Page 145 - RusRPTDec20

Sistema's e-commerce platform Ozon has ​registered its intention to IPO​ later this year on the New York Stock Exchange (NYSE).
Phosagro​ published 3Q20 IFRS. The results were strong ​and, with the company announcing solid dividends of Rb123/sh, the name is clearly emerging as a solid dividend story.
Revenue increased 10% y/y to Rb70.9bn vs BCSe Rb70.2bn (1% beat) helped by sales growth of phosphate fertilizers (14.7%)
EBITDA amounted to Rb27.1bn vs BCSe Rb26.3bn (up 27% y/y), while margin expanded to 38% vs 37% BCSe. Key cost items including raw materials were broadly in line with BCSe, while SG&A were 9% below
FCF amounted to Rb19.4bn vs Rb3.6bn in 3Q19 and Rb16bn BCSe. The beat was largely driven by lower CapEx at Rb8.8bn vs Rb11.5bn BCSe; release of Working Capital for 9M20 amounted to Rb7.7bn. Net debt stood at Rb149bn, up 8% q/q on the back of 9% weaker ruble. ND/12M Trailing EBITDA stood at 1.95x i.e., roughly flat vs the previous quarter
To remind, on Friday, the BoD recommended 3Q20 interim dividends at Rb123/share or Rb15.9bn in total, which implies a 82% FCF payout ratio. The current dividend policy implies that dividend payout ratio may be either 50% of FCF or less if debt burden exceeds ND/EBITDA of 1.5x; or 50% of Net income as a minimum payment. Hence, the approved payout clearly implies the ratio above that suggested by the dividend policy. YTD Phosagro has already approved over Rb30bn of dividend payments vs Rb24.9bn for the whole 2019
4Q20 outlook is solid, as average DAP price has a strong chance of being visibly above the levels seen in 4Q19. Low raw material prices and a weaker ruble should help profitability. FCF will, most likely, be lower q/q as we expect a pick-up in CapEx and working capital build up in 4Q20
145 ​RUSSIA Country Report​ December 2020 www.intellinews.com