Last checked at 20 May 2019 13:38
20 May 2019
ROS AGRO financial results for Q1 2019
20 May 2019 - Today ROS AGRO PLC (the "Company"), the holding company of Rusagro Group (the "Group"), a leading Russian diversified food producer with vertically integrated operations, has announced the financial results for the three months ended 31 March 2019.
Q1 2019 Highlights
- Sales amounted to RR 32,167 million (US$ 495 million1), an increase of RR 16,899 million compared to Q1 2018;
- Adjusted EBITDA2 amounted to RR 4,094 million (US$ 63 million), an increase of RR 2,379 million compared to Q1 2018;
- Adjusted EBITDA margin increased from 11% in Q1 2018 to 13% in Q1 2019;
- Net profit for the period amounted to RR 1,422 million (US$ 22 million);
- Net debt position3 as of Q1 2019 amounted to RR 54,188 million (US$ 837 million);
- Net Debt/ Adjusted EBITDA (LTM4) as of Q1 2019 was 2.92x.
Commenting on the results, Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO of the Group, said:
"Q1 2019 showed good results as sales and adjusted EBITDA of the Group continued to improve. Agriculture and Sugar segments benefited from high sales prices leading to adjusted EBITDA margin growth. Meanwhile, Meat and Oil & Fats segments showed strong sales results, but experienced margins drop. Meat segment continued to grow processed pork sales volumes, but it was negatively influenced by higher grain prices. Oil & Fats sales were triggered by growth of bottled oil sales and tolling agreement with Solnechnye Producty plants. However, the margin of this segment dropped due to the lack of EBITDA from Solnechnye Producty assets on Ros Agro balance."
Key consolidated financial performance indicators
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sales | 32,167 | 15,268 | 16,899 | 111 |
Gross profit | 5,017 | 2,954 | 2,062 | 70 |
Gross margin, % | 14% | 19% | -5% |
|
Adjusted EBITDA | 4,094 | 1,715 | 2,379 | 139 |
Adjusted EBITDA margin, % | 13% | 11% | 2% |
|
Net profit / (loss) for the period* | 1,422 | 210 | 1,212 | 578 |
Net profit margin % | 4% | 1% | 3% |
|
* Net profit for the period is affected by non-cash loss on revaluation of biological assets and agricultural produce. See details in business-sections below.
Key financial performance indicators by segments
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
|
|
|
|
|
Sales, incl. | 32,167 | 15,268 | 16,899 | 111 |
Sugar | 4,525 | 5,213 | (688) | (13) |
Meat | 5,188 | 4,326 | 862 | 20 |
Agriculture | 5,555 | 1,467 | 4,088 | 279 |
Oil and Fat | 16,928 | 4,478 | 12,451 | 278 |
Milk products | 861 | - | 861 | - |
Other | 446 | 75 | 371 | 492 |
Eliminations | (1,337) | (291) | (1,045) | (359) |
|
|
|
|
|
Gross profit / (loss), incl. | 5,017 | 2,955 | 2,062 | 70 |
Sugar | 1,436 | 1,127 | 308 | 27 |
Meat | 294 | 966 | (671) | (70) |
Agriculture | 812 | 119 | 693 | 582 |
Oil and Fat | 1,797 | 1,020 | 778 | 76 |
Milk products | 71 | - | 71 | - |
Other | 21 | 9 | 13 | 147 |
Eliminations | 585 | (286) | 871 | - |
|
|
|
|
|
Adjusted EBITDA, incl. | 4,094 | 1,715 | 2,379 | 139 |
Sugar | 1,118 | 669 | 449 | 67 |
Meat | 837 | 1,141 | (305) | (27) |
Agriculture | 1,451 | 63 | 1,388 | 2,188 |
Oil and Fat | 313 | 393 | (81) | (21) |
Milk products | (6) | - | (6) | - |
Other | (623) | (244) | (379) | (156) |
Eliminations | 1,005 | (309) | 1,314 | - |
|
|
|
|
|
Adjusted EBITDA margin, % | 13% | 11% | 2% | 18 |
Sugar | 25% | 13% | 12% | 92 |
Meat | 16% | 26% | -10% | (38) |
Agriculture | 26% | 4% | 22% | 550 |
Oil and Fat | 2% | 9% | -7% | - |
Milk products | -2% | 0% | - | - |
Sugar Segment
The financial results of the sugar segment for Q1 2019 compared to Q1 2018 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sales | 4,525 | 5,213 | (688) | (13) |
Cost of sales | (3,086) | (4,085) | 999 | 24 |
Net gain from trading derivatives | (3) | (1) | (2) | (234) |
Gross profit | 1,436 | 1,127 | 308 | 27 |
Gross profit margin | 32% | 22% | 10% |
|
|
|
|
|
|
Distribution and selling expenses | (460) | (657) | 197 | 30 |
General and administrative expenses | (365) | (419) | 54 | 13 |
Other operating income / (expenses), net | (48) | 11 | (59) | - |
Operating profit | 562 | 62 | 500 | 805 |
|
|
|
|
|
Adjusted EBITDA | 1,118 | 669 | 449 | 67 |
Adjusted EBITDA margin | 25% | 13% | 12% |
|
Sales decreased in Q1 2019 compared to Q1 2018 mainly due to sugar sales volume decreased by 62 thousand tons or 37%. Revenue decrease was partially compensated by growth in sales prices of sugar by 31%.
Sugar sales, production volumes and average sales prices per kilogram (excl. VAT) wereas follows:
| Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sugar production volume (in thousand tonnes) | 18 | 9 | 9 | 98 |
Sales volume (in thousand tonnes) | 104 | 166 | (62) | (37) |
Sale price (roubles per kg, excl. VAT) | 36.5 | 27.9 | 8.6 | 31 |
Distribution and selling expenses in Q1 2019 compared to Q1 2018 decreased by RR 197 million mainly due to decrease in sales volume.
General and administrative expenses in Q1 2019 compared to Q1 2018 decreased by RR 54 million mainly due to decrease in payroll expenses.
The sales price increase was the main reason of a positive dynamics in profitability of the segment.
Meat Segment
The financial results of the meat segment for Q1 2019 compared to Q1 2018 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sales | 5,188 | 4,326 | 862 | 20 |
Net gain / (loss) on revaluation of biological assets and agricultural produce | (359) | (27) | (332) | (1,252) |
Cost of sales | (4,535) | (3,334) | (1,201) | (36) |
Gross profit / (loss) | 294 | 966 | (671) | (70) |
Gross profit margin | 6% | 22% | -17% |
|
Gross profit excl. effect of biological assets revaluation | 283 | 992 | (709) | (71) |
Adjusted gross profit margin | 5% | 23% | -17% |
|
|
|
|
|
|
Distribution and selling expenses | (157) | (112) | (45) | (40) |
General and administrative expenses | (365) | (212) | (153) | (72) |
Other operating income, net | 15 | 34 | (18) | (54) |
Operating profit / (loss) | (212) | 675 | (888) | - |
|
|
|
|
|
Adjusted EBITDA | 837 | 1,141 | (305) | (27) |
Adjusted EBITDA margin | 16% | 26% | -10% |
|
Sales in the meat segment increased by 20% in Q1 2019 compared to the respective periods of prior year because of an increase in sales prices and sales volumes of processed pork.
Pork sales volumes and the average pork sales prices per kilogram (excl. VAT) were as follows:
| Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sales volume (in thousand tonnes), incl. | 41 | 39 | 2 | 4 |
livestock pigs | 4 | 7 | (2) | (32) |
processed pork | 36 | 33 | 4 | 11 |
Sale prices (roubles per kg, excl. VAT): |
|
|
|
|
livestock pigs | 70.7 | 79.7 | (9.0) | (11) |
processed pork | 133.0 | 116.5 | 16.5 | 14 |
Net loss on revaluation of biological assets and agricultural produce in Q1 2019 resulted mainly from a decrease in market prices for live pigs during the period and a respective decrease in fair value of livestock in the closing balance compared to the beginning of the year.
An increase in Distribution and selling expenses in Q1 2019 compared to prior year periods includes an increase in sales volume related to growth in staff of logistic department.
Agricultural Segment
As at 31 March 2019 the segment's area of controlled land stands at 649 thousand hectares(31 March 2018: 675 thousand hectares). Land bank was reduced as the result of disposal of non-arable land. The financial results of the agricultural segment for Q1 2019 compared to Q1 2018 are presented below:
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sales | 5,555 | 1,467 | 4,088 | 279 |
Net gain / (loss) on revaluation of biological assets and agricultural produce | (1,403) | (281) | (1,122) | (399) |
Cost of sales | (3,340) | (1,067) | (2,273) | (213) |
Net gain/ (loss) from trading derivatives | - | - | - | - |
Gross profit / (loss) | 812 | 119 | 693 | 582 |
Gross profit margin | 15% | 8% | 7% |
|
Gross profit excl. effect of biological assets and agricultural produce revaluation | 2,215 | 400 | 1,815 | 454 |
Adjusted gross profit margin | 40% | 27% | 13% |
|
|
|
|
|
|
Distribution and selling expenses | (892) | (209) | (682) | (326) |
General and administrative expenses | (272) | (291) | 19 | 6 |
Other operating income, net | (38) | (15) | (23) | (148) |
incl. reimbursement of operating costs (government grants) | 36 | 27 | 8 | 30 |
Operating profit / (loss) | (390) | (397) | 6 | 2 |
|
|
|
|
|
Adjusted EBITDA | 1,451 | 63 | 1,388 | 2,188 |
Adjusted EBITDA margin | 26% | 4% | 22% |
|
A significant increase in sales volumes was due to an increase in sales prices of all crops and sales volume of grains and soybeans compared to Q1 2018.
Sales volumes by product were as follows:
Thousand tonnes | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
sugar beet | - | 2 | (2) | (100) |
wheat | 179 | 39 | 140 | 363 |
barley | 49 | 32 | 17 | 52 |
sunflower seeds | 0 | 2 | (2) | (80) |
corn | 85 | 42 | 44 | 105 |
soy | 38 | 17 | 21 | 125 |
The average sale prices per kilogram (excl. VAT) were as follows:
RR per kilogram, excl. VAT | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
sugar beet | - | 1.0 | - | - |
wheat | 13.1 | 6.3 | 6.8 | 107 |
barley | 11.5 | 6.5 | 5.0 | 77 |
sunflower seeds | 18.7 | 18.3 | 0.5 | 3 |
corn | 12.7 | 9.4 | 3.2 | 34 |
soy | 22.8 | 20.2 | 2.5 | 12 |
Net loss on revaluation of biological assets and agricultural produce in Q1 2019 and 2018 figures represents the realisation of gain from crops revaluation, recognised in the previous year financial statements and remained unrealised as at the year-end.
Net gain/(loss) on revaluation of crops and its subsequent realisation do not affect the Adjusted EBITDA figure.
Distribution and selling expenses increased by RR 682 million in Q1 2019 against 2018 as a result of higher sales volumes of all types of crops sold during the current quarter.
General and administrative expenses decreased by RR 19 million in Q1 2019 compared to 2018, which is attributed mainly to the lower payroll costs as a result of lower number of employees in administrative function.
Oil and Fat segment
The financial results of the oil and fat segment for Q1 2019 as compared to Q1 2018 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sales | 16,928 | 4,478 | 12,451 | 278 |
Cost of sales | (15,131) | (3,458) | (11,673) | (338) |
Gross profit | 1,797 | 1,020 | 778 | 76 |
Gross profit margin | 11% | 23% | -12% |
|
|
|
|
|
|
Distribution and selling expenses | (1,307) | (556) | (751) | (135) |
General and administrative expenses | (320) | (193) | (127) | (66) |
Other operating income/ (expenses), net | (18) | 15 | (33) | - |
Operating profit / (loss) | 152 | 286 | (134) | (47) |
|
|
|
|
|
Adjusted EBITDA | 313 | 393 | (81) | (21) |
Adjusted EBITDA margin | 2% | 9% | -7% |
|
The breakdown of Sales, Gross profit and Adjusted EBITDA between the Samara oil plant, the Ekaterinburg fat plant and Far East operations is as follows:
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
|
|
|
|
|
Sales, incl. | 16,928 | 4,478 | 12,451 | 278 |
Samara oil plant | 10,496 | 2,207 | 8,289 | 376 |
Ekat. fat plant | 9,356 | 1,685 | 7,671 | 455 |
Far East | 852 | 909 | (57) | (6) |
Eliminations(*) | (3,776) | (324) | (3,452) | (1,065) |
|
|
|
|
|
Gross profit, incl. | 1,797 | 1,020 | 778 | 76 |
Samara oil plant | 839 | 399 | 439 | 110 |
Ekat. fat plant | 916 | 511 | 406 | 79 |
Far East | 43 | 136 | (93) | (68) |
Eliminations(*) | (1) | (26) | 26 | 98 |
|
|
|
|
|
Adjusted EBITDA, incl. | 313 | 393 | (81) | (21) |
Samara oil plant | 201 | 166 | 35 | 21 |
Ekat. fat plant | 110 | 163 | (53) | (33) |
Far East | (6) | 60 | (67) | - |
Eliminations(*) | 8 | 4 | 4 | 104 |
|
|
|
|
|
Adjusted EBITDA margin, % | 2% | 9% | -7% | (79) |
Samara oil plant | 2% | 8% | -6% | (75) |
Ekat. fat plant | 1% | 10% | -9% | (88) |
Far East | -1% | 6.6% | -7% | - |
Intra-segment sales include sales of bulk oil from Samara oil plant and bulk and bottled oil from Far East to Ekaterinburg fat plant.
Sales volumes to third parties by product were as follows:
thousand tons | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
mayonnaise | 26 | 10 | 16 | 167 |
margarine | 10 | 8 | 2 | 30 |
bottled oil | 36 | 9 | 27 | 313 |
bulk oil | 148 | 36 | 112 | 315 |
meal | 187 | 65 | 122 | 187 |
The average sale prices per kilogram (excl. VAT) for sales to third parties were as follows:
RR per kilogram, excl. VAT | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
mayonnaise | 79.4 | 79.7 | (0.3) | (0) |
margarine | 81.3 | 77.4 | 3.9 | 5 |
bottled oil | 54.7 | 53.7 | 0.9 | 2 |
bulk oil | 43.3 | 41.1 | 2.2 | 5 |
meal | 15.8 | 15.6 | 0.2 | 1 |
Increase in Distribution and selling expenses by RR 751 million in Q1 2019 compared to the prior period is attributed to higher transportation and loading services expenses related to an increase in sales volume in Oil and Fat segment.
Increase in General and administrative expenses by RR 127 million in Q1 2019 compared to the prior period is attributed to higher number of employees in administrative function in Oil and Fat segment.
Milk Products Segment
The financial results of the Milk Products segment for Q1 2019 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Sales | 861 | - | - | - |
Net gain / (loss) on revaluation of biological assets and agricultural produce | - | - | - | - |
Cost of sales | (790) | - | - | - |
Gross profit / (loss) | 71 | - | - | - |
Gross profit margin | 8% | - | - | - |
|
| - | - | - |
Distribution and selling expenses | (64) | - | - | - |
General and administrative expenses | (13) | - | - | - |
Other operating income, net | (9) | - | - | - |
Operating profit / (loss) | (15) | - | - | - |
|
| - | - | - |
Adjusted EBITDA | (6) | - | - | - |
Adjusted EBITDA margin | -2% | - | - | - |
Group is now focusing on entering the retail chains with a consumer product, developing brands and increasing sales profitability.
Key consolidated cash flow indicators (not IFRS presentation*)
The key consolidated cash flow indicators presented according to management accounts methodology were as follows:
in mln Roubles | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Net cash from operating activities, incl. | 2,498 | 3,914 | (1,417) | (36) |
Operating cash flow before working capital changes | 3,594 | 2,121 | 1,473 | 69 |
Working capital changes | (1,058) | 1,887 | (2,945) | - |
Net cash from investing activities, incl. | (4,823) | (3,129) | (1,693) | (54) |
Purchases of property, plant and equipment and inventories intended for construction | (2,968) | (3,099) | 131 | 4 |
Net cash from financing activities | 1,467 | (4,167) | 5,635 | - |
Net effect of exchange rate changes on cash and cash equivalents | (25) | (1) | (24) | (1,862) |
Net (decrease) / increase in cash and cash equivalents | (883) | (3,384) | 2,501 | 74 |
(*) See Appendix 4
The main investments in property, plant and equipment and inventories intended for construction in Q1 2019 were made in the Meat segment in the amount of RR 2,031 million (Q1 2018: RR 2,055 million), related to the construction project in the Tambov and Far East regions. Significant investments were also made in Sugar segment in the amount of RR 1,367 million (Q1 2018: RR 700 million) in constructions of second line of desugarisation. Investments in the Oil and Fat segment amounted to RR 856 million (Q1 2018: RR 306 million) and in the Agriculture segment amounted to RR 569 million (Q1 2018: RR 37million), related to purchases of machinery and equipment.
Debt position and liquidity management
in RR million | 31 March 2019 | 31 December 2018 | Variance | |
Units | % | |||
Gross debt | 91,483 | 95,101 | (3,618) | (4) |
Short-term borrowings | 27,416 | 32,514 | (5,098) | (16) |
Long-term borrowings | 64,067 | 62,588 | 1,479 | 2 |
Cash and cash equivalents, bank deposits and bonds | (37,295) | (40,760) | 3,465 | 9 |
Short-term cash, deposits and bonds | (1,082) | (4,543) | 3,461 | 76 |
Long-term cash, deposits and bonds | (36,213) | (36,217) | 4 | 0 |
Net debt | 54,188 | 54,342 | (154) | (0) |
Short-term borrowings, net | 26,333 | 27,971 | (1,638) | (6) |
Long-term borrowings, net | 27,854 | 26,371 | 1,483 | 6 |
Adjusted EBITDA (LTM4) | 18,559 | 16,179 | 2,380 | 15 |
Net debt/ Adjusted EBITDA (LTM) | 2.92 | 3.36 | (0.4) |
|
Net finance income/ (expense)
in RR million | Three months ended | Variance | ||
31 March 2019 | 31 March 2018 | Units | % | |
Net interest expense | (1,576) | (682) | (894) | (131) |
Gross interest expense | (1,798) | (825) | (973) | (118) |
Reimbursement of interest expense | 222 | 143 | 79 | 55 |
Interest income | 2,995 | 942 | 2,053 | 218 |
Net gains / (losses) from bonds held for trading | (4) | 31 | (35) | - |
Other financial income, net | 32 | 2 | 30 | 1,420 |
Net foreign exchange gains / (losses) | (58) | (20) | (37) | (183) |
Other financial income/ (expenses), net | 90 | 23 | 67 | 298 |
Total net finance income | 1,447 | 293 | 1,154 | 393 |
__________________________________
(1) The exchange rates used for translation of RR 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) other operating income/ (expenses), net (other than reimbursement of operating costs (government grants)), (iii) net gain/ (loss) on revaluation of biological assets and agricultural produce, (iv) provision/ (reversal of provision) for net realizable value of agricultural products in stock, (v) share-based remuneration (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 Group 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: AGRO) - a holding company of Rusagro Group, a leading Russian diversified food producer with vertically integrated operations in the following branches:
Sugar:
Rusagro is one of the leading Russian sugar producers (№3 with 13% share in sugar production in Russia and №1 with 48% share of cubed sugar market), producing sugar from sugar beet at nine production sites in four regions. Group produces white and brown cube sugar and packaged sugar sold under the brands Russkii Sakhar, Chaikofsky, Mon Cafe and Brauni. Sugar segment is vertically integrated and sugar beet is supplied byRusagro's Agriculture segment, which ensures a consistent supply of raw material. Sugar segment also operates a cereal plant and sell buckwheat and rice under the brand Tyoplye Traditsii.
Meat:
Rusagro is the fourth largest pork producer in Russia with 5% share of pork produced in Russia. It operates 18 commercial pork complexes with correspondence to high biosecurity standards, has own compound feed production, slaughterhouses and meat processing plants in Tambov and Belgorod Regions. Since 2016 Rusagro sells retail products under its own brand Slovo Myasnika (Butcher's word).
Agricultural:
The Group currently controls one of the largest land banks among Russian agriculture producers, with 649 thousand hectares of land under control located in the highly fertile Black Earth region of Russia (in the Belgorod, Tambov, Voronezh, Kursk and Orel regions)and in the Far East Primorie Region. Land and production sites are strategically located withinthe same regions to optimize efficiency and minimize logistical costs. Rusagro is oneof 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 one of the leading producers of mayonnaise and consumer margarine in Russia sold under a number of brands, such as EZhK, Schedroye Leto,Mechta Khozyaiki, Gotovim Doma, Maslava and Soyaco.. The Group operates anOil extraction plant in Samara and two oil and fats plant in Ekaterinburg and in the Far East Primorie Region. Own sunflower and soy oil production allowsto control the source of the vegetable oil required to produce oil and fats products. In 2018 Rusagro acquired the debt of Solnechnye Producty from Russian Agriculture bank and is planning to purchase assets of some of its plants increasing the production and its market share.
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 relateto 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 outin 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 eventsor circumstances after the date of this document.
Rusagro management is organizing a conference call about its Q1 2019 financial results for investors and analysts.
Details of call:
Date | 20 May 2019 |
Time | 4:00 PM (Moscow) / 2:00 PM (London) |
Subject | ROS AGRO PLC Financial results Q1 2019 |
UK Toll Free UK Local Line | 0800 376 6183 +44 207 194 3759 |
USA Toll Free USA Local Line | 1 844 286 06 43 +1 646 722 49 16 |
Russia Toll Free | + 8 800 500 9863
|
Russian Local Line | +7 495 646 9315 |
Conference ID | 36466489# |
Contacts:
Svetlana Kuznetsova, Chief Investment Officer Phone: +7 495 363 1661, e-mail: ir@rusagrogroup.ru |
Appendix 1. Сonsolidated statement of comprehensive income for the Three month ended 31 March 2019 (in RR thousand)
| Three month ended 31 March | |
| 2019 | 2018 |
Sales | 32,166,957 | 15,267,554 |
Net gain / (loss) on revaluation of biological assets and agricultural produce | (1,959,103) | (358,724) |
Cost of sales | (25,187,898) | (11,953,331) |
Net gain from trading derivatives | (3,281) | (982) |
Gross profit | 5,016,675 | 2,954,517 |
|
|
|
Distribution and selling expenses | (2,791,943) | (1,659,487) |
General and administrative expenses | (1,853,265) | (1,323,689) |
Other operating income/ (expenses), net | (284,263) | (32,123) |
Operating profit | 87,204 | (60,782) |
Interest expense | (1,575,777) | (681,935) |
Interest income | 2,995,073 | 941,962 |
Net gain from bonds | (3,501) | 31,359 |
Other financial income/ (expenses), net | 31,692 | 2,085 |
Share of results of associates | - | - |
Profit before income tax | 1,534,691 | 232,689 |
|
|
|
Income tax expense | (111,722) | (24,135) |
Profit for the year | 1,422,969 | 208,554 |
|
|
|
Other comprehensive income: |
|
|
Items that may be subsequently reclassified to profit and loss: |
|
|
Change in value of available-for-sale financial assets | - | - |
Income tax relating to other comprehensive income | - | - |
Total comprehensive income for the period | 1,422,969 | 208,554 |
|
|
|
Profit is attributable to: |
|
|
Owners of ROS AGRO PLC | 1,419,341 | 203,933 |
Non-controlling interest | 3,628 | 4,621 |
Profit for the period | 1,422,969 | 208,554 |
|
|
|
Total comprehensive income is attributable to: |
|
|
Owners of ROS AGRO PLC | 1,419,341 | 203,933 |
Non-controlling interest | 3,628 | 4,621 |
Total comprehensive income for the period | 1,422,969 | 208,554 |
|
|
|
Earnings per ordinary share for profit attributable to the owners of ROSAGRO PLC, basic and diluted(in RR per share) | 52.77 | 7.58 |
Appendix 2. Segment information for the Three month ended 31 March 2019 (in RR thousand)
Three months ended 31 March 2019 | Sugar | Meat | Agriculture | Oil and Fat | Other | Elimination | Total |
Sales | 4,524,875 | 5,188,310 | 5,555,004 | 16,928,447 | 1,307,205 | (1,336,883) | 32,166,958 |
Net gain / (loss) on revaluation of biological assets and agricultural produce | - | (358,887) | (1,402,881) | - | - | (197,335) | (1,959,103) |
Cost of sales | (3,086,085) | (4,535,142) | (3,340,157) | (15,131,051) | (1,215,177) | 2,119,713 | (25,187,899) |
incl. depreciation | (487,921) | (690,011) | (310,748) | (115,985) | (1,974) | (3,599) | (1,610,238) |
Net gain/ (loss) from trading derivatives | (3,278) | - | - | - | (3) | - | (3,281) |
Gross profit / (loss) | 1,435,512 | 294,281 | 811,966 | 1,797,396 | 92,025 | 585,495 | 5,016,675 |
General and administrative expenses, Distribution and selling expenses | (825,306) | (521,987) | (1,164,133) | (1,627,043) | (728,596) | 221,857 | (4,645,208) |
incl. depreciation | (19,385) | (15,538) | (54,040) | (26,447) | (5,369) | 3,599 | (117,180) |
Other operating (expenses)/ income, net | (47,944) | 15,403 | (38,267) | (18,292) | (321,916) | 126,752 | (284,264) |
incl. Reimbursement of operating costs (government grants) | - | - | 35,591 | - | - | - | 35,591 |
Operating profit / (loss) | 562,262 | (212,303) | (390,434) | 152,061 | (958,487) | 934,104 | 87,203 |
Adjustments: |
|
|
|
|
|
|
|
Depreciation included in Operating Profit | 507,307 | 705,549 | 364,788 | 142,432 | 7,343 | - | 1,727,419 |
Other operating income, net | 47,944 | (15,403) | 38,267 | 18,292 | 321,916 | (126,752) | 284,264 |
Reimbursement of operating costs (government grants) | - | - | 35,591 | - | - | - | 35,591 |
Net gain / (loss) on revaluation of biological assets and agricultural produce | - | 358,887 | 1,402,881 | - | - | 197,335 | 1,959,103 |
Adjusted EBITDA | 1,117,513 | 836,730 | 1,451,093 | 312,785 | (629,228) | 1,004,687 | 4,093,580 |
* Non-IFRS measure
Appendix 2 (continued). Unaudited segment information for the three months ended 31 March 2018 (in RR thousand)
Three months ended 31 March 2018 | Sugar | Meat | Agriculture | Oil and Fat | Other | Eliminations | Total |
Sales | 5,212,748 | 4,326,388 | 1,466,963 | 4,477,551 | 75,334 | (291,430) | 15,267,554 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | (26,538) | (280,873) | - | - | (51,313) | (358,724) |
Cost of sales | (4,084,644) | (3,334,280) | (1,067,102) | (3,457,700) | (66,811) | 57,206 | (11,953,331) |
incl. depreciation | (592,320) | (462,499) | (102,584) | (91,107) | - | (1,898) | (1,250,408) |
Net gain/ (loss) from trading derivatives | (982) | - | - | - | - | - | (982) |
Gross profit / (loss) | 1,127,122 | 965,570 | 118,988 | 1,019,851 | 8,523 | (285,537) | 2,954,517 |
Distribution and Selling, General and administrative expenses | (1,076,074) | (324,087) | (500,425) | (748,976) | (258,867) | (74,745) | (2,983,174) |
incl. depreciation | (25,631) | (10,896) | (34,046) | (31,491) | (6,544) | 1,898 | (106,710) |
Other operating income/(expenses), net | 11,100 | 33,774 | (15,411) | 14,720 | (40,944) | (35,364) | (32,125) |
incl. reimbursement of operating costs (government grants) | - | - | 27,357 | - | - | - | 27,357 |
Operating profit / (loss) | 62,148 | 675,257 | (396,848) | 285,595 | (291,288) | (395,646) | (60,782) |
Adjustments: |
|
|
|
|
|
|
|
Depreciation included in Operating Profit | 617,952 | 473,395 | 136,631 | 122,598 | 6,544 | - | 1,357,120 |
Other operating (income) /expenses, net | (11,100) | (33,774) | 15,411 | (14,720) | 40,944 | 35,362 | 32,123 |
Reimbursement of operating costs (government grants) | - | - | 27,357 | - | - | - | 27,357 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | 26,538 | 280,873 | - | - | 51,313 | 358,724 |
Adjusted EBITDA* | 669,000 | 1,141,416 | 63,424 | 393,473 | (243,800) | (308,969) | 1,714,544 |
* Non-IFRS measure
Appendix 3. Consolidated statement of financial position as at 31 March 2019(in RR thousand)
| 31 March 2019 | 31 December 2018 | ||
ASSETS |
|
| ||
Current assets |
|
| ||
Cash and cash equivalents | 845,507 | 1,728,396 | ||
Restricted cash | 147,873 | 49 | ||
Short-term investments | 4,331,993 | 8,551,238 | ||
Trade and other receivables | 6,104,466 | 6,226,403 | ||
Prepayments | 2,659,433 | 2,194,971 | ||
Current income tax receivable | 536,132 | 533,459 | ||
Other taxes receivable | 3,267,553 | 4,420,011 | ||
Inventories and short-term biological assets | 53,854,004 | 53,076,878 | ||
Total current assets | 71,746,961 | 76,731,405 | ||
|
|
| ||
Non-current assets |
|
| ||
Property, plant and equipment | 70,470,634 | 68,606,452 | ||
Inventories intended for construction | 4,050,486 | 4,136,855 | ||
Goodwill | 2,364,942 | 2,364,942 | ||
Advances paid for non-current assets | 9,097,960 | 9,681,448 | ||
Long-term biological assets | 2,543,026 | 2,650,201 | ||
Long-term investments and receivables | 55,072,021 | 54,494,252 | ||
Investments in associates | 7,320 | 7,320 | ||
Deferred income tax assets | 2,403,217 | 1,866,593 | ||
Other intangible assets | 3,983,015 | 2,202,786 | ||
Other non-current assets | - | 215,417 | ||
Non-current assets held for sale | 820,950 | 820,950 | ||
Total non-current assets | 150,813,571 | 147,047,216 | ||
Total assets | 222,560,532 | 223,778,621 | ||
|
|
| ||
Liabilities and EQUITY |
|
| ||
Current liabilities |
|
| ||
Short-term borrowings | 27,415,570 | 32,513,595 | ||
Trade and other payables | 13,846,290 | 12,190,160 | ||
Current income tax payable | 90,588 | 60,913 | ||
Other current liability | 3,021,956 | 4,023,910 | ||
Total current liabilities | 44,374,404 | 48,788,611 | ||
|
|
| ||
Non-current liabilities |
|
| ||
Long-term borrowings | 64,067,132 | 62,587,531 | ||
Government grants | 7,304,969 | 7,310,975 | ||
Deferred income tax liability | 705,154 | 359,051 | ||
Other non-current liability | 2,314,293 | 2,465,813 | ||
Total non-current liabilities | 74,391,548 | 72,723,370 | ||
Total liabilities | 118,765,952 | 121,511,981 | ||
|
|
| ||
Equity |
|
| ||
Share capital | 12,269 | 12,269 | ||
Treasury shares | (490,606) | (490,606) | ||
Additional paid-in capital | 26,964,542 | 26,964,479 | ||
Other reserves | 1,308,188 | 1,326,579 | ||
Retained earnings | 75,868,434 | 74,286,089 | ||
Equity attributable to owners of ROS AGRO PLC | 103,662,827 | 102,098,809 | ||
Non-controlling interest | 131,753 | 167,831 | ||
Total equity | 103,794,580 | 102,266,640 | ||
Total liabilities and equity | 222,560,532 | 223,778,621 | ||
Appendix 4. Consolidated statement of cash flows for the three months ended 31 March 2019(in RR thousand) - NOT IFRS PRESENTATION (*)
| Three months ended | Three months ended |
| 31 March 2018 | 31 March 2018 |
Cash flows from operating activities |
|
|
Profit before income tax | 1,534,691 | 232,690 |
Adjustments for: | - | - |
Depreciation and amortization | 2,037,886 | 1,912,444 |
Interest expense | 1,796,826 | 825,352 |
Government grants | (389,014) | (259,450) |
Interest income | (3,014,886) | (941,962) |
Loss/ (gain) on disposal of property, plant and equipment | 105,074 | 1,071 |
Net (gain) / loss on revaluation of biological assets and agricultural produce | 1,959,103 | 358,724 |
Change in provision for net realisable value of inventory | (18,844) | (5,240) |
Share of results of associates | - | - |
Change in provision for impairment of receivables and prepayments | 39,375 | 2,400 |
Foreign exchange (gain) / loss, net | 51,379 | 27,603 |
Net (gain) / loss from bonds held for trading | 3,505 | (31,359) |
Settlement of loans and accounts receivable previously written-off | (11) | - |
Change in provision for impairment of advances paid for property, plant and equipment | 12,492 | (2,611) |
Loss on other investments | (149,920) | 9,136 |
Other non-cash and non-operating expenses, net | (374,686) | (8,045) |
Operating cash flow before working capital changes | 3,593,640 | 2,120,753 |
Change in trade and other receivables and prepayments | 476,579 | 610,851 |
Change in other taxes receivable | 1,152,457 | 937,444 |
Change in inventories and biological assets | (2,428,906) | 1,058,593 |
Change in trade and other payables | 640,444 | (18,811) |
Change in other taxes payable | (898,864) | (701,228) |
Cash generated from operations | 2,535,350 | 4,007,603 |
Income tax paid | (37,818) | (93,464) |
Net cash from operating activities | 2,497,532 | 3,914,140 |
Cash flows from investing activities | - | - |
Purchases of property, plant and equipment | (2,921,781) | (2,636,808) |
Purchases of other intangible assets | (1,868,174) | (4,691) |
Proceeds from sales of property, plant and equipment | 36,763 | 4,993 |
Purchases of inventories intended for construction | (45,962) | (461,957) |
Purchases of associates | - | (23,279) |
Investments in subsidiaries, net of cash acquired | 77 | 80 |
Movement in restricted cash | (147,787) | (7,632) |
Net cash from investing activities | (4,822,579) | (3,129,294) |
Cash flows from financing activities | - | - |
Proceeds from borrowings | (1,103,286) | 2,578,317 |
Repayment of borrowings | (2,115,588) | (2,115,588) |
Interest paid | (1,494,145) | (545,177) |
Change in cash on bank deposits* | 2,571,104 | (2,777,613) |
Loans given* | 2,747,066 | (1,402,520) |
Loans repaid* | 2,500 | 2,500 |
Interest received* | 716,805 | 130,686 |
Proceeds from government grants | 157,795 | 27,352 |
Purchases of non-controlling interest | (6,636) | (56,816) |
Proceeds from sales of treasury shares | - | - |
Lease payments | (8,437) | (8,611) |
Other financial activities | 158 | - |
Net cash from financing activities | 1,467,212 | (4,167,469) |
Net effect of exchange rate changes on cash and cash equivalents | (25,053) | (1,277) |
Net increase/ (decrease) in cash and cash equivalents | (882,889) | (3,383,900) |
Cash and cash equivalents at the beginning of the period | 1,728,396 | 4,860,335 |
Cash and cash equivalents at the end of the period | 845,507 | 1,476,435 |
(*) 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.