Rusagro Group · RUS:RAGR
Rusagro — Ros Agro — Q3 2024 Earnings Presentation
28 slides from Rusagro's earnings presentation, Nov 11, 2024
Slide 1: Ros Agro PLC Investors Presentation 3Q 2024 and 9M 2024
NOVEMBER 11TH, 2024 ROS AGRO PLC INVESTORS PRESENTATION 3Q 2024 AND 9M 2024
Slide 2: Ros Agro PLC at a Glance 2023
ROS AGRO PLC AT A GLANCE 2023 2 Diversified Business and Vertical Integration Leading Market Positions Financial Results 2023 Agriculture Business Sugar Business № 1 № 1 277 Sugar beet Consumer margarine Sunflower oil producer • Beet sugar production and mayonnaise in Russia • Cultivation and sowing
Slide 3: Table of Contents
TABLE OF CONTENTS 3 1 Summary Key Indicators (IFRS) 3Q 2024 vs 3Q 2023 4 2 Business Overview by division (IFRS) 8 3 Overview of Debt profile and Cash Flows 15 4 Additional information 18
Slide 4: Section 1: Summary Key Indicators (IFRS) 3Q 2024 vs 3Q 2023
SECTION 1 SUMMARY KEY INDICATORS (IFRS) 3Q 2024 VS 3Q 2023
Slide 5: Key Events 3Q 2024
KEY EVENTS 3Q 2024 5 Launch of redomiciliation process In July 2024, Rusagro Group PJSC, a subsidiary of the Cypriot holding ROS AGRO PLC, was included in the list of economically significant organizations by the Government of the Russian Federation. On 5 September 2024 the Arbitrazh Court of the Mo
Slide 6: Highlights 3Q 2024 vs 3Q 2023
HIGHLIGHTS 3Q 2024 VS 3Q 2023 6 +6% -29% -7 pp -37% -25%* -0.18* 76.2 10.6 14% 15.9 50.0 0.99 RUB bn RUB bn adj. EBITDA RUB bn RUB bn Net Debt / Adj. Net Revenue adj. EBITDA margin Net profit Net Debt EBITDA (LTM) -6% 0% +32% -19% +193% 195 68 654 1,303 8.1 ths tn ths tn ths tn ths tn RUB bn Sugar S
Slide 7: Net Revenue, Adjusted EBITDA: 3Q 2024 vs 3Q 2023
NET REVENUE, ADJUSTED EBITDA: 7 3Q 2024 vs 3Q 2023 Net Revenue increased by RUB 4,544 million (+6%): Net revenue (IFRS) 3Q 2024 vs 3Q 2023 RUB million • Revenue of Sugar segment decreased by RUB 1,407 million (-11%) due to lower +6% sales prices and lower sales volume of sugar; (RUB +4,544 million)
Slide 8: Section 2: Business Overview by Division (IFRS)
SECTION 2 BUSINESS OVERVIEW BY DIVISION (IFRS) 3Q 2024 VS 3Q 2023
Slide 9: Sugar Key Indicators 3Q 2024 vs 3Q 2023 (IFRS)
SUGAR 9 KEY INDICATORS 3Q 2024 VS 3Q 2023 (IFRS) Adj. EBITDA 3Q 2023 4,666 Sales (RUB -1,407 million, -11%): • Decrease of sugar sales volume and sales prices; Sales — Price factor (793) • Sales volumes reduced in 3Q 2024 due to the temporary ban on sugar exports from Russia in July and August 2024.
Slide 10: Meat Key Indicators 3Q 2024 vs 3Q 2023 (IFRS)
MEAT 10 KEY INDICATORS 3Q 2024 VS 3Q 2023 (IFRS) Adj. EBITDA 3Q 2023 2,555 Sales (RUB +593 million, +5%): • Decrease in average sales prices for meat products; Sales — Price factor (207) • Growth through product mix management: despite the comparable sales volume, sales of more marginal categories i
Slide 11: Agriculture Key Indicators 3Q 2024 vs 3Q 2023 (IFRS)
AGRICULTURE 11 KEY INDICATORS 3Q 2024 VS 3Q 2023 (IFRS) Adj. EBITDA 3Q 2023 3,260 Sales (RUB -1,468 million, -12%): • Increase in wheat export at higher prices in the external market; Sales — Price factor 1,542 • Decrease in soybeans sales volume due to lower yields caused by adverse weather Sales —
Slide 12: Oil & Fats Key Indicators 3Q 2024 vs 3Q 2023 (IFRS)
OIL & FATS* 12 KEY INDICATORS 3Q 2024 VS 3Q 2023 (IFRS) Adj. EBITDA 3Q 2023 6,113 Sales (RUB +6,906 million, +17%): • Increase in sales volumes of bulk oil and meal due to increased processing capacity of Sales — Price factor 2,025 Balakovo oil extraction plant after modernization; • The increase wa
Slide 13: Agriculture Business Overview
AGRICULTURE 13 BUSINESS OVERVIEW Agricultural works calendar for 2024* 1Q 2Q 3Q 4Q Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Winter wheat Spring wheat Sugar beet Soybean Central region Soybean Far East region Sunflower Corn Sowing Growing Harvesting (*) Average terms by crops (weighted average
Slide 14: Commodity Prices
COMMODITY PRICES 14 Sugar ISCO-Krasnodar, RUB/kg excl. VAT Sunflower meal, EXW, RUB/kg excl. VAT Source: ISCO-IKAR Source: IKAR 55.3 56.5 57.7 16.1 52.1 53.2 54.7 54.7 53.6 53.8 52.9 52.5 16.0 15.1 51.8 14.0 14.6 14.0 14.0 12.9 12.9 11.8 12.4 13.0 54.8 55.5 55.0 52.0 51.2 2023 13.6 2023 47.8 48.8 49
Slide 15: Section 3: Overview of Debt Profile and Cash Flows
SECTION 3 OVERVIEW OF DEBT PROFILE AND CASH FLOWS
Slide 16: Debt Profile as of 30 September 2024
DEBT PROFILE AS OF 30 SEPTEMBER 2024 16 Debt position and liquidity management Gross debt by repayment maturity RUB million RUB million 2 3-5 More than 30 September 31 December Variance in RUB million 1 year years years 5 years 2024 2023 Units % Gross debt 151,662 127,533 24,129 19 Short-term borrow
Slide 17: Cash Flows: 9M 2024 vs 9M 2023
CASH FLOWS: 9M 2024 VS 9M 2023 17 Cash Flows according to Management view (not IFRS presentation)*, RUB million 9M 2024 9M 2023 Adj. EBITDA 24,409 30,633 Adjustments to EBITDA 237 649 Inventories and bio assets 10,889 (1,838) AR and AP 1,558 21,799 Other 2,193 (1,155) Income tax paid (3,027) (2,709)
Slide 18: Section 4: Additional Information
SECTION 4 ADDITIONAL INFORMATION
Slide 19: Highlights 9M 2024 vs 9M 2023
HIGHLIGHTS 9M 2024 VS 9M 2023 19 +21% -20% -6 pp -50% -25%* -0,18* 215.3 24.4 11% 19.4 50.0 0.99 RUB bn RUB bn adj. EBITDA RUB bn RUB bn Net Debt/ Adj. Net Revenue adj. EBITDA margin Net Debt EBITDA (LTM) Net profit -15% -12% +59% -32% +80% 499 189 1,928 1,784 19.0 ths tn ths tn ths tn ths tn RUB bn
Slide 20: Net Revenue, Adjusted EBITDA: 9M 2024 vs 9M 2023
NET REVENUE, ADJUSTED EBITDA: 20 9M 2024 VS 9M 2023 Net revenue increased by RUB 37,037 million (+21%): Net revenue (IFRS) 9M 2024 vs 9M 2023 RUB million • Revenue of Sugar segment decreased by RUB 4,003 million (-11%) mainly due to +21% lower sales volume of sugar and due to the temporary ban on su
Slide 21: Consolidated Statement of Comprehensive Income (IFRS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS) 21 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024 RUB million Varianсes Varianсes Description 9M 2024 9M 2023 3Q 2024 3Q 2023 Units % Units % Sales 215,261 178,224 37,037 21 76,218 71,674 4,544 6 Net gain / (loss) on revaluation of biological assets
Slide 22: Segment Information for the Nine Months Ended September 2024
SEGMENT INFORMATION 22 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024 RUB million Sugar Meat Agriculture Oil and Fat Other Elimination Total Sales 33,286 36,122 19,378 136,729 1,898 (12,153) 215,261 Net gain / (loss) on revaluation of biological assets and - 598 11,013 - - (3,590) 8,021 agricultural pr
Slide 23: Segment Information for the Nine Months Ended September 2023
SEGMENT INFORMATION 23 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2023 RUB million Sugar Meat Agriculture Oil and Fat Other Elimination Total Sales 37,289 35,563 23,789 91,115 1,461 (10,994) 178,224 Net gain/ (loss) on revaluation of biological assets and - 3,337 5,546 - - (249) 8,633 agricultural produ
Slide 24: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF СASH FLOWS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024* 24 RUB million Variance 9M 2024 9M 2023 Units % Cash flows from operating activities Profit before income tax 22,468 44,191 (21,723) (49) Adjustments for non-cash and non-operating (income)/expenses, net: Depreciation
Slide 25: Consolidated Statement of Cash Flows - Continuance
CONSOLIDATED STATEMENT OF СASH FLOWS 25 FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2024* - CONTINUANCE RUB million Variance 9M 2024 9M 2023 Units % Cash flows from investing activities Purchases of property, plant and equipment (18,623) (10,364) (8,259) (80) Purchases of other intangible assets (450) (6
Slide 26: Consolidated Statement of Financial Position (IFRS)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 26 AS AT 30 SEPTEMBER 2024 RUB million 30 September 31 December Variances 2024 2023 Units % ASSETS 467,348 410,966 56,382 14 Current assets Cash and cash equivalents 60,400 25,937 34,463 133 Short-term investments 8,346 2,289 6,057 265 Trade and ot
Slide 27: Consolidated Statement of Financial Position - Continuance
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS) 27 AS AT 30 SEPTEMBER 2024 - CONTINUANCE RUB million 30 September 31 December Variances 2024 2023 Units % Liabilities and EQUITY 467,348 410,966 56,382 14 Current liabilities Short-term borrowings 85,614 68,035 17,579 26 Lease liabilities 1,135 1,0
Slide 28: Net Finance Income/(Expense)
NET FINANCE INCOME/ (EXPENSE) 28 Comments Net finance income/ (expense) RUB million Net finance income decreased from RUB 11,487 Variance Variance 9M 2024 9M 2023 3Q 2024 3Q 2023 million in 9M 2023 to RUB 840 million in 9M Units % Units % 2024 (RUB -10,646 million decrease) due to: Net interest expe