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
Highlightsof 2021
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.
Company-wide events
Sugar business
Agriculture business
Oil and fats business
Meat business
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
MEAT SEGMENT
SUGAR SEGMENT
OIL AND FATS SEGMENT
AGRICULTURE SEGMENT
AGRICULTURE SEGMENT
Positions in Russia
Average headcount of employees
Production highlights
Financial results
OIL AND FATS SEGMENTIncluding results obtained from assets managed by Rusagro on a leasehold basis.
Positions in Russia
Production highlights
Average headcount of employees
Financial results
MEAT SEGMENT
Positions in Russia
Average headcount of employees
Production highlights
Financial results
SUGAR SEGMENT
Positions in Russia
Average headcount of employees
Production highlights
Financial results
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.
AGRICULTURE BUSINESS
SUGAR BUSINESS
MEAT BUSINESS
OIL AND FATS BUSINESS
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.
STRUCTURE OF ASSETS BY REGIONS IN 2021
BY REGIONS, %Not including the capacity of the two molasses desugarisation facilities.
BY REGIONS, %
BY 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
BUSINESS
BUSINESS
BUSINESS
BUSINESS
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.
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.
- Achieving climate neutrality
- Higher energy efficiency
- Climate change adaptation
- Soil health
- Waste management
- Reduction of pollutant emissions
- Water management
- Biosecurity and veterinary safety
- Resilient packaging
- Talent acquisition and retention
- Training and career advancement
- Employee health and safety
- Equal rights and opportunities
- Charity
- Corporate volunteering
- Agricultural commodity producers management
- Promotion of healthy diets and sustainable consumption
- Organic farming
- Transparent ownership structure
- Better corporate governance practices
- Fair remuneration for top managers
- Upholding of shareholders’ rights and interests
- Sustainable supply chain
- Animal welfare
KEY ESG OUTCOMES IN 2021
AND DEVELOPMENT COSTS
RECRUITMENT
INDEPENDENT ASSESSMENT OF RUSAGRO’S PROGRESS IN IMPLEMENTING THE ESG AGENDA
In 2021, Rusagro became the first agricultural company to be included in RAEX-Europe ESG ranking
Rusagro's place in Expert magazine's sustainability ranking for 2020 – the Company moved up from 50th place within a year
Rusagro won the Star of the Far East award in the Best Employer category
Life stages of Rusagro's ESG agenda
- 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
- 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.
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.
Agricultural producers in three regions sell sunflowers through the Digital Farmer app developed by Rusagro
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.
Key R&D projects under consideration or underway in the Company at the end of 2021
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.
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.
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.
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.
Paid out in dividends from 2021 profits
SHARE CAPITAL STRUCTURE AT THE END OF 2021
In September 2021, the majority shareholder of ROS AGRO PLC, Vadim Moshkovich, carried out a secondary public offering of GDRs, which reduced his share in the Company to 56.2% including treasury shares.
Maksim Basov participated in the transaction and increased his stake to 7.6% including treasury shares.