Fes-agro announces financial results for the first half of 2020
The revenue in the first half of 2020 amounted to RUB 6,273 million, an increase of 18% compared to the first half of last year. Net profit amounted to RUB 158 million.
July 29, 2020, Stavropol – FES-Agro LLC presented its RAS financial results for the first half of 2020:
• Revenue increased by 18% and amounted to RUB 6 273 million. In the first half of 2019, RUB 5 315 million;
• Gross profit increased by 10.6% to RUB 476 million. In the first half of 2019, RUB 430 million;
• Net profit decreased by 17.6% to RUB 158 million. In the first half of 2019, RUB 192 million;
• EBITDA decreased by 22.8% to RUB 249.7 million. In the first half of 2019, RUB 323.6 million;
• EBITDA margin at the end of the period was 4.0%. In the first half of 2019 - 6.1%.
"The second quarter and the first half of the year were not easy, but we are pleased to note that revenue continued to grow and exceeded 6.2 billion rubles. Gross profit increased compared to the same period last year. I can't help but note the positive result - 158 million net profit in the reporting period. Unfortunately, it is lower than the result of last year," - says Alexander Mikhailov, President of FES-Agro LLC.
"The crisis in which the whole world found itself has also affected our Company. I want to mention the following reasons. First of all, there was an increase in prices from our suppliers because of the stronger dollar. The highly competitive environment did not allow the Company to increase price proportionally to end-users. The change in price and the need to save money reoriented our customers towards lower-price products, which was the main factor in reducing the margin.
Against the background of the situation with the coronavirus, our expenses have also increased. Due to the pandemic, we had difficulties with the delivery, increased transportation tariffs, and unforeseen fees for providing necessary working conditions. In several regions, unstable weather conditions are observed. It leads to a decrease in the yield. It already forces farmers to save heavily on everything, including plant protection products.
Despite all the difficulties, we managed to maintain our team, good financial stability, and we are ready to withstand possible further market changes."
We also inform you that we will fulfill all obligations to our investors on time. On July 16, 2020, the first repayment of part of the exchange-traded bonds' nominal value took place. The next payment of coupon income to the holders of FES-Agro bonds. The following bonds will take place on October 15, 2020.
The financial statements are disclosed on https://www.e-disclosure.ru/portal/company.aspx?id=37730 Or visit page Investors: https://fes-agro.ru/en/investors
For more information:
+7(8652)30-25-25 ext. 1011