• Operating cash flow increased to RUB 2.4 billion, while revenue rose to RUB 5.3 billion

  • Net debt / adj. EBITDA reduced to 0.87х

  • Free float increased from 8% to 14% according to Moscow Exchange

  • Liquidity growth and considerable expansion of the shareholder base

  • Dividends recommended based on 1H 2020 results





Moscow, 31 August 2020. PJSC Russian Aquaculture (the “Company”), Russia’s largest commercial fish producer (aquaculture), announces its IFRS financial results for 1H 2020.


Russian Aquaculture CEO Ilya Sosnov said:

“The Company faced two serious challenges in the first half of the year: market disruptions amid the pandemic and unfavourable climatic conditions. Thanks to dedicated teamwork and a rapid response to changes in the market, however, we delivered strong operating results, maintained business stability and demonstrated solid growth in revenue, adjusted EBITDA and cash flow.

“We invested half of our record operating cash flow of RUB 2.4 billion in further development; with the approval of an extraordinary general meeting of shareholders, this will also be used to pay out RUB 439 million in interim dividends. In general, we plan to continue making regular dividend payments (both annual and interim) in the future on the condition that no biological risks materialise and that we maintain positive operating performance, a balanced debt burden and sufficient financing for our investment programme.

“On a separate issue, I would like to note the considerable increase in the liquidity of the Company’s shares on Moscow Exchange: the average daily trading volume in July was 133 thousand shares, compared with 8 thousand in 2019. Our shareholder base also grew to more than 6 thousand shareholders at the end of July, which I consider the best evidence of the Company’s investment appeal. We value investor confidence, and we will continue to pursue our long-term strategy to create one of the world’s largest vertically integrated players in the aquaculture segment.”




6 months ended 30 June

Operating performance, tonnes





Sales volume




Biomass of fish in water at the end of the period




Financial performance, RUB million








Operating profit




Fair value loss on the revaluation of biological assets




Operating EBIT




Operating EBIT, RUB/kg




Adjusted EBITDA [1]




Net (loss)/profit




Cash flow from operating activities




Free cash flow




Financial position, RUB million

30 June 2020

31 December 2019



Net debt




Net debt /
adj. 12M EBITDA, x





Key financial highlights

  •  Despite the decrease in demand for fresh fish as a perishable commodity amid uncertainty in the first months of the pandemic, sales volume in 1H increased by 2% year-on-year to 9.6 ths tonnes. This was largely the result of the Company’s strategic advantages in terms of the freshness and quality of its fish due to its proximity to sales markets.
  • Higher sales volumes helped boost revenue and adjusted EBITDA to RUB 5.3 billion and RUB 2.3 billion, respectively.

  • Russian Aquaculture remains one of the best-performing companies in the world, with an EBIT/kg of RUB 214.1, or EUR 2.8, as of the end of 1H 2020.

  • With strong financial results, the Company was able to generate considerable cash flow: cash flow from operating activities and free cash flow amounted to RUB 2.4 billion and RUB 1.2 billion, respectively, which enabled the Company to invest RUB 1.2 billion in the further development of its business and to offer an interim dividend in the amount of RUB 439.4 million.

  • The net loss in the reporting period was the result of the revaluation of biological assets. As of 30 June 2020, some fish had not reached marketable weight due to low water temperatures in 1H 2020. That said, July and August were favourable in terms of temperature conditions, which resulted in strong fish growth, thus partially offsetting the earlier lag.

  • As of 30 June 2020, the Company’s net debt to adjusted EBITDA ratio for the preceding 12 months was 0.87x, compared with 1.18x as of 31 December 2019. The Company’s low debt burden enables it, if necessary, to attract financing on favourable terms while maintaining a high degree of financial flexibility, as well as to finance its development program.

Capital markets and dividend highlights

  • The number of free-float shares increased considerably during the first half of the year: on 27 August, Moscow Exchange revised the free-float coefficient for the Company’s shares upwards from 8% to 14%.

  • The Company launched a programme to buy back up to RUB 600 million in shares by 30 June 2021 in order to distribute capital among shareholders and support its share price. The repurchased shares will be used for general corporate purposes, including a long-term employee incentive programme, as well as for possible share redemption.

  • The increased free float coupled with the share buyback programme and strong operating and financial results have led to an impressive increase in the liquidity of the Company’s securities. The average daily trading volume on the Moscow Exchange increased from 8 ths shares in 2019 to 26 ths in June and 133 ths in July.

  • The Company’s shareholder base increased fivefold in 1H and almost tenfold from 31 December 2019 to 31 July 2020 – from 617 to 6,124.

  • The Board of Directors recommended that the General Meeting of Shareholders approve the payout of interim dividends based on the Company’s operating results in 1H 2020 in the amount of RUB 5.00 per ordinary share, which corresponds to a 2.5% dividend yield (according to the closing price as of 30 June 2020).

Measures to combat the coronavirus

  • Safety measures have been upgraded at Company facilities, from the issuance of personal protective equipment and monitoring of the health of employees to more frequent sanitisation.

  • Given the ongoing high degree of market volatility, the Company is optimising costs and prioritising financing for employee safety and business continuity.

Conference call

A conference call will be held today, 31 August 2020, at 16:00 (Moscow) / 14:00 (London), with the participation of top management to discuss the Company’s financial results.

The call will take place via Zoom and the working language will be Russian. The call recording will be made available afterwards on the corporate website.

To participate in the call, please use the following link or dial:
Meeting ID: 849 2025 1596
Passcode: 908468
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Russian Aquaculture is one of the leaders in the production of Atlantic salmon and trout in Russia.


The Company’s core business areas are:

  • Commercial farming of Atlantic salmon and sea trout in the Barents Sea in the Murmansk region
  • Commercial farming of trout in the lakes of the Republic of Karelia


Russian Aquaculture’s core strategic focus is on growing its aquaculture business. The Company currently owns cultivation rights for 36 sites for the farming of salmon and rainbow trout. The total potential production volume for these sites is around 50 ths tonnes of salmonids.


The Company’s long-term development strategy involves the creation of the largest vertically integrated player in the aquaculture market, including the production of feed and stocking material, primary processing, and distribution of the Company’s own products.





Denis Denisov

Tel.: +7-985-410-3544



Irina Logutenkova

Tel.: +7-910-438-4843




This press release may contain projections or other forward-looking statements with regard to future events or the Group’s future financial performance. Forward-looking statements contain such words as “expected”, “as seen”, “projected”, “according to estimates”, “planned”, “will be”, “could”, “can”, “perhaps” and variations of such expressions (including the negative connotations thereof). Recipients are cautioned that any such statements are only projections and that actual results or developments may differ materially from those projected in any such estimates or other forward-looking statements. The Group does not intend to update this press release to revise projections or to include information about events and other developments that occurred after the publication of this document. There are various factors that could cause actual results to differ materially from those anticipated in such forward-looking statements contained in this press release; this applies, in particular, to the general economic situation, the market environment, the risks associated with doing business in Russia, sudden market changes in the business sectors of the Group, and many other risks specific to the Group and its activities.


[1] Management of the Group defines adjusted EBITDA as the sum of the following indicators:

• Pre-tax profit / (loss) for the year

• Gain / (loss) on forex, net

• Interest (income) / expense, net

• Depreciation of fixed assets and intangible assets

• Fair value gain / (loss) on biological assets