Last checked at 29 May 2014 07:00
29 May 2014, Moscow
ROS AGRO financial results for Q1 2014
Moscow, 29 May 2014 - 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 2014.
Q1 2014 Highlights
- Sales amounted to RR 11,076 million (US$ 316 million (*)), an increase of RR 4,659 million compared to Q1 2013;
- Adjusted EBITDA (**) amounted to RR 2,430 million (US$ 69 million), an increase of RR 1,889 million compared to Q1 2013;
- Adjusted EBITDA margin increased from 8% up to 22%;
- Net profit for the period amounted to RR 2,241 million (US$ 64 million);
- Net debt position (***) as of 31 March 2014 was RR 13,100 million (US$ 367 million);
- Net Debt/ Adjusted EBITDA (LTM) (****) as of 31 March 2014 was 1.5x.
Commenting on the results, Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO of the Group, said:
"The company had the best first quarter in its history benefiting from increased production and high prices. All business units performed well. The positive dynamics will continue throughout the season."
Key consolidated financial performance indicators
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Sales | 11,076 | 6,417 | 4,659 | 73 |
Gross profit | 3,959 | 829 | 3,129 | 377 |
Gross margin, % | 36% | 13% | 23% | |
Adjusted EBITDA | 2,430 | 541 | 1,889 | 349 |
Adjusted EBITDA margin, % | 22% | 8% | 14% | |
Net profit/(loss) for the period | 2,241 | (578) | 2,819 | - |
Net profit margin % | 20% | -9% | 29% | |
Key financial performance indicators by segment
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Sales, incl. | 11,076 | 6,417 | 4,659 | 73 |
Sugar | 4,498 | 2,778 | 1,720 | 62 |
Meat | 2,390 | 1,074 | 1,316 | 123 |
Agriculture | 750 | 852 | (102) | (12) |
Oil | 3,826 | 1,950 | 1,875 | 96 |
Other | 14 | 39 | (24) | (63) |
Eliminations | (401) | (275) | (125) | (46) |
Gross profit, incl. | 3,959 | 829 | 3,129 | 377 |
Sugar | 1,223 | 386 | 837 | 217 |
Meat | 1,632 | (120) | 1,752 | - |
Agriculture | 119 | 156 | (37) | (24) |
Oil | 1,036 | 444 | 592 | 133 |
Other | 14 | 39 | (24) | (63) |
Eliminations | (65) | (75) | 9 | 12 |
Adjusted EBITDA, incl. | 2,430 | 541 | 1,889 | 349 |
Sugar | 885 | 79 | 806 | 1,019 |
Meat | 683 | 49 | 634 | 1,306 |
Agriculture | 249 | 222 | 27 | 12 |
Oil | 552 | 243 | 308 | 127 |
Other | (116) | (105) | (10) | (10) |
Eliminations | 177 | 53 | 124 | 232 |
Adjusted EBITDA margin, % | 22% | 8% | 14% | |
Sugar | 20% | 3% | 17% | |
Meat | 29% | 5% | 24% | |
Agriculture | 33% | 26% | 7% | |
Oil | 14% | 12% | 2% | |
Sugar Segment
The financial results of the sugar segment for Q1 2014 as compared to Q1 2013 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Sales | 4,498 | 2,778 | 1,720 | 62 |
Cost of sales | (3,440) | (2,482) | (957) | (39) |
Gains less losses from trading sugar derivatives | 165 | 91 | 74 | 82 |
Gross profit | 1,223 | 386 | 837 | 217 |
Gross profit margin | 27% | 14% | 13% | |
Distribution and selling expenses | (358) | (266) | (92) | (34) |
General and administrative expenses | (189) | (209) | 20 | 9 |
Other operating income, net | - | 4 | (4) | - |
Operating profit/(loss) | 676 | (85) | 761 | - |
Adjusted EBITDA | 885 | 79 | 806 | 1,019 |
Adjusted EBITDA margin | 20% | 3% | 17% | |
Sales in the sugar segment increased as a result of sales volume increase and an increase in sale prices.
Sugar sales and production volumes and the average sales prices per kilogram (excl. VAT) were as follows:
Three months ended | Variance | |||
31 March 2014 | 31 March 2013 | Units | % | |
Sugar production volume (in thousand tonnes), incl. | 90 | 34 | 56 | 166 |
beet sugar | 15 | 34 | (19) | (57) |
cane sugar | 75 | - | 75 | - |
Sales volume (in thousand tonnes) | 174 | 112 | 62 | 56 |
Sale price (roubles per kg, excl. VAT) | 25.3 | 23.5 | 1.8 | 8 |
Meat Segment
The financial results of the meat segment for Q1 2014 as compared to Q1 2013 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Sales | 2,390 | 1,074 | 1,316 | 123 |
Gain on revaluation of biological assets and agricultural produce | 1,816 | (248) | 2,064 | - |
Cost of sales | (2,574) | (946) | (1,628) | (172) |
Gross profit/(loss) | 1,632 | (120) | 1,752 | - |
Gross profit margin | 68% | -11% | 80% | |
Gross profit excl. effect of biological assets revaluation | 445 | 17 | 428 | 2,574 |
Adjusted gross profit margin | 19% | 2% | 17% | |
Distribution and selling expenses | (8) | (10) | 3 | 27 |
General and administrative expenses | (87) | (91) | 4 | 4 |
Other operating income, net | 19 | - | 19 | - |
Operating profit/(loss) | 1,557 | (221) | 1,778 | - |
Adjusted EBITDA | 683 | 49 | 634 | 1,306 |
Adjusted EBITDA margin | 29% | 5% | 24% | |
An increase in Sales by 123% was driven by a significant increase both in pork sales volume and pork sales prices. The sales volume of pork increased by 72% as a result of the launch in 2013 of new pig breeding facilities.
Pork sales volumes and the average pork sales prices per kilogram (excl. VAT) were as follows:
Three months ended | Variance | |||
31 March 2014 | 31 March 2013 | Units | % | |
Sales volume (in thousand tonnes) | 34 | 20 | 14 | 72 |
Sale prices (roubles per kg, excl. VAT) | 70.6 | 54.2 | 16.4 | 30 |
The increase in sales prices and volumes also led to significant amount of Gain on revaluation of biological assets (pigs) in Q1 2014 compared to loss on revaluation in Q1 2013.
The breakdown of adjusted EBITDA between Belgorod Meat and Tambov Meat is as follows:
in RR million | Three months ended 31 March 2014 | Three months ended 31 March 2013 | ||
Belgorod Meat | Tambov Meat | Belgorod Meat | Tambov Meat | |
Sales to third parties and other segments | 1,197 | 1,193 | 859 | 215 |
Adjusted EBITDA | 417 | 266 | 149 | (101) |
Adjusted EBITDA margin | 35% | 22% | 17% | - |
An increase in pork sales prices together with a decrease in feed costs led to increased profitability of the meat segment.
Agricultural Segment
The financial results of the agricultural segment for Q1 2014 as compared to Q1 2013 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Sales | 750 | 852 | (102) | (12) |
Cost of sales | (631) | (696) | 65 | 9 |
Gross profit | 119 | 156 | (37) | (24) |
Gross profit margin | 16% | 18% | -2% | |
Gross profit excl. effect of biological assets and agricultural produce revaluation | 226 | 421 | (195) | (46) |
Adjusted gross profit margin | 30% | 49% | -19% | |
Distribution and selling expenses | (97) | (113) | 17 | 15 |
General and administrative expenses | (118) | (161) | 43 | 27 |
Other operating income/(expenses), net | 108 | (3) | 111 | - |
incl. reimbursement of operating costs (government grants) | 149 | - | 149 | - |
Operating profit/(loss) | 12 | (122) | 134 | - |
Adjusted EBITDA | 249 | 222 | 27 | 12 |
Adjusted EBITDA margin | 33% | 26% | 7% | |
In Q1 2014 Sales decreased by 12% as compared to Q1 2013 as a result of a decrease in sale prices of grains and a decrease in sales volume of sugar beet. This was partly offset by an increase in the sales volume of grains.
Sales volumes by product were as follows:
Thousand tonnes | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
sugar beet | 12 | 76 | (64) | (84) |
grain | 107 | 78 | 29 | 37 |
incl. sold to the meat segment | 55 | 8 | 48 | 622 |
sunflower seeds | 0.4 | 0.0 | 0.4 | - |
Sales volumes of grain include sales of wheat, barley, corn, peas and soya beans. All sugar beet is sold to the sugar segment.
The average sale prices per kilogram (excl. VAT) were as follows:
RR per kilogram, excl. VAT | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
wheat | 5.7 | 8.2 | (2.5) | (31) |
barley | 5.5 | 7.5 | (2.0) | (27) |
sunflower seeds | 9.6 | 15.6 | (6.0) | (38) |
peas | 8.2 | 9.1 | (0.9) | (10) |
corn | 4.9 | - | 4.9 | - |
In Q1 2014 Distribution and selling expenses included RR 3 million of expenses from bad-debt provisions accrual as compared to RR 26 million in Q1 2013. A decrease in transportation costs by RR 38 million (from RR 53 million in Q1 2013 to RR 15 million in Q1 2014) as a result of a decrease in sales volume of sugar beet was nearly compensated for by an increase in storage expenses and other services by RR 37 million (from RR 20 million in Q1 2013 up to RR 57 million in Q1 2014) resulted from an increase in sales volume of grains.
A decrease in General and administrative expenses came from a decrease in payroll costs by RR 32 million from RR 107 million in Q1 2013 to RR 75 million in Q1 2014. As a result of changes in the organization structure of the Belgorod division of the agricultural segment payroll costs of some departments were reclassified from administrative expenses into production costs.
In Q1 2014 Other operating income, net included RR 149 million of subsidies for compensation of operating expenses, compared to nil in Q1 2013.
Oil segment
The financial results of the oil segment for Q1 2014 as compared to Q1 2013 are presented in the table below:
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Sales | 3,826 | 1,950 | 1,875 | 96 |
Cost of sales | (2,789) | (1,506) | (1,283) | (85) |
Gross profit | 1,036 | 444 | 592 | 133 |
Gross profit margin | 27% | 23% | 4% | |
Distribution and selling expenses | (487) | (173) | (315) | (182) |
General and administrative expenses | (97) | (100) | 2 | 2 |
Other operating (expenses)/income, net | (14) | 35 | (48) | - |
Operating profit | 438 | 207 | 231 | 112 |
Adjusted EBITDA | 552 | 243 | 308 | 127 |
Adjusted EBITDA margin | 14% | 12% | 2% | |
The breakdown of Sales, Gross profit and Adjusted EBITDA between the Samara oil plant and Ekaterinburg fat plant is as follows:
in RR million | Three months ended 31 March 2014 | Three months ended 31 March 2013 | ||
Samara oil plant | Ekat. fat plant | Samara oil plant | Ekat. fat plant | |
Sales to third parties and other segments | 2,379 | 1,447 | 804 | 1,146 |
Internal sales (to Ekat. fat plant) | 401 | - | 335 | - |
Gross profit | 589 | 447 | 154 | 290 |
Gross profit margin | 21% | 31% | 13% | 25% |
Adjusted EBITDA | 397 | 154 | 119 | 124 |
Adjusted EBITDA margin | 14% | 11% | 10% | 11% |
Sales increased as a result of sales volume increase that was partly offset by a decrease in sales prices.
Sales volumes by product were as follows:
Thousand tonnes | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
mayonnaise | 10.9 | 11.1 | (0.2) | (2) |
margarine | 11 | 9 | 2 | 25 |
raw oil, sales to third parties and other segments | 66 | 16 | 49 | 302 |
raw oil, internal sales (to Ekat. fat plant) | 15 | 10 | 5 | 51 |
meal | 74 | 28 | 46 | 168 |
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 2014 | 31 March 2013 | Units | % | |
mayonnaise | 58.3 | 55.7 | 2.6 | 5 |
margarine | 50.2 | 50.0 | 0.2 | 0.3 |
raw oil, third-party sales | 27.6 | 33.9 | (6.3) | (19) |
meal | 7.6 | 9.0 | (1.4) | (15) |
An increase in Distribution and selling expenses is linked to an increase in sales volume and investments in marketing and advertising of the Mechta Khozyayki brand. Transportation and loading services increased by RR 198 million (from RR 85 million in Q1 2013 up to RR 283 million in Q1 2014). Advertising expenses increased by RR 42 million (from RR 25 million in Q1 2013 up to RR 67 in Q1 2014). The commencement of amortisation of the trademarks for Mechta Khozyayki was the main reason for the increase in the amount of RR 21 million in depreciation included in Distribution and selling expenses (from RR 8 million in Q1 2013 up to RR 29 million in Q1 2014).
In Q1 2013 Other operating income, net included gain from the settlement of accounts receivable previously written off in the amount of RR 50 million, compared to nil in Q1 2014.
Key consolidated cash flow indicators (not IFRS presentation*)
The key consolidated cash flow indicators presented according to management accounts methodology were as follows:
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Net cash from operating activities, incl. | 2,632 | 1,318 | 1,314 | 100 |
Operating cash flow before working capital changes | 2,289 | 586 | 1,703 | 291 |
Working capital changes | 744 | 835 | (91) | (11) |
Net cash used in investing activities, incl. | (1,323) | (445) | (878) | (197) |
Purchases of property, plant and equipment and inventories intended for construction | (786) | (515) | (271) | (53) |
Net cash used in financing activities | (400) | (1,805) | 1,406 | 78 |
Net increase/ (decrease) in cash and cash equivalents | 934 | (925) | 1,859 | - |
(*) See Appendix 4
The main investments in property, plant and equipment and inventories intended for construction in Q1 2014 were made in the agricultural segment in the amount of RR 451 million (Q1 2013: RR 156 million), representing purchases of machinery and equipment, and in the meat segment in the amount of RR 193 million (Q1 2013: RR 262 million), related to the construction of a slaughter house in Tambov region. Investments in the sugar segment amounted of RR 122 million (Q1 2013: RR 62 million) and related to the modernisation of sugar plants.
Debt position and liquidity management
in RR million | 31 March 2014 | 31 December 2013 | Variance | |
Units | % | |||
Gross debt | 23,969 | 32,513 | (8,544) | (26) |
Short term borrowings | 11,253 | 18,144 | (6,891) | (38) |
Long term borrowings | 12,716 | 14,369 | (1,653) | (12) |
Net debt | 13,100 | 14,576 | (1,477) | (10) |
Short term borrowings, net | 1,080 | 904 | 176 | 19 |
Long term borrowings, net | 12,019 | 13,672 | (1,653) | (12) |
Adjusted EBITDA (LTM***) | 8,673 | 6,784 | 1,889 | 28 |
Net debt/Adjusted EBITDA (LTM) | 1.5 | 2.1 | -0.6 | |
The Group maintained a healthy debt structure: 37% of net debt relates to amounts with more than three years' maturity.
Net finance expense
in RR million | Three months ended | Variance | ||
31 March 2014 | 31 March 2013 | Units | % | |
Net interest expense | (330) | (737) | 407 | 55 |
Gross interest expense | (662) | (988) | 326 | 33 |
Reimbursement of interest expense | 332 | 251 | 81 | 32 |
Interest income | 253 | 580 | (327) | (56) |
Other financial expenses, net | (121) | (6) | (115) | (1,917) |
Total net finance expense | (198) | (163) | (35) | (21) |
In Q1 2014 the Group continued to enjoy benefits from the state agriculture subsidies programme. RR 332 million of subsidies received covered 50% of gross interest expense.
(*)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 effective at the reporting date for balance figures.
(**) Adjusted EBITDA is defined as operating profit before taking into account (i) depreciation, (ii) other operating income, net (other than reimbursement of operating costs (government grants)), (iii) the difference between gain on revaluation of biological assets and agricultural produce recognised during the period and the gain on initial recognition of agricultural produce attributable to realised agricultural produce together with revaluation of biological assets attributable to realised biological assets included in cost of sales for the period (iv) provision/(reversal of provision) for net realizable value, (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. You should not consider it 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.
(***) The Group determines the net debt as short-term borrowings and long-term borrowings less cash and cash equivalents, bank deposits and bank promissory notes within short-term and long-term investments.
(****) 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:
We are a leading Russian sugar producer, producing sugar on six production sites from both sugar beets and raw cane sugar. We produce white cube sugar and white packaged sugar sold under the brands Chaikofsky, Russkii Sakhar, Brauni. Our sugar segment is vertically integrated with sugar beet cultivation in our agriculture segment, through which we strive to ensure a consistent supply of sugar beets.
Meat:
Our pig breeding project was launched in 2006 and, according to the National Union of Pig Breeders, is currently the fifth largest pig breeding complex in Russia. We have implemented best practices in biosecurity at our pig farms.
Agricultural:
The Group currently controls what it believes to be one of the largest land banks among Russian agriculture producers, with 455 thousand hectares of land under our control located in the highly fertile Black Earth region of Russia, in the Belgorod, Tambov and Voronezh regions. Land and production sites are strategically located within the same regions to optimize efficiency and minimize logistical costs. We believe we are one of the major sugar beet producers in Russia, and our agricultural segment also produces winter wheat and barley, sunflower products and soybeans. These products are partially consumed by the meat segment, supporting a synergistic effect and lowering price change risk.
Oil:
We are a leading producer of mayonnaise and consumer margarine in Russia, such as Provansal EZhK and Schedroe Leto. In January 2013 the Company has begun production of mayonnaise under brand "Mechta Khozyayki". Our oil extraction plant located in Samara (Samara oil plant) enables us to control the source of 100% of the vegetable oil required by our oil and fats production plant in Ekaterinburg (Ekaterinburg fat plant).
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.
Rusagro management is organizing a conference call about its Q1 2014 financial results for investors and analysts.
Details of call:
Date | 29 May 2014 |
Time | 1:00 PM (Moscow) / 10:00 AM (London) at the same day |
Subject | ROS AGRO PLC First Quarter Financial Results |
UK Toll Free UK Local Line | 0800-358-5263 44-20-7190-1595 |
USA Toll Free USA Local Line | 1-877-941-6013 1-480-629-9822 |
Russia Toll Free | 7-495-662-57-93 |
Conference ID | 4685409 |
Contacts:
Sergey Tribunsky Chief Investment Officer LLC Group of Companies Rusagro Phone: +7 495 363 16 61 stribunsky@rusagrogroup.ru
| Vladimir Gromov First Deputy CEO LLC Group of Companies Rusagro Phone: +7 495 363 16 61 vgromov@rusagrogroup.ru |
Appendix 1. Unaudited consolidated statement of comprehensive income for the three months ended 31 March 2014 (in RR thousand)
Three months ended 31 March 2014 | Three months ended 31 March 2013 | |
Sales | 11,076,121 | 6,416,788 |
Gain/(loss) on revaluation of biological assets and agricultural produce | 1,816,169 | (248,015) |
Cost of sales | (9,098,509) | (5,430,289) |
Gains less losses from trading sugar derivatives | 164,736 | 90,545 |
Gross profit | 3,958,518 | 829,029 |
Distribution and selling expenses | (894,413) | (509,376) |
General and administrative expenses | (613,280) | (694,062) |
Share-based remuneration | (25,683) | (62,539) |
Other operating income, net | 166,657 | 39,542 |
Operating profit | 2,591,799 | (397,406) |
Interest expense | (329,559) | (737,763) |
Interest income | 253,333 | 580,489 |
Other financial expenses, net | (120,529) | (6,241) |
Profit before income tax | 2,395,044 | (560,921) |
Income tax expense | (153,871) | (17,020) |
Profit/(loss) for the period | 2,241,172 | (577,941) |
Total comprehensive income/(loss) for the period | 2,241,172 | (577,941) |
Profit/(loss) is attributable to: | ||
Owners of ROS AGRO PLC | 2,243,037 | (581,002) |
Non-controlling interest | (1,865) | 3,061 |
Profit/(loss) for the period | 2,241,172 | (577,941) |
Total comprehensive income/(loss) is attributable to: | ||
Owners of ROS AGRO PLC | 2,243,037 | (581,002) |
Non-controlling interest | (1,865) | 3,061 |
Total comprehensive income/(loss) for the period | 2,241,172 | (577,941) |
Earnings per ordinary share for profit/(loss) attributable to the owners of ROS AGRO PLC, basic and diluted (in RR per share) | 95.17 | (24.62) |
Appendix 2. Unaudited segment information for the three months ended 31 March 2014 (in RR thousand)
Three months ended 31 March 2014 | Sugar | Meat | Other agriculture | Oil | Other | Eliminations | Total |
Sales | 4,497,572 | 2,389,778 | 749,651 | 3,825,564 | 14,127 | (400,570) | 11,076,121 |
Gain on revaluation of biological assets and agriculture produce | - | 1,816,169 | - | - | - | - | 1,816,169 |
Cost of sales | (3,439,539) | (2,573,990) | (631,109) | (2,789,175) | - | 335,306 | (9,098,509) |
incl. depreciation | (182,526) | (328,241) | (76,488) | (65,862) | - | (10,895) | (664,011) |
Gains less losses from trading sugar derivatives | 164,736 | - | - | - | - | - | 164,736 |
Gross profit | 1,222,768 | 1,631,957 | 118,541 | 1,036,389 | 14,127 | (65,265) | 3,958,518 |
Distribution and Selling, General and administrative expenses | (546,947) | (94,502) | (214,566) | (584,973) | (135,622) | 68,916 | (1,507,693) |
incl. depreciation | (26,491) | (3,950) | (11,984) | (34,426) | (5,843) | 2,411 | (80,283) |
Share-based remuneration | - | - | - | - | (25,683) | - | (25,683) |
Other operating income/(expenses), net | 186 | 19,423 | 107,782 | (13,625) | 685,366 | (632,476) | 166,657 |
incl. reimbursement of operating costs (government grants) | - | - | 149,143 | - | - | - | 149,143 |
Operating profit | 676,007 | 1,556,878 | 11,758 | 437,791 | 538,189 | (628,824) | 2,591,799 |
Adjustments: | |||||||
Depreciation included in Operating Profit | 209,017 | 332,191 | 88,472 | 100,287 | 5,843 | 8,483 | 744,293 |
Other operating (income) /expenses, net | (186) | (19,423) | (107,782) | 13,625 | (685,366) | 632,476 | (166,657) |
Share-based remuneration | - | - | - | - | 25,683 | - | 25,683 |
Reimbursement of operating costs (government grants) | - | - | 149,143 | - | - | - | 149,143 |
Gain on revaluation of biological assets and agriculture produce | - | (1,816,169) | - | - | - | - | (1,816,169) |
Gain on initial recognition of agricultural produce attributable to realised agricultural produce | - | - | 110,202 | - | - | 164,658 | 274,860 |
Revaluation of biological assets attributable to realised biological assets and included in cost of sales | - | 629,168 | (2,371) | - | - | - | 626,797 |
Adjusted EBITDA* | 884,838 | 682,645 | 249,422 | 551,704 | (115,652) | 176,793 | 2,429,748 |
* Non-IFRS measure
Appendix 2 (continued). Unaudited segment information for the three months ended 31 March 2013 (in RR thousand)
Three months ended 31 March 2013 | Sugar | Meat | Other agriculture | Oil | Other | Eliminations | Total |
Sales | 2,777,600 | 1,073,807 | 852,000 | 1,950,124 | 38,558 | (275,302) | 6,416,788 |
Gain on revaluation of biological assets and agriculture produce | - | (248,015) | - | - | - | - | (248,015) |
Cost of sales | (2,482,418) | (946,228) | (696,499) | (1,505,924) | (20) | 200,800 | (5,430,289) |
incl. depreciation | (179,402) | (129,522) | (66,165) | (56,270) | - | (9,253) | (440,611) |
Gains less losses from trading sugar derivatives | 90,545 | - | - | - | - | - | 90,545 |
Gross profit | 385,727 | (120,436) | 155,501 | 444,200 | 38,538 | (74,501) | 829,028 |
Distribution and Selling, General and administrative expenses | (474,905) | (101,179) | (274,574) | (272,276) | (148,806) | 68,301 | (1,203,438) |
incl. depreciation | (18,913) | (3,579) | (9,620) | (15,105) | (4,982) | 1,575 | (50,623) |
Share-based remuneration | - | - | - | - | (62,539) | - | (62,539) |
Other operating income/(expenses), net | 3,734 | 319 | (2,786) | 34,810 | 990,736 | (987,271) | 39,542 |
Operating profit | (85,444) | (221,296) | (121,859) | 206,735 | 817,930 | (993,472) | (397,406) |
Adjustments: | |||||||
Depreciation included in Operating Profit | 198,314 | 133,101 | 75,785 | 71,374 | 4,982 | 7,677 | 491,234 |
Other operating (income) /expenses, net | (3,734) | (319) | 2,786 | (34,810) | (990,736) | 987,271 | (39,542) |
Share-based remuneration | - | - | - | - | 62,539 | - | 62,539 |
Gain on revaluation of biological assets and agriculture produce | - | 248,015 | - | - | - | - | 248,015 |
Gain on initial recognition of agricultural produce attributable to realised agricultural produce | - | - | 245,017 | - | - | 51,744 | 296,761 |
Revaluation of biological assets attributable to realised biological assets and included in cost of sales | - | (110,936) | 20,588 | - | - | - | (90,348) |
Reversal of provision for net realisable value | (30,090) | - | - | - | - | - | (30,090) |
Adjusted EBITDA* | 79,047 | 48,565 | 222,317 | 243,299 | (105,286) | 53,221 | 541,163 |
* Non-IFRS measure
Appendix 3. Unaudited consolidated statement of financial position as at 31 March 2014 (in RR thousand)
31 March 2014 | 31 December 2013 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 3,606,934 | 2,672,764 |
Short-term investments | 7,454,472 | 15,266,561 |
Trade and other receivables | 2,072,919 | 1,771,235 |
Prepayments | 869,352 | 824,622 |
Current income tax receivable | 41,353 | 45,433 |
Other taxes receivable | 1,130,487 | 1,487,408 |
Inventories | 14,428,196 | 13,865,425 |
Short-term biological assets | 3,845,786 | 2,212,805 |
Total current assets | 33,449,500 | 38,146,253 |
Non-current assets | ||
Property, plant and equipment | 27,978,417 | 28,365,116 |
Inventories intended for construction | 36,872 | 36,600 |
Goodwill | 1,175,578 | 1,175,578 |
Advances paid for property, plant and equipment | 2,590,380 | 2,334,610 |
Advances paid for intangible assets | - | 2,580 |
Long-term biological assets | 1,529,274 | 1,553,595 |
Long-term investments | 887,008 | 870,815 |
Investments in associates | 23,601 | - |
Deferred income tax assets | 287,595 | 353,674 |
Other intangible assets | 288,204 | 289,058 |
Restricted cash | 81,335 | 2,404 |
Total non-current assets | 34,878,263 | 34,984,030 |
Total assets | 68,327,763 | 73,130,283 |
Liabilities and EQUITY | ||
Current liabilities | ||
Short-term borrowings | 11,252,860 | 18,144,254 |
Trade and other payables | 4,575,872 | 2,352,775 |
Current income tax payable | 79,180 | 346,980 |
Other taxes payable | 1,023,986 | 1,327,263 |
Total current liabilities | 16,931,899 | 22,171,272 |
Non-current liabilities | ||
Long-term borrowings | 12,715,763 | 14,368,799 |
Government grants | 1,644,670 | 1,735,151 |
Deferred income tax liability | 240,819 | 290,028 |
Total non-current liabilities | 14,601,251 | 16,393,978 |
Total liabilities | 31,533,150 | 38,565,250 |
Equity | ||
Share capital | 9,734 | 9,734 |
Treasury shares | (505,880) | (461,847) |
Share premium | 10,557,573 | 10,557,573 |
Share-based payment reserve | 1,262,458 | 1,236,775 |
Retained earnings | 25,456,516 | 23,214,348 |
Equity attributable to owners of ROS AGRO PLC | 36,780,401 | 34,556,583 |
Non-controlling interest | 14,212 | 8,450 |
Total equity | 36,794,613 | 34,565,033 |
Total liabilities and equity | 68,327,763 | 73,130,283 |
Appendix 4. Unaudited consolidated statement of cash flows for the three months ended 31 March 2014 according to the Group's management accounts (in RR thousand) - NOT IFRS PRESENTATION
Three months ended | Three months ended | |
31 March 2014 | 31 March 2013 | |
Cash flows from operating activities | ||
Profit/ (loss) before taxation | 2,395,045 | (560,921) |
Adjustments for: | ||
Depreciation of property, plant and equipment | 744,293 | 491,234 |
Interest expense | 661,760 | 988,346 |
Government grants | (517,070) | (270,847) |
Interest income | (253,333) | (580,489) |
Loss/ (gain) on initial recognition of agricultural produce, net | 274,860 | 296,761 |
Change in provision for net realisable value of inventory | - | (30,090) |
Revaluation of biological assets, net | (1,189,372) | 157,667 |
Change in provision for impairment of receivables and prepayments | 29,977 | 21,992 |
Unrealised foreign exchange loss/(gain) | 120,163 | (7,351) |
Share based remuneration | 25,683 | 62,539 |
Change in provision for impairment of advances paid for property, plant and equipment | 1,764 | 12,516 |
Other non-cash and non-operating (income)/expenses, net | (5,169) | 4,674 |
Operating cash flow before working capital changes | 2,288,601 | 586,031 |
Change in trade and other receivables and prepayments | (472,508) | 245,264 |
Change in other taxes receivable | 352,471 | 393,524 |
Change in inventories | (617,311) | 1,291,357 |
Change in biological assets | (414,390) | (607,614) |
Change in trade and other payables | 2,221,647 | 46,883 |
Change in other taxes payable | (325,940) | (534,532) |
Cash generated from operations | 3,032,570 | 1,420,913 |
Income tax paid | (400,721) | (103,011) |
Net cash from operating activities | 2,631,849 | 1,317,902 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (786,172) | (497,763) |
Purchases of other intangible assets | (44,377) | (5,738) |
Proceeds from sales of property, plant and equipment | 2,845 | 14,136 |
Purchases of inventories intended for construction | (272) | (17,580) |
Purchases of associates | (23,601) | - |
Loans given | (405,982) | (200) |
Loans repaid | 13,990 | 474 |
Movement in restricted cash | (78,931) | 62,036 |
Net cash used in investing activities | (1,322,500) | (444,635) |
Cash flows from financing activities | ||
Proceeds from borrowings | 2,661,617 | 1,838,829 |
Repayment of borrowings | (11,319,240) | (5,328,510) |
Interest paid | (560,024) | (1,061,472) |
Change in cash on bank deposits* | 8,001,728 | 2,308,141 |
Interest received* | 427,090 | 391,749 |
Proceeds from government grants | 426,589 | 45,877 |
Sale of non-controlling interest | 6,758 | - |
Purchases of treasury shares | (44,033) | - |
Dividends paid | - | (107) |
Net cash used in financing activities | (399,516) | (1,805,493) |
Net effect of exchange rate changes on cash and cash equivalents | 24,339 | 7,299 |
Net increase/(decrease) in cash and cash equivalents | 934,172 | (924,927) |
Cash and cash equivalents at the beginning of the period | 2,672,764 | 2,019,867 |
Cash and cash equivalents at the end of the period | 3,606,935 | 1,094,940 |
(*) 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.