16 Aug 2021 08:01
16 August 2021
ROS AGRO financial results for 1H 2021 and 2Q 2021
16 August 2021 - Today ROS AGRO PLC (the "Company"), the holding company of Rusagro Group (the "Rusagro"), a leading Russian diversified food producer with vertically integrated operations, has announced the financial results for the six months ended 30 June 2021.
1H 2021 HIGHLIGHTS
- Sales amounted to RUB 104,372 million (US$ 1,404 million1), an increase of RUB 32,210 million (US$ 433 million, +45%) compared to 1H 2020;
- Adjusted EBITDA2 amounted to RUB 22,119 million (US$ 298 million), an increase of RUB 10,217 million (US$ 137 million, +86%) compared to 1H 2020;
- Adjusted EBITDA margin rose from 16% in 1H 2020 to 21% in 1H 2021;
- Net profit for the period amounted to RUB 17,600 million (US$ 237 million), an increase of RUB 7,870 million (US$ 106 million, +81%);
- Net debt position3 as of 30 June 2021 amounted to RUB 66,844 million (US$ 924 million);
- Net Debt/Adjusted EBITDA (LTM4) as of 30 June 2021 was 1.57x.
Commenting on the results, Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO of the Rusagro, said:
"In 2Q 2021 Rusagro showed growth of adjusted EBITDA backed by revenue increase across Agriculture, Oil & Fats, Meat business segments. Revenue growth was triggered by positive trends both in sales volume and sales prices. Sugar sales decreased due to sales volume reduction partially compensated by sales price growth. Adhering to its mission of making people's lives longer and better, Rusagro continued to participate in the market initiative to provide Russians with affordable food supplies and limited its sales price of sugar and bottled sunflower oil to retail. Thus, sales price of sugar to retail chains in Russia in bags of 50 kg on the basis of the plant didn't exceed 36 roubles/kg inclusive of VAT and sales price of bottled sunflower oil at the plant didn't exceed 95 roubles/litre inclusive of VAT.
In 2Q 2021 Rusagro improved adjusted EBITDA margin of Agriculture and Oil & Fats segments as Revenue grew higher than corresponding increase in costs. EBITDA margin of Sugar and Meat segments followed negative influence of higher sugar beet price for Sugar segment (-2 p.p.) and higher costs of feed and animal health protection as well as additional expenses relating to the start of operations in Primorie for Meat segment (-4 p.p.)."
Key consolidated financial performance indicators
in RR million | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
Sales 1 | 104,372 | 72,1611 | 32,210 | 45 | 54,439 | 39,2281 | 15,211 | 39 |
Gross profit1 | 24,379 | 20,2561 | 4,123 | 20 | 14,290 | 13,2481 | 1,042 | 8 |
Gross margin, % | 23% | 28% | (5) pp |
| 26% | 34% | (8) pp |
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Adjusted EBITDA 1 | 22,119 | 11,9021 | 10,218 | 86 | 10,950 | 6,8961 | 4,054 | 59 |
Adjusted EBITDA margin, % | 21% | 16% | 5 pp |
| 20% | 18% | 2 pp |
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Net profit for the period 1,2 | 17,600 | 9,7301 | 7,870 | 81 | 11,074 | 9,3921 | 1,682 | 18 |
Net profit margin % | 17% | 13% | 4 pp |
| 20% | 24% | (4) pp |
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1 Several adjustments were made to the published 1H and 2Q 2020 indicators:
• Due to Revenue cut-off adjustment Sales for 1H20 and 2Q20 increased by RUB 926 million; Gross profit increased by RUB 391 million; Adjusted EBITDA and Net profit increased by RUB 119 million;
• Adjusted EBITDA, Gross profit and Net profit for 1H20 was decreased by RUB 343 million due to revaluation procedure, performed at the year end, the same indicators for 2Q20 decreased by RUB 186 million;
• Revaluation of biological assets led to increase of Gross profit and Net profit in amount of RUB 4,792 million;
• Net profit decreased by RUB 63 million because of other reserves;
• Valuation difference for SolPro operations caused Net profit to decrease by RUB 3,436 million for 1H20, and by RUB 72 million for 2Q20;
• Effect on income tax expense of adjustments above RUB 662 million.
2 Net profit for the period is affected by non-cash income/(loss) on revaluation of biological assets and agricultural produce. See details in business-sections below.
Key financial performance indicators by segments
in RR million | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
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Sales, incl. | 104,372 | 72,161 | 32,210 | 45 | 54,439 | 39,228 | 15,211 | 39 |
Sugar | 16,386 | 14,269 | 2,117 | 15 | 7,745 | 9,028 | (1,283) | (14) |
Meat | 18,182 | 14,079 | 4,103 | 29 | 9,621 | 7,270 | 2,351 | 32 |
Agriculture | 11,887 | 8,001 | 3,885 | 49 | 5,926 | 3,577 | 2,349 | 66 |
Oil and Fat | 61,569 | 36,732 | 24,837 | 68 | 33,962 | 19,671 | 14,291 | 73 |
Other | 396 | 289 | 107 | 37 | 224 | 170 | 54 | 32 |
Eliminations | (4,047) | (1,208) | (2,839) | (235) | (3,040) | (489) | (2,551) | (522) |
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Gross profit, incl. | 24,379 | 20,256 | 4,123 | 20 | 14,290 | 13,248 | 1,042 | 8 |
Sugar | 4,400 | 3,882 | 519 | 13 | 2,096 | 2,666 | (570) | (21) |
Meat | 3,970 | 2,449 | 1,522 | 62 | 2,009 | 1,290 | 720 | 56 |
Agriculture | 6,595 | 6,360 | 235 | 4 | 5,063 | 5,231 | (168) | (3) |
Oil and Fat | 9,705 | 7,440 | 2,265 | 30 | 5,404 | 3,946 | 1,458 | 37 |
Other | 108 | 43 | 65 | 151 | 54 | 38 | 16 | 41 |
Eliminations | (400) | 82 | (483) | - | (336) | 77 | (413) | - |
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Adjusted EBITDA, incl. | 22,119 | 11,902 | 10,218 | 86 | 10,950 | 6,896 | 4,054 | 59 |
Sugar | 4,240 | 3,554 | 686 | 19 | 1,995 | 2,533 | (538) | (21) |
Meat | 3,094 | 2,347 | 747 | 32 | 1,349 | 1,337 | 12 | 1 |
Agriculture | 5,863 | 2,134 | 3,729 | 175 | 2,837 | 815 | 2,022 | 248 |
Oil and Fat | 7,482 | 4,421 | 3,061 | 69 | 4,368 | 2,413 | 1,955 | 81 |
Other | (652) | (615) | (37) | (6) | (335) | (216) | (119) | (55) |
Eliminations | 2,092 | 61 | 2,031 | 3,323 | 735 | 14 | 722 | 5,301 |
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Adjusted EBITDA margin, % | 21% | 16% | 5 pp |
| 20% | 18% | 2 pp |
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Sugar | 26% | 25% | 1 pp |
| 26% | 28% | (2) pp |
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Meat | 17% | 17% | 0 pp |
| 14% | 18% | (4) pp |
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Agriculture | 49% | 27% | 22 pp |
| 48% | 23% | 25 pp |
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Oil and Fat | 12% | 12% | 0 pp |
| 13% | 12% | 1 pp |
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SUGAR SEGMENT
In 1H21 Sugar segment earned RUB 4,240 million of adjusted EBITDA (+19% y-o-y) with 26% margin (+1 pp y-o-y). The financial results of the Sugar Segment of 1H21 and 2Q21 compared to 1H20 and 2Q20 respectively are presented in the table below.
Sugar segment 1H and 2Q 2021 Financial Results
in RR million | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
Sales | 16,386 | 14,269 | 2,117 | 15 | 7,745 | 9,028 | (1,283) | (14) |
Cost of sales | (11,985) | (10,398) | (1,588) | (15) | (5,649) | (6,372) | 724 | 11 |
Net gain/ (loss) from trading derivatives | - | 11 | (11) | - | - | 11 | (11) | - |
Gross profit | 4,400 | 3,882 | 519 | 13 | 2,096 | 2,666 | (570) | (21) |
Gross profit margin | 27% | 27% | 0 pp |
| 27% | 30% | (3) pp |
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Distribution and selling expenses | (965) | (1,090) | 126 | 12 | (490) | (579) | 89 | 15 |
General and administrative expenses | (759) | (686) | (73) | (11) | (398) | (337) | (61) | (18) |
Other operating income/ (expenses), net | 49 | 548 | (498) | (91) | (8) | 475 | (483) | - |
incl. other adjustments to EBITDA (non-recurring items) | (38) | 453 | (491) | - | (78) | 401 | (478) | - |
Operating profit | 2,726 | 2,653 | 74 | 3 | 1,200 | 2,225 | (1,025) | (46) |
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Adjusted EBITDA | 4,240 | 3,554 | 686 | 19 | 1,995 | 2,533 | (538) | (21) |
Adjusted EBITDA margin | 26% | 25% | 1 pp |
| 26% | 28% | (2) pp |
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In 1H21 in comparison to 1H20 Sales of Sugar segment improved by 15% - to RUB 16,386 million. Average sugar sales price showed positive trend in comparison to 1H20, when market sugar prices in Russia reached minimum level for 2014-2021. Meanwhile, Rusagro's sugar sales price to retail chains in Russia did not exceed 36 RUB/kg incl. of VAT for white sugar in 50 kg bags at the plant. Rusagro decreased sugar sales volume by 22% y-o-y to 362 thousand tonnes due to reduction of brought forward sugar balance driven by production volumes decrease as the result of lower sugar beet harvest in Russia in season 2020/2021 in comparison to the season 2019/2020. Sales of Sugar segment in 2Q21 compared to 2Q20 decreased as the result of sales volume decrease partially compensated by sugar sales prices growth.
Sugar revenue growth for 1H21 was partially offset by the decrease in sales of beet pulp of RUB 284 million.
Production, sales volume and sales price of sugar in 1H and 2Q 2021
| Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
Sugar production volume, thousand tonnes | 39 | 109 | (70) | (64) | 29 | 52 | (23) | (44) |
Sales volume, thousand tonnes | 362 | 466 | (104) | (22) | 160 | 297 | (137) | (46) |
Average sales price, RUB/kg, excl. of VAT | 40.7 | 26.2 | 14.5 | 55 | 42.4 | 26.9 | 15.5 | 57 |
Cost of sales in 1H21 showed a lower increase than Sales y-o-y mainly because sugar beet purchase price in season 2020/2021 in comparison to season 2019/2020 grew less than sugar sales price y-o-y.
MEAT SEGMENT
In 1H21 Meat segment earned RUB 3,094 million of adjusted EBITDA (+32% y-o-y) with 17% margin (+0 pp y-o-y). The financial results of the Meat Segment of 1H21 and 2Q21 compared to 1H20 and 2Q20 respectively are presented in the table below.
Meat segment 1H and 2Q 2021 Financial Results
in RR million | Six months ended | Variance | Three months ended | Variance | |||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | ||
Sales | 18,182 | 14,079 | 4,103 | 29 | 9,621 | 7,270 | 2,351 | 32 | |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | 1,267 | 594 | 673 | 113 | 447 | 166 | 281 | 169 | |
Cost of sales | (15,479) | (12,225) | (3,254) | (27) | (8,059) | (6,147) | (1,912) | (31) | |
Gross profit | 3,970 | 2,449 | 1,522 | 62 | 2,009 | 1,290 | 720 | 56 | |
Gross profit margin | 22% | 17% | 5 pp |
| 21% | 18% | 3 pp |
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Gross profit excl. effect of biological assets revaluation | 2,703 | 1,855 | 848 | 46 | 1,562 | 1,124 | 439 | 39 | |
Adjusted gross profit margin | 15% | 13% | 2 pp |
| 16% | 15% | 1 pp |
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Distribution and selling expenses | (751) | (559) | (192) | (34) | (420) | (354) | (66) | (19) | |
General and administrative expenses | (1,670) | (781) | (889) | (114) | (1,000) | (322) | (678) | (210) | |
Other operating income/ (expenses), net | 720 | 254 | 465 | 183 | 223 | 111 | 112 | 101 | |
incl. reimbursement of operating costs (government grants) | 256 | (0) | 256 | - | 56 | (0) | 56 | - | |
incl. other adjustments to EBITDA (non-recurring items) | 337 | 204 | 133 | 65 | 201 | 135 | 66 | 49 | |
Operating profit income/ (expenses), net | 2,269 | 1,364 | 905 | 66 | 813 | 725 | 88 | 12 | |
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Adjusted EBITDA | 3,094 | 2,347 | 747 | 32 | 1,349 | 1,337 | 12 | 1 | |
Adjusted EBITDA margin | 17% | 17% | 0 pp |
| 14% | 18% | (4) pp |
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Sales of the Meat segment increased by 29% in 1H21 and by 32% in 2Q21 compared to the respective periods of the prior year due to the growth of average sales price of meat products by 24% and 26% respectively. The growth of total sales volume by 4% in 1H21 compared to 1H20 triggered by 3% pigs production increase achieved as new pig farms in Tambov Region reached full capacity.
Production, sales volume and sales price of pork products in 1H and 2Q 2021
| Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
Pigs production, thousand tonnes
| 151 | 146 | 5 | 3 | 76 | 74 | 2 | 3 |
Sales volume, thousand tonnes | 121 | 116 | 5 | 4 | 62 | 59 | 3 | 6 |
Average sales prices, RUB/kg, excl. of VAT | 149.9 | 121.1 | 28.8 | 24 | 154.8 | 123.2 | 31.5 | 26 |
Cost of sales increased by 27% in 1H21 and by 31% in 2Q21 compared to the respective periods of the prior year mainly due to higher costs of feed and animals health protection.
Net gain on revaluation of biological assets and agricultural produce in 1H21 resulted mainly from an increase in market prices for both bearer and consumable livestock pigs during the reporting period compared to market prices at the end 2020 and respective increase in fair value of livestock in the closing balance.
An increase in Distribution and selling expenses in 1H21 in comparison to 1H20 is mainly due to the rise in the costs of marketing activities.
General and administrative expenses in 1H21 compared to prior year period increased mainly due realization of pork production cluster project in the Primorie Territory.
An increase in Other operating income in 1H21 in comparison to 1H20 is mainly due to partial reimbursement of feed purchase costs and investment loans interest.
AGRICULTURAL SEGMENT
As at 30 June 2021 Rusagro's area of controlled land stands at 688 thousand hectares (30 June 2020: 642 thousand hectares). In 1H21 Agriculture segment earned RUB 5,863 million of adjusted EBITDA (+175 % y-o-y) with 49% margin (+22 pp y-o-y). The financial results of the Agricultural Segment of 1H21 and 2Q21 compared to 1H20 and 2Q20 respectively are presented below.
Agriculture segment 1H and 2Q 2021 Financial Results
in RR million | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
Sales | 11,887 | 8,001 | 3,885 | 49 | 5,926 | 3,577 | 2,349 | 66 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | 248 | 3,512 | (3,263) | (93) | 1,900 | 3,958 | (2,058) | (52) |
Cost of sales | (5,540) | (5,152) | (387) | (8) | (2,764) | (2,305) | (459) | (20) |
Gross profit | 6,595 | 6,360 | 235 | 4 | 5,063 | 5,231 | (168) | (3) |
Gross profit margin | 55% | 79% | (24) pp |
| 85% | 146% | (61) pp |
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Gross profit excl. effect of biological assets and agricultural produce revaluation | 6,347 | 2,849 | 3,498 | 123 | 3,162 | 1,272 | 1,890 | 149 |
Adjusted gross profit margin | 53% | 36% | 17 pp |
| 53% | 36% | 17 pp |
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Distribution and selling expenses | (960) | (978) | 18 | 2 | (525) | (498) | (28) | (6) |
General and administrative expenses | (634) | (619) | (16) | (3) | (339) | (304) | (34) | (11) |
Other operating income/ (expenses), net | 87 | (80) | 168 | - | 40 | 1 | 38 | 2,760 |
incl. reimbursement of operating costs (government grants) | 133 | 61 | 72 | 118 | 133 | 61 | 72 | 118 |
incl. other adjustments to EBITDA (non-recurring items) | 86 | (5) | 91 | - | 63 | 45 | 18 | 40 |
Operating profit | 5,087 | 4,683 | 404 | 9 | 4,238 | 4,430 | (192) | (4) |
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Adjusted EBITDA | 5,863 | 2,134 | 3,729 | 175 | 2,837 | 815 | 2,022 | 248 |
Adjusted EBITDA margin | 49% | 27% | 22 pp |
| 48% | 23% | 25 pp |
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In 1H21 in comparison to 1H20 Sales of the Agriculture segment increased by 49% to RUB 11,887 million thanks to significantly higher sales volume of wheat and higher sales price of all crops, except corn, following global price increase. This was partially offset by sales volume decrease of all other crops, except wheat, especially soybean. Meanwhile, Cost of sales and General and administrative expenses remained relatively stable.
Higher sales volume of wheat in 1H21 compared to 1H20 were affected by management decision in 2020 to push sales timing towards 1H21 in expectation of peak prices, whereas 2019 wheat harvest was mainly sold in 2019.
Opposite situation with soybean, as lower sales volume in 1H21 compared to 1H20 were affected by management decision in 2019 to push sales timing towards 1H20 in expectation of peak prices, whereas 2020 soybean harvest was partially realized in 2020 due to sharp domestic price rise and introduction of export duties.
In 2Q21 in comparison to 2Q20 Sales of the Agriculture segment increased by 66% to RUB 5,926 million because of the same reasons listed above, except that soybean sales volume remains in line between 2Q21 and 2Q20.
Sales volume of crops in 1H and 2Q 2021
Thousand tonnes | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
wheat | 360 | 82 | 278 | 341 | 218 | 36 | 182 | 505 |
soybean | 143 | 188 | (45) | (24) | 71 | 67 | 4 | 6 |
corn | 58 | 73 | (15) | (21) | 8 | 65 | (57) | (88) |
sunflower seeds | 8 | 18 | (10) | (55) | - | 1 | (1) | (100) |
barley | 5 | 51 | (46) | (90) | 4 | 28 | (24) | (84) |
Sales price of crops in 1H and 2Q 2021
RR per kilogram, excl. of VAT | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
wheat | 12.7 | 11.2 | 1.5 | 13 | 12.5 | 11.6 | 0.9 | 8 |
soybean | 40.6 | 25.6 | 15.0 | 59 | 39.8 | 26.9 | 12.9 | 48 |
corn | 13.2 | 14.8 | (1.6) | (11) | 14.9 | 15.0 | (0.1) | (1) |
sunflower seeds | 39.2 | 20.1 | 19.1 | 95 | - | 22.8 | n/a | n/a |
barley | 12.0 | 9.8 | 2.2 | 23 | 11.9 | 9.5 | 2.4 | 26 |
Net gain on revaluation of biological assets and agricultural produce in 1H21 and 1H20 respectively represents a combination of the two factors. Gain from current year unharvested crops revaluation to fair value less estimated point-of-sale costs equals to RUB 4,720 million in 1H21 against RUB 4,518 million in 1H20. The second factor is the realisation of gain from crops revaluation, recognised in the previous year financial statements and remained unrealised as at the year-end, equals to RUB 4,472 million loss recognised in 1H21 against RUB 1,006 million loss in 1H20, significant loss increase caused by higher revaluation amounts in 2020 due to crops price growth.
Net gain/(loss) on revaluation of crops and its subsequent realisation do not affect the Adjusted EBITDA figure.
Distribution and selling expenses remains at the same levels despite growth in sales volumes, which is caused by changes in sales channels of soybean, export in 1H2020 vs. domestic in 1H2021.
Other net operating income/(expenses) increased as a result of received government grants in higher amount by RUB 72 million, gain of RUB 51 million from release of provision for legal claims in 1H21.
OIL AND FAT SEGMENT
In 1H21 Oil and Fat segment earned RUB 7,482 million of adjusted EBITDA (+69 % y-o-y) with 12% margin (+0 pp y-o-y). The financial results of the Oil and Fat Segment for 1H21 and 2Q21 compared to 1H20 and 2Q20 respectively are presented below.
Oil and Fat segment 1H and 2Q 2021 Financial Results
in RR million | Six months ended | Variance | Three months ended | Variance |
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30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % |
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Sales | 61,569 | 36,732 | 24,837 | 68 | 33,962 | 19,671 | 14,291 | 73 |
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Cost of sales | (51,864) | (29,292) | (22,572) | (77) | (28,557) | (15,725) | (12,832) | (82) | ||
Gross profit | 9,705 | 7,440 | 2,265 | 30 | 5,404 | 3,946 | 1,458 | 37 |
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Gross profit margin | 16% | 20% | (4) pp |
| 16% | 19% | (3) pp |
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Distribution and selling expenses | (2,169) | (2,207) | 38 | 2 | (1,264) | (1,184) | (80) | (7) |
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General and administrative expenses | (1,014) | (1,062) | 48 | 5 | (570) | (496) | (74) | (15) |
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Other operating income/ (expenses), net | 136 | (171) | 307 | - | 73 | (284) | 358 | - |
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incl. Other adjustments to EBITDA (non-recurring items) | 18 | (107) | 125 | - | (95) | (273) | 178 | 65 |
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Operating profit/ (loss) | 6,658 | 4,000 | 2,658 | 66 | 3,644 | 1,982 | 1,662 | 84 |
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Adjusted EBITDA | 7,482 | 4,421 | 3,061 | 69 | 4,368 | 2,413 | 1,955 | 81 |
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Adjusted EBITDA margin | 12% | 12% | 0 pp |
| 13% | 12% | 1 pp |
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In 2021 results of Dairy Products segment are included in Oil and Fat segment due to consolidation of these two businesses. For comparison purpose financial results of the previous years were corrected accordingly.
Sales volumes to third parties in 1H and 2Q 2021
thousand tons | Six months ended | Variance | Three months ended | Variance | |||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | ||
meal | 306 | 317 | (11) | (3) | 188 | 155 | 33 | 21 | |
crude oil | 198 | 227 | (29) | (13) | 95 | 127 | (31) | (25) | |
industrial fats | 158 | 134 | 24 | 18 | 74 | 57 | 18 | 31 | |
dry whey mixes | 7 | 7 | 0 | 0 | 4 | 3 | 1 | 16 | |
consumer oil&fat products | 160 | 165 | (5) | (3) | 85 | 89 | (4) | (5) | |
consumer dairy products | 7 | 6 | 1 | 16 | 3 | 3 | 0 | 14 | |
Sales price to third parties in 1H and 2Q 2021
RR per kilogram, excl. VAT | Six months ended | Variance | Three months ended | Variance | |||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | ||
meal | 24.6 | 13 | 11.2 | 83 | 25.9 | 14.5 | 11.4 | 79 | |
crude oil | 100.7 | 47.5 | 53.2 | 112 | 112.4 | 48.7 | 63.7 | 131 | |
industrial fats | 88.5 | 54.9 | 33.6 | 61 | 96.6 | 57.2 | 39.4 | 69 | |
dry whey mixes | 81.8 | 74.4 | 7.4 | 10 | 83.8 | 73.5 | 10.3 | 14 | |
consumer oil&fat products | 105.5 | 70.9 | 34.6 | 49 | 108.5 | 72.9 | 35.6 | 49 | |
consumer dairy products | 216.4 | 205.6 | 10.8 | 5 | 219.5 | 210.0 | 9.5 | 5 | |
In 1H21 in comparison to 1H20 Sales of the Oil and Fat segment grew thanks to higher sales prices for all product categories. Sales price of bottled sunflower oil to retail in Russia did not exceed 95 RUB/l incl. of VAT at the plant.
Cost of sales in 1H21 in comparison to 1H20 increased due to higher prices of raw materials, including sunflower seeds, bulk and tropical oil.
Other net operating income/(expenses) decreased by RUB 307 million as a result of foreign exchange gain of RUB 46 million in 1H21 against RUB 84 million loss in 1H20 and loss of RUB 9 million from release of provision for legal claims in 1H21 against RUB 36 million loss in 1H20.
KEY CONSOLIDATED CASH FLOW INDICATORS (NOT IFRS PRESENTATION*)
The key consolidated cash flow indicators presented according to management accounts methodology
in mln Roubles | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
Net cash from operating activities, incl. | 21,348 | 19,053 | 2,295 | 12 | 12,931 | 12,574 | 356 | 3 |
Operating cash flow before working capital changes | 22,742 | 12,641 | 10,101 | 80 | 11,312 | 7,556 | 3,756 | 50 |
Working capital changes | (758) | 6,672 | (7,430) | - | 2,096 | 5,071 | (2,975) | (59) |
Net cash from investing activities, incl. | (17,411) | (4,765) | (12,646) | (265) | (15,412) | (2,745) | (12,667) | (461) |
Purchases of property plant and equipment and inventories intended for construction | (6,222) | (4,825) | (1,398) | (29) | (4,183) | (2,675) | (1,508) | (56) |
Acquisition of SolPro assets | (11,689) | - | (11,689) | - | (11,689) | - | (11,689) | - |
Net cash from financing activities | 36,373 | (13,407) | 49,780 | - | 33,406 | (9,484) | 42,890 | - |
Net effect of exchange rate changes on cash and cash equivalents | (102) | 173 | (275) | - | (72) | (147) | 75 | 51 |
Net increase / (decrease) in cash and cash equivalents | 40,208 | 1,054 | 39,154 | 3,716 | 30,852 | 198 | 30,655 | 15,489 |
(*) See Appendix 4
During 1H21 the Company started to acquire SolPro assets (Atkarskiy oil extraction plant), cash inflow corresponding to loans and interest repaid as the result of SolPro assets acquisition is included in line Net cash from financing activities.
The key investments in property, plant and equipment and inventories intended for construction during 1H21 were made in the Meat segment in the amount of RUB 2,846 million (1H20: RUB 2,083 million) due to the purchases related to the construction project in the Russian Far East. Investments in the Oil and Fat segment in the amount of RUB 2,110 million (1H20: RUB 648 million), Agriculture segment in the amount of RUB 911 million (1H20: RUB 1,181 million) and Sugar segment in the amount of RUB 355 million (1H20: RUB 913 million) mainly relate to purchases of machinery and equipment for production facilities renewal and maintenance.
Debt position and liquidity management
in RUB million | 30 June 2021 | 31 December 2020 | Variance |
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Units | % |
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Gross debt | 181,555 | 114,929 | 66,626 | 58 |
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Short-term borrowings | 116,206 | 51,753 | 64,453 | 125 |
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Long-term borrowings | 65,349 | 63,176 | 2,173 | 3 |
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Cash and cash equivalents, bank deposits and bonds | (114,711) | (46,029) | (68,682) | (149) |
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Short-term cash, deposits and bonds | (80,740) | (12,064) | (68,676) | (569) |
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Long-term cash, deposits and bonds | (33,971) | (33,965) | (6) | (0) |
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Net debt | 66,844 | 68,900 | (2,056) | (3) |
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Short-term borrowings, net | 35,466 | 39,689 | (4,223) | (11) |
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Long-term borrowings, net | 31,378 | 29,211 | 2,167 | 7 |
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Adjusted EBITDA (LTM4) | 42,202 | 31,984 | 10,218 | 32 |
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Net debt/ Adjusted EBITDA (LTM) | 1.58 | 2.15 | (0.6) pp |
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Adjusted EBITDA (LTM)5 without other operating income/expenses | 42,496 | 32,435 | 10,061 | 31 |
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Net debt/ Adjusted EBITDA (LTM)5 without other operating income/expenses | 1.57 | 2.12 | (0.5) pp |
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Net finance income/ (expense)
in RR million | Six months ended | Variance | Three months ended | Variance | ||||
30 June 2021 | 30 June 2020 | Units | % | 30 June 2021 | 30 June 2020 | Units | % | |
Net interest expense | (2,507) | (2,582) | 75 | 3 | (1,213) | (1,235) | 22 | 2 |
Gross interest expense | (3,774) | (3,357) | (417) | (12) | (1,989) | (1,655) | (335) | (20) |
Reimbursement of interest expense | 1,267 | 775 | 492 | 64 | 776 | 420 | 357 | 85 |
Interest income | 3,723 | 3,572 | 151 | 4 | 1,903 | 1,801 | 102 | 6 |
Net gain/ (loss) from bonds held for trading | (1) | (17) | 16 | 92 | (1) | (16) | 15 | 93 |
Other financial income, net | (163) | (1,351) | 1,188 | 88 | (143) | (211) | 68 | 32 |
Net foreign exchange gain/ (loss) | 28 | (1,215) | 1,243 | - | 60 | (138) | 198 | - |
Other financial income / (expenses), net | (192) | (137) | (55) | (40) | (203) | (73) | (130) | (179) |
Total net finance income/ (expenses) | 1,051 | (379) | 1,430 | - | 546 | 339 | 207 | 61 |
Net debt decreased at 30 June 2021 compared at 31 December 2020 as a result of an increase in cash and cash equivalents, bank deposits and bonds.
In 1H21 Rusagro continued to enjoy state agriculture subsidies programme. The Rusagro continued to receive bank loans with decreased 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 1H21 IFRS accounts these credits are accounted according to its face value with no adjustments to prevailing market rates. The differences between nominal and market interest rate is recognized as either government grants in a statement of financial position for borrowings received with the purpose to finance investment projects or interest expenses in a statement of comprehensive income for general purpose borrowings.
Net finance expenses of 1H20 in the sum of RUB 379 million changed to net finance income in the amount of RUB 1,051 million in 1H21 as the result of negative dynamics in forex losses in 1H20.
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(1) The exchange rates used for translation of RUB amounts into USD represent average Central Bank official exchange rate for the respective reporting period for income, expenses and profits and the Central Bank official exchange rate as at the reporting date for balance figures.
(2) Adjusted EBITDA is defined as operating profit before taking into account (i) depreciation included in operating profit, (ii) net gain/ (loss) on revaluation of biological assets and agricultural produce, (iii) non-recurring components of other operating income/ (expenses), net, (iv) share-based remuneration, (v) provision for impairment of loans issued (see Appendix 2 for the detailed calculation of Adjusted EBITDA). Adjusted EBITDA is not a measure of financial performance under IFRS. It should not be considered as an alternative to profit for the period as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and therefore comparability may be limited. We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of subsidiaries and other investments and our ability to incur and service debt.
(3) The Rusagro determines the net debt as short-term borrowings and long-term borrowings less cash and cash equivalents, bank deposits, bank promissory notes and bonds held for trading.
(4) LTM - The abbreviation for the "Last twelve months".
(5) Starting from the beginning of 2020 part of other operating income and expensed (recurring items) was included in Adjusted EBITDA calculation. Figures of 2021 and 2020 calculated using prior periods' logic (excluding other operating income/expenses) are shown in table Debt position and liquidity management above and in the diagram with Net debt/ LTM EBITDA trend analysis for comparative purposes
NOTE
ROS AGRO PLC (LSE, MOEX: AGRO) - a holding company of Rusagro Group, a leading Russian diversified food producer with vertically integrated operations in the following branches:
Sugar:
Rusagro is one of the leading Russian sugar producers (№2 in sugar production in Russia and №1 on cube white sugar market in 2020), 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, Horoshiy 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:
Rusagro is the third largest pork producer in Russia in 2020. 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:
Rusagro currently controls one of the largest land banks among Russian agriculture producers, with 688 thousand hectares of land under control located in the highly fertile Black Earth region of Russia (in the Belgorod, Tambov, Voronezh, Kursk, Orel and Saratov 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 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, umbrella brend Ya lublu gotovit (includes Moskovskiy Provansal, Novosibirskiy Provansal, Saratovskiy Provansal), Rossiyanka and Saratovskiy Slivochniy. Rusagro 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. Since 1Q 2021 Oil and Fats segment also operates two milk processing plants in Samara and Ulyanovsk Regions, which produce dry industrial mixes, cheeses, butter and cream sold under three brands: 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.
CONFERENCE CALL
Rusagro management is organizing a conference call on Company's 1H and 2Q 2021 financial results for investors and analysts.
Details of the call:
Date | 16 August 2021 |
Time | 4:00 PM (Moscow) / 2:00 PM (London) |
Subject | ROS AGRO PLC 1H and 2Q and 6M 2021 Financial results |
Zoom link
| https://ib-translations.zoom.us/j/81995329724?pwd=cWFRQlRyWk9ibWNqb1lUK3puOTdDdz09
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Password
| 235894
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CONTACTS
Svetlana Kuznetsova IR & ESG Director Phone: +7 495 363 1661, E-mail: ir@rusagrogroup.ru |
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Appendix 1. Consolidated statement of comprehensive income for the Six and Three months ended 30 June 2021 (in RUB thousand)
| Six months ended 30 June | Three months ended 30 June | ||
| 2021 | 2020 | 2021 | 2020 |
Sales | 104,371,769 | 72,161,446 | 54,438,801 | 39,228,082 |
Net gain/(loss) on revaluation of biological assets and agricultural produce | (434,812) | 4,410,327 | 1,591,010 | 4,324,348 |
Cost of sales | (79,557,967) | (56,326,166) | (41,739,476) | (30,315,191) |
Net gain/(loss) from trading derivatives | (5) | 10,556 | - | 10,638 |
Gross profit | 24,378,985 | 20,256,162 | 14,290,335 | 13,247,877 |
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Distribution and selling expenses | (4,318,350) | (4,588,049) | (2,455,399) | (2,485,068) |
General and administrative expenses | (4,640,837) | (3,682,032) | (2,576,813) | (1,672,556) |
Reversal of provision/(provision) for impairment of loans issued | 1,852,295 | (3,256,721) | 1,852,295 | - |
Other operating income/(expenses), net | 1,032,810 | 1,243,618 | 275,152 | 679,753 |
Operating profit / (loss) | 18,304,903 | 9,972,978 | 11,385,570 | 9,770,006 |
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Interest expense | (2,507,021) | (2,582,278) | (1,212,937) | (1,234,833) |
Interest income | 3,722,605 | 3,520,931 | 1,903,340 | 1,721,326 |
Net (loss)/gain from bonds | (1,362) | (17,002) | (1,123) | (16,143) |
Other financial income/ (expenses), net | (163,409) | (1,351,245) | (143,191) | (211,247) |
Profit before income tax | 19,355,716 | 9,543,384 | 11,931,659 | 10,029,109 |
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Income tax expense | (1,755,228) | 186,653 | (857,523) | (637,064) |
Profit for the period | 17,600,488 | 9,730,037 | 11,074,136 | 9,392,045 |
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Other comprehensive income |
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|
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Total comprehensive income for the period | 17,600,488 | 9,730,037 | 11,074,136 | 9,392,045 |
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Profit is attributable to: |
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Owners of ROS AGRO PLC | 17,630,249 | 9,764,870 | 11,082,816 | 9,399,728 |
Non-controlling interest | (29,761) | (34,833) | (8,680) | (7,683) |
Profit for the period | 17,600,488 | 9,730,037 | 11,074,136 | 9,392,045 |
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Total comprehensive income is attributable to: |
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Owners of ROS AGRO PLC | 17,630,249 | 9,764,870 | 11,082,816 | 9,399,728 |
Non-controlling interest | (29,761) | (34,833) | (8,680) | (7,683) |
Total comprehensive income for the period | 17,600,488 | 9,730,037 | 11,074,136 | 9,392,045 |
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Earnings per ordinary share for profit attributable to the owners of ROS AGRO PLC, basic and diluted(in RR per share) | 655.25 | 362.95 | 411.90 | 349.35 |
Appendix 2. Segment information for the Six months ended 30 June 2021 (in RUB thousand)
1H 2021 | Sugar | Meat | Agriculture | Oil and Fat | Other | Eliminations | Total |
Sales | 16,385,736 | 18,181,889 | 11,886,604 | 61,568,998 | 396,005 | (4,047,463) | 104,371,769 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | 1,267,394 | 248,454 | - | - | (1,950,660) | (434,812) |
Cost of sales | (11,985,423) | (15,478,892) | (5,539,832) | (51,863,898) | (287,802) | 5,597,880 | (79,557,967) |
incl. Depreciation | (1,440,624) | (2,111,871) | (998,251) | (709,188) | (4,696) | (9,297) | (5,273,927) |
Net gain/ (loss) from trading derivatives | - | (5) | - | - | - | - | (5) |
Gross profit | 4,400,313 | 3,970,386 | 6,595,226 | 9,705,100 | 108,203 | (400,243) | 24,378,985 |
Distribution and Selling, General and administrative expenses | (1,723,373) | (2,420,500) | (1,594,914) | (3,183,122) | (866,823) | 829,545 | (8,959,187) |
incl. Depreciation | (35,379) | (316,798) | (111,439) | (132,357) | (63,495) | 9,297 | (650,171) |
Other operating income/(expenses), net | 49,437 | 719,501 | 87,182 | 136,182 | 15,548,273 | (15,507,765) | 1,032,810 |
incl. Reimbursement of operating costs (government grants) | 84,440 | 255,545 | 132,901 | 102,725 | - | - | 575,611 |
incl. Other adjustments to EBITDA (non-recurring items) | (37,563) | 336,546 | 85,918 | 17,880 | 15,509,348 | (15,219,857) | 692,272 |
Reversal of provision/(provision) for impairment of loans issued | - | - | - | - | 1,852,295 | - | 1,852,295 |
Operating profit / (loss) | 2,726,377 | 2,269,387 | 5,087,494 | 6,658,160 | 16,641,948 | (15,078,463) | 18,304,903 |
Adjustments: |
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Depreciation included in Operating Profit | 1,476,003 | 2,428,669 | 1,109,690 | 841,545 | 68,191 | - | 5,924,098 |
Other adjustments to EBITDA (non-recurring items) | 37,563 | (336,546) | (85,918) | (17,880) | (15,509,348) | 15,219,857 | (692,272) |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | (1,267,394) | (248,454) | - | - | 1,950,660 | 434,812 |
Reversal of provision/(provision) for impairment of loans issued | - | - | - | - | (1,852,295) | - | (1,852,295) |
Adjusted EBITDA* | 4,239,943 | 3,094,116 | 5,862,812 | 7,481,825 | (651,504) | 2,092,054 | 22,119,246 |
* Non-IFRS measure
Appendix 2 (continued). Segment information for the Six months ended 30 June 2020 (in RUB thousand)
1H 2020 | Sugar | Meat | Agriculture | Oil and Fat | Other | Eliminations | Total |
Sales | 14,268,955 | 14,079,193 | 8,001,245 | 36,731,663 | 288,691 | (1,208,301) | 72,161,446 |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | 594,091 | 3,511,620 | - | - | 304,616 | 4,410,327 |
Cost of sales | (10,397,786) | (12,224,512) | (5,152,408) | (29,291,877) | (245,536) | 985,953 | (56,326,166) |
incl. Depreciation | (1,316,686) | (1,670,932) | (823,449) | (234,910) | (5,017) | (8,857) | (4,059,851) |
Net gain/ (loss) from trading derivatives | 10,555 | - | - | - | - | - | 10,555 |
Gross profit | 3,881,724 | 2,448,772 | 6,360,457 | 7,439,786 | 43,155 | 82,268 | 20,256,162 |
Distribution and Selling, General and administrative expenses | (1,776,525) | (1,339,052) | (1,596,788) | (3,269,323) | (729,289) | 440,896 | (8,270,081) |
incl. Depreciation | (37,737) | (109,775) | (134,094) | (79,276) | (87,092) | 8,857 | (439,117) |
Other operating income/(expenses), net | 547,653 | 254,410 | (80,487) | (170,626) | 5,478,518 | (4,785,850) | 1,243,618 |
incl. Reimbursement of operating costs (government grants) | 72,144 | (439) | 60,950 | 86,569 | - | - | 219,224 |
incl. Other adjustments to EBITDA (non-recurring items) | 453,105 | 203,825 | (4,706) | (106,639) | 5,499,598 | (4,628,415) | 1,416,768 |
Reversal of provision/(provision) for impairment of loans issued | - | - | - | - | (3,256,721) | - | (3,256,721) |
Operating profit / (loss) | 2,652,852 | 1,364,130 | 4,683,182 | 3,999,837 | 1,535,663 | (4,262,686) | 9,972,978 |
Adjustments: |
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Depreciation included in Operating Profit | 1,354,423 | 1,780,707 | 957,543 | 314,186 | 92,109 | - | 4,498,968 |
Other adjustments to EBITDA (non-recurring items) | (453,105) | (203,825) | 4,706 | 106,639 | (5,499,598) | 4,628,415 | (1,416,768) |
Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | (594,091) | (3,511,619) | - | - | (304,617) | (4,410,327) |
Reversal of provision/(provision) for impairment of loans issued | - | - | - | - | 3,256,721 | - | 3,256,721 |
Adjusted EBITDA* | 3,554,170 | 2,346,921 | 2,133,812 | 4,420,662 | (615,105) | 61,112 | 11,901,572 |
* Non-IFRS measure
Appendix 3. Consolidated statement of financial position as at 30 June 2021(in RUB thousand)
| 30 June 2021 | 31 December 2020 |
ASSETS |
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Current assets |
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Cash and cash equivalents | 52,074,750 | 11,866,798 |
Restricted cash | 36,534 | 143,637 |
Short-term investments | 42,300,594 | 19,583,523 |
Trade and other receivables | 11,256,011 | 9,512,286 |
Prepayments | 2,868,302 | 2,941,224 |
Current income tax receivable | 511,892 | 646,162 |
Other taxes receivable | 11,058,957 | 5,506,675 |
Inventories and short-term biological assets | 68,476,829 | 69,001,368 |
Total current assets | 188,583,869 | 119,201,673 |
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Non-current assets |
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Property, plant and equipment | 100,194,636 | 87,519,088 |
Inventories intended for construction | 2,413,153 | 3,353,330 |
Right-of-use assets | 6,875,198 | 6,934,567 |
Goodwill | 2,364,942 | 2,364,942 |
Advances paid for non-current assets | 8,043,093 | 6,905,003 |
Long-term biological assets | 3,303,267 | 2,528,128 |
Long-term investments and receivables | 42,527,657 | 42,692,320 |
Investments in associates | 314,382 | 257,782 |
Deferred income tax assets | 4,350,562 | 3,566,168 |
Other intangible assets | 637,434 | 619,793 |
Other non-current assets | 442,569 | 205,793 |
Total non-current assets | 171,466,893 | 156,946,914 |
Total assets | 360,050,762 | 276,148,587 |
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LIABILITIES and EQUITY |
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Current liabilities |
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Short-term borrowings | 116,206,334 | 51,753,475 |
Lease liabilities | 926,058 | 943,859 |
Trade and other payables | 17,846,303 | 16,016,138 |
Provisions | 750,804 | 69,546 |
Current income tax payable | 254,661 | 4,096,199 |
Other taxes payable | 10,376,892 | 179,796 |
Total current liabilities | 146,361,052 | 73,059,013 |
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Non-current liabilities |
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Long-term borrowings | 65,349,000 | 63,175,720 |
Government grants | 8,651,762 | 8,536,899 |
Lease liabilities | 4,755,454 | 4,855,508 |
Deferred income tax liability | 2,070,543 | 487,049 |
Total non-current liabilities | 80,826,759 | 77,055,176 |
Total liabilities | 227,187,811 | 150,114,189 |
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Equity |
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Share capital | 12,269 | 12,269 |
Treasury shares | (490,607) | (490,607) |
Additional paid-in capital | 26,964,479 | 26,964,479 |
Other reserves | 1,363,177 | 1,363,177 |
Retained earnings | 105,043,352 | 98,185,038 |
Equity attributable to owners of ROS AGRO PLC | 132,892,670 | 126,034,356 |
Non-controlling interest | (29,719) | 42 |
Total equity | 132,862,951 | 126,034,398 |
Total liabilities and equity | 360,050,762 | 276,148,587 |
Appendix 4. Consolidated statement of cash flows for the Six months ended 30 June 2021 (in RUB thousand) - NOT IFRS PRESENTATION (*)
| Six months ended | |
| 30 June 2021 | 30 June 2020 |
Cash flows from operating activities |
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Profit before income tax | 19,355,716 | 9,543,384 |
Adjustments for: |
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Depreciation and amortization | 5,924,098 | 4,498,967 |
Interest expense | 3,774,168 | 3,356,941 |
Government grants | (2,167,458) | (1,306,625) |
Interest income | (3,722,605) | (3,520,931) |
Loss/ (gain) on disposal of property, plant and equipment | (17,033) | (45,948) |
Net (gain) / loss on revaluation of biological assets and agricultural produce | 434,812 | (4,410,327) |
Change in provision for impairment of loans issued | (1,852,295) | 3,256,721 |
Lease financial expense | 122,168 | 129,700 |
Realised deferred day-one gain | (395,146) | (687,258) |
Change in provision for net realisable value of inventory | 999,799 | 366,003 |
Change in provision for impairment of receivables and prepayments | 72,545 | (4,045) |
Foreign exchange (gain) / loss, net | (96,100) | 1,361,408 |
Lost / (reversal of) harvest write-off | 210,464 | 179,563 |
Net (gain) / loss from bonds held for trading | 1,362 | 17,002 |
Settlement of loans and accounts receivable previously written-off | - | (2) |
Change in provision for impairment of advances paid for property, plant and equipment | (34,322) | 113,203 |
Change in other provisions | 571,009 | 63,174 |
Dividend income | (377,269) | (186,506) |
Other non-cash and non-operating expenses, net | (61,794) | (83,801) |
Operating cash flow before working capital changes | 22,742,119 | 12,640,623 |
Change in trade and other receivables and prepayments | (1,908,398) | 382,332 |
Change in other taxes receivable | (5,552,282) | 984,212 |
Change in inventories and biological assets | (1,607,811) | 5,127,762 |
Change in trade and other payables | 2,213,800 | 618,965 |
Change in other taxes payable | 6,096,652 | (441,051) |
Cash generated from operations | 21,984,080 | 19,312,843 |
Income tax paid | (636,256) | (259,595) |
Net cash from operating activities | 21,347,824 | 19,053,248 |
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Appendix 4 (continued). Consolidated statement of cash flows the Six months ended 30 June 2021 (in RUB thousand) - NOT IFRS PRESENTATION (*)
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| Six months ended | |
| 30 June 2021 | 30 June 2020 |
Cash flows from investing activities |
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Purchases of property, plant and equipment including SolPro assets acquisition | (17,682,805) | (4,016,179) |
Purchases of other intangible assets | (201,571) | (237,793) |
Purchases of land lease rights | (25,828) | - |
Proceeds from sales of property, plant and equipment | 175,297 | 79,507 |
Purchases of inventories intended for construction | (228,460) | (808,586) |
Purchases of associates | (56,600) | (35,000) |
Movement in restricted cash | 104,163 | - |
Dividends received | 377,331 | 186,506 |
Other investing activities | 127,849 | 66,488 |
Net cash from investing activities | (17,410,624) | (4,765,057) |
Cash flows from financing activities |
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Proceeds from borrowings | 75,517,913 | 31,110,339 |
Repayment of borrowings | (10,206,491) | (42,937,117) |
Interest paid | (2,042,736) | (2,161,798) |
Change in cash on bank deposits | (28,000,000) | - |
Proceeds from sales of bonds with maturity over three months* | 220,282 | - |
Purchases of loans issued* | (281,445) | (1,840) |
Loans repaid* | 7,807,779 | 696,560 |
Interest received* | 3,255,728 | 2,628,790 |
Proceeds from government grants | 869,393 | 544,868 |
Dividends paid to owners Ros Agro PLC | (10,666,996) | (3,216,539) |
Repayment of lease liabilities | (55,068) | (70,432) |
Other financial activities | (45,633) | - |
Net cash from financing activities | 36,372,726 | (13,407,169) |
Net effect of exchange rate changes on cash and cash equivalents | (101,974) | 172,642 |
Net increase/ (decrease) in cash and cash equivalents | 40,207,952 | 1,053,664 |
Cash and cash equivalents at the beginning of the period | 11,866,798 | 2,170,779 |
Cash and cash equivalents at the end of the period | 52,074,750 | 3,224,443 |
(*) 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.