News

Russian Aquaculture announces IFRS financial results for FY 2019
10.04.2020

  • Robust FY 2019 results, with revenue increasing to RUB 8.8 billion

  • Operating cash flow reinvested into business expansion

  • High degree of financial sustainability, with net debt / adj. EBITDA ratio reduced to 1.2x

  • Efforts undertaken to strengthen employee safety and business continuity


Russian Aquaculture announces IFRS financial results
for FY 2019

Moscow, 10 April 2020. PJSC Russian Aquaculture (the “Company”), Russia’s largest commercial fish producer (aquaculture), announces its IFRS financial results for FY 2019.

Russian Aquaculture CEO Ilya Sosnov said:

“Russian Aquaculture was successful in achieving its objectives in 2019. Thanks to the systematic implementation of our strategy, we managed to attain a high degree of financial and operational sustainability. We were able to make major investments which were almost completely funded by operating cash flow.

“At this point in time it is early to say how the current crisis will affect our business. We have taken all necessary measures and continue to operate as usual, ensuring the continuity of production processes and product deliveries to our customers. At the same time, we continue to monitor the situation and are ready to adapt if necessary. Our priorities today, as always, are the safety of our employees, consumers and contractors, as well as ensuring business continuity while minimising operational and financial risks.”

KEY OPERATING AND FINANCIAL RESULTS

 

 

 

 

12 months

ended 31 December

 

Operating performance, tonnes

2019

2018

2017

Change 2019/2018

Sales volume

18,070

6,776

10,222

167%

Financial performance, RUB million

 

 

 

 

Revenue

8,798

3,212

5,022

174%

Adjusted EBITDA[1]

3,432

974

2,061

3.5x

Net profit

3,258

2,291

387

42%

Financial position, RUB million

31 December 2019

31 December 2018

31 December 2017

Change 2019/2018

Cash and cash equivalents

85

105

1,094

(19%)

Net debt

4,039

3,747[2]

742

8%

Net debt /
adjusted EBITDA

1.2x

3.8x

0.4x

-

 Key financial highlights

  • The transition to annual stocking, monitoring the full rearing cycle, the well-functioning organization of feed supplies, and the successful development of our own sales system resulted in sales of 18.1 ths tonnes in FY 2019.

  • Increased sales volumes supported growth of revenue and adjusted EBITDA to RUB 8.8 billion and RUB 3.4 billion, respectively.

  • The Company’s strong financial results have enabled it to generate significant cash flow (operating cash flow for FY 2019 amounted to RUB 2.5 billion) and to invest in further business expansion.

  • Investments amounted to RUB 2.5 billion. Significant investments included a project to increase smolt factory capacity, the purchase of a second live-fishing vessel and a barge for the mechanical delousing of fish, new cages and other fish-rearing equipment.

  • As of 31 December 2019, the Company’s net debt to adjusted EBITDA ratio was 1.2x, compared with 3.8x as of 31 December 2018.

 

Measures taken to combat coronavirus

  • The Company is included in the list of organizations that must operate in quarantine and continues to work as usual.

  • Safety measures have been strengthened at the Company's facilities, ranging from the issuance of personal protective equipment and monitoring employee health to frequent sanitisation of premises.

  • Given current market volatility, the Company is optimising costs and prioritising spend on employee safety and continuity of production processes.

 

ABOUT RUSSIAN AQUACULTURE

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.

Contacts:

EM


Denis Denisov

Tel.: +7-985-410-3544

Email: denisov@em-comms.com

 

Irina Logutenkova

Tel.: +7-910-438-4843

Email: logutenkova@em-comms.com

   

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 components:

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

• Gain / (loss) on forex, net

• Interested (income) / expense, net

• Depreciation of fixed assets and goodwill

• Fair value gain / (loss) on biological assets

[2] Including restricted cash and cash equivalents: RUB 450.0 million