Review of financial results
Every year Rusagro compiles consolidated and separate financial statements in accordance with International Financial Reporting Standards (IFRS) and an independent auditor’s report. In 2023, Rusagro appointed KEPT as auditors for its consolidated financial statements and Papakyriacou & Partners Ltd as auditors for its separate financial statements.
In the opinion of the auditor, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Ros Agro PLC and its subsidiaries as of 31 December 2023, and its consolidated financial performance and consolidated cash flows for the year then ended in accordance with IFRS standards as issued by the International Accounting Standards Board.
The full version of Ros Agro PLC’s audited consolidated statements for 2023, including notes to the key consolidated figures, is provided in the Appendix to this Annual Report of the Company. Audited separate statements of Ros Agro PLC for 2023 are available on the Company’s official website.
Consolidated statement of financial position as of 31 December 2023,
in thousands of Russian roubles
31 December 2023
31 December 2022
ASSETS
Current assets
Cash and cash equivalents
25,936,781
21,473,030
Current investments
2,288,852
91,382,536
Trade and other receivables
47,861,374
24,176,680
Prepayments (advance payments)
10,814,811
13,435,149
Current income tax receivable
132,186
832,423
Other taxes receivable
9,006,784
8,360,935
Inventories
93,863,345
68,886,207
Current biological assets
6,754,488
9,694,110
Other current assets
2,718,720
4,126,715
Total current assets
199,377,341
242,367,785
Non-current assets
Property, plant, and equipment (PP&E)
141,897,092
121,165,803
Inventories held for construction
465,830
864,550
ROU assets
6,392,885
6,916,539
Goodwill
3,840,150
2,364,942
Advance payments for the acquisition of PP&E
2,867,735
5,482,770
Non-current biological assets
2,736,644
3,240,959
Non-current investments
42,527,657
42,527,657
Investments in associates
562,323
455,916
Deferred income tax assets
2,532,975
5,964,527
Intangible assets
7,765,853
1,284,263
Other non-current assets
−
190,978
Total non-current assets
211,589,144
190,458,904
TOTAL ASSETS
410,966,485
432,826,689
EQUITY AND LIABILITIES
Current liabilities
Current loans and borrowings
68,034,977
172,351,514
Lease liabilities
1,098,135
863,452
Trade and other payables
39,452,813
17,024,472
Current income tax payable
555,913
76,061
Other taxes payable
5,458,529
8,149,780
Provisions for other liabilities and charges
123,212
137,542
Total current liabilities
114,723,579
198,602,821
Non-current liabilities
Non-current borrowings
59,498,119
61,038,393
State subsidies
12,860,211
11,153,211
Lease liabilities
4,325,136
5,086,897
Deferred income tax liabilities
2,502,074
2,283,752
Total non-current liabilities
79,185,540
79,562,253
TOTAL LIABILITIES
193,909,119
278,165,074
EQUITY CAPITAL
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
173,344,692
126,843,525
Equity attributable to the owners of Ros Agro PLC
201,194,010
154,692,843
Non-controlling interest
15,863,356
(31,228)
TOTAL EQUITY
217,057,366
154,661,615
TOTAL LIABILITIES AND EQUITY
410,966,485
432,826,689
Consolidated statement of profit or loss and other comprehensive income for the year ending 31 December 2023,
in thousands of Russian roubles (unless stated otherwise)
Year ended
31 December 2023
31 December 2023
Year ended
31 December 2022
31 December 2022
Sales
277,328,308
240,230,251
Net (loss) / gain on the revaluation of biological assets and agricultural produce
3,698,693
(8,542,435)
Cost of sales
(204,970,260)
(184,436,046)
Net loss from trading derivatives
(205)
-
Gross profit
76,056,536
47,251,770
Distribution and sales expenses
(20,379,110)
(16,851,961)
General and administrative expenses
(11,143,940)
(9,071,112)
(Provision) / reversal of provision for impairment of loans receivable
7,983
(74,356)
Other operating (expenses) / income, net
3,386,834
(2,194,559)
Operating profit
47,928,303
19,059,782
Interest expense
(7,172,633)
(7,865,190)
Interest income
10,322,249
9,397,651
Net gain / (loss) on bonds held for trading
-
1,063
Other financial (expenses) / income, net
5,790,190
(12,187,973)
Profit before income tax
56,868,109
8,405,333
Income tax expense
(8,161,660)
(1,618,793)
Profit for the year
48,706,449
6,786,540
Total comprehensive income for the year
48,706,449
6,786,540
Profit / (loss) attributable to:
The owners of Ros Agro PLC
46,501,167
6,763,338
Non-controlling interest
2,205,282
23,202
Profit for the year
48,706,449
6,786,540
Total comprehensive income attributable to:
The owners of Ros Agro PLC
46,501,167
6,763,338
Non-controlling interest
2,205,282
23,202
Total comprehensive income for the year
48,706,449
6,786,540
Basic and diluted earnings attributable to the owners of Ros Agro PLC per ordinary share (in RUB per share)
1,728.27
251.37
Consolidated statement of cash flows for the year ended 31 December 2023,
in thousands of Russian roubles, unless noted otherwise
Year ended
31 December 2023
31 December 2023
Year ended
31 December 2022
31 December 2022
Сash flows from operating activities
Profit before income tax
56,868,109
8,405,333
Adjustments:
Depreciation and amortisation of PP&E and intangible assets
16,451,751
14,161,546
Interest expense
18,911,361
20,783,744
Reimbursement of interest expense (state subsidies)
(13,831,969)
(14,935,568)
Interest income
(10,322,249)
(9,397,651)
Net (gain) / loss on the disposal of PP&E and intangible assets
(170,144)
(340,308)
Net loss / (gain) on the revaluation of biological assets and agricultural produce
(3,698,693)
8,542,435
Provision / (reversal of provision) for impairment of loans receivable
(7,983)
74,356
Change in provision for net realisable value of inventory
1,203,415
657,857
Interest expense on leases
638,821
690,914
Change in provision for impairment of receivables and prepayments
2,007,296
23,385
Foreign exchange loss / (gain), net
(9,775,893)
13,066,836
Lost harvest write-of
1,090,868
598,041
Change in provision for impairment of advance payments for PP&E
33,454
32,076
Change in other provisions
(14,330)
(357,167)
Gain on other investments
(2,009,374)
(397,362)
(Gain) / loss on the disposal of other assets
18,768
(21,698)
Gain on SolPro loans redemption
(325,851)
(563,487)
Bad debts recovered
(31,906)
-
Net gain from bonds held for trading
-
(1,063)
Other non-cash and non-operating expenses, net
167,233
51,701
Operating cash flow before working capital changes
57,202,685
41,073,920
Change in trade and other receivables and prepayments
(14,929,809)
(21,003,370)
Change in other taxes receivable
155,779
(39,742)
Change in inventories
(13,096,201)
(6,763,581)
Change in biological assets
5,672,714
(3,078,151)
Change in trade and other payables
23,606,148
1,414,887
Change in other taxes payable
(2,253,880)
993,307
Change in other current assets
3,046,663
(5,727,866)
Operating cash flow
59,404,099
6,869,404
Income tax paid
(6,074,116)
(2,446,340)
Net operating cash flow
53,329,983
4,423,064
Cash flows from investing activities
Purchases of property, plant, and equipment
(18,040,526)
(11,718,704)
Purchases of intangible assets
(807,252)
(925,855)
Purchases of land lease rights
(23,229)
(358,879)
Proceeds from sales of property, plant, and equipment
712,005
486,542
Purchases of inventories intended for construction
(310,135)
(254,665)
Change in cash on bank deposits
162,979,157
18,000,000
Cash deposited
(63,278,975)
(76,841,928)
Purchases of associates
(106,407)
(96,134)
Investments in subsidiaries, net of cash acquired
(6,625,627)
-
Proceeds from sales of bonds with maturity over three months
-
141,804
Purchases of loans receivable
(10,854)
(24,866,023)
Repayment of loans receivable
740,000
15,504,119
Interest received
11,495,107
8,692,280
Dividends received
2,009,374
722,768
Proceeds from sales of other investments
376,894
178,281
Net investment cash flow
89,109,532
(71,336,394)
Cash flows from financing activities
Proceeds from loans and borrowings
105,049,123
151,465,684
Repayment of loans and borrowings
(244,195,528)
(93,010,994)
Interest and other finance cost paid
(6,095,409)
(7,028,058)
Proceeds from state subsidies
2,147,322
1,837,714
Lease liabilities
(572,322)
(466,795)
Other financial activities
−
(119)
Net financing cash flow
(143,666,814)
52,797,432
Effect of changes in exchange rates on cash and cash equivalents
5,691,050
(10,873,251)
Net increase / (decrease) in cash and cash equivalents
4,463,751
(24,989,149)
Cash and cash equivalents at the beginning of the year
21,473,030
46,462,179
Cash and cash equivalents at the end of the year
25,936,781
21,473,030
Information on segments’ adjusted EBITDA as of 31 December 2023
Sugar
Meat
Agriculture
Oil
and fats
and fats
NMGK
Other
Elimination
Total
Sales revenue
64,780,529
48,462,322
56,918,979
108,746,467
31,201,619
1,959,929
(34,741,537)
277,328,308
Net gain / (loss) on revaluation of biological assets and agricultural produce
–
2,746,737
(1,956,844)
–
–
-
2,908,800
3,698,693
Cost of sales
(42,151,266)
(43,021,660)
(36,689,851)
(87,485,863)
(22,722,813)
(1,372,408)
28,473,601
(204,970,260)
Incl. depreciation and amortisation
(2,068,084)
(4,374,682)
(3,245,776)
(3,795,050)
(1,289,812)
(20,210)
(102,652)
(14,896,266)
Net gain / (loss) from trading in derivatives
-
-
(205)
-
-
-
-
(205)
Gross profit
22,629,263
8,187,399
18,272,079
21,260,604
8,478,806
587,521
(3,359,135)
76,056,536
Distribution and sales, general and administrative expenses
(6,114,655)
(4,219,713)
(7,918,620)
(11,775,958)
(4,780,794)
(2,036,423)
5,323,113
(31,523,050)
Incl. depreciation and amortisation
(63,043)
(132,991)
(464,538)
(753,773)
(137,947)
(105,845)
102,652
(1,555,485)
Other operating income / (expenses), net
602,220
(273,738)
1,233,342
(263,619)
(123,150)
11,397,245
(9,185,466)
3,386,834
Incl. reimbursement of operating costs (state subsidies)
221,704
165,233
844,744
311,801
–
–
–
1,543,482
Incl. other non-recurring operating adjustments
76,912
444,824
293,085
277,860
(188,796)
11,517,751
(8,308,285)
4,113,351
Provision for impairment of loans receivable
–
–
–
–
–
7,983
–
7,983
Operating profit
17,116,828
3,693,948
11,586,801
11,586,801
11,586,801
9,956,326
(7,221,489)
47,928,303
Adjustments:
Depreciation and amortisation of PP&E and intangible assets within operating profit
2,131,127
4,507,673
3,710,314
4,548,823
1,427,759
126,055
–
16,451,751
Other non-recurring operating adjustments
(76,912)
(444,824)
(293,085)
(277,860)
188,796
(11,517,751)
8,308,285
(4,113,351)
Net gain / (loss) on the revaluation of biological assets and agricultural produce
–
(2,746,737)
1,956,844
–
–
–
(2,908,800)
(3,698,693)
Provision for impairment of loans receivable
–
–
–
–
–
(7,983)
–
(7,983)
Adjusted EBITDA Non-IFRS measure
19,171,043
5,010,060
16,960,874
13,491,990
5,191,417
(1,443,353)
(1,822,004)
56,560,027
Information on segments’ adjusted EBITDA as of 31 December 2022
Sugar
Meat
Agriculture
Oil
and fats
and fats
NMGK
Other
Elimination
Total
Sales revenue
49,583,897
43,705,021
31,993,259
133,369,020
-
1,408,265
(19,829,211)
240,230,251
Net (loss) / gain on the revaluation of biological assets and agricultural produce
–
(2,094,398)
(4,312,350)
–
–
–
(2,135,687)
(8,542,435)
Cost of sales
(29,643,242)
(44,149,262)
(20,485,426)
(109,950,614)
-
(961,422)
20,753,920
(184,436,046)
Incl. depreciation and amortisation
(2,271,228)
(4,951,716)
(1,695,446)
(3,761,053)
-
(18,175)
(175,609)
(12,873,227)
Gross profit
19,940,655
(2,538,639)
7,195,483
23,418,406
-
446,843
(1,210,978)
47,251,770
Distribution and sales, general and administrative expenses
(6,590,185)
(3,638,654)
(4,640,663)
(12,118,669)
-
(2,001,255)
3,066,353
(25,923,073)
Incl. depreciation and amortisation
(62,973)
(39,905)
(496,419)
(781,207)
-
(83,424)
175,609
(1,288,319)
Other operating income / (expenses), net
(294,339)
1,388,504
1,246,170
(2,158,484)
-
15,093,839
(17,470,249)
(2,194,559)
Incl. reimbursement of operating expenses (state subsidies)
157,532
417,824
445,978
322,154
–
–
–
1,343,488
Incl. other non-recurring operating adjustments
(304,560)
675,718
549,976
(2,266,102)
-
14,972,443
(16,804,668)
(3,177,193)
Provision for impairment of loans receivable
–
–
–
–
–
(74,356)
–
(74,356)
Operating profit
13,056,131
(4,788,789)
3,800,990
9,141,253
-
13,465,071
(15,614,874)
19,059,782
Adjustments:
Depreciation and amortisation of PP&E and intangible assets within operating profit
2,334,201
4,991,621
2,191,865
4,542,260
–
101,599
–
14,161,546
Other non-recurring operating adjustments
304,560
(675,718)
(549,976)
2,266,102
-
(14,972,443)
16,804,668
3,177,193
Net gain / (loss) on the revaluation of biological assets and agricultural produce
–
2,094,398
4,312,350
–
–
–
2,135,687
8,542,435
Recovery of provision for impairment of loans receivable
–
–
–
–
–
74,356
–
74,356
Adjusted EBITDA Non-IFRS measure
15,694,892
1,621,512
9,755,229
15,949,615
-
(1,331,417)
3,325,481
45,015,312
Net Debt
31 December 2023
31 December 2022
Non-current loans and borrowings
59,498,119
61,038,393
Current loans and borrowings
68,034,977
172,351,514
Cash and cash equivalents
(25,936,781)
(21,473,030)
Bank deposits in non-current investments
(14,071,101)
(14,071,101)
Bank deposits in current investments
(931,531)
(78,005,015)
Long-term bonds held to collect
(19,900,000)
(19,900,000)
Short-term bonds held to collect
(218,027)
(218,035)
Net debt Non-IFRS measure
66,475,656
99,722,726
Including non-current net debt
25,527,018
27,067,292
Including current net debt
40,948,638
72,655,434
Adjusted EBITDA Non-IFRS measure
56,560,027
45,015,312
Net Debt / Adjusted EBITDA Non-IFRS measure
1.18
2.22
Current loans and borrowings
31 December 2023
31 December 2022
Bank loans
56,539,022
84,746,085
Current portion of long-term borrowings
11,495,955
87,605,429
Total
68,034,977
172,351,514
All short-term loans and borrowings are at fixed and floating interest rates. The above short-term loans and borrowings are denominated in the following currencies:
Interest rate
31 December 2023
Interest rate
31 December 2022
Russian Roubles
1.4%–14.5%
68,034,977
1.5%–11.1%
172,351,514
Total
68,034,977
172,351,514
Non-current loans and borrowings
31 December 2023
31 December 2022
Bank loans
70,994,074
148,643,822
Less current portion of long-term borrowings from:
Bank loans
(11,495,955)
(87,605,429)
Total
59,498,119
61,038,393
The above borrowings are denominated in the following currencies:
Interest rate
31 December 2022
Interest rate
31 December 2021
Russian Roubles
1.5%–11.1%
59,498,119
1.5%–11.1%
61,038,393
Total
59,498,119
61,038,393