Page 116 - RusRPTFeb22

9.2.6 Agriculture corporate news
Rusagro published its 4Q21 operating results yesterday, 31 January, disclosing a 26.8% y/y growth in revenue that was driven by its sugar and oil-and-fat divisions on the back of the very favorable price environment.
Sugar division. Sales volumes were up 61% y/y in 4Q21 to 228kt and production was up 20% y/y amid rising sugar prices, implying a 74% y/y growth in sales to RUB12.2bn during the quarter.
Meat division. Meat sales were down 6% y/y to 67kt, but this decrease was offset by higher prices for meat production, leading to a 17% y/y growth in sales to RUB11.2bn in 4Q21.
Agriculture division. Q4 is traditionally the harvest season for Rusagro’s main products in this segment. The segment’s revenue was up 18% y/y during the quarter to RUB23.2bn, as strong prices and volumes for soy and sugar beet compensated for lower volumes sold of corn and wheat.
Oil-and-fat division. The sales volume dynamics were negative, with consumer products down 3% y/y, crude oil down 12% y/y and industrial fats down 8% y/y, although these declines were completely offset by dramatic increases in prices. As a result, the segment was up 24% y/y to RUB31.3bn.
Rusagro has completed sugar refining for MY22 (September/August). Total output was up 21% y/y to 0.75mnt. As of YE21, the sugar stock was 0.47mnt.
On a separate note, the company announced the acquisition of a pork breeding farm in the Belgorod region, with annual capacity of 10k tonnes. This means a 3% increase in the company’s total capacity but will have no impact on the 2022 results due to the reconstruction required and the launch of the production cycle.
The rebound in sugar production reflects the segment’s return to a more balanced supply-demand situation after the shortage in the previous season (sugar output in Russia was down 35% y/y to 5.2mnt vs. consumption of 6mnt). This year, we anticipate a rebound to 6mnt of production, to match consumption domestically, but modest
116 RUSSIA Country Report February 2022 www.intellinews.com