Rusagro Group of Companies (ROS AGRO PLC, LSE: AGRO) has announced the trading update for 2Q2012 and 1H2012
24.07.12Sugar Business
The Revenue in 1H2012 of the Sugar division decreased 55% to approximately RUR6.1bn from RUR13.7bn in 1H2011 and by 65% in 2Q2012 to RUR3.4bn compared to 2Q2011. The reduction is corresponding to decrease in low margin sugar cane production and sales.
During 1H2012 the sugar Production reached about 111.4 thousand tons (beet sugar - 62.4 thousand tons and cane sugar approximately 49.1 thousand tons) compared to 528.9 thousand tons of the cane sugar in 1H2011. There was no beet sugar production during 1H2011 and 2Q2012 and 2Q2011 years. The Production volume in 2Q2012 decreased by 89% to 49.1 thousand tons of cane sugar compared to 2Q2011.
The Sales volumes for 1H2012 decreased by 49% to approximately 245.1 thousand tons which was fully consist of the beet sugar compared to 482.2 thousand tons (63.5 thousand tons of the beet sugar and 418.7 thousand tons of the cane sugar) in 1H2011. The Sales volumes in 2Q2012 consist of only beet sugar and decreased by 63% to 133.2 thousand tons compared to 361.7 thousand tons of the cane sugar in 2Q2011.
The 1H2012 Prices decreased by 12% to RUR24.9k per ton from RUR28.3k per ton in the previous period and decreased by 6% to RUR25.6k per ton in 2Q2012 compared to 2Q2011. All the prices are provided excluding VAT.
Meat business
The Revenue in the Meat division for 1H2012 increased 12% to approximately RUR2.7bn from RUR2.4bn in 1H2011 and increased by 13% to RUR1.4bn in 2Q2012 compared to 2Q2011.
During 1H2012 the Production volumes reached about 31.7 thousand tons of pork and 121.7 thousand tons of fodder compared to 30.9 thousand tons and 116.7 thousand tons respectively in 1H2011. During 2Q2012 the Production volumes of meat decreased by 3% to 16.3 thousand tons and the volumes of fodder increased by 1% to 61.9 thousand tons.
For 1H2012 the Sales volumes increased by 4% for livestock and decreased for fodder by 21% to approximately 28.7 thousand tons (27.6 thousand tons in 1H2011) and 26.0 thousand tons (33.1 thousand tons 1H2011) respectively.. During 2Q2012 the Sales volumes of meat increased by 7% to 15 thousand tons and the volumes for fodder decreased by 29% to 14.3 compared to 2Q2011. The reduction in the volume of fodder sales to third parties is reflecting the start of Tambov complex operations.
During 1H2012 the average Price for livestock increased by 11% to RUR83.5k per ton from RUR75.0k per ton in 1H2011. The average Price for fodder for sale has changed by 1% up to RUR10.6k per ton from RUR10.7k per ton in 2Q2011. The average Price for meat in the 2Q2012 increased by 11% to RUR85.8k per ton compared to 2Q2011 and for fodder for sale by 1% up to RUR10.5k per ton compared to 2Q2011. All the prices are provided excluding VAT.
Oil&Fat business
The Revenues in 1H2012 of the Oil&Fat division increased by 96% to approximately RUR5.2bn from RUR2.7bn in 1H2011 and by 90% in the 2Q2012 to RUR3bn compared to 2Q2012. The company bought the new oil extraction plant in Samara region in March 2011 and it was working in a modeof commissioningduring 1H2011.
During 1H2012 the Production volumes of mayonnaise decreased by 2% to 24.8 thousand tons and the production volumes of the consumer margarine increased by 2% to 15.1 thousand tons compared to the corresponding period in 2011. In 2Q2012 the Production volumes increased by 1% to 14.3 thousand tons of the mayonnaise and decreased by 10% to 6.0 thousand tons of the consumer margarine compared to 2Q2011. The oil and the oilseed meal production in 1H2012 increased by 522% to 82.9 thousand tons and 439% to 73.1 thousand tons respectively compared to 1H2011. In 2Q2012 the production volumes of sunflower oil increased by 230% to 43.2 thousand tons and the production volumes of oilseed meal increased by 182% to 13.3 thousand tons compared to 2Q2011.
In 1H2012 the Sales volumes of mayonnaise decreased by 1% to 24.9 thousand tons and the sales volumes of consumer margarine increased by 6% to 15.7 thousand tons compared to corresponding period in 2011. In 2Q2012 the sales volumes of mayonnaise decreased by 1% to 14.1 thousand tons and the sales volumes of consumer margarine decreased by 2% to 6.7 thousand tons compared to the 2Q2012. During 1H2012 the sales volumes of oil reached 79.1 thousand tons of which 55.0 thousand tons was sold externally and oilseeds meal sales volumes reached 70.9 thousand tons. During 2Q2012 the Sales volumes of oil reached 49.2 thousand tons (35.6 thousand tons was sold externally) up 549% compared to 2Q2011 and the sales volumes of oilseeds meal reached 38.9 thousand tons up 250% compared to 2Q2011.
In 1H2012 the Prices increased by 2% to RUR54.0k per ton of mayonnaise and by 7% to RUR49.8k per ton of consumer margarine in 1H2011and increased by 1% to RUR54.0k per ton of mayonnaise and by 6% to RUR50.2 per ton of consumer margarine in 2Q2012 compared to 2Q2011. The average price of the sunflower oil decreased in 1H2012 by 13% to RUR32.0k per ton compared to 1H2011 and in 2Q2012 decreased by 11% to RUR32.7k per ton compared to the corresponding period in 2011. The average price of the oilseeds meal decreased in 1H2012 by 45% to RUR4.0k per ton compared to 1H2011 and in 2Q2012 decreased by 11% to RUR4.6k per ton compared to the corresponding period in 2011. All the prices are provided excluding VAT.
Agricultural business
The consolidated Revenues of the Belgorod and the Tambov business units increased by 375% to approximately RUR1.0bn in 1H2012 from RUR225.3mln in 1H2011 and by 132% in the 2Q2012 to RUR262.3mln compared to 2Q2012.
This season the Company has planted more than 380 thousand hectares of arable land and has more than 440 thousand hectares under control.
There were no Production volumes in Agricultural business during 1H2012.
Due to strong drought of the Summer 2010 there were very few carry overstock of the most of the crops for 1H2011 and the total amount of the Sales in 1H2011 was less than 11 thousand tons. The sales volumes and the prices of main crops in 1H2012 were the following:
- Sugar beet – 163.2 thousand tons (RUR1.8k per ton);
- Barley – 55.2 thousand tons (RUR4.7k per ton);
- Winter wheat – 32.8 thousand tons (RUR4.6k per ton);
- Pea – 6.1 thousand tons (RUR6.2k per ton);
- Sunflower seeds – 4.3 thousand tons (RUR9k per ton).
The Sales volumes of main crops in 2Q2012 were following:
- Barley – 19.9 thousand tons (RUR4.7k per ton);
- Pea – 5.8 thousand tons (RUR6.2k per ton);
All the prices are provided excluding VAT.
Note that all data provided in this announcement can differ from the quarter results since it has been taken from the management accounts prepared on a monthly basis. The Revenue for business division provided with intercompany sales.
Starting from this report the Company stops to publish monthly production update and will publish trading updates on a quarterly basis.
ROS AGRO PLC Trading update 1H2012 and 2Q2012
Revenue, in billion rubles | 1H2012 | 1H2011 | 2Q2012 | 2Q2011 |
|---|---|---|---|---|
Sugar business | 6,1 | 13,7 | 3,4 | 9,9 |
Meat business | 2,7 | 2,4 | 1,4 | 1,3 |
Oil&Fat business | 5,2 | 2,7 | 3,0 | 1,6 |
Agricultural business | 1,1 | 0,2 | 0,3 | 0,1 |
Sugar business
1H2012 | 1H2011 | 2Q2012 | 2Q2011 | |
|---|---|---|---|---|
Production volumes, thousand tons | ||||
Beet sugar | 62,4 | |||
Cane Sugar | 49,1 | 528,6 | 49,1 | 4330,7 |
Sales volumes, thousand tons | ||||
Beet sugar | 245,1 | 62,5 | 133,2 | |
Cane Sugar | 418,7 | 361,7 | ||
Prices, thousand rubles per ton | ||||
White sugar | 25,0 | 28,4 | 25,6 | 27,3 |
Meat business
1H2012 | 1H2011 | 2Q2012 | 2Q2011 | |
|---|---|---|---|---|
Production volumes, thousand tons | ||||
Livestock | 31,8 | 30,9 | 16,3 | 16,8 |
Fodder | 121,7 | 116,8 | 61,9 | 61,5 |
Sales volumes, thousand tons | ||||
Livestock | 28,8 | 27,6 | 15,1 | 14,2 |
Fodder to third parties | 26,0 | 33,1 | 14,3 | 20,3 |
Prices, thousand rubles per ton | ||||
Livestock | 83,5 | 75,5 | 84,8 | 76,6 |
Fodder to third parties | 10,6 | 10,7 | 10,6 | 10,5 |
Oil&Fat business
1H2012 | 1H2011 | 2Q2012 | 2Q2011 | |
|---|---|---|---|---|
Production volumes, thousand tons | ||||
Mayonnaise | 24,9 | 25,4 | 14,3 | 14,2 |
Margarine | 15,1 | 14,8 | 6,0 | 6,7 |
Oil | 82,9 | 13,3 | 43,2 | 13,1 |
Oilseeds meal | 73,1 | 13,6 | 37,8 | 13,4 |
Sales volumes, thousand tons | ||||
Mayonnaise | 25,0 | 25,3 | 14,1 | 14,2 |
Margarine | 15,7 | 14,8 | 6,8 | 6,9 |
Oil | 79,2 | 7,6 | 49,2 | 7,6 |
Oilseeds meal | 70,9 | 11,3 | 38,9 | 11,1 |
Prices, thousand rubles per ton | ||||
Mayonnaise | 54,0 | 52,9 | 54,0 | 53,6 |
Margarine | 48,9 | 46,5 | 50,2 | 47,6 |
Oil | 32,0 | 36,9 | 32,7 | 36,9 |
Oilseeds meal | 4,1 | 7,4 | 4,6 | 7,3 |
Prepared by:
Sergey Tribunsky
Tel.: +7 495 363 1661
e-mail: ir@rusagrogroup.ru