May 20, 2019, 15:04 / Business

Moshkovich Agroholding doubled its revenue

The main reason is the purchase by the Rusagro group of a competitor, the Solar Products holding Ekaterina Burlakova Rusagro is one of the largest Russian agricultural holdings, its controlling shareholder is the family of ex-senator Vadim Moshkovich / Maxim Stulov / Vedomosti

The parent structure of the Rusagro group , Ros Agro Plc, reported an increase in revenue under IFRS in the first quarter of 2019 more than doubled - to 32.2 billion rubles. The turnover of the oil and fats division increased most significantly – fourfold to 16.9 billion rubles. This is due to the growth in sales of bottled oil and the fact that the company has increased sunflower processing by launching processing at the Solnechnye Produkts factories using a tolling scheme, explained the general director of the agricultural holding, Maxim Basov. In October 2018, Rusagro announced the acquisition of control over Solar Products and subsequently purchased RUB 34.7 billion. the holding's debt to Rosselkhozbank.

Rusagro . is one of the largest Russian agricultural holdings, its controlling shareholder is the family of ex-senator Vadim Moshkovich (71.9%) It ranks third in Russia in sugar production, fourth in pork production, first in margarine production, etc.

The group’s revenue also increased significantly in the crop production segment – 3.7 times to RUB 5.6 billion. due to rising product prices and increased sales in physical terms. In particular, wheat and barley in the first quarter of 2019 cost twice as much as a year earlier: 13.1 rubles/kg and 11.5 rubles/kg, respectively. " Rusagro " closes the top three in the ranking of the largest owners of agricultural land according to BEFL - the company's land bank, according to its data, as of March 31 was 649,000 hectares. The meat division's revenue also increased by 20% and reached RUB 5.2 billion.

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At the end of the reporting period, only the revenue of the sugar business decreased – by 13% to 4.5 billion rubles. Among the reasons is a decrease in sugar sales by 37% to 104,000 tons, which was partially offset by an increase in prices by 31% to 36.5 rubles/kg, writes Rusagro .

The group's net profit in the first quarter increased 6.8 times to RUB 1.4 billion. The growth is associated with an increase in adjusted EBITDA (2.4 times to 4 billion rubles - Vedomosti) and an increase in interest income (3.2 times to almost 3 billion rubles), a company representative explained. The largest increase in EBITDA came from the agricultural (+1.4 billion rubles) and sugar divisions (449,000 million rubles), as specified in the company’s presentation.

Earlier, financial results for the first quarter were announced by another large agricultural holding - Cherkizovo of the Mikhailov family. Its revenue increased by 24.6% year-on-year to RUB 26.7 billion, adjusted net profit by 3.6 times to RUB 1.8 billion. The most significant increase in revenue was shown by chicken production - by 39.4% to 15.7 billion rubles, the company reported.