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Russia’s Kuban Agro nearly doubles net profit to 2 bln rubles in 2015
May. 19, 2016
Kuban Agro Holding Company
RussiaFollow
RussiaKuban Agro holding company, one of Russia’s largest agribusinesses and part of Basic Element industrial group, announces full year production and financial results for 2015, noting a record 79.4% rise in net profit year-on-year.
Kuban Agro holding includes 25 enterprises in five divisions: agriculture, seed production, grain processing and storage, sugar production and meat processing. The company’s revenue increased by 32% to 10 billion rubles ($150 million) year-on-year, net profit reached 2 billion rubles ($30.7 million) in 2015, a 79.4%-increase year-on-year.
Headline results:
• Net profit totaled 2 billion rubles ($30.7 million), a record 79.4%-increase compared to 1.1 billion rubles in 2014
• The company’s revenue reached 10 billion rubles ($150 million) compared to 7.3 billion rubles in 2014 ($189 million as per USD/RUB exchange rate in 2014)
• EBITDA increased by 88.4% to 3.6 billion rubles ($55 million) in 2015
• Net profit per hectare increased by 52% to 20,400 rubles ($313)
Kuban Agro holding production for 2015:
• Winter grains production of 230,000 tonnes, up 9% from 211,000 tonnes year-on-year
• Sunflower production of 24,000 tonnes, down 7% from 25,800 tonnes year-on-year
• Corn production of 43,500 tonnes, down 9.4% from 48,000 tonnes year-on-year
• Sugar beet production of 400,000 tonnes, down 8% from 435,000 tonnes year-on-year
A decrease in arable crop yield was caused by a severe drought in summer 2015. However it was balanced by growing prices of the crops (for example, sunflower price has risen by over 50%) and increased export revenues.
Kuban Agro sold 5,400 tonnes of seeds, a 4%-increase compared to 2014. Revenue generated from seed sales grew by 85% in 2015. The company has created 24 hybrids of its own high-yielding corn brand Ladozhsky since 2008. Five of the hybrids were produced and registered in 2015. Kuban Agro’s fast pace in new seed hybrids production is comparable to the world’s leading agricultural companies.
The company has significantly progressed in milk production with 61,500 tonnes produced in 2015, a 21%-growth year-on-year. It was achieved thanks to the increase in milk herd’s efficiency, livestock population and launch of a 800-head dairy farm in Novokuban district. The company’s dairy herd population rose from 8,176 to 8,688 heads in 2015. Annual milk yield per one forage-fed cow exceeded 7,000 tonnes. Cow’s efficiency increased to 20.8 liters of milk per day. The average daily milk yield per cow reached 31.3 liters in the most efficient dairy farm of Kuban Agro.
Kuban Agro’s meat processing division has ramped up live pig inventory to 7,200 tonnes, doubling last year’s numbers (3,300 tonnes). The increase followed after one of the 50,000-head hog farms was put into operation at full capacity.
Andrey Oleynik, chairman of the board of Kuban Agro:
“The company will continue to implement an investment program focused on irrigation, revamp of Ladozhsky corn plant and Svoboda sugar refinery, development of its own retail chain. Kuban Agro is also planning at least to repeat 2015 financial results with the help of grain export and increase in milk and meat production for a domestic market.”
Source: Kuban Agro
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