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been reflected in the ongoing growth in Rusagro’s selling prices for sugar, which were up 14% y/y and 12% q/q to RUB30.1/kg. All in all, sugar revenue fell 10% y/y in 3Q20.
· Meat​. Meat sales volumes grew 13% y/y to 61kt in 3Q20. The average livestock price grew 13% y/y to RUB91.6/kg after five consecutive quarters of y/y declines in prices. We believe that the spike in prices may be attributable to seasonally higher demand during summer despite Rusagro’s sales of unprocessed animals mostly comprising culled pigs sold at a discount. The weighted average price in the pork segment (accounting for the sales mix of various meat products) grew c. 9% y/y, on our estimates, as prices for meat products grew at a more moderate pace compared to livestock prices. All in all, increased sales volumes, together with higher prices, resulted in the segment’s revenue expanding 23% y/y to RUB8.8bn.
· Oil & fats. ​Sales volume dynamics in the oil & fats division were mixed across various products, with bottled and crude oil declining 14-23% y/y while industrial fats surged upwards 41% y/y. Prices across all B2C and B2B products grew y/y, which could be explained by solid demand, increased production costs (sunflower seeds) and a weaker ruble y/y. The segment’s revenue grew 12% y/y to RUB17.5bn in 3Q20.
· Agriculture​. The agriculture division saw revenue grow 20% y/y to RUB7.1bn in 3Q20 as increased sales of corn and soybean offset the drop in sales volumes of wheat and barley. Prices for all soft commodities were significantly up y/y.
· Milk products​. Rusagro reported revenue of RUB945mn from its milk business, accounting for c. 2% of the company’s 3Q20 revenue (excl. eliminations).
9.2.7​ TMT corporate news
The move of Russian electronic payment system ​Qiwi​ into the factoring business for SMEs ​is expected to continue generating some (albeit not necessarily material) net profit, Sova Capital wrote on October 23. As reported by ​bne IntelliNews​, the newsflow on Qiwi has been mixed. The company has improved its asset mix​, but uncertainty over its shareholder structure remains after a ​botched SPO attempt​, and faces regulatory risks in ​the betting segment​. The company also made an anticipated decision to dispose of its retail banking projects SOVEST and Rocketbank in summer 2020. In the meantime, the factoring book (cash flow and liquidity provision services) is anticipated to almost double over 2H20 to RUB8bn ($105mn) by end-2020,
141 ​RUSSIA Country Report​ November 2020 www.intellinews.com