Rusagro's IFRS net profit drops 37% to 15.9 bln rubles in Q3

MOSCOW. Nov 11 (Interfax) - Rusagro Group , one of Russia's leading agricultural holdings, saw net profit to International Financial Reporting Standards drop 37% year-on-year to 15.9 billion rubles in Q3 2024 , the agroholding said in a financial statement.

Adjusted EBITDA fell 29% year-on-year to 10.6 billion rubles and the EBITDA margin declined to 14% from 21% in the reporting period.

Revenue rose 6% year-on-year to 76.2 billion rubles.

Rusagro has also reported that revenue increased 21% to 215.3 billion rubles, adjusted EBITDA decreased 20% to 24.4 billion rubles, and the EBITDA margin declined to 11% from 17% the previous year in 9M 2024, while net profit fell 50% to 19.4 billion rubles in the period.

Ramping up production and boosting sales volumes in the oil and fat business contributed mainly to the rise in revenue, Timur Lipatov, CEO of Rusagro Group of Companies LLC, said in a press release.

"The Rusagro team boosted the segment's operating indicators on the back of organic growth in bulk oil production after completing modernization of the Balakovo Oil Extraction Plant and increasing capacity 30% at the end of 2023. Moreover, the group acquired a 50% stake and control over the NMGK Group in mid-2023, thereby solidifying Rusagro's position on the Russian market and establishing another incentive to ramp up exports," Lipatov said.

Lipatov said that price dynamics on the pork market also positively affected total revenue. Revenue from the sugar segment decreased owing to a decline in sales volumes because of lower sugar inventory carryover, as well as the temporary ban on exporting sugar from Russia in July and August 2024.

Revenue declined in the agricultural segment owing specifically to lower crop yields resulting from unfavorable weather conditions in 2024.

Net profit fell primarily on the back of a decline in adjusted EBITDA and the effect of foreign exchange differences.

"The company continues to demonstrate positive dynamics in net debt, which decreased 25% amid growth in available liquidity. The net debt/adjusted EBITDA ratio has decreased to a record low of 0.99x," Lipatov said.