Ros Agro, the UK-listed holding company behind Russian sugar-to-mayonnaise maker Rusagro Group, has booked higher nine-month sales and earnings, as sales from its sugar and agribusiness grew.
The company posted net profit of RUB18.08bn (US$274.5m), up from RUB12.49bn a year earlier. Operating profit increased to RUB16.9bn, compared to RUB11.92bn a year earlier.
The improved profits came as sales rose 22% to RUB50.39bn.
Sales from sugar, Ros Agro’s largest division, were up 38% to RUB29.22bn. Adjusted EBITDA from the unit more than doubled.
Sales from Ros Agro’s agriculture business increased 44% to RUB5.2bn. The division saw its adjusted EBITDA leap 83%.
Ros Agro saw sales and adjusted EBITDA from its two other main divisions – meat and oil – also increase.
However, in the third quarter, sales and adjusted EBITDA from Ros Agro’s meat business fell. Ros Agro said pork volumes fell year-on-year. The business also saw an increase in the cost of sales and reported a fall in the gains it saw in the revaluation of biological assets and agricultural produce.
Reflecting on the group’s nine-month numbers, CEO Maxim Basov said: “Ros Agro is showing the best 9M financials in its history. Sugar business became the biggest contributor to Ros Agro EBITDA in Q3 and 9M for the first time in three years. [The] environment for sugar industry improved globally and in Russia. Ros Agro plans to increase investments in this segment. The meat market in the European part of Russia has reached maturity and the growth of the company in this segment and region will be focusing on operational improvement and processing depth increase.”