Rusagro’s history

The Company’s history began in 1995 with sugar import operations, followed by import and processing of raw sugar in Russia. Soon after that, a period of forming a diversified vertically integrated holding company started, which could be divided into the following main stages.

Rusagro
Sugar Business
Agriculture Business
Oil and Fats Business
Meat Business
Dairy Products Business
97 98 99 00 01 02
1997–2002 Launching the Sugar and Agriculture Businesses
Acquiring the first sugar plants and launching the sugar production line in the Belgorod Region.
Establishing our own land bank for the production of sugar beets and grain crops.
Purchasing elevators for storage and trade of grains.
03 04 05 06 07
2003–2007 Launching the Oil and Fats Business and introducing the first retail brand
Establishing Rusagro Group of Companies in 2003.
Launching the first retail sugar brand — Chaikofsky.
Purchasing the fisrt oil and fats production asset in Yekaterinburg.
08 09 10
2008–2010 Launching the Meat Business and expanding the Sugar Business
Expanding the Sugar Segment by acquiring two sugar plants in the Belgorod and Tambov Regions.
Launching the Mon Cafe and Brauni sugar brands.
Expanding the land bank to 380 ths ha.
Opening the pork production in the Belgorod Region.
11 12 13
2011–2013 Initial Public Offering (IPO) and purchasing of the first oil extraction plant
Conducting an initial public offering (IPO) of GDRs on the London Stock Exchange (LSE) and raising USD 300 mn in 2011.
Approving the dividend policy.
Putting a new packaging line into production and launching the Russkii Sakhar brand.
Expanding the land bank to 463 ths ha.
Acquiring an oil extraction plant in the Samara Region in 2011.
Launching pig farms in the Tambov Region in 2013.
14 15
2014–2015 Starting floating on the Moscow Stock Exchange and launching a slaughtering sector
Listing the Company’s global depositary receipts (GDRs) on the MICEX in 2014.
Modernising sugar plants and increasing the capacity of pulp drying facilities.
Expanding the land bank to 504 ths ha.
Modernising the oil extraction plant.
Launching a slaughterhouse in the Tambov Region in 2015.
16 17
2016–2017 Closing the Razgulay deal and Secondary Public Offering (SPO)
Conducting a secondary public offering (SPO) of GDRs on the LSE and raising USD 250 mn in 2016.
Acquiring three sugar plants in the Kursk and Orel Regions, a cereal processing plant, and a land bank from Razgulay.
Launching the first molasses desugarisation facility.
Expanding the land bank to 665 ths ha.
Launching the first retail meat products brand — Slovo Myasnika (Butcher’s Word) in 2016.
18 19 20
2018–2020 Expanding of the business and developing exports
Including GDRs in the MSCI Russia Small Cap Index in 2020.
Launching the second molasses desugarisation facility in 2019.
Exporting products of the Sugar Business to 34 countries.
Exporting products of the Agriculture Business to 11 countries. Making the first shipments of maize and soybeans to China.
Exporting products of the Oil and Fats Business to 29 countries. Making the first deliveries of pulp and resuming sales of consumer margarine to China.
Acquiring a right to purchase the majority interest of the company that owns Solnechnye Produkty (Solar Products) holding in 2018.
Launching a packaged vegetable oil plant in the Samara Region and launching a mayonnaise plant in Atkarsk.
Acquiring 100% of KapitalAgro in 2018 and 22.5% in Agro-Belogorie Group in 2019 — producers of pork products in the Belgorod Region.
Completing the construction of a grain elevator and starting deliveries of sows to a breeding farm in the Primorye Territory.
Exporting products to 10 countries.
Launching the Dairy Products Business for the production of cheeses, butter, and whey powder in 2018.
Making the first delivery of whey powder to China.

Highlightsof 2021

All events
Click on an event for more information
January
February
March
April
May
June
July
August
September
October
November
December
2022
COMPANY-WIDE EVENTS Corporate governance January
Appointing a new Chief Financial Officer (CFO) of LLC Rusagro Group of Companies

In January 2021, Rusagro appointed Boris Chernicher to the position of Chief Financial Officer of the Company, who headed the Controlling, Investments and Reporting Department and Acting as Chief Financial Officer of Rusagro’s Oil and Fats Business since 2019.

Key results for 2021

Rusagro is one of the largest vertically integrated agriholdings in Russia. The Company covers a significant share of domestic production of pork, sugar, agricultural and oil and fats products. Based on the results of 2021, the Company’s average headcount totalled 20 ths people, and the turnover — RUB 223 bn (+40%).

  • REVENUESRevenues and adjusted EBITDA calculation exclude the corporate centre and before intersegment eliminations.

    RUB bn

    40%
    222.9 RUB bn
  • ADJUSTED EBITDARevenues and adjusted EBITDA calculation exclude the corporate centre and before intersegment eliminations.

    RUB bn

    50%
    48.1 RUB bn
  • CAPITAL INVESTMENTS

    RUB bn

    2%
    13.8 RUB bn
  • HEADCOUNT

    ths peopleHeadcount as of the year-end.

    5%
    20.3 ths people

BRANDS

24 brands

MEAT SEGMENT

SUGAR SEGMENT

OIL AND FATS SEGMENT

AGRICULTURE SEGMENT

AGRICULTURE SEGMENT

Positions in Russia

No.4 LAND HOLDER IN RUSSIA
689 ths ha
the land bank
604 ths ha
of arable lands

Average headcount of employees

5%
3.9 ths people

Production highlights

26%
3.6 mn tonnes
OF SUGAR BEET
26%
0.9 mn tonnes
OF GRAIN CROPS
19%
0.4 mn tonnes
OF OIL CROPS
Sales indicators
22%
3 589 ths tonnes
of sugar beet
17%
768 ths tonnes
of wheat
0%
330 ths tonnes
of soybean
52%
71 ths tonnes
of maize
24%
59 ths tonnes
of sunflower
84%
21 ths tonnes
of other crops

Financial results

22%
41.9 RUB bn
REVENUES
53%
23.3 RUB bn
ADJUSTED EBITDA
12 p.p.
56%  
EBITDA MARGIN

OIL AND FATS SEGMENTIncluding results obtained from assets managed by Rusagro on a leasehold basis.

Positions in Russia

No.1 SUNFLOWER OIL PRODUCER IN RUSSIA
13%
share in sunflower oil production in Russia
No.1 CONSUMER MARGARINE PRODUCER IN RUSSIA
52%
share in consumer margarine production in Russia
No.2 INDUSTRIAL FATS PRODUCER IN RUSSIA
22%
share in industrial fats production in Russia
No.2 MAYONNAISE PRODUCER IN RUSSIA
16%
share in mayonnaise production in Russia

Production highlights

3%
649 ths tonnes
OF CRUDE VEGETABLE OIL

Average headcount of employees

3%
5.2 ths people

Production highlights

3%
649 ths tonnes
OF CRUDE VEGETABLE OIL

Average headcount of employees

3%
5.2 ths people
Sales indicators
1%
582 ths tonnes
of meal
2%
391 ths tonnes
of crude oil
8%
335 ths tonnes
of industrial fats
2%
157 ths tonnes
of bottled oil
4%
133 ths tonnes
of mayonnaise
18%
35 ths tonnes
of consumer margarine

Financial results

57%
125.2 RUB bn
REVENUES
36%
12.8 RUB bn
ADJUSTED EBITDA
2 p.p.
10%  
EBITDA MARGIN

MEAT SEGMENT

Positions in Russia

No.4 COMMERCIAL PORK PRODUCER IN RUSSIA
6%
share in commercial pork production in Russia

Average headcount of employees

3%
7.4 ths people

Production highlights

0%
309 ths tonnes
OF PORK IN LIVE WEIGHT
1%
895 ths tonne
OF COMPOUND FEED
Sales indicators
9%
103 ths tonnes
of large cuts
18%
58 ths tonnes
of half-carcasses
9%
31 ths tonnes
of live pigs
1%
29 ths tonnes
of offal
24%
29 ths tonnes
of semi-finished products

Financial results

22%
39.6 RUB bn
REVENUES
9%
5.9 RUB bn
ADJUSTED EBITDA
5 p.p.
15%  
EBITDA MARGIN

SUGAR SEGMENT

Positions in Russia

No.1 CUBE SUGAR PRODUCER IN RUSSIA
48%
share in the Russian white cube sugar market
No.3 SUGAR PRODUCER IN RUSSIA
15
share of sugar production in Russia

Average headcount of employees

3%
3.1 ths people

Production highlights

4%
791 ths tonnes
OF SUGAR

Average headcount of employees

3%
3.1 ths people

Production highlights

4%
791 ths tonnes
OF SUGAR
Sales indicators
5%
769 ths tonnes
of sugar
24%
180 ths tonnes
of pulp
7%
25 ths tonnes
of betaine

Financial results

29%
36.4 RUB bn
REVENUES
41%
9.0 RUB bn
ADJUSTED EBITDA
2 p.p.
25%  
EBITDA MARGIN

Business model

Rusagro has a vertically integrated business model. The Sugar, Meat, and Oil and Fats Businesses have in place fully integrated production systems, with raw materials supplied by the Agriculture Business. With the vertically integrated structure, the business can exploit advantages of diversification, guarantee the supply of raw materials with minimum transportation costs, and effectively manage all elements of the value chain.

A high level of vertical integration both within each of the businesses and between the segments gives Rusagro a competitive edge in the markets, ensures superior production efficiency and financial stability. In order to gain maximum benefits of each business, the Company adopted a flexible commercial policy that does not restrict the sales of products to third-party companies.

icon

AGRICULTURE BUSINESS

Images with grass
Icon Cultivation and sowing campaign
Icon Cultural treatment and top dressing
Icon Harvesting and storage
Icon Sales of products
Шрот
Дефекат
Свекла
Шрот
icon

SUGAR BUSINESS

Images with beet
Icon Beet sugar production
Icon Extract sugar production
Icon Production of cereals
Icon Marketing and sales

MEAT BUSINESS

Images with meat
Icon Compound feed production
Icon Livestock breeding
Icon Slaughtering and deboning
Icon Slaughterhouse refuse recycling
Icon Marketing and sales

OIL AND FATS BUSINESS

Images with oil-fats
Icon Oil extraction
Icon Production of industrial fats and whey powder
Icon Production of consumer oil&fats and dairy products
Icon Marketing and sales

MEAT BUSINESS

Шрот

Geographicfootprint

The Company’s assets are located in 11 regions of the Russian Federation: Belgorod, Tambov, Voronezh, Kursk, Orel, Sverdlovsk, Samara, Ulyanovsk, Saratov, and Orenburg Regions and Primorye Territory. The Company is headquartered in the Tambov Region, with a separate division in Moscow.

Rusagro’s oil extraction facilities are located in the Saratov Region, the Samara Region and Primorye Territory, while oil and fats production facilities are in the Saratov and Sverdlovsk Regions.

Hover over the area names to view additional data
Sugar Business
Agriculture Business
Oil and Fats Business
Meat Business

STRUCTURE OF ASSETS BY REGIONS IN 2021

CAPACITY OF SUGAR PLANTS
BY REGIONS, %Not including the capacity of the two molasses desugarisation facilities.
Tambov Region
Belgorod Region
Kursk Region
Orel Region
BREEDING SOWS
BY REGIONS, %
Belgorod Region
Tambov Region
Primorye Territory
ARABLE LAND
BY REGION, %
Belgorod Region
Tambov and Voronezh Regions
Primorye Territory
Orel Region
Saratov Region
Kursk Region

Salesgeography

In 2021, Rusagro exported products to 50 countries. The main trading partners are South-West Asia and CIS countries. The Company also continued to develop exports to East Asian countries, particularly China and Vietnam.

EXPORT REVENUE BY SEGMENT

AGRICULTURE
BUSINESS
Share of export revenues
Share of revenue from domestic sales
OIL AND FATS
BUSINESS
Share of export revenues
Share of revenue from domestic sales
MEAT
BUSINESS
Share of export revenues
Share of revenue from domestic sales
SUGAR
BUSINESS
Share of export revenues
Share of revenue from domestic sales

Rusagro’s export revenues in 2021 totalled RUB 65.6 bn – up 28% year-on-year. The key driver of this growth was an increase in export revenues from the Oil and Fats segment to RUB 54.6 bn (+59%) and the Meat segment to RUB 6.1 bn (+47%). Restrictive trade measures being in effect in Russia in 2021 and the declining grain harvest (-26%) made the revenues in the Agriculture segment drop considerably, amounting to RUB 1.1 bn against RUB 6.7 bn the year earlier.


REVENUES FROM PRODUCTS SALES
28%
65.6 RUB bn
export revenues
Hover over the area names to view additional data
Sugar Business
Agricultural Business
Oil and Fats Business
Meat Business
50 countries
SALES
OF RUSAGRO'S
PRODUCTS

Sustainable development

Rusagro is a systemic enterprise in Russia, providing local food producers with raw materials and the domestic households with key foodstuffs. The Company’s business continuity is essential for national food security. In pursuance of "Making People’s Lives Longer and Better", Rusagro recognises its responsibility to future generations and places a strong emphasis on ethical business practices.

CARING FOR THE ENVIRONMENT
Climate change
  • Achieving climate neutrality
  • Higher energy efficiency
  • Climate change adaptation
Impact on the ecosystem
  • Soil health
  • Waste management
  • Reduction of pollutant emissions
  • Water management
  • Biosecurity and veterinary safety
  • Resilient packaging
E
SOCIAL DEVELOPMENT
Care for employees
  • Talent acquisition and retention
  • Training and career advancement
  • Employee health and safety
  • Equal rights and opportunities
Support of local communities
  • Charity
  • Corporate volunteering
  • Agricultural commodity producers management
S
CORPORATE GOVERNANCE
Consumer care
  • Promotion of healthy diets and sustainable consumption
  • Organic farming
Sustainable business practices
  • Transparent ownership structure
  • Better corporate governance practices
  • Fair remuneration for top managers
  • Upholding of shareholders’ rights and interests
  • Sustainable supply chain
  • Animal welfare
G

KEY ESG OUTCOMES IN 2021

5%
20 ths employees
HEADCOUNT
85%
17 RUB mn
EMPLOYEES TRAINING
AND DEVELOPMENT COSTS
63%
INTERNAL
RECRUITMENT
1 p.p.
37%
WOMEN IN
MANAGEMENT
48%
LOCAL RESIDENTS AMONG
THE TOP MANAGEMENT
38.8 RUB mn
ALLOCATED TO SUPPORT
LOCAL COMMUNITIES
17%
20.9 mn cu.m
WATER CONSUMPTION
3.9 mn tonnes
WASTE REDUCTION
13 UN SDGs
COVERED BY RUSAGO’S ESG STRATEGY

INDEPENDENT ASSESSMENT OF RUSAGRO’S PROGRESS IN IMPLEMENTING THE ESG AGENDA

RAEX-Europe

In 2021, Rusagro became the first agricultural company to be included in RAEX-Europe ESG ranking

Эксперт

Rusagro's place in Expert magazine's sustainability ranking for 2020 – the Company moved up from 50th place within a year

Звезда Дальнего Востока

Rusagro won the Star of the Far East award in the Best Employer category

Life stages of Rusagro's ESG agenda

Implemented in 2021
  • Appointing a person in charge of formulation and implemention of the ESG agenda
  • Laying out an action plan to navigate the ESG agenda
  • Analysing of the maturity of ESG practices in the Company
Scheduled for 2022
  • Release of the first ESG report according to international GRI standards
  • Approval of the first ESG strategy
  • Appointment of ESG Curator on the Board of Directors
  • Obtaining S&P CSA and CDP ratings (Carbon Disclosure Project)

IT and innovations

Rusagro is working towards technological leadership in agriculture and food production. Over the past few years, the Company has noticeably intensify efforts in digital business transformation, research and innovation, which allow for improvements in production efficiency and better management of climate risks and changing customer needs.

In doing so, Rusagro believes that the services and products it develops will not only benefit the company itself, but also third-party agricultural goods producers, thereby increasing the sustainability of the national agribusiness industry as a whole.

RUSAGRO-TECHNOLOGY

Established in August 2021 to reorganise IT services in order to move towards a centralised implementation of the Company’s digital transformation strategy. Received IT company status in December.

> 1,500
producers

Agricultural producers in three regions sell sunflowers through the Digital Farmer app developed by Rusagro.

MATHEMATICAL SIMULATION SERVICE

Established in 2021 to support the Company’s digital development and enablement objectives in working with technologies such as computer vision. At the end of the year, there were 10 people in the team and 22 projects in the pipeline.

> 10
projects

Key R&D projects under consideration or underway in the Company at the end of 2021.

GOLD IN THE SAP VALUE AWARD

Received by Rusagro in 2021 for its HR digitisation project to implement the SAP SF system, which enabled the integration of more than forty HR services on a single platform and a painless transition to telecommuting.

300
applications for innovative projects

Received by Rusagro at the Rusagro Tech Challenge held jointly with the Skolkovo Foundation in 2021.

Corporate governance

Rusagro has been a publicly traded company since 2011. The global depositary receipts (GDRs) issued for the Company’s shares are listed on London and Moscow stock exchanges. At the end of 2021, the Company had 24.6% of free float.

SPO
+ 4 p.p.

Increase in the Company’s free float as a result of a secondary public offering of ROS AGRO PLC GDRs by the Company’s majority shareholder in 2021.

NEW DIVIDEND POLICY
50%

For the first time in Rusagro’s history, minimum dividend payout is set at no less than 50% of Rusagro Group’s IFRS net profit.

DIVIDENDS
8.75 RUB bn

Paid out in dividends from 2021 profits — a record high of the Company.

SHARE CAPITAL STRUCTURE AT THE END OF 2021