ROS AGRO PLC ROS AGRO PLC trading update 2Q and 6M 2023
TRADING RESULTS 2Q AND 6M 2023
Rusagro's revenue structure* for 2Q 2023
million roubles | ||||
-10% | Meat segment | |||
11,923 | ||||
20% | ||||
66,956 | +5% Q-o-Q | |||
60,192 | ||||
47% | 24% | Sugar segment | ||
14,563 | ||||
-8%Q-o-Q | ||||
Oil & Fat segment | 9% | |||
2Q | 2Q | 28,042 | Agriculture segment | |
-24%Q-o-Q | ||||
2022 | 2023 | 5,663 | ||
OIL & FAT SEGMENT | +94% Q-o-Q | |||
In 2Q 2023 Rusagro's consolidated
revenue before intersegment eliminations amounted to 60,192 million roubles. In comparison with 2Q 2022, the figure decreased by 10% (-6,764million roubles). This was mainly due to a decrease in revenue from the Oil & Fat business as a result of lower realization prices against the backdrop of falling global sunflower and palm oil prices.
Production of Crude vegetable oil
thousand tonnes
-23% | +6% | |||||||||
181 | 176 | 181 | 159 | |||||||
140 | 140 | |||||||||
124 | 132 | |||||||||
In 2Q 2023 Rusagro produced 140 thousand tonnes of crude vegetable oil, which is 23% (-42thousand tonnes) less than in the same quarter of the previous year. The decrease in processed volumes was mainly due to the shutdown of the Balakovo oil extraction plant on May 23 for modernization.
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q |
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
Sales volume of industrial oil & fat and dairy products
thousand tonnes | Dry mixes | Bulk oil | ||||||||||||||||||||||||
-6% | Industrial fats | Meal | +15% | |||||||||||||||||||||||
325 | 332 | |||||||||||||||||||||||||
324 | 305 | 324 | 303 | 305 | ||||||||||||||||||||||
4 | ||||||||||||||||||||||||||
4 | 4 | 4 | 266 | |||||||||||||||||||||||
3 | 72 | 4 | 3 | |||||||||||||||||||||||
62 | 79 | 62 | ||||||||||||||||||||||||
3 | ||||||||||||||||||||||||||
76 | 84 | 76 | ||||||||||||||||||||||||
108 | 92 | 108 | 84 | 76 | ||||||||||||||||||||||
102 | 84 | 54 | 102 | |||||||||||||||||||||||
149 | 124 | 149 | 149 | 171 | 131 | 133 | 124 | |||||||||||||||||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |||||||||||||||||||
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
The volume of sales of industrial fat and dairy products in 2Q 2023 amounted to
305 thousand tonnes, which is 6% (-18 thousand tonnes) lower than in the same quarter of the previous year.
Sales of meal and crude oil decreased by 17% and 5% (-25thousand tonnes and -5thousand tonnes), respectively. The decrease was mainly due to the start of modernization of the Balakovo oil extraction plant.
Sales of industrial fats increased by 22% (+14 thousand tonnes) mainly due to the effect of low base in 2Q 2022.
Sales volume of consumer oil & fat and dairy products
thousand tonnes | Consumer Dairy products | ||||||||||||||||||||||||||
Consumer Oil and Fat products | |||||||||||||||||||||||||||
+12% | 97 | +14% | |||||||||||||||||||||||||
76 | 75 | 76 | 4 | 76 | |||||||||||||||||||||||
68 | 68 | 67 | |||||||||||||||||||||||||
4 | 3 | 4 | 4 | ||||||||||||||||||||||||
4 | 4 | 94 | 3 | ||||||||||||||||||||||||
72 | 72 | ||||||||||||||||||||||||||
64 | 72 | 64 | 71 | 64 | |||||||||||||||||||||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||||||||||||||||
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
In 2Q 2023 sales of key consumer product categories of the Oil & Fat business amounted to 76 thousand tonnes, which is 12% (+8 thousand tonnes) more than in the same quarter of the previous year.
Growth in bottled oil was driven by expansion of distribution channels in Russia, including local retail chains, and low base in 2Q 2022 due to higher demand in 1Q 2022.
Growth in mayonnaise was driven by the development of HoReCA channels and local retail chains.
* Sales before intersegment eliminations and account for other sales. | 1 |
ROS AGRO PLC trading update 2Q and 6M 2023
MEAT SEGMENT
Production of pigs
thousand tonnes, in live weight for slaughtering
In | 2Q | 2023 Rusagro | produced | ||||||||||||||||||
+4% | -2% | 86 thousand tonnes of live weight pork | |||||||||||||||||||
91 | for | slaughtering, | which | is | 4% | ||||||||||||||||
86 | 85 | 89 | 86 | ||||||||||||||||||
83 | 83 | ||||||||||||||||||||
(+4 thousand tonnes) more than in the | |||||||||||||||||||||
77 | |||||||||||||||||||||
same quarter of the previous year. | |||||||||||||||||||||
Reason: gradual reach the planned | |||||||||||||||||||||
level of production capacity in | |||||||||||||||||||||
Primorye. | |||||||||||||||||||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||||||||||
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 | ||||||||||||||
Sales volume of pork products | |||||||||||||||||||||
thousand tonnes | |||||||||||||||||||||
In 2Q 2023 sales volumes of pork | |||||||||||||||||||||
+2% | +3% | products increased by 2% (+1 thousand | |||||||||||||||||||
74 | 77 | 74 | tonnes) to 74 thousand tonnes. | ||||||||||||||||||
73 | 73 | 72 | 72 | The growth was driven by improved | |||||||||||||||||
60 | production efficiency in the Central | ||||||||||||||||||||
Federal | District, | including | the | ||||||||||||||||||
implementation of a project to expand | |||||||||||||||||||||
deboning capacity. Sales of meat cuts | |||||||||||||||||||||
showed the strongest growth. | |||||||||||||||||||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | ||||||||||||||
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
SUGAR SEGMENT
Production of sugar
thousand tonnes
492 | ||||||||||||
-28% | 174 | -49% | ||||||||||
49 | 35 | 56 | 49 | 69 | 35 | |||||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |||||
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
In 2Q 2023 Rusagro produced 35 thousand tonnes of sugar, which is 28% (-13thousand tonnes) less than it produced during the same quarter of the previous year.
The volume decline was due to a shift in the period of sugar production from molasses as a result of the extended beet processing season.
Sales volume of sugar
thousand tonnes | ||||
-11% | +57% | |||
260 | 260 | 233 | ||
233 | 199 | 214 | ||
177 | ||||
148 | ||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q |
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
In 2Q 2023 compared to the same quarter of the previous year, Rusagro's sugar sales volumes decreased by 11% (-27thousand tonnes) to 233 thousand tonnes. The decrease in sales volumes was influenced by lower production volumes in the 2022/2023 season, mainly due to lower beet sugar content as a result of deteriorating weather conditions: soil overwatering, high temperature fluctuations.
2
ROS AGRO PLC trading update 2Q and 6M 2023
AGRICULTURE SEGMENT
Sales volume of grain crops
thousand tonnes | Barley | Corn | Wheat |
556
27 4.5
+58% | +125% | |||
198 | 524 | |||
180 | 198 | |||
125 | 63 | 125 | 123 | 63 |
10 | 0.2 | 101 | 0.2 | 10 | 0.1 | 25 | 0.1 | 88 | ||||||||||
115 | 135 | 79 | 115 | 98 | 29 | 135 | ||||||||||||
59 | ||||||||||||||||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |||||||||||
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
Grain sales volume in 2Q 2023 amounted to 198 thousand tonnes, which is 58% (+72 thousand tonnes) above the level of the same quarter of the previous year. This was mainly due to a 526% (+53 thousand tonnes) increase in sales of corn sold under the 1Q 2023 contract, with the condition of delivery until the end of August. In 2022, the main sales took place in 1Q. The 17% increase in wheat sales was due to a shift in the sales schedule from 1Q to 2Q 2023 as a result of low demand in 1Q due to high carryover stocks on the market.
Sales volume of oil crops
thousand tonnes | Sunflower | Soy | ||
+458% | -13% | |||||||
117 | 127 | |||||||
110 | 110 | |||||||
16 | ||||||||
16 | 40 | 16 | ||||||
94 | 102 | 29 | 86 | 94 | ||||
20 | 20 | |||||||
1 | ||||||||
5 | ||||||||
5 | 5 | 28 | ||||||
15 | 15 | 4 1 | ||||||
2Q | 2Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |
2022 | 2023 | 2022 | 2022 | 2022 | 2022 | 2023 | 2023 |
Oil crops sales in 2Q 2023 increased 458% (+90 thousand tonnes) up to 110 thousand tonnes compared to the same quarter of the prior year due to a 549% (+80 thousand tonnes) increase in soybean sales. The shift of oil crops sales to the second quarter was due to a late harvest (postponed to 2023 due to weather conditions).
3
ROS AGRO PLC trading update 2Q and 6M 2023
Trading results of 2Q and 6 months 2023
thousand tonnes
Item | 6M 2023 | 6M 2022 | Change, % | 2Q 2023 | 2Q 2022 | Change, % |
Total sales*, million roubles | 109,581 | 130,843 | (16%) | 60,192 | 66,956 | (10%) |
Oil & Fat Segment | ||||||
Production volume of crude | 272 | 358 | (24%) | 140 | 181 | (23%) |
vegetable oil | ||||||
Sales volume of consumer | 143 | 143 | 0% | 382 | 392 | (3%) |
products, including: | ||||||
oil & fat products | 136 | 136 | (0%) | 72 | 64 | 12% |
dairy products | 8 | 7 | 6% | 4 | 4 | 13% |
Sales volume of industrial | 571 | 648 | (12%) | 305 | 324 | (6%) |
products, including: | ||||||
meal | 257 | 299 | (14%) | 124 | 149 | (17%) |
bulk oil | 156 | 200 | (22%) | 102 | 108 | (5%) |
industrial fats | 152 | 141 | 7% | 76 | 62 | 22% |
dry whey mixes | 6 | 8 | (29%) | 3 | 4 | (28%) |
Meat Segment | ||||||
Production volume of pork in live | 175 | 160 | 9% | 86 | 83 | 4% |
weight for slaughtering | ||||||
Sales volume of pork products | 146 | 133 | 10% | 74 | 73 | 2% |
Sugar Segment | ||||||
Production volume of sugar | 104 | 104 | (0%) | 35 | 49 | (28%) |
Sales volume of sugar | 381 | 437 | (13%) | 233 | 260 | (11%) |
Agriculture Segment | ||||||
Sales volume of grain crops, | 286 | 305 | (6%) | 198 | 125 | 58% |
including: | ||||||
wheat | 194 | 194 | (0%) | 135 | 115 | 17% |
corn | 92 | 111 | (17%) | 63 | 10 | 526% |
barley | 0.1 | 0.2 | (52%) | - | 0.2 | (100%) |
Sales volume of oil crops, | 236 | 137 | 72% | 110 | 20 | 458% |
including: | ||||||
sunflower | 56 | 21 | 170% | 16 | 5 | 202% |
soybeans | 180 | 116 | 55% | 94 | 15 | 549% |
Sales volume of sugar beet | 494 | 59 | 741% | - | - | - |
* Sales before intersegment eliminations and account for other sales.
Comment: Since some indicators and percentages in the diagrams and texts of the press release were rounded to the nearest whole number, the sum of the | 4 |
rounded values may not fully match the totals. Further, calculations of changes were derived from the pre-rounded indicators and may therefore not fully | |
match the changes calculated with the rounded values. |
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Rusagro plc published this content on 21 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 July 2023 07:51:08 UTC.
