Financial results review

Rusagro annually prepares Consolidated and Parent Company IFRS financial statements published together with Independent Auditor’s Report. In 2021, the Company replaced PricewaterhouseCoopers Limited with KPMG Limited Chartered Accountants as an auditor.

According to the Auditor, the prepared consolidated financial statements gave a true and fair view of the consolidated financial position of ROS AGRO PLC and its subsidiaries as of 31 December 2021, and of its consolidated financial performance and its consolidated cash flows for the year ended in accordance with IFRS as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap 113.

Full version of the Audited Consolidated Statements of ROS AGRO PLC for 2021 and the Audited Parent Company Statements of ROS AGRO PLC for 2021 is available at the official web page of the Company.

	31.12.2021	31.12.2020
ASSETS
Current assets
Cash and cash equivalents	46,462,179	11,866,798
Restricted cash	47	143,637
Short-term investments	21,001,760	19,583,523
Trade and other receivables	12,558,401	9,512,286
Prepayments	5,414,032	2,941,224
Current income tax receivable	1,532,726	646,162
Other taxes receivable	8,321,193	5,506,675
Inventories	69,756,363	63,266,389
Short-term biological assets	7,752,670	5,734,979
Total current assets	172,799,371	119,201,673
Non-current assets
Property, plant and equipment	119,159,412	87,519,088
Inventories intended for construction	1,604,570	3,353,330
Right-of-use assets	7,346,538	6,934,567
Goodwill	2,364,942	2,364,942
Advances paid for property, plant and equipment	7,355,467	6,905,003
Long-term biological assets	2,744,863	2,528,128
Long-term investments	42,527,657	42,692,320
Investments in associates	359,782	257,782
Deferred income tax assets	4,835,268	3,566,168
Intangible assets	1,144,057	619,793
Other non-current assets	79,125	205,793
Total non-current assets	189,521,681	156,946,914
TOTAL ASSETS	362,321,052	276,148,587
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings	108,748,840	51,753,475
Lease liabilities	1,130,831	943,859
Trade and other payables	15,440,635	16,016,138
Current income tax payable	464,471	69,546
Other taxes payable	7,454,558	4,096,199
Provisions for other liabilities and charges	494,709	179,796
Total current liabilities	133,734,044	73,059,013
Non-current liabilities
Long-term borrowings	63,975,025	63,175,720
Government grants	9,325,530	8,536,899
Lease liabilities	5,535,014	4,855,508
Deferred income tax liabilities	1,876,244	487,049
Total non-current liabilities	80,711,813	77,055,176
TOTAL LIABILITIES	214,445,857	150,114,189
EQUITY
Share capital	12,269	12,269
Treasury shares	(490,607)	(490,607)
Share premium	26,964,479	26,964,479
Share-based payment reserve	1,313,691	1,313,691
Fair value reserve	49,486	49,486
Retained earnings	120,080,307	98,185,038
Equity attributable to owners of ROS AGRO PLC	147,929,625	126,034,356
Non-controlling interest	(54,430)	42
TOTAL EQUITY	147,875,195	126,034,398
TOTAL LIABILITIES AND EQUITY	362,321 052	276,148 587

	31.12.2021	31.12.2020
Sales	222,932,439	158,971,035
Net gain on revaluation of biological assets and agricultural produce	3,409,309	5,890,447
Cost of sales	(169,248,281)	(121,132,658)
Net (loss)/gain from trading derivatives	(5)	10,552
Gross profit	57,093,462	43,739,376
Distribution and selling expenses	(10,475,137)	(9,760,841)
General and administrative expenses	(10,975,898)	(7,377,449)
Reversal of provision/(provision) for impairment of loans issued	4,574,481	(5,070,598)
Other operating income/(expenses), net	2,334,177	2,293,017
Operating profit	42,551,085	23,823,505
Interest expense	(5,498,991)	(4,804,995)
Interest income calculated using the effective interest method	6,511,247	5,122,640
Other similar interest income	2,099,641	2,042,176
Net loss from bonds held for trading	(1,630)	(15,698)
Other financial income/(expenses), net	(705,356)	(1,844,130)
Profit before income tax	44,955,996	24,323,498
Income tax expense	(3,522,144)	(26,771)
Profit for the year	41,433,852	24,296,727
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
Income tax relating to other comprehensive income	-	(7 070)
Total comprehensive income for the year	41,433,852	24,346,213
Profit/(loss)is attributable to:
- Owners of ROS AGRO PLC	41,477,865	24,359,786
- Non-controlling interest	(44,013)	(63,059)
Profit for the year	41,433,852	24,296,727
Total comprehensive income/(loss) is attributable to:
- Owners of ROS AGRO PLC	41,477,865	24,409,272
- Non-controlling interest	(44,013)	(63,059)
Total comprehensive income for the year	41,433,852	24,346,213
Earnings per ordinary share for profit attributable to the owners of ROS AGRO PLC, basic and diluted (in RR per share)	1,541,57	905,39

	31.12.2021	31.12.2020
Cash flows from operating activities
Profit before income tax	44,955,996	24,323,498
Adjustments for:
Depreciation and amortization	13,945,546	10,794,046
Interest expense	10,566,994	6,448,154
Government grants	(7,846,960)	(3,216,290)
Interest income	(8,610,888)	(7,164,816)
Net loss/(gain) on disposal of property, plant and equipment	4,424	(335,640)
Net gain on revaluation of biological assets and agricultural produce	(3,409,309)	(5,890,447)
Change in provision for impairment of loans issued	(4,574,481)	5,070,598
Change in provision for net realizable value of inventory	1,240,531	732,238
Interest expense on leases	591,558	580,276
The result from early repayment of the loan	-	131,363
Change in provision for impairment of receivables and prepayments	824,151	13,592
Foreign exchange loss /(gain), net	(59,354)	1,698,846
Lost harvest write-off	272,407	188,536
Net loss from bonds held for trading	1,630	15,698
Change in provision for impairment of advances paid for property, plant and equipment	26,084	(29,620)
Change in other provisions	314,918	179,796
Gain on other investments	(754,538)	(560,568)
Realized deferred day-one gain	(552,748)	(993,558)
Loss on disposal of other assets	256,144	-
Gain on SolPro loans redemption	(605,233)	-
Other non-cash and non-operating expenses/(income), net	234,325	(87,031)
Operating cash flows before working capital changes	46,821,197	31,898,671
Change in trade and other receivables and prepayments	(6,377,712)	(1,920,133)
Change in other taxes receivable	(2,814,518)	(1,157,275)
Change in inventories	(4,236,443)	(13,280,552)
Change in biological assets	(2,340,945)	(1,888,960)
Change in trade and other payables	82,068	(209,572)
Change in other taxes payable	3,278,845	708,164
Cash generated from operations	34,412,492	14,150,343
Income taxes paid	(3,679,541)	(2,033,327)
Net cash from operating activities	30,732,951	12,117,016
Cash flows from investing activities
Purchases of property, plant and equipment	(42,029,048)	(12,405,295)
Purchases of intangible assets	(1,042,618)	(418,808)
Purchases of land lease rights	(68,772)	(86,729)
Proceeds from sales of property, plant and equipment	896,286	687,757
Purchases of inventories intended for construction	(476,322)	(1,660,923)
Change in cash on bank deposits	(18,000,000)	-
Purchases of associates	(102,000)	(92,712)
Purchases of bonds with maturity over three months	-	(197,523)
Proceeds from sales of bonds with maturity over three months	220,282	-
Purchases of loan issued	(2,256,313)	(13,829)
Loans repaid	22,959,494	1,012,854
Movement in restricted cash	140,894	(143,454)
Interest received	8,786,038	4,808,803
Dividends received	754,600	560,568
Purchases of other investments	(19,083)	-
Proceeds from sales of other investments	18,000	-
Proceeds from sales of other assets	217,591	-
Proceeds from sales of other investments	434,632	65,938
Net cash used in investing activities	(29,566,339)	(7,883,353)
Cash flows from financing activities
Proceeds from borrowings	107,856,022	77,932,773
Repayment of borrowings	(52,668,951)	(65,389,365)
Interest and other finance cost paid	(4,591,935)	(4,196,451)
Purchases of non-controlling interest	(66,000)	-
Dividends paid to owners of ROS AGRO PLC	(19,417,565)	(5,134,426)
Proceeds from government grants	2,879,218	2,192,483
Repayment of lease liabilities-principal	(335,167)	(123,044)
Other financial activities	21,631	-
Net cash from financing activities	33,677,253	5,281,970
Effect of exchange rate changes on cash and cash equivalents	(248,484)	180,386
Net increase in cash and cash equivalents	34,595,381	9,696,019
Cash and cash equivalents at the beginning of the year	11,866,798	2,170,779
Cash and cash equivalents at the end of the year	46,462,179	11,866,798

2021	Sugar	Meat	Agriculture	Oil and Fat	Other	Eliminations	Total
Sales	36,360,566	39,628,064	41,881,010	125,236,601	719,452	(20,893,254)	222,932,439
Net (loss) / gain on revaluation of biological assets and agricultural produce	–	(370,486)	2,609,949	–	–	1,169,846	3,409,309
Cost of sales	(26,850,141)	(33,744,934)	(18,773,771)	(108,855,523)	(371,867)	19,347,955	(169,248,281)
incl. Depreciation	(2,766,162)	(3,965,508)	(2,547,072)	(2,877,234)	(9,186)	(85,607)	(12,250,769)
Net loss from trading derivatives	–	(5)	–	–	–	–	(5)
Gross profit	9,510,425	5,512,639	25,717,188	16,381,078	347,585	(375,453)	57,093,462
Distribution and Selling, General and administrative expenses	(3,958,396)	(5,728,548)	(3,396,730)	(7,463,073)	(2,646,176)	1,741,888	(21,451,035)
incl. Depreciation and amortisation	(72,862)	(910,976)	(357,854)	(348,591)	(90,102)	85,607	(1,694,778)
Other operating income/(expenses), net	677,174	1,353,391	598,467	(726,058)	27,175,376	(26,744,173)	2,334,177
incl. Reimbursement of operating costs (government grants)	576,559	516,862	546,424	495,720	–	–	2,135,565
Incl. Non-recurring other operating adjustment	105,924	489,812	(37,563)	(1,368,049)	27,067,942	(25,805,013)	453,053
Reversal of provision for impairment of loans issued	–	–	–	–	4,574,481	–	4,574,481
Operating profit	6,229,203	1,137,482	22,918,925	8,191,947	29,451,266	(25,377,738)	42,551,085
Adjustments:
Depreciation and amortization included in Operating Profit	2,839,024	4,876,484	2,904,926	3,225,825	99,288	–	13,945,547
Non-recurring other operating adjustment	(105,924)	(489,812)	37,563	1,368,049	(27,067,942)	25,805,013	(453,053)
Net (loss)/ gain on revaluation of biological assets and agricultural produce	–	370,486	(2,609,949)	–	–	(1,169,846)	(3,409,309)
Reversal of provision for impairment of loans issued	–	–	–	–	(4,574,481)	–	(4,574,481)
Adjusted EBITDANot an IFRS measure.	8,962,303	5,894,640	23,251,465	12,785,821	(2,091,869)	(742,571)	48,059,789

2020	Sugar	Meat	Agriculture	Oil and Fat	Other	Eliminations	Total
Sales	28,112,519	32,434,214	34,347,506	79,726,251	631,108	(16,280,563)	158,971,035
Net (loss)/ gain 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)	(64,547,430)	(477,625)	11,566,042	(121,132,658)
incl. Depreciation	(2,605,853)	(3,716,132)	(2,861,216)	(542,826)	(10,639)	(75,387)	(9,812,053)
Net gain from trading derivatives	10,552	–	–	–	–	–	10,552
Gross profit	6,884,911	4,377,277	18,870,176	15,178,821	153,483	(1,725,292)	43,739,376
Distribution and Selling, General and administrative expenses	(3,399,788)	(2,713,324)	(3,732,770)	(6,730,675)	(1,704,354)	1,142,621	(17,138,290)
incl. Depreciation and amortisation	(83,738)	(218,146)	(386,864)	(184,327)	(184,305)	75,387	(981,993)
Other operating income/(expenses), net	602,466	653,934	459,868	(533,103)	15,582,175	(14,472,323)	2,293,017
incl. Reimbursement of operating costs (government grants)	179,564	104,836	299,020	347,210	–	–	930,630
incl. Non-recurring other operating adjustment)	425,102	459,983	71,372	(732,371)	15,526,199	(13,936,656)	1,813,629
Provision for impairment of loans issued	–	–	–	–	(5,070,598)	–	(5,070,598)
Operating profit	4,087,589	2,317,887	15,597,274	7,915,043	8,960,706	(15,054,994)	23,823,505
Adjustments:
Depreciation and amortisation included in Operating Profit	2,689,591	3,934,278	3,248,080	727,153	194,944	–	10,794,046
Non-recurring other operating adjustment	(425,102)	(459,983)	(71,372)	732,371	(15,526,199)	13,936,656	(1,813,629)
Net (loss)/ gain 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 EBITDANot an IFRS measure.	6,352,078	6,473,484	15,191,462	9,374,567	(1,299,951)	(4,107,567)	31,984,073

	31.12.2021	31.12.2020
Bank loans	90,806,471	32,762,452
Loans received from third parties	16,600	16,600
Interest accrued on borrowings from third parties	246	615
Current portion of long-term borrowings	17,925,523	18,973,808
Total	108,748,840	51,753,475

All short-term borrowings are at fixed interest rate. The above borrowings are denominated in the following currencies:

	Interest rate	31.12.2021	Interest rate	31.12.2020
Russian Roubles	1.0–11.14%	108,748,840	1.0–11.14%	51,753,475
Total		108,748,840		51,753,475

	31.12.2021	31.12.2020
Bank loans	81,900,548	82,149,528
Less current portion of long-term borrowings from:
Bank loans	(17,925,523)	(18,973,808)
Total	63,975,025	63,175,720

All long-term borrowings are at fixed interest rate. The above borrowings are denominated in the following currencies:

	Interest rate	31.12.2021	Interest rate	31.12.2020
Russian Roubles	1.0%-12.5%	63,975,025	1.0%-12.5%	63,175,720
Total		63,975,025		63,175,720

	31.12.2021	31.12.2020
Long-term borrowings	63,975,025	63,175,720
Short-term borrowings	108,748,840	51,753,475
Cash and cash equivalents	(46,462,179)	(11,866,798)
Bank deposits within long-term investments	(14,071,101)	(13,900,000)
Bank deposits within short-term investments	(18,519,392)	–
Long-term bonds held for collect	(19,900,000)	(19,900,000)
Long-term bonds held for trading	–	(165,129)
Short-term bonds held for collect	(362,475)	(197,523)
Net debtNot an IFRS measure.	73,408,718	68,899,745
including long-term Net debt	30,003,924	29,210,591
including short-term Net debt	43,404,794	39,689,154
Adjusted EBITDA	48,059,789	31,984,073
Net debt/ Adjusted EBITDANot an IFRS measure.	1.53	2.15