Page 149 - RusRPTOct20

41.2% in 1H20
Gross profit decreased 23.8%, while gross margin was up from 55.5% in 1H19 to 57.5% in 1H20
EBITDA fell 61% y/y (-10% vs BCSe), EBITDA margin reduced 9.6ppt y/y to 10.7% due to increased SG&A costs to 44.9% in 1H20 vs 34.1% in 1H19
Net loss was at RUB0.3bn on the back of decreased EBITDA, increased finance expenses (+16% y/y)
Net debt rose 27% y/y to RUB12,145mn. Net debt/EBITDA rose from 3.1x as of 1H19 to 4.16x as of 1H20
As of 30 June, undrawn credit lines accounted for RUB2,875mn
Obuv Rossii reached an agreement with its key partner banks on some holidays on interest in 2Q-3Q20, mitigation of covenant conditions, as well as about a transfer of payments on the capital repayments to a later period
In August, sales continued to recover, increasing 1.5 times m/m to RUB1,032mn (exclusive of VAT) vs RUB659mn in July, which exceeded by 16% the average monthly revenue in the pre-crisis 1Q20 and reached 80% of the total revenue of August 2019
9.2.6​ Agriculture corporate news
Rusagro​ has announced that it is launching a new sugar refining campaign from this year’s beet harvest. ​Simultaneously, the company released its MY20 results in oil, with sunflower seed crushing volumes growing 21% YoY to 1.55mn tonnes and implying record high results. The upcoming marketing year in sugar points to an improving supply-demand balance, and Rusagro’s management has mentioned a potential 17% YoY decline in the beet planting area, as well as unfavourable weather conditions that could lower yields. In our model, we factor a 30% YoY decline in sugar production in MY21 to 5.6mn tonnes vs. 6.1mn tonnes consumption and a return to a mid-cycle economics in the short term. Sugar prices have dropped 18% YoY in the last twelve months, creating a good opportunity for a rebound once the market balance improves. The announced crushing volumes imply a record high performance by Rusagro and come in line with its total capacities after the consolidation of SolPro. The figures also underpin its market-leading position, accounting for 10% of sunflower seeds grown last season in Russia. The oil and fats division is the company’s flagship section and in our model accounts for 50% of revenues and 33% of EBITDA in 2020F, while the strong supply of seeds is behind its impressive profitability (EBITDA margin of 13% in 1H20). Rusagro’s GDR are flat YTD and now trade on 2020-21F EV/EBITDA of 6.6x.
149 ​RUSSIA Country Report​ October 2020 ​ ​www.intellinews.com