15 Mar 2021 16:55
15 March 2021
ROS AGRO financial results for 12M 2020 and 4Q 2020
15 March 2021 - Today ROS AGRO PLC (the "Company"), the holding companyof Rusagro Group (the "Group"), a leading Russian diversified food producer with vertically integrated operations, has announced the financial results for the year ended 31 December 2020.
12M 2020 Highlights
- Sales amounted to RR 158,971 million (US$ 2,198 million1), an increase of RR 20,799 million (+15%) compared to 12M 2019;
- Adjusted EBITDA2 amounted to RR 31,984 million (US$ 442 million), an increase of
RR 12,613 million (+65%) compared to 12M 2019;
- Adjusted EBITDA margin rose from 14% in 12M 2019 to 20% in 12M 2020;
- Net profit for the period amounted to RR 24,297 million (US$ 336 million), an increase of RR 14,588 million (+150%);
- Net debt position3 as of 31 December 2020 amounted to RR 68,900 million (US$ 933 million);
- Net Debt/Adjusted EBITDA (LTM4) as of 31 December 2020 was 2.15x.
Commenting on the results, Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO of the Group, said:
"In 2020 Rusagro achieved impressive results and managed to earn the highest adjusted EBITDA in the Company's history. 4Q followed the positive trend set during 9M 2020, sales and adjusted EBITDA of the Group improved significantly. Sales of all segments except Sugar have increased mainly due to sales prices growth of Oil and Fat products, pork and all crops despite the decrease of sales volumes in Oil and Fat and Agricultural Segments. Sales volumes in Meat Segments increased substantially as a result of higher volumes of processed pork due to production expansion in Tambov Region. Sugar price has also improved as a result of lower sugar beet harvest.
Adjusted EBITDA margins of Oil and Fat, Meat and Agricultural Segments improved mostly as the result of sales prices growth in all product lines while costs were quite stable. Sugar Segment quarterly margin remained flat.
In 2020 the Company operated in the world pandemic environment, which had two key effects. The first one was the growth of demand for consumer products, and the second one was rouble devaluation, as a result, of oil price drop.
Despite several identified cases among employees, travel and logistical disruptions, government restrictions Ros Agro managed to operate all plants at high capacity, continue construction and harvest crops well. The company implemented new production protocols, improved liquidity position and supported the medical infrastructure of the main regions of operation."
Key consolidated financial performance indicators
in RR million | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Sales 1 | 158,971 | 138,172 | 20,799 | 15 | 50,209 | 39,096 | 11,112 | 28 |
Gross profit | 43,739 | 23,582 | 20,157 | 85 | 13,296 | 8,137 | 5,159 | 63 |
Gross margin, % | 28% | 17% | 11 pp | 26% | 21% | 5 pp | ||
Adjusted EBITDA 2 | 31,984 | 19,371 | 12,613 | 65 | 11,789 | 7,379 | 4,410 | 60 |
Adjusted EBITDA margin, % | 20% | 14% | 6 pp | 23% | 19% | 4 pp | ||
Net profit for the period 3 | 24,297 | 9,709 | 14,588 | 150 | 5,772 | 4,096 | 1,676 | 41 |
Net profit margin % | 15% | 7% | 8 pp | 11% | 10% | 1 pp |
1 Sales and COS for 12M19 related to Oil & Fats (RR 7,396 million) and Other (RR 1,120 million) have been netted versus each other with no effect on Gross profit in accordance with p. 17(a) and 17(b) of IFRS15
2 Adjusted EBITDA for 9M20 was decreased by RR 544 million due to revaluation procedure, performed at the year end
Adjusted EBITDA calculation now also includes components of other operating income/(expenses), except for the non-recurring items, effect for 12M19 RR -673 million
3 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 | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Sales, incl. | 158,971 | 138,172 | 20,799 | 15 | 50,209 | 39,096 | 11,112 | 28 |
Sugar | 28,113 | 31,195 | (3,082) | (10) | 7,034 | 7,953 | (919) | (12) |
Meat | 32,434 | 25,834 | 6,601 | 26 | 9,588 | 7,538 | 2,049 | 27 |
Agriculture | 34,348 | 25,845 | 8,503 | 33 | 19,596 | 10,804 | 8,793 | 81 |
Oil and Fat | 76,160 | 62,375 | 13,785 | 22 | 24,208 | 17,796 | 6,411 | 36 |
Milk Products | 3,786 | 3,870 | (83) | (2) | 1,022 | 1,041 | (19) | (2) |
Other | 631 | 300 | 331 | 111 | 234 | 76 | 158 | 207 |
Eliminations | (16,501) | (11,245) | (5,256) | (47) | (11,473) | (6,112) | (5,361) | (88) |
Gross profit, incl. | 43,739 | 23,582 | 20,157 | 85 | 13,296 | 8,137 | 5,159 | 63 |
Sugar | 6,885 | 5,429 | 1,456 | 27 | 1,512 | 2,128 | (616) | (29) |
Meat | 4,377 | 3,264 | 1,114 | 34 | (372) | 541 | (913) | - |
Agriculture | 18,870 | 5,702 | 13,169 | 231 | 9,614 | 2,757 | 6,856 | 249 |
Oil and Fat | 14,778 | 8,914 | 5,864 | 66 | 3,715 | 3,363 | 353 | 10 |
Milk Products | 401 | 369 | 33 | 9 | 94 | 118 | (24) | (21) |
Other | 153 | 155 | (1) | (1) | 77 | 30 | 48 | 161 |
Eliminations | (1,725) | (249) | (1,476) | (592) | (1,345) | (802) | (543) | (68) |
Adjusted EBITDA, incl. | 31,984 | 19,371 | 12,613 | 65 | 11,789 | 7,379 | 4,410 | 60 |
Sugar | 6,352 | 3,988 | 2,364 | 59 | 1,347 | 1,517 | (170) | (11) |
Meat | 6,473 | 4,820 | 1,653 | 34 | 1,539 | 1,262 | 276 | 22 |
Agriculture | 15,191 | 5,913 | 9,278 | 157 | 10,176 | 1,916 | 8,259 | 431 |
Oil and Fat | 9,388 | 3,385 | 6,003 | 177 | 1,995 | 1,888 | 107 | 6 |
Milk Products | (13) | 53 | (67) | - | 13 | 16 | (4) | (22) |
Other | (1,300) | (1,149) | (151) | (13) | (206) | (93) | (113) | (121) |
Eliminations | (4,108) | 2,360 | (6,468) | - | (3,073) | 872 | (3,945) | - |
Adjusted EBITDA margin, % | 20% | 14% | 6 pp | 23% | 19% | 4 pp | ||
Sugar | 23% | 13% | 10 pp | 19% | 19% | 0 pp | ||
Meat | 20% | 19% | 1 pp | 16% | 17% | (1) pp | ||
Agriculture | 44% | 23% | 21 pp | 52% | 18% | 34 pp | ||
Oil and Fat | 12% | 5% | 7 pp | 8% | 11% | (3) pp | ||
Milk Products | 0% | 1% | (1) pp | 1% | 2% | (1) pp |
Sugar Segment
The financial results of the Sugar Segment of 12M20 and 4Q20 compared to 12M19 and 4Q19 respectively are presented in the table below:
in RR million | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Sales | 28,113 | 31,195 | (3,082) | (10) | 7,034 | 7,953 | (919) | (12) |
Cost of sales | (21,238) | (25,758) | 4,520 | 18 | (5,522) | (5,822) | 300 | 5 |
Net gain/ (loss) from trading derivatives | 11 | (7) | 18 | - | - | (2) | 2 | - |
Gross profit | 6,885 | 5,429 | 1,456 | 27 | 1,512 | 2,128 | (616) | (29) |
Gross profit margin | 24% | 17% | 7 pp | 21% | 27% | (6) pp | ||
Distribution and selling expenses | (1,964) | (2,077) | 113 | 5 | (478) | (803) | 325 | 40 |
General and administrative expenses | (1,436) | (1,440) | 4 | 0 | (389) | (322) | (67) | (21) |
Other operating income/ (expenses), net | 602 | 544 | 58 | 11 | (31) | 32 | (63) | - |
incl. Other adjustments to EBITDA (non-recurring items)
| 425 | 468 | (43) | (9) | (65) | 15 | (80) | - |
Operating profit | 4,088 | 2,457 | 1,631 | 66 | 614 | 1,036 | (422) | (41) |
Adjusted EBITDA | 6,352 | 3,988 | 2,364 | 59 | 1,347 | 1,517 | (170) | (11) |
Adjusted EBITDA margin | 23% | 13% | 10 pp | 19% | 19% | 0 pp |
Sales decreased in 12M20 compared to 12M19 due to sales volume reduction of 21%; sale price increased by 7%. Sugar sales decrease in 12M20 compared to 12M19 was partially compensated by sugar pulp sales growth of RR 810 million and buckwheat sales growth of RR 281 million.
Sales decrease in 4Q20 vs 4Q19 was attributable to sugar sales volume reduction of 52%. Quarterly sales volumes decreased in 4Q20 compared to 4Q19 due to lower production volumes of 2020/2021 season together with the limitation of storage facilities: excess of production volume over storage limit sold during 4Q was higher in 2019.
Sugar sales, production volumes and average sales prices per kilogram (excl. VAT) wereas follows:
Year ended | Variance | Three months ended | Variance | |||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Sugar production volume, thousand tonnes | 764 | 880 | (116) | (12) | 484 | 642 | (158) | (24) |
Sales volume, thousand tonnes | 812 | 1,022 | (210) | (21) | 142 | 295 | (154) | (52) |
Average sales price, rubles/kg, excl. VAT | 29.5 | 27.5 | 2.0 | 7 | 39.2 | 21.9 | 17.2 | 78 |
Cost of sales in 12M20 showed in comparison to 12M19 a higher decrease than Sales mainly due to the significant drop of sugar beet purchase prices by 36% when seasons 2019/2020 and 2018/2019 are compared. The launch of second line of desugarization at the end of 2019 led to increase of high-margin sugar produced out of molasses and therefore additional Cost of sales decrease.
Meat Segment
The financial results of the Meat Segment of 12M20 and 4Q20 compared to 12M19 and 4Q19 respectively are presented in the table below:
in RR million | Year ended | Variance | Three months ended | Variance | |||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | ||
Sales | 32,434 | 25,834 | 6,601 | 26 | 9,588 | 7,538 | 2,049 | 27 | |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | (681) | (852) | 171 | 20 | (1,504) | (396) | (1,108) | (279) | |
Cost of sales | (27,376) | (21,717) | (5,658) | (26) | (8,455) | (6,600) | (1,855) | (28) | |
Gross profit | 4,377 | 3,264 | 1,114 | 34 | (372) | 541 | (913) | - | |
Gross profit margin | 13% | 13% | 0 pp | (4) % | 7% | (11) pp | |||
Gross profit excl. effect of biological assets revaluation | 5,059 | 4,116 | 942 | 23 | 1,132 | 938 | 194 | 21 | |
Adjusted gross profit margin | 16% | 16% | 0 pp | 12% | 12% | 0 pp | |||
Distribution and selling expenses | (1,204) | (847) | (357) | (42) | (342) | (296) | (46) | (16) | |
General and administrative expenses | (1,509) | (1,288) | (221) | (17) | (549) | (407) | (142) | (35) | |
Other operating income/ (expenses), net | 654 | 326 | 328 | 100 | 258 | 198 | 60 | 30 | |
incl. reimbursement of operating costs (government grants) | 105 | 57 | 48 | 85 | 42 | 7 | 35 | 502 | |
incl. Other adjustments to EBITDA (non-recurring items) | 460 | 366 | 94 | 26 | 181 | 195 | (14) | (7) | |
Operating profit income/ (expenses), net | 2,318 | 1,454 | 864 | 59 | (1,005) | 37 | (1,042) | - | |
Adjusted EBITDA | 6,473 | 4,820 | 1,653 | 34 | 1,539 | 1,262 | 276 | 22 | |
Adjusted EBITDA margin | 20% | 19% | 1 pp | 16% | 17% | (1) pp | |||
Sales of the Meat Segment increased by 26% in 12М20 and by 27% in 4Q20 compared to the respective periods of the prior year because of increase in production volumes of pork mainly due to launch of 3rd stage of Tambov Bacon in 3Q19 and increase in productivity. In addition, Sales increased as the result of sales price growth in 4Q20 of all meat product categories and livestock pigs by 8% and 13%, respectively, and increased export sales with a premium price relative to the domestic price.
Cost of sales increased by 25% in 12M20 due to higher volumes of livestock pigs transferred to meat processing.
Net loss on revaluation of biological assets and agricultural produce in 12M20 resulted mainly from loss in revaluation on bearer livestock as at 31 December 2020 and compensated by gain on revaluation of consumable livestock pigs (caused by increase in market prices during the period compared to market prices at the end 2019).
An increase in Distribution and selling expenses in 12М20 and 4Q20 compared to the same prior year periods included an increase in transportation costs as a result of higher sales volume of processed pork and an increase in payroll costs related to launch of 3rd stage of Tambov Bacon, and also as a result of the rise in the costs of marketing activities.
Pork sales volumes and the average pork sales prices per kilogram (excl. VAT) were as follows:
Year ended | Variance | Three months ended | Variance | |||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Sales volume (in thousand tonnes), incl. | 249 | 202 | 47 | 23 | 71 | 61 | 10 | 17 |
livestock pigs | 34 | 33 | 1 | 3 | 14 | 14 | 0 | 1 |
processed pork | 215 | 169 | 46 | 27 | 57 | 47 | 10 | 21 |
Average sale prices (rubles per kg, excl. VAT): | ||||||||
livestock pigs | 80.0 | 75.3 | 4.6 | 6 | 81.9 | 72.5 | 9.4 | 13 |
processed pork | 137.9 | 137.6 | 0.3 | 0 | 146.6 | 135.2 | 11.4 | 8 |
An increase in Other operating income in 12M20 compared to the same prior year period is due to the launch of the grain elevator in Primorie and the reimbursement for part of the costs under the animal insurance program with state support.
Agricultural Segment
As at 31 December 2020 Group's area of controlled land stands at 638 thousand hectares(31 December 2019: 641 thousand hectares). The financial results of the Agricultural Segmentof 12M20 and 4Q20 compared to 12M19 and 4Q19 respectively are presented below:
in RR million | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Sales | 34,348 | 25,845 | 8,503 | 33 | 19,596 | 10,804 | 8,793 | 81 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | 3,583 | (1,560) | 5,142 | - | (56) | 685 | (741) | - |
Cost of sales | (19,060) | (18,584) | (476) | (3) | (9,926) | (8,731) | (1,195) | (14) |
Gross profit | 18,870 | 5,702 | 13,169 | 231 | 9,614 | 2,757 | 6,856 | 249 |
Gross profit margin | 55% | 22% | 33 pp | 49% | 26% | 23 pp | ||
Gross profit excl. effect of biological assets and agricultural produce revaluation | 15,288 | 7,261 | 8,027 | 111 | 9,670 | 2,072 | 7,597 | 367 |
Adjusted gross profit margin | 45% | 28% | 17 pp | 49% | 19% | 30 pp | ||
Distribution and selling expenses | (2,370) | (2,826) | 457 | 16 | (918) | (819) | (99) | (12) |
General and administrative expenses | (1,363) | (1,342) | (20) | (2) | (414) | (400) | (14) | (4) |
Other operating income/ (expenses), net | 460 | (95) | 555 | - | 446 | 8 | 438 | 5,629 |
incl. reimbursement of operating costs (government grants) | 299 | 131 | 168 | 129 | 188 | 31 | 158 | 514 |
incl. Other adjustments to EBITDA (non-recurring items) | 71 | (17) | 89 | - | 97 | (1) | 98 | - |
Operating profit | 15,597 | 1,437 | 14,160 | 985 | 8,728 | 1,546 | 7,181 | 464 |
Adjusted EBITDA | 15,191 | 5,913 | 9,278 | 157 | 10,176 | 1,916 | 8,259 | 431 |
Adjusted EBITDA margin | 44% | 23% | 21 pp | 52% | 18% | 34 pp |
Sales in 12M20 and 4Q20 compared to the prior year increased thanks to higher sales price of all crops.
Sales volumes by product were as follows:
Thousand tonnes | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
sugar beet | 2,952 | 3,875 | (924) | (24) | 2,120 | 2,931 | (811) | (28) |
wheat | 653 | 831 | (177) | (21) | 386 | 357 | 29 | 8 |
barley | 122 | 278 | (156) | (56) | 30 | 30 | 0 | 1 |
corn | 149 | 156 | (7) | (4) | 57 | 19 | 38 | 197 |
sunflower seeds | 78 | 80 | (2) | (3) | 59 | 70 | (11) | (15) |
soybean | 331 | 225 | 106 | 47 | 97 | 51 | 47 | 92 |
The average sale prices per kilogram (excl. VAT) were as follows:
RR per kilogram, excl. VAT | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
sugar beet | 3.4 | 1.6 | 1.9 | 119 | 3.6 | 1.5 | 2.1 | 140 |
wheat | 12.9 | 10.4 | 2.5 | 24 | 13.8 | 9.5 | 4.2 | 44 |
barley | 10.2 | 10.2 | 0.1 | 1 | 11.5 | 8.6 | 2.9 | 34 |
corn | 14.0 | 12.6 | 1.4 | 11 | 13.1 | 12.9 | 0.3 | 2 |
sunflower seeds | 30.0 | 17.3 | 12.6 | 73 | 33.0 | 17.2 | 15.8 | 92 |
soybean | 28.6 | 20.5 | 8.2 | 40 | 34.3 | 22.0 | 12.3 | 56 |
Net gain on revaluation of biological assets and agricultural produce in 12M20 represents the gain recognised from revaluation of crops for 2020 harvest and the realisation of loss from revaluation of 2019 crops harvest remained in stock as at 31 December 2019 and being sold to customers during 2020.
The gain on revaluation of crops and its subsequent realisation do not affect the Adjusted EBITDA figure.
Dynamics in distribution and selling expenses correlate with crops sales volume in 12M20and in 4Q20 vs 2019.
Other operating income/(expenses), net increased as a result of the higher reimbursement of operating costs through government grants by RR 168 million in 12M20 vs 12M19 (by RR 158 million in 4Q20 vs 4Q19) and other operating income from the rental of land to the Meat Segment by RR 243 million in 12M20 vs 12M19 (by RR 104 million in 4Q20 vs 4Q19). Gain from PPE disposal was by RR 230 million higher in 12M20 compared to 12M19 (in 4Q20 gain from PPE disposal was higher by RR 174 million vs 4Q19). Foreign exchange gain is lower by RR 61 million in 12M20 vs 12M19.
Oil and Fat Segment
The financial results of the Oil and Fat Segment for 12M20 and 4Q20 compared to 12M19 and 4Q19 respectively are presented below:
in RR million | Year ended | Variance | Three months ended | Variance |
| |||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % |
| ||
Sales | 76,160 | 62,375 | 13,785 | 22 | 24,208 | 17,796 | 6,411 | 36 |
| |
Cost of sales | (61,383) | (53,461) | (7,922) | (15) | (20,492) | (14,434) | (6,059) | (42) | ||
Gross profit | 14,778 | 8,914 | 5,864 | 66 | 3,715 | 3,363 | 353 | 10 |
| |
Gross profit margin | 19% | 14% | 5 pp | 15% | 19% | (4) pp |
| |||
| ||||||||||
Distribution and selling expenses | (4,639) | (4,408) | (231) | (5) | (1,759) | (1,298) | (461) | (35) |
| |
General and administrative expenses | (1,675) | (1,604) | (71) | (4) | (288) | (419) | 130 | 31 |
| |
Other operating income/ (expenses). net | (257) | (453) | 196 | 43 | (127) | (243) | 116 | 48 |
| |
incl. Other adjustments to EBITDA (non-recurring items) | (463) | (321) | (142) | (44) | (215) | (327) | 112 | 34 |
| |
Operating profit/ (loss) | 8,207 | 2,449 | 5,758 | 235 | 1,541 | 1,403 | 138 | 10 |
| |
| ||||||||||
Adjusted EBITDA | 9,388 | 3,385 | 6,003 | 177 | 1,995 | 1,888 | 107 | 6 |
| |
Adjusted EBITDA margin | 12% | 5% | 7 pp | 8% | 11% | (3) pp |
| |||
Sales volumes to third parties by product were as follows:
thousand tons | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
mayonnaise | 138 | 136 | 2 | 2 | 37 | 43 | (6) | (15) |
margarine | 43 | 45 | (2) | (5) | 12 | 14 | (2) | (15) |
bottled oil | 160 | 147 | 13 | 9 | 45 | 43 | 2 | 4 |
industrial fats | 313 | 243 | 70 | 29 | 92 | 81 | 11 | 13 |
bulk oil | 384 | 406 | (21) | (5) | 98 | 107 | (9) | (8) |
meal | 589 | 647 | (58) | (9) | 146 | 178 | (31) | (18) |
The average sale prices per kilogram (excl. VAT) for sales to third parties were as follows:
RR per kilogram, excl. VAT | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
mayonnaise | 87.3 | 80.1 | 7.2 | 9 | 96.4 | 80.7 | 15.7 | 19 |
margarine | 89.3 | 80.3 | 9.0 | 11 | 97.9 | 79.1 | 18.8 | 24 |
bottled oil | 68.0 | 53.7 | 14.3 | 27 | 87.1 | 53.3 | 33.8 | 64 |
industrial fats | 59.7 | 48.4 | 11.3 | 23 | 69.3 | 49.0 | 20.4 | 42 |
bulk oil | 53.6 | 44.4 | 9.2 | 21 | 66.9 | 44.5 | 22.3 | 50 |
meal | 15.2 | 14.2 | 0.9 | 7 | 17.9 | 12.2 | 5.7 | 47 |
Sales increased as a result of new production capacities rented since 3Q19 in Saratov region, and, as a result, higher sales volumes of industrial fats, supported by regained market share in 2H19, and higher sales volumes mayonnaise. Also increase in sales in 12M20 is due to higher sales prices for all products. At the same time, EBITDA increased by RR 6,003 million in 12M20 due to increased production capacities. EBITDA margin has increased by 7 pp in 12M20 compared to 12M19 due to higher sales prices for all products while cost of sales have changed less significantly because during 2020 sunflower, including purchased at lower prices in 2019, was used.
An increase in Distribution and selling expenses in 12М20 and 4Q20 compared to the same prior year periods included an increase in advertising expenses.
Increase in General and administrative expenses in comparison to the prior period is attributed to higher number of employees in administrative function in Oil and Fat segment.
Increase in Other operating expenses by RR 196 million in 12M20 was mainly due to the write-off of RR 175 million as result of sunflower technological losses in 2Q19.
Increase in Other adjustments to EBITDA (non-recurring items) by RR 142 million in 12M20 was caused by a change in the exchange rate and charity expenses.
Milk Products Segment
The financial results of the Milk Products Segment for 12M20 and 4Q20 compared to 12M19 and 4Q19 respectively are presented in the table below:
in RR million | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Sales | 3,786 | 3,870 | (83) | (2) | 1,022 | 1,041 | (19) | (2) |
Cost of sales | (3,385) | (3,501) | 116 | 3 | (928) | (923) | (6) | (1) |
Gross profit | 401 | 369 | 33 | 9 | 94 | 118 | (24) | (21) |
Gross profit margin | 11% | 10% | 1 pp | 9% | 11% | (2) pp | ||
Distribution and selling expenses | (276) | (175) | (101) | (57) | (78) | (75) | (2) | (3) |
General and administrative expenses | (141) | (132) | (9) | (7) | (33) | (28) | (4) | (16) |
Other operating income/ (expenses). net | (276) | (11) | (266) | (2,473) | (244) | 1 | (244) | - |
incl. Other adjustments to EBITDA (non-recurring items) | (269) | (1) | (268) | (39,749) | (266) | (1) | (265) | (42,721) |
Operating profit | (292) | 50 | (342) | - | (260) | 15 | (275) | - |
Adjusted EBITDA | (13) | 53 | (67) | - | 13 | 16 | (4) | (22) |
Adjusted EBITDA margin | 0% | 1% | (1) pp | 1% | 2% | (1) pp |
Group is now focusing on entering the retail chains with a consumer product, developing brands and increasing sales profitability. Sales volumes by product were as follows:
Thousand tonnes | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
cheese and cheese product | 8.1 | 8.4 | (0.3) | (3) | 1.9 | 2.4 | (0.5) | (22) |
butter and spread | 0.8 | 1.9 | (1.1) | (57) | 0.3 | 0.2 | 0.1 | 25 |
dry mixes | 14.6 | 15.4 | (0.9) | (6) | 3.9 | 4.2 | (0.3) | (7) |
cream | 4.2 | 1.4 | 2.7 | 190 | 1.3 | 0.7 | 0.7 | 101 |
The average sale prices per kilogram (excl. VAT) were as follows:
RR per kilogram, excl. VAT | Year ended | Variance | Three months ended | Variance |
| |||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % |
| ||
cheese and cheese product | 212.9 | 217.9 | (5.0) | (2) | 224.2 | 219.9 | 4.3 | 2 | ||
butter and spread | 242.4 | 273.5 | (31.2) | (11) | 247.0 | 227.3 | 19.6 | 9 | ||
dry mixes | 74.0 | 79.4 | (5.4) | (7) | 76.1 | 77.7 | (1.6) | (2) | ||
cream | 181.7 | 200.6 | (18.9) | (9) | 183.3 | 204.3 | (21.1) | (10) | ||
Sales of milk products decreased in 12M20 (RR -83 million, -2%) as a result of decrease of sales volume and shift of sales volume from cheese (more expensive product) to cheese products and significant decrease of milk fat prices due to oversupply in the market.
Growth of Selling, General and Administrative expenses due to newly hired during 2019 staff, including key personnel.
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 | Year ended | Variance | Year ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Net cash from operating activities, incl. | 12,117 | 21,165 | (9,048) | (43) | (12,560) | (7,466) | (5,094) | (68) |
Operating cash flow before working capital changes | 31,899 | 19,423 | 12,476 | 64 | 10,984 | 6,962 | 4,021 | 58 |
Working capital changes | (17,748) | 1,948 | (19,697) | - | (22,496) | (14,179) | (8,317) | (59) |
Net cash from investing activities, incl. | (13,494) | (24,324) | 10,830 | 45 | (3,627) | (3,653) | 26 | 1 |
Purchases of property plant and equipment and inventories intended for construction | (14,066) | (16,799) | 2,732 | 16 | (3,976) | (4,409) | 433 | 10 |
Net cash from financing activities | 10,892 | 3,673 | 7,219 | 197 | 18,512 | 8,280 | 10,232 | 124 |
Net effect of exchange rate changes on cash and cash equivalents | 180 | (72) | 253 | - | (111) | 42 | (153) | - |
Net increase / (decrease) in cash and cash equivalents | 9,696 | 442 | 9,254 | 2,092 | 2,214 | (2,797) | 5,011 | - |
(*) See Appendix 4
The key investments in property, plant and equipment and inventories intended for construction during 12M20 were made in Meat Segment in the amount of RR 8,750 million (12M19: RR 10,851 million), purchases related to the construction project in Far East region. Investments in Sugar Segment in the amount of RR 1,494 million (12M19: RR 3,408 million), Agriculture Segment in the amount of RR 2,038 million (12M19: RR 2,021 million), Oil and Fat Segment in the amount of RR 1,625 million (12M19: RR 519 million) and in Milk Products Segment in the amount of RR 159 million (no investments in 12M19) mainly relate to purchases of machinery and equipment for production facilities renewal and maintenance.
Debt position and liquidity management
in RR million | 31 December 2020 | 31 December 2019 | Variance | |
Units | % | |||
Gross debt | 114,929 | 97,876 | 17,053 | 17 |
Short-term borrowings | 51,753 | 31,835 | 19,918 | 63 |
Long-term borrowings | 63,176 | 66,041 | (2,865) | (4) |
Cash and cash equivalents, bank deposits and bonds | (46,029) | (36,136) | (9,893) | (27) |
Short-term cash, deposits and bonds | (12,064) | (2,171) | (9,893) | (456) |
Long-term cash, deposits and bonds | (33,965) | (33,965) | (0) | (0) |
Net debt | 68,900 | 61,740 | 7,160 | 12 |
Short-term borrowings, net | 39,689 | 29,664 | 10,025 | 34 |
Long-term borrowings, net | 29,211 | 32,076 | (2,865) | (9) |
Adjusted EBITDA (LTM4) | 31,984 | 19,371 | 12,613 | 65 |
Net debt/ Adjusted EBITDA (LTM) | 2.15 | 3.19 | (1.0) pp | |
Adjusted EBITDA (LTM)* without other operating income/expenses | 32,435 | 20,045 | 12,390 | 62 |
Net debt/ Adjusted EBITDA (LTM)* without other operating income/expenses | 2.12 | 3.08 | (1.0) pp |
Net finance income/ (expense)
in RR million | Year ended | Variance | Three months ended | Variance | ||||
31 December 2020 | 31 December 2019 | Units | % | 31 December 2020 | 31 December 2019 | Units | % | |
Net interest expense | (4,805) | (5,481) | 676 | 12 | (1,085) | (1,564) | 479 | 31 |
Gross interest expense | (6,448) | (6,830) | 381 | 6 | (1,558) | (1,984) | 426 | 21 |
Reimbursement of interest expense | 1,643 | 1,348 | 295 | 22 | 473 | 420 | 52 | 12 |
Interest income | 7,165 | 7,305 | (140) | (2) | 2,535 | 1,293 | 1,242 | 96 |
Net gain/ (loss) from bonds held for trading | (16) | (28) | 12 | 43 | 0 | (7) | 7 | - |
Other financial income, net | (1,844) | (331) | (1,513) | (458) | (353) | 88 | (441) | - |
Net foreign exchange gain/ (loss) | (1,234) | 211 | (1,444) | - | (116) | 243 | (358) | - |
Other financial income / (expenses), net | (610) | (541) | (69) | (13) | (237) | (155) | (82) | (53) |
Total net finance income/ (expenses) | 500 | 1,465 | (965) | (66) | 1,098 | (190) | 1,288 | - |
Net debt increased at 31 December 2020 compared at 31 December 2019 as a result of an increase in short-term borrowings.
In 12M20 the Group continued to enjoy benefits from the state agriculture subsidies programme. The Group 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 12M20 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 income of 12M19 in the sum of RR 1,465 million changed to net finance income in the amount of RR 500 million in 12M20 as the result of negative dynamics in forex losses and decrease in interest expense as a result of savings in net interest expense due to higher volume of government grants.
________________________________
(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) 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 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 segment
Rusagro is one of the leading Russian sugar producers (№3 with 13% share in sugar production in Russia and №1 with 46% share of cube white 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 by Rusagro'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 segment
Rusagro is the fourth largest pork producer in Russia with 5.6% 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 segment
The Group currently controls one of the largest land banks among Russian agriculture producers, with 638 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 segment
Rusagro is the leading crude sunflower oil and consumer margarine producer, second largest industrial fats and mayonnaise producer in Russia with products sold under eight key brands, such as EZhK, Schedroye Leto, Mechta Khozyaiki, Moskovskiy Provansal, Novosibirskiy Provansal, Saratovskiy Provansal, Rossiyanka and Saratovskiy Slivochniy. The Group operates (including through ownership and the lease) five crushing and three oil and fats plants. Own sunflower and soy oil production allows to control the source of the vegetable oil required to produce oil and fats products.
Milk Products segment
Launched at the end of 2018 Milk Products Segment operates two plants in Samara and Ulyanovsk Regions. It produces dry industrial mixes, cheeses, butter and cream. Consumer products are sold under three brands, which are Milie, Buterbrodnoe utro and Syrnaya Kultura.
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 12M and 4Q 2020 financial results for investors and analysts.
Details of the call:
Date | 15 March 2020 |
Time | 4:00 PM (Moscow) / 1:00 PM (London) |
Subject | ROS AGRO PLC 3Q 2020 Financial results |
Zoom | https://ib-translations.zoom.us/j/95649463469?pwd=clhHTmg1UFBydmZ1Q0JlL1R3NW5MQT09 |
Password | 989307 |
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 Year and Three months ended 31 December 2020 (in RR thousand)
Year ended 31 December | Three months ended 31 December | |||
2020 | 2019 | 2020 | 2019 | |
Sales | 158,971,035 | 138,172,424 | 50,208,835 | 39,096,396 |
Net gain/(loss) on revaluation of biological assets and agricultural produce | 5,890,447 | (4,111,947) | 461,484 | (827,618) |
Cost of sales | (121,132,658) | (110,470,963) | (37,374,419) | (30,130,074) |
Net gain/(loss) from trading derivatives | 10,552 | (7,348) | - | (2,203) |
Gross profit | 43,739,376 | 23,582,166 | 13,295,900 | 8,136,501 |
Distribution and selling expenses | (9,760,841) | (9,818,779) | (3,252,990) | (2,859,744) |
General and administrative expenses | (7,377,449) | (6,711,005) | (1,891,956) | (1,582,737) |
Other operating income/ (expenses), net | 2,293,017 | 1,926,686 | 910,573 | 1,179,383 |
Provision for impairment of loans issued | (5,070,598) | - | (5,070,598) | - |
Operating profit / (loss) | 23,823,505 | 8,979,068 | 3,990,929 | 4,873,403 |
Interest expense | (4,804,995) | (5,481,240) | (1,084,823) | (1,563,510) |
Interest income | 7,164,816 | 7,304,845 | 2,534,967 | 1,292,723 |
Net (loss)/gain from bonds | (15,698) | (27,711) | 279 | (7,062) |
Other financial income/ (expenses), net | (1,844,130) | (330,699) | (352,567) | 88,004 |
Profit before income tax | 24,323,498 | 10,444,263 | 5,088,785 | 4,683,558 |
Income tax expense | (26,771) | (735,754) | 683,661 | (587,236) |
Profit for the period | 24,296,727 | 9,708,509 | 5,772,446 | 4,096,322 |
Other comprehensive income: | ||||
Items that will not be reclassified to profit or loss: | ||||
Gains less losses on investments in equity securities at fair value through other comprehensive income | 56,556 | - | 56,556 | - |
Income tax relating to other comprehensive income | (7,070) | - | (7,070) | - |
Total comprehensive income for the period | 24,346,213 | 9,708,509 | 5,821,932 | 4,096,322 |
Profit is attributable to: | ||||
Owners of ROS AGRO PLC | 24,359,786 | 9,808,204 | 5,795,529 | 4,112,237 |
Non-controlling interest | (63,059) | (99,695) | (23,083) | (15,915) |
Profit for the period | 24,296,727 | 9,708,509 | 5,772,446 | 4,096,322 |
Total comprehensive income is attributable to: | ||||
Owners of ROS AGRO PLC | 24,409,272 | 9,808,204 | 5,845,015 | 4,112,237 |
Non-controlling interest | (63,059) | (99,695) | (23,083) | (15,915) |
Total comprehensive income for the period | 24,346,213 | 9,708,509 | 5,821,932 | 4,096,322 |
Earnings per ordinary share for profit attributable to the owners of ROS AGRO PLC, basic and diluted(in RR per share) | 905.39 | 364.62 | 215.40 | 152.87 |
Appendix 2. Segment information for the Year ended 31 December 2020 (in RR thousand)
12M 2020 | Sugar | Meat | Agriculture | Oil and Fat | Other | Eliminations | Total |
Sales | 28,112,519 | 32,434,214 | 34,347,506 | 76,160,418 | 4,406,702 | (16,490,324) | 158,971,035 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | (681,302) | 3,582,520 | - | - | 2,989,229 | 5,890,447 |
Cost of sales | (21,238,160) | (27,375,635) | (19,059,850) | (61,382,829) | (3,854,140) | 11,777,956 | (121,132,658) |
incl. Depreciation | (2,605,853) | (3,716,132) | (2,861,216) | (536,301) | (17,164) | (75,387) | (9,812,053) |
Net gain/ (loss) from trading derivatives | 10,552 | - | - | - | - | - | 10,552 |
Gross profit | 6,884,911 | 4,377,277 | 18,870,176 | 14,777,589 | 552,562 | (1,723,139) | 43,739,376 |
Distribution and Selling, General and administrative expenses | (3,399,788) | (2,713,324) | (3,732,770) | (6,313,621) | (2,121,408) | 1,142,621 | (17,138,290) |
incl. Depreciation | (83,738) | (218,146) | (386,864) | (181,013) | (187,619) | 75,387 | (981,993) |
Other operating income/(expenses), net | 602,466 | 653,934 | 459,868 | (256,767) | 15,305,841 | (14,472,325) | 2,293,017 |
incl. Reimbursement of operating costs (government grants) | 179,564 | 104,836 | 299,020 | 347,210 | - | - | 930,630 |
incl. Other adjustments to EBITDA (non-recurring items) | 425,102 | 459,983 | 71,372 | (463,483) | 15,257,311 | (13,936,656) | 1,813,629 |
Provision for impairment of loans issued | - | - | - | - | (5,070,598) | - | (5,070,598) |
Operating profit / (loss) | 4,087,589 | 2,317,887 | 15,597,274 | 8,207,201 | 8,666,397 | (15,052,843) | 23,823,505 |
Adjustments: | |||||||
Depreciation included in Operating Profit | 2,689,591 | 3,934,278 | 3,248,080 | 717,314 | 204,783 | - | 10,794,046 |
Other adjustments to EBITDA (non-recurring items) | (425,102) | (459,983) | (71,372) | 463,483 | (15,257,311) | 13,936,656 | (1,813,629) |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | 681,302 | (3,582,520) | - | - | (2,989,229) | (5,890,447) |
Provision for impairment of loans issued | - | - | - | - | 5,070,598 | - | 5,070,598 |
Adjusted EBITDA* | 6,352,078 | 6,473,484 | 15,191,462 | 9,387,998 | (1,315,533) | (4,105,416) | 31,984,073 |
* Non-IFRS measure
Appendix 2 (continued). Segment information for the Year ended 31 December 2019 (in RR thousand)
12M 2019 | Sugar | Meat | Agriculture | Oil and Fat | Other | Eliminations | Total |
Sales | 31,194,715 | 25,833,637 | 25,844,693 | 62,375,087 | 4,164,293 | (11,240,001) | 138,172,424 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | (852,455) | (1,559,526) | - | - | (1,699,966) | (4,111,947) |
Cost of sales | (25,758,275) | (21,717,486) | (18,583,596) | (53,461,301) | (3,640,734) | 12,690,429 | (110,470,963) |
incl. Depreciation | (1,925,029) | (2,696,297) | (2,462,063) | (472,629) | (12,507) | (70,938) | (7,639,463) |
Net gain/ (loss) from trading derivatives | (7,342) | - | - | - | (6) | - | (7,348) |
Gross profit | 5,429,098 | 3,263,696 | 5,701,571 | 8,913,786 | 523,553 | (249,538) | 23,582,166 |
Distribution and Selling, General and administrative expenses | (3,516,890) | (2,135,635) | (4,168,971) | (6,011,841) | (1,606,311) | 909,864 | (16,529,784) |
incl. Depreciation | (74,134) | (183,169) | (437,344) | (141,980) | (74,800) | 70,938 | (840,489) |
Other operating income/(expenses), net | 544,406 | 326,251 | (95,492) | (452,519) | 14,973,889 | (13,369,849) | 1,926,686 |
incl. Reimbursement of operating costs (government grants) | 71,290 | 56,562 | 130,623 | 141,791 | - | - | 400,266 |
incl. Other adjustments to EBITDA (non-recurring items) | 467,932 | 366,207 | (17,158) | (321,376) | 15,073,830 | (13,369,849) | 2,199,586 |
Provision for impairment of loans issued | - | - | - | - | - | - | - |
Operating profit / (loss) | 2,456,614 | 1,454,312 | 1,437,108 | 2,449,426 | 13,891,131 | (12,709,523) | 8,979,068 |
Adjustments: | |||||||
Depreciation included in Operating Profit | 1,999,163 | 2,879,466 | 2,899,407 | 614,609 | 87,307 | - | 8,479,952 |
Other adjustments to EBITDA (non-recurring items) | (467,932) | (366,207) | 17,158 | 321,376 | (15,073,830) | 13,369,849 | (2,199,586) |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | 852,455 | 1,559,526 | - | - | 1,699,966 | 4,111,947 |
Provision for impairment of loans issued | - | - | - | - | - | - | - |
Adjusted EBITDA* | 3,987,845 | 4,820,026 | 5,913,199 | 3,385,411 | (1,095,392) | 2,360,292 | 19,371,381 |
* Non-IFRS measure
Appendix 3. Consolidated statement of financial position as at 31 December 2020(in RR thousand)
31 December 2020 | 31 December 2019 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 11,866,798 | 2,170,779 |
Restricted cash | 143,637 | 39 |
Short-term investments | 19,583,523 | 23,456,552 |
Trade and other receivables | 9,512,286 | 8,068,349 |
Prepayments | 2,941,224 | 3,018,658 |
Current income tax receivable | 646,162 | 225,315 |
Other taxes receivable | 5,506,675 | 4,349,400 |
Inventories and short-term biological assets | 69,001,368 | 49,386,797 |
Total current assets | 119,201,673 | 90,675,889 |
Non-current assets | ||
Property, plant and equipment | 87,519,088 | 80,629,483 |
Inventories intended for construction | 3,353,330 | 3,157,369 |
Right-of-use assets | 6,934,567 | 6,230,707 |
Goodwill | 2,364,942 | 2,364,942 |
Advances paid for non-current assets | 6,905,003 | 8,721,155 |
Long-term biological assets | 2,528,128 | 2,279,335 |
Long-term investments and receivables | 42,692,320 | 42,636,323 |
Investments in associates | 257,782 | 165,070 |
Deferred income tax assets | 3,566,168 | 1,852,983 |
Other intangible assets | 619,793 | 608,635 |
Other non-current assets | 205,793 | 173,002 |
Total non-current assets | 156,946,914 | 148,819,004 |
Total assets | 276,148,587 | 239,494,893 |
LIABILITIES and EQUITY | ||
Current liabilities | ||
Short-term borrowings | 51,753,475 | 31,834,699 |
Lease liabilities | 943,859 | 916,791 |
Trade and other payables | 16,016,138 | 17,492,614 |
Provisions | 179,796 | - |
Current income tax payable | 69,546 | 123,846 |
Other taxes payable | 4,096,199 | 3,468,034 |
Total current liabilities | 73,059,013 | 53,835,984 |
Non-current liabilities | ||
Long-term borrowings | 63,175,720 | 66,040,784 |
Government grants | 8,536,899 | 8,306,779 |
Lease liabilities | 4,855,508 | 3,989,801 |
Deferred income tax liability | 487,049 | 494,977 |
Total non-current liabilities | 77,055,176 | 78,832,341 |
Total liabilities | 150,114,189 | 132,668,325 |
Equity | ||
Share capital | 12,269 | 12,269 |
Treasury shares | (490,607) | (490,607) |
Additional paid-in capital | 26,964,479 | 26,964,479 |
Other reserves | 1,363,177 | 1,313,691 |
Retained earnings | 98,185,038 | 78,960,843 |
Equity attributable to owners of ROS AGRO PLC | 126,034,356 | 106,760,675 |
Non-controlling interest | 42 | 65,893 |
Total equity | 126,034,398 | 106,826,568 |
Total liabilities and equity | 276,148,587 | 239,494,893 |
Appendix 4. Consolidated statement of cash flows for the Year ended 31 December 2020 (in RR thousand) - NOT IFRS PRESENTATION (*)
Year ended | ||
31 December 2020 | 31 December 2019 | |
Cash flows from operating activities | ||
Profit before income tax | 24,323,498 | 10,444,263 |
Adjustments for: | ||
Depreciation and amortization | 10,794,046 | 8,479,952 |
Interest expense | 6,448,154 | 6,829,598 |
Government grants | (3,216,290) | (2,363,233) |
Interest income | (7,164,816) | (7,304,845) |
Loss / (gain) on disposal of property, plant and equipment | (335,640) | 110,601 |
Net (gain) / loss on revaluation of biological assets and agricultural produce | (5,890,447) | 4,111,947 |
Change in provision for impairment of loans issued | 5,070,598 | - |
Lease finance expense | 580,276 | 590,777 |
The result from early repayment of the loan | 131,363 | - |
Realised deferred day-one gain | (993,558) | (1,592,001) |
Change in provision for net realisable value of inventory | 732,237 | (29,168) |
Change in provision for impairment of receivables and prepayments | 13,592 | 75,855 |
Foreign exchange (gain) / loss, net | 1,698,846 | (177,728) |
Lost harvest write-off | 188,536 | 122,468 |
Share based remuneration | - | (12,888) |
Net (gain) / loss from bonds held for trading | 15,698 | 27,711 |
Settlement of loans and accounts receivable previously written-off | (2) | (147) |
Change in provision for impairment of advances paid for property, plant and equipment | (29,620) | 29,066 |
Change in other provisions | 179,796 | - |
Dividend income | (560,568) | - |
Gain on sale of subsidiaries, net | - | (364,880) |
Loss / (gain) on sale of assets held for sale | - | 412,111 |
Other non-cash and non-operating expenses, net | (87,028) | 33,552 |
Operating cash flow before working capital changes | 31,898,671 | 19,423,011 |
Change in trade and other receivables and prepayments | (1,920,133) | (2,509,233) |
Change in other taxes receivable | (1,157,274) | 70,610 |
Change in inventories and short-term biological assets | (15,169,512) | (87,367) |
Change in trade and other payables | (209,572) | 4,902,852 |
Change in other taxes payable | 708,163 | (428,669) |
Cash generated from operations | 14,150,343 | 21,371,204 |
Income tax paid | (2,033,327) | (206,139) |
Net cash from operating activities | 12,117,016 | 21,165,065 |
Appendix 4 (continued). Consolidated statement of cash flows the Year ended 31 December 2020 (in RR thousand) - NOT IFRS PRESENTATION (*)
| ||
Year ended | ||
Cash flows from investing activities | 31 December 2020 | 31 December 2019 |
Purchases of property, plant and equipment | (12,405,295) | (15,056,765) |
Purchases of other intangible assets | (418,808) | (261,046) |
Purchases of land lease rights | (86,729) | - |
Proceeds from sales of property, plant and equipment | 687,757 | 288,096 |
Purchases of inventories intended for construction | (1,660,923) | (1,741,948) |
Purchases of investments in third parties | - | (8,500,000) |
Purchases of associates | (92,712) | (78,150) |
Dividends received | 560,568 | - |
Movement in restricted cash | (143,454) | (6,241) |
Proceeds from sale of subsidiaries, net of cash disposed | - | 478,710 |
Proceeds from sale of assets held for sale | - | 408,839 |
Proceeds from sales of other investments | - | 145,000 |
Other investing activities | 65,938 | - |
Net cash from investing activities | (13,493,658) | (24,323,505) |
Cash flows from financing activities | ||
Proceeds from borrowings | 77,932,773 | 91,687,403 |
Repayment of borrowings | (65,389,365) | (91,118,861) |
Interest and other finance cost paid | (4,196,451) | (5,024,201) |
Purchases of bonds with maturity over three months* | (197,523) | - |
Proceeds from cash withdrawals from deposits* | - | 4,623,323 |
Deposits placed with banks* | - | (2,012,991) |
Proceeds from sales of bonds with maturity over three months* | - | 2,314,831 |
Proceeds from sales of promissory notes* | - | 100,000 |
Purchases of loan issued* | (13,829) | (372,899) |
Loans repaid* | 1,012,854 | 1,864,061 |
Interest received* | 4,808,803 | 4,820,116 |
Proceeds from government grants | 2,192,483 | 2,086,446 |
Purchases of non-controlling interest | - | (600) |
Dividends paid to owners Ros Agro PLC | (5,134,426) | (5,046,515) |
(Repayment)/proceeds of lease liabilities-principal | (123,044) | (235,859) |
Other financial activities | - | (10,998) |
Net cash from financing activities | 10,892,275 | 3,673,256 |
Net effect of exchange rate changes on cash and cash equivalents | 180,386 | (72,433) |
Net increase/ (decrease) in cash and cash equivalents | 9,696,019 | 442,383 |
Cash and cash equivalents at the beginning of the period | 2,170,779 | 1,728,396 |
Cash and cash equivalents at the end of the period | 11,866,798 | 2,170,779 |
(*) 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.