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.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as of 31 December 2021, thousands of Russian roubles
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 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR
ended 31 December 2021, thousands of Russian rouble (unless otherwise stated)
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 |
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ended 31 December 2021, thousands of Russian rouble
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 |
ADJUSTED EBITDA INFORMATION BY SEGMENT
as of 31 December 2021
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 | 8,962,303 | 5,894,640 | 23,251,465 | 12,785,821 | (2,091,869) | (742,571) | 48,059,789 |
ADJUSTED EBITDA INFORMATION BY SEGMENT
as of 31 December 2020
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 | 6,352,078 | 6,473,484 | 15,191,462 | 9,374,567 | (1,299,951) | (4,107,567) | 31,984,073 |
SHORT-TERM BORROWINGS
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 |
Net debt
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 |