |
(8,639,285) |
1,182,563 |
incl. Reimbursement of operating costs (government grants) |
72,170 |
63,118 |
110,709 |
240,315 |
- |
- |
486,312 |
incl. Other adjustments to EBITDA (non-recurring items) |
475,967 |
279,059 |
(37,893) |
(287,661) |
8,994,118 |
(8,298,465) |
1,125,125 |
Reversal of provision/(provision) for impairment of loans issued |
- |
- |
- |
- |
(3,256,721) |
- |
(3,256,721) |
Operating profit / (loss) |
3,459,211 |
3,323,197 |
6,857,550 |
6,597,382 |
4,504,239 |
(8,365,605) |
16,375,974 |
Adjustments: |
|
|
|
|
|
|
|
Depreciation included in Operating Profit |
2,022,112 |
2,713,811 |
1,758,951 |
481,827 |
139,381 |
- |
7,116,082 |
Other adjustments to EBITDA (non-recurring items) |
(475,967) |
(279,059) |
37,893 |
287,661 |
(8,994,118) |
8,298,465 |
(1,125,125) |
Net gain/ (loss) on revaluation of biological assets and agricultural produce |
- |
(823,030) |
(3,638,467) |
- |
- |
(967,466) |
(5,428,963) |
Reversal of provision/(provision) for impairment of loans issued |
- |
- |
- |
- |
3,256,721 |
- |
3,256,721 |
Adjusted EBITDA* |
5,005,356 |
4,934,919 |
5,015,927 |
7,366,870 |
(1,093,777) |
(1,034,606) |
20,194,689 |
* Non-IFRS measure
Appendix 3. Consolidated statement of financial position as at 30 September 2021
(in RUB thousand)
|
30 September 2021 |
31 December 2020 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
56,964,661 |
11,866,798 |
Restricted cash |
48 |
143,637 |
Short-term investments |
31,265,683 |
19,583,523 |
Trade and other receivables |
12,107,283 |
9,512,286 |
Prepayments |
7,248,779 |
2,941,224 |
Current income tax receivable |
1,154,624 |
646,162 |
Other taxes receivable |
9,555,667 |
5,506,675 |
Inventories and short-term biological assets |
69,931,761 |
69,001,368 |
Total current assets |
188,228,506 |
119,201,673 |
|
|
|
Non-current assets |
|
|
Property, plant and equipment |
117,931,797 |
87,519,088 |
Inventories intended for construction |
2,175,721 |
3,353,330 |
Right-of-use assets |
7,632,339 |
6,934,567 |
Goodwill |
2,364,942 |
2,364,942 |
Advances paid for non-current assets |
7,813,151 |
6,905,003 |
Long-term biological assets |
3,383,996 |
2,528,128 |
Long-term investments and receivables |
42,977,410 |
42,692,320 |
Investments in associates |
359,782 |
257,782 |
Deferred income tax assets |
4,219,139 |
3,566,168 |
Other intangible assets |
641,508 |
619,793 |
Other non-current assets |
606,865 |
205,793 |
Total non-current assets |
190,106,650 |
156,946,914 |
Total assets |
378,335,156 |
276,148,587 |
|
|
|
LIABILITIES and EQUITY |
|
|
Current liabilities |
|
|
Short-term borrowings |
125,764,236 |
51,753,475 |
Lease liabilities |
1,101,079 |
943,859 |
Trade and other payables |
18,354,658 |
16,016,138 |
Provisions |
801,867 |
179,796 |
Current income tax payable |
267,017 |
69,546 |
Other taxes payable |
9,227,332 |
4,096,199 |
Total current liabilities |
155,516,189 |
73,059,013 |
|
|
|
Non-current liabilities |
|
|
Long-term borrowings |
64,471,455 |
63,175,720 |
Government grants |
8,885,948 |
8,536,899 |
Lease liabilities |
5,714,502 |
4,855,508 |
Deferred income tax liability |
1,817,451 |
487,049 |
Total non-current liabilities |
80,889,356 |
77,055,176 |
Total liabilities |
236,405,545 |
150,114,189 |
|
|
|
Equity |
|
|
Share capital |
12,269 |
12,269 |
Treasury shares |
(490,607) |
(490,607) |
Additional paid-in capital |
26,964,479 |
26,964,479 |
Other reserves |
1,363,178 |
1,363,177 |
Retained earnings |
114,099,612 |
98,185,038 |
Equity attributable to owners of ROS AGRO PLC |
141,948,931 |
126,034,356 |
Non-controlling interest |
(19,320) |
42 |
Total equity |
141,929,611 |
126,034,398 |
Total liabilities and equity |
378,335,156 |
276,148,587 |
Appendix 4. Consolidated statement of cash flows for the Nine months ended 30 September 2021 (in RUB thousand) - NOT IFRS PRESENTATION (*)
|
Nine months ended |
|
|
30 September 2021 |
30 September 2020 |
Cash flows from operating activities |
|
|
Profit before income tax |
37,522,369 |
15,727,234 |
Adjustments for: |
|
|
Depreciation and amortization |
9,434,299 |
7,116,082 |
Interest expense |
7,324,543 |
4,890,502 |
Government grants |
(5,238,990) |
(2,137,782) |
Interest income |
(6,307,773) |
(4,578,972) |
Loss/ (gain) on disposal of property, plant and equipment |
(66,677) |
(75,710) |
Net (gain) / loss on revaluation of biological assets and agricultural produce |
(10,570,007) |
(5,428,963) |
Change in provision for impairment of loans issued |
(3,649,739) |
3,256,721 |
Lease financial expense |
370,436 |
359,122 |
Realised deferred day-one gain |
(529,893) |
(780,723) |
Change in provision for net realisable value of inventory |
1,017,409 |
351,315 |
Change in provision for impairment of receivables and prepayments |
577,580 |
31,234 |
Foreign exchange (gain) / loss, net |
(36,965) |
1,525,153 |
Lost / (reversal of) harvest write-off |
237,476 |
189,841 |
Net (gain) / loss from bonds held for trading |
2,362 |
15,977 |
Settlement of loans and accounts receivable previously written-off |
(1) |
(2) |
Change in provision for impairment of advances paid for property, plant and equipment |
(38,260) |
(23,168) |
Change in other provisions |
622,072 |
199,882 |
Dividend income |
(377,269) |
(186,506) |
Other non-cash and non-operating expenses, net |
19,270 |
(80,855) |
Operating cash flow before working capital changes |
30,312,242 |
20,370,382 |
Change in trade and other receivables and prepayments |
(7,824,401) |
(481,067) |
Change in other taxes receivable |
(4,048,993) |
1,149,905 |
Change in inventories and biological assets |
7,983,147 |
3,169,914 |
Change in trade and other payables |
2,264,641 |
2,092,873 |
Change in other taxes payable |
5,092,643 |
(639,320) |
Cash generated from operations |
33,779,279 |
25,662,687 |
Income tax paid |
(1,524,306) |
(986,154) |
Net cash from operating activities |
32,254,973 |
24,676,533 |
|
|
|
Appendix 4 (continued). Consolidated statement of cash flows the Nine months ended 30 September 2021 (in RUB thousand) - NOT IFRS PRESENTATION (*)
|
||
|
||
|
Nine months ended |
|
|
30 September 2021 |
30 September 2020 |
Cash flows from investing activities |
|
|
Purchases of property, plant and equipment including SolPro assets acquisition |
(37,151,209) |
(8,707,154) |
Purchases of other intangible assets |
(448,233) |
(335,686) |
Purchases of land lease rights |
(36,933) |
- |
Proceeds from sales of property, plant and equipment |
260,298 |
375,220 |
Purchases of inventories intended for construction |
(399,645) |
(1,383,337) |
Purchases of associates |
(102,000) |
(63,000) |
Movement in restricted cash |
140,895 |
- |
Dividends received |
377,331 |
186,506 |
Other investing activities |
281,501 |
61,211 |
Net cash from investing activities |
(37,077,995) |
(9,866,240) |
Cash flows from financing activities |
|
|
Proceeds from borrowings |
96,623,976 |
38,830,604 |
Repayment of borrowings |
(23,593,441) |
(43,477,527) |
Interest paid |
(3,098,985) |
(2,960,414) |
Change in cash on bank deposits |
(28,000,000) |
- |
Proceeds from sales of bonds with maturity over three months* |
220,282 |
- |
Purchases of loans issued* |
(728,269) |
(8,191) |
Loans repaid* |
20,698,888 |
910,270 |
Interest received* |
5,570,976 |
2,757,453 |
Proceeds from government grants |
1,935,018 |
1,490,823 |
Dividends paid to owners Ros Agro PLC |
(19,417,565) |
(5,134,426) |
Repayment of lease liabilities |
(58,706) |
(28,111) |
Other financial activities |
(44,645) |
- |
Net cash from financing activities |
50,107,529 |
(7,619,519) |
Net effect of exchange rate changes on cash and cash equivalents |
(186,644) |
291,126 |
Net increase/ (decrease) in cash and cash equivalents |
45,097,863 |
7,481,900 |
Cash and cash equivalents at the beginning of the period |
11,866,798 |
2,170,779 |
Cash and cash equivalents at the end of the period |
56,964,661 |
9,652,679 |
(*) 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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