Financial Results Review
Rusagro annually prepares Consolidated and Parent Company IFRS financial statements published together with Independent Auditor’s Report. In 2020, the independent auditor was PricewaterhouseCoopers Limited.
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 2020, 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.
Complete copy of the Audited Consolidated Statements of ROS AGRO PLC for 2020 is included in Additional Information. The Audited Parent Company Statements of ROS AGRO PLC for 2020 is available at the official web page of the Company. They can also be found on the portal of the London and Moscow Exchanges.
| 31 December 2020 | 31 December 2019 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 11,866,798 | 2,170,779 |
| Restricted cash | 143,637 | 39 |
| Short-term investments | 19,583,523 | 23,456,552 |
| Trade and other receivables | 9,512,286 | 8,068,349 |
| Prepayments | 2,941,224 | 3,018,658 |
| Current income tax receivable | 646,162 | 225,315 |
| Other taxes receivable | 5,506,675 | 4,349,400 |
| Inventories | 63,266,389 | 44,560,948 |
| Short-term biological assets | 5,734,979 | 4,825,849 |
| Total current assets | 119,201,673 | 90,675,889 |
| Non-current assets | ||
| Property, plant and equipment | 87,519,088 | 80,629,483 |
| Inventories intended for construction | 3,353,330 | 3,157,369 |
| Right-of-use assets | 6,934,567 | 6,230,707 |
| Goodwill | 2,364,942 | 2,364,942 |
| Advances paid for property, plant and equipment | 6,905,003 | 8,721,155 |
| Long-term biological assets | 2,528,128 | 2,279,335 |
| Long-term investments | 42,692,320 | 42,636,323 |
| Investments in associates | 257,782 | 165,070 |
| Deferred income tax assets | 3,566,168 | 1,852,983 |
| Intangible assets | 619,793 | 608,635 |
| Other non-current assets | 205,793 | 173,002 |
| Total non-current assets | 156,946,914 | 148,819,004 |
| TOTAL ASSETS | 276,148,587 | 239,494,893 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Short-term borrowings | 51,753,475 | 31,834,699 |
| Lease liabilities | 943,859 | 916,791 |
| Trade and other payables | 16,016,138 | 17,492,614 |
| Current income tax payable | 69,546 | 123,846 |
| Other taxes payable | 4,096,199 | 3,468,034 |
| Provisions for other liabilities and charges | 179,796 | - |
| Total current liabilities | 73,059,013 | 53,835,984 |
| Non-current liabilities | ||
| Long-term borrowings | 63,175,720 | 66,040,784 |
| Government grants | 8,536,899 | 8,306,779 |
| Lease liabilities | 4,855,508 | 3,989,801 |
| Deferred income tax liability | 487,049 | 494,977 |
| Total non-current liabilities | 77,055,176 | 78,832,341 |
| Total liabilities | 150,114,189 | 132,668,325 |
| 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 | - |
| Retained earnings | 98,185,038 | 78,960,843 |
| Equity attributable to owners of ROS AGRO PLC | 126,034,356 | 106,760,675 |
| Non-controlling interest | 42 | 65,893 |
| Total equity | 126,034,398 | 106,826,568 |
| TOTAL LIABILITIES AND EQUITY | 276,148,587 | 239,494,893 |
| Year ended 31 December 2020 | Year ended 31 December 2019 | |
|---|---|---|
| Sales | 158,971,035 | 138,172,424 |
| Net gain /(loss) on revaluation of biological assets and agricultural produce | 5,890,447 | (4,111,947) |
| Cost of sales | (121,132,658) | (110,470,963) |
| Net gain/(loss) from trading derivatives | 10,552 | (7,348) |
| Gross profit | 43,739,376 | 23,582,166 |
| Distribution and selling expenses | (9,760,841) | (9,818,779) |
| General and administrative expenses | (7,377,449) | (6,711,005) |
| Provision for impairment of loans issued | (5,070,598) | - |
| Other operating income/(expenses), net | 2,293,017 | 1,926,686 |
| Operating profit | 23,823,505 | 8,979,068 |
| Interest expense | (4,804,995) | (5,481,240) |
| Interest income calculated using the effective interest method | 5,122,640 | 5,140,878 |
| Other similar interest income | 2,042,176 | 2,163,967 |
| Net (loss) from bonds held for trading | (15,698) | (27,711) |
| Other financial income/(expenses), net | (1,844,130) | (330,699) |
| Profit before income tax | 24,323,498 | 10,444,263 |
| Income tax expense | (26,771) | (735,754) |
| Profit for the year | 24,296,727 | 9,708,509 |
| 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 | 24,346,213 | 9,708,509 |
| Profit/(loss)is attributable to: | ||
| 24,359,786 | 9,808,204 |
| (63,059) | (99,695) |
| Profit for the year | 24,296,727 | 9,708,509 |
| Total comprehensive income/(loss) is attributable to: | ||
| 24,409,272 | 9,808,204 |
| (63,059) | (99,695) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 24,346,213 | 9,708,509 |
| Earnings per ordinary share for profit attributable to the owners of ROS AGRO PLC, basic and diluted (in RR per share) | 905.39 | 364.62 |
| Year ended 31 December 2020 | Year ended 31 December 2019 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Profit before income tax | 24,323,498 | 10,444,263 |
| Adjustments for: | ||
| Depreciation and amortization | 10,794,046 | 8,479,952 |
| Interest expense | 6,448,154 | 6,829,598 |
| Government grants | (3,216,290) | (2,363,233) |
| Interest income | (7,164,816) | (7,304,845) |
| Net (gain)/loss on disposal of property, plant and equipment | (335,640) | 110,601 |
| Net (gain) / loss on revaluation of biological assets and agricultural produce | (5,890,447) | 4,111,947 |
| Change in provision for impairment of loans issued | 5,070,598 | - |
| Change in provision for net realizable value of inventory | 732,238 | (29,168) |
| Loss on sale of assets held for sale | - | 412,111 |
| Lease finance expense | 580,276 | 590,777 |
| The result of early loan repayment | 131,363 | - |
| Change in provision for impairment of receivables and prepayments | 13,592 | 75,855 |
| Foreign exchange loss /(gain), net | 1,698,846 | (177,728) |
| Share based remuneration | - | (12,888) |
| Lost harvest write-off | 188,536 | 122,468 |
| Net loss from bonds held for trading | 15,698 | 27,711 |
| Change in provision for impairment of advances paid for property, plant and equipment | (29,620) | 29,066 |
| Change in other provisions | 179,796 | - |
| Gain on sale of subsidiaries, net | - | (364,880) |
| Dividend income | (560,568) | - |
| Realized deferred day-one gain | (993,558) | (1,592,001) |
| Other non-cash and non-operating (income)/expenses, net | (87,031) | 33,405 |
| Operating cash flows before working capital changes | 31,898,671 | 19,423,011 |
| Change in trade and other receivables and prepayments | (1,920,133) | (2,509,233) |
| Change in other taxes receivable | (1,157,275) | 70,610 |
| Change in inventories | (13,280,552) | 771,944 |
| Change in biological assets | (1,888,960) | (859,311) |
| Change in trade and other payables | (209,572) | 4,902,852 |
| Change in other taxes payable | 708,164 | (428,669) |
| Cash generated from operations | 14,150,343 | 21,371,204 |
| Income taxes paid | (2,033,327) | (206,139) |
| Net cash from operating activities | 12,117,016 | 21,165,065 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchases of property, plant and equipment | (12,405,295) | (15,056,765) |
| Purchases of intangible assets | (418,808) | (261,046) |
| Purchases of land lease rights | (86,729) | - |
| Proceeds from sales of property, plant and equipment | 687,757 | 288,096 |
| Purchases of inventories intended for construction | (1,660,923) | (1,741,948) |
| Purchases of investments in third parties | - | (8,500,000) |
| Proceeds from cash withdrawals from deposits | - | 4,623,323 |
| Deposits placed with banks | - | (2,012,991) |
| Purchases of associates | (92,712) | (78,150) |
| Purchases of bonds with maturity over three months | (197,523) | - |
| Proceeds from sales of bonds with maturity over three months | - | 2,314,831 |
| Redemption of promissory notes | - | 100,000 |
| Purchases of loan issued | (13,829) | (372,899) |
| Loans repaid | 1,012,854 | 1,864,061 |
| Movement in restricted cash | (143,454) | (6,241) |
| Interest received | 4,808,803 | 4,820,116 |
| Dividends received | 560,568 | - |
| Proceeds from sale of assets held for sale | - | 408,839 |
| Proceeds from sale of subsidiaries, net of cash disposed | - | 478,710 |
| Proceeds from sales of other investments | 65,938 | 145,000 |
| Net cash used in investing activities | (7,883,353) | (12,987,064) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from borrowings | 77,932,773 | 91,687,403 |
| Repayment of borrowings | (65,389,365) | (91,118,861) |
| Interest and other finance cost paid | (4,196,451) | (5,024,201) |
| Purchases of non-controlling interest | - | (600) |
| Dividends paid to owners of ROS AGRO PLC | (5,134,426) | (5,046,515) |
| Proceeds from government grants | 2,192,483 | 2,086,446 |
| Repayment of lease liabilities-principal | (123,044) | (235,859) |
| Other financial activities | - | (10,998) |
| Net cash from/(used in) financing activities | 5,281,970 | (7,663,185) |
| Effect of exchange rate changes on cash and cash equivalents | 180,386 | (72,433) |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 9,696,019 | 442,383 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 2,170,779 | 1,728,396 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | 11,866,798 | 2,170,779 |
| 2020 | Sugar | Meat | Agriculture | Oil and Fat | Other | Eliminations | Total |
|---|---|---|---|---|---|---|---|
| Sales | 28,112,519 | 32,434,214 | 34,347,506 | 76,160,418 | 4,406,702 | (16,490,324) | 158,971,035 |
| Net gain/ (loss) 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) | (61,382,829) | (3,854,140) | 11,777,956 | (121,132,658) |
| incl. Depreciation and amortisation | (2,605,853) | (3,716,132) | (2,861,216) | (536,301) | (17,164) | (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 | 14,777,589 | 552,562 | (1,723,139) | 43,739,376 |
| Distribution and Selling, General and administrative expenses | (3,399,788) | (2,713,324) | (3,732,770) | (6,313,621) | (2,121,408) | 1,142,621 | (17,138,290) |
| incl. Depreciation and amortisation | (83,738) | (218,146) | (386,864) | (181,013) | (187,619) | 75,387 | (981,993) |
| Other operating income/(expenses), net | 602,466 | 653,934 | 459,868 | (256,767) | 15,305,841 | (14,472,325) | 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 | (463,483) | 15,257,311 | (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 | 8,207,201 | 8,666,397 | (15,052,843) | 23,823,505 |
| ADJUSTMENTS: | |||||||
| Depreciation included in Operating Profit | 2,689,591 | 3,934,278 | 3,248,080 | 717,314 | 204,783 | - | 10,794,046 |
| Non-recurring other operating adjustment | (425,102) | (459,983) | (71,372) | 463,483 | (15,257,311) | 13,936,656 | (1,813,629) |
| Net gain/ (loss) 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 EBITDA* | 6,352,078 | 6,473,484 | 15,191,462 | 9,387,998 | (1,315,533) | (4,105,416) | 31,984,073 |
| 2019 | Sugar | Meat | Agriculture | Oil and Fat | Other | Eliminations | Total |
|---|---|---|---|---|---|---|---|
| Sales | 31,194,715 | 25,833,637 | 25,844,693 | 62,375,087 | 4,164,293 | (11,240,001) | 138,172,424 |
| Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | (852,455) | (1,559,526) | - | - | (1,699,966) | (4,111,947) |
| Cost of sales | (25,758,275) | (21,717,486) | (18,583,596) | (53,461,301) | (3,640,734) | 12,690,429 | (110,470,963) |
| incl. Depreciation and amortisation | (1,925,029) | (2,696,297) | (2,462,063) | (472,629) | (12,507) | (70,938) | (7,639,463) |
| Net (loss) from trading derivatives | (7,342) | - | - | - | (6) | - | (7,348) |
| Gross profit | 5,429,098 | 3,263,696 | 5,701,571 | 8,913,786 | 523,553 | (249,538) | 23,582,166 |
| Distribution and Selling, General and administrative expenses | (3,516,890) | (2,135,635) | (4,168,971) | (6,011,841) | (1,606,311) | 909,864 | (16,529,784) |
| incl. Depreciation and amortisation | (74,134) | (183,169) | (437,344) | (141,980) | (74,800) | 70,938 | (840,489) |
| Other operating income/(expenses), net | 544,406 | 326,251 | (95,492) | (452,519) | 14,973,889 | (13,369,849) | 1,926,686 |
| incl. Reimbursement of operating costs (government grants) | 71,290 | 56,562 | 130,623 | 141,791 | - | - | 400,266 |
| incl. Non-recurring other operating adjustment | 467,932 | 366,207 | (17,158) | (321,376) | 15,073,831 | (13,369,849) | 2,199,587 |
| Operating profit | 2,456,614 | 1,454,312 | 1,437,108 | 2,449,426 | 13,891,131 | (12,709,523) | 8,979,068 |
| ADJUSTMENTS: | |||||||
| Depreciation included in Operating Profit | 1,999,163 | 2,879,466 | 2,899,407 | 614,609 | 87,307 | - | 8,479,952 |
| Non-recurring other operating adjustment (Note 23) | (467,932) | (366,207) | 17,158 | 321,376 | (15,073,831) | 13,369,849 | (2,199,587) |
| Net gain/ (loss) on revaluation of biological assets and agricultural produce | - | 852,455 | 1,559,526 | - | - | 1,699,966 | 4,111,947 |
| ADJUSTED EBITDA* | 3,987,845 | 4,820,026 | 5,913,199 | 3,385,411 | (1,095,393) | 2,360,292 | 19,371,380 |
| 31 December 2020 | 31 December 2019 | |
|---|---|---|
| Bank loans | 32,762,452 | 14,918,829 |
| Loan received from related parties | - | 3,472,349 |
| Loans received from third parties | 16,600 | 710,460 |
| Interest accrued on borrowings from third parties | 615 | 8,624 |
| Current portion of long-term borrowings | 18,973,808 | 12,724,437 |
| TOTAL | 51,753,475 | 31,834,699 |
All short-term borrowings are at fixed interest rate. The above borrowings are denominated in the following currencies:
| Interest rate | 31 December 2020 | Interest rate | 31 December 2019 | |
|---|---|---|---|---|
| Russian Roubles | 1.0%-11.14% | 51,753,475 | 1.0%-12.95% | 23,854,865 |
| Euro | - | 0.7%-0.8% | 7,979,834 | |
| TOTAL | 51,753,475 | 31,834,699 |
| 31 December 2020 | 31 December 2019 | |
|---|---|---|
| Bank loans | 82,149,528 | 78,765,221 |
| Less current portion of long-term borrowings from: | ||
| Bank loans | (18,973,808) | (12,724,437) |
| Total | 63,175,720 | 66,040,784 |
The above borrowings are denominated in the following currencies:
| Interest rate | 31 December 2020 | Interest rate | 31 December 2019 | |
|---|---|---|---|---|
| Russian Roubles | 1.0%-12.5% | 63,175,720 | 1.0%-12.95% | 66,040,784 |
| TOTAL | 63,175,720 | 66,040,784 |
| 31 December 2020 | 31 December 2019 | |
|---|---|---|
| Long-term borrowings | 63,175,720 | 66,040,784 |
| Short-term borrowings | 51,753,475 | 31,834,699 |
| Cash and cash equivalents | (11,866,798) | (2,170,779) |
| Bank deposits within long-term investments (Note 10) | (13,900,000) | (13,900,000) |
| Long-term bonds held for collect | (19,900,000) | (19,900,000) |
| Long-term bonds held for trading | (165,129) | (165,222) |
| Short-term bonds held for collect | (197,523) | - |
| NET DEBTNot an IFRS measure | 68,899,745 | 61,739,482 |
| including long-term Net debt | 29,210,591 | 32,075,562 |
| including short-term Net debt | 39,689,154 | 29,663,920 |
| | 31,984,073 | 19,371,380 |
| | 2,15 | 3,19 |