Page 135 - RusRPTAug21

The Group’s selling space rose 1.1% y/y to 602,164 sqm
The Group confirmed 2021 guidance, expecting a low-single-digit LFL growth at O'KEY hypermarkets and a double-digit LFL growth at DA! discounters and expansion plans of 35 to 40 DA! store openings in 2021.
9.2.6 Agriculture corporate news
RusAgro 2Q21 trading update review: Revenue up 45% y/y, pointing to meaningful upside to 2021 outlook; positive
The favorable pricing environment should have a positive read-through for Rusagro’s 2Q21 financial results and interim dividend recommendation. We also see significant upside risks to our and consensus FY21 projections, increasing the likelihood of nice dividend surprises and earnings upgrades.
Rusagro has published its 2Q21 sales results, reporting a revenue growth of 45% y/y that was driven by the company’s oil-and-fats and agriculture divisions thanks to the very favorable pricing environment. We believe the trading results should lead to strong 2Q21 margins and significant upside to FY21 expectations.
Sugar. Sales volumes fell 46% y/y in 2Q21 to 160kt, while production fell 44% y/y. Production is usually insignificant during the first half of the year, as sugar beets are harvested and processed during the second half of the year. On the other hand, the sugar price surged 58% y/y in 2Q21 to RUB42.4/kg (+8% q/q), which helped to contain the decline in sugar revenue to 14% y/y in 2Q21 despite sales volumes nearly halving.
Meat. Meat sales were up 5% y/y to 62kt in 2Q21. The weighted average price in the pork segment (accounting for the sales mix of various meat products) grew 26% y/y. All in all, increased sales volumes together with higher prices resulted in the segment’s revenue expanding 32% y/y to RUB9.6bn.
Oil and fats. Sales volumes in the oil-and-fats division were mixed across various products, with sales of consumer products down 4% y/y; sales of crude oil down 17% y/y; and sales of industrial fats up 30% y/y. The decline in volumes was more than offset by the strong price growth across all B2C and B2B products, which we attribute to solid demand and cost inflation (sunflower seeds). As a result, the segment turned in the company’s best performance, with the 73% y/y jump in the segment’s revenue accounting for 59% of Rusagro’s consolidated 2Q21 top line.
Agriculture. Rusagro’s agriculture division saw its revenue surge 66% y/y to RUB5.9bn in 2Q21, as strong prices and volumes for wheat and soya offset lower sales and prices for corn.
135 RUSSIA Country Report August 2021 www.intellinews.com