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ROS AGRO PLC (AGRO), the holding company of Rusagro Group, a leading diversified food producer in Russia with vertically integrated operations, has released its financial results for the second quarter and the six months ended 30 June 2024.
For the first half of 2024, ROS AGRO PLC reported substantial sales growth, reaching RUB 139,043 million (approximately US$1,533 million). This represents a significant increase of RUB 32,494 million, or 30%, compared to the same period in 2023. The robust sales performance underscores the company's strong market presence and effective operational strategies.
However, despite the notable rise in sales, the company's adjusted EBITDA for the first half of 2024 amounted to RUB 13,802 million (around US$152 million), reflecting a decline of RUB 1,804 million, or 12%, from the previous year. This decrease in adjusted EBITDA has resulted in a reduction in the adjusted EBITDA margin, which fell to 10% from 15% in the same period of 2023.
The decline in profitability is further highlighted by the net profit for the period, which stood at RUB 3,485 million (approximately US$38 million). This marks a significant decrease of RUB 9,70 million, or 74%, compared to the first half of 2023. The sharp drop in net profit reflects the pressures on the company’s profitability amidst rising costs and other operational challenges.
As of 30 June 2024, ROS AGRO PLC's net debt position was RUB 61,23 million (around US$719 million). The company's net debt to adjusted EBITDA ratio stood at 1.13x, indicating a manageable level of debt relative to its earnings.
Overall, ROS AGRO PLC’s financial results for the first half of 2024 reveal a complex picture of growth and challenges. While sales have increased significantly, the declines in adjusted EBITDA and net profit highlight the need for continued focus on operational efficiency and cost management. The company's robust sales performance and manageable debt levels provide a solid foundation for navigating the current economic environment and achieving future growth.
