About Rusagro
History
Highlights of 2022
Key results of 2022
Business model
Brands
Geographic footprint
Sales geography
Legal structure

Annual
report
2022

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About Rusagro

History
Highlights of 2022
Key results of 2022
Business model
Brands
Geographic footprint
Sales geography
Legal structure

History

The story of Rusagro begins in 1995 with the import of sugar into Russia.

Over time, the Company acquired a number of production facilities for sugar, as well as for oils and fats. It also acquired storage elevators and established its own land landing. In 2003, Rusagro Group LLC was founded. The Company’s development can be broken down into several key stages and events.

1997–2002

Launch of our Sugar and Agriculture businesses

Sugar Business

We acquire our first sugar plants and launch sugar production in Belgorod Region

Agriculture Business

We establish our own land landing for the growing of sugar beet and grain crops

We acquire elevators for storing and trading grain

2003–2007

Launch of our Oil and Fats Business and our first retail brand

General corporat events

Rusagro Group LLC is founded in 2003

Sugar Business

We launch our first retail sugar brand, Chaikofsky

Oil and Fats Business

We acquire our first oils and fats production facility in Yekaterinburg

2008–2010

Launch of our Meat Business and expansion of our Sugar Business

Sugar Business

We expand our Sugar Business by acquiring two sugar plants in Belgorod and Tambov regions

Our Mon Cafe and Brauni sugar brands are launched

Agriculture Business

We increase our land landing to 380 ths ha

Meat Business

Pork production commences in Belgorod Region

2011–2013

Initial public offering (IPO) and purchase of our first oil extraction plant

General corporat events

An IPO of global depository receipts (GDRs) on the London Stock Exchange in 2011 raises USD 300 mn

A dividend policy is adopted

Sugar Business

A new packaging line enters service and our Russkii Sakhar brand is launched

Agriculture Business

We increase our land landing to 463 ths ha

Oil and Fats Business

In 2011, we acquire an oil extraction plant in Samara Region

Meat Business

In 2013, we open pig farms in Tambov Region

2014–2015

Flotation on the Moscow Stock Exchange and the launch of abattoir operations

General corporat events

In 2014, the Company floats GDRs on the Moscow Stock Exchange

Sugar Business

We modernise our sugar plants and increase the capacity of our pulp drying complexes

Agriculture Business

We increase our land landing to 504 ths ha

Oil and Fats Business

We modernise our oil extraction plant

Meat Business

Launching a slaughterhouse in the Tambov Region in 2015

2016–2017

Business deal concluded with Razgulyay, secondary public offering (SPO)

General corporat events

An SPO of GDRs on the London Stock Exchange in 2016 raises USD 250 mn

Sugar Business

Three sugar plants in Kursk and Orel regions, a cereal plant, and a land landing are acquired from Razgulyay

We launch our first molasses desugarisation plant

Agriculture Business

Our land landing reaches a total of 665 ths ha

Meat Business

Our first retail meat brand, Slovo Myasnika, is launched in 2016

2018–2020

Business expansion and increase in exports

General corporat events

In 2020, the Company’s GDRs are included in the MSCI Russia Small Cap index

Sugar Business

Our second molasses desugarisation plant is launched in 2019

Our sugar production is exported to 34 countries worldwide

Agriculture Business

Our agricultural production is exported to 11 countries worldwide. We deliver our first shipments of corn and soya to China

Oil and Fats Business

In 2018, we gain the right to acquire a controlling stake in the Company which owns Solnechnye Produkty

We launch a vegetable oil production and bottling plant in Samara Region and a mayonnaise production facility in Atkarsk

Our oils and fats are exported to 29 countries worldwide. We see the first shipments of meal and the resumption of consumer margarine sales to China

Meat Business

We acquire a 100% stake in KapitalAgro in 2018 and a 22.5% stake in Agro-Belogorye Group in 2019 – both pork producers in Belgorod Region

We complete construction of a grain elevator and begin delivering sows to a pig breeding farm in Primorsky Territory

Our pork products is exported to ten countries worldwide

Milk business

The Molochnye Produkty business unit, producing cheeses, butter, and dried whey, is launched in 2018

We make our first deliveries of dried whey to China

2021

General corporat events

An SPO of GDRs in Ros Agro PLC is made by the majority shareholder

The contract for Maxim Basov, CEO of Rusagro Group since 2009, expires

The Rusagro Tech Challenge, a competition for innovative projects, takes place

Sugar Business

The first shipment of pulp is sent by rail to China

Znamensky Sakharny Zavod is certified for the production of organic sugar

Agriculture Business

We take on a 12-month lease of 49 ths ha of farmland in Saratov Region

Oil and Fats Business

Bottled sunflower oil is supplied to retail chains in China, and a butter and mayonnaise shop opens on an online marketplace

The Company wins the Agro-industrial Exporter of the Year award

The Company is the leading supplier of frying oil to the Russian HoReCa sector

We acquire a further 25% stake in Primorskaya Soya LLC to consolidate 100% ownership of the Company

Meat Business

The Rusagro-Primorye compound feed plant is launched during the Eastern Economic Forum

The Rusagro-Primorye LLC plant for rendering and waste utilization plant

Milk business

Molochnye Produkty is merged with our Oil and Fats Business

Highlights of 2022

january

Corporate governance

Rusagro Group LLC appoints new CEO

Effective 1 January 2022, Timur Lipatov was appointed as CEO of Rusagro Group LLC. His biography details can be found in the Corporate Governance section.

january

Production

Sugar production certified organic

Znamensky Sakharny Zavod has undergone an independent audit under the voluntary certification system of the National Union of Producers and Consumers of Organic Products, and has been granted a certificate confirming that the quality of sugar produced under the Chaikofsky brand complies with the state organic standard GOST 33980. It is the first plant in Russia to receive such a certificate.

february

Sales

Healthy sugar products enter production

In an effort to encourage healthy diets, Rusagro’s Sugar Business has commenced production of coconut sugar. The product has a delicate texture, a pronounced flavour, and a flowery aroma. It contains micronutrients and fibre, and has a glycaemic index lower than ordinary white sugar.

april

Corporate governance

New Head of Oil and Fats Business appointed

In April 2022, Natalia Koroy was appointed as Head of Rusagro’s Oil and Fats Business. Natalia had been earmarked to take on this position for the past two years. Her biography details can be found in the Corporate Governance section.

april

Corporate governance

New Head of Meat Business appointed

In April 2022, Alexey Kirsanov was appointed as Executive Director of Rusagro’s Meat Business, and was subsequently promoted to the position of CEO. His biography details can be found in the Corporate Governance section.

april

Corporate governance

New Head of Sugar Business appointed

In April 2022, Sergey Goryachev was appointed as Head of Rusagro’s Sugar Business. His biography details can be found in the Corporate Governance section.

june

Sales

Online sugar shop launched on Ozon

In June 2022, Rusagro commenced direct sales of its produce on the Ozon internet platform for the first time ever. The online shop features a range of 25 different products from Rusagro’s Sugar Business, under the brands Chaikofsky, Russkii Sakhar, Tyoplye Traditsii, and Brauni.

june

Corporate governance

Rusagro Group LLC appoints new CFO

In June 2022, Alexander Tarasov was appointed as Chief Financial Officer of Rusagro Group LLC. His biography details can be found in the Corporate Governance section.

august

Production

Experimental planting of triticale

During the 2022–2023 sowing season, Rusagro planted 1 ths hectares with the triticale fodder crop, a highly productive hybrid of wheat and rye characterised by high yield, frost hardiness, and low soil fertility requirements.

august

Sales

First shipment of sunflower meal to China

For the first time ever in Russia, Rusagro delivered sunflower meal to China via the Far East region, with direct transshipment at the port of Vladivostok from train to bulk carrier. The project was implemented in cooperation with FESCO Transportation Group as part of a memorandum of cooperation signed at the Eastern Economic Forum in 2021.

august

Sales

Rusagro-Primorye successfully passes product quality and safety inspection by Mars

Rusagro’s meat processing plant in Primorsky Territory successfully passed a client audit by international Сompany Mars. The auditors noted the team’s high level of professionalism and were impressed by the level of organisation of the quality management system and the high-tech infrastructure.

september

Sales

Oil and Fats Business receives Exporter of the Year awards

In September 2022, Rusagro’s Oil and Fats Business was recognised in two categories of the prestigious All-Russian Exporter of the Year awards. Natalia Koroy, the head of the business, won the Best Female Exporter award, and Zhirovoy Kombinat took third place in the Exporter of the Year nomination for basic agricultural products in the Big Business category.

october

Technology

Smart harvest planning system launched

Rusagro has collaborated with IT Сompany Jet Infosystems to develop a smart harvest planning system. The system helps to optimise harvesting operations and eliminate crop spoilage as a result of poorly timed harvesting, and ensures the optimal use of agricultural machinery and specialist labour.

october

Technology

KulibIT 2022 prize for digitalisation

In October 2022, the Industrial Fats CRM project by the Rusagro Technologies project group took first place in the Import Independence category of the KulibIT 2022 National Digitalisation Awards. The award was created to promote advanced Russian digital technologies and solutions, as well as talented leaders.

november

Production

First shipment of mayonnaise to China

In 2022, Rusagro delivered its very first shipment of mayonnaise to China. This was made possible thanks to the use of packaging with enhanced protective properties, as well as the development of a special recipe for mayonnaise which can be stored at temperatures of up to 25 °C for a year.

november

Technology

Rusagro joins AI Alliance

In November 2022, Rusagro took part in the major international Artificial Intelligence Journey conference. During the conference, the Сompany signed a memorandum on joining the AI Alliance and adhering to the AI Ethics Code.

november

HR

RBK rating puts Rusagro among Russia’s top employers

In November 2022, RBK presented its own ranking of Russian employers for the first time ever. Rusagro was the only listed Сompany representing the agricultural sector. Previously, the Сompany has also held leading positions in HR rankings compiled by HeadHunter, Superjob, and the Randstad Award.

november

HR

First prize in the Best Corporate Teambuilding category at the 2022 Arcorps Awards

In November 2022, the Rusagro Chestnye Igry (Fair Games) sports festival took first place in the Best Corporate Teambuilding category as part of the inaugural Arcorps Awards 2022 national prize for corporate sport, organised by the Association for the Development of Corporate Sport.

december

Technology

Electronic system launched to monitor site visits

In our Meat Business, we have introduced an electronic system for monitoring visits to BioSCUD sites. The system increases biosafety control at production facilities in Tambov Region by eliminating the use of paper cards for employee access and switching to automatic monitoring in real time.

Key results of 2022

Rusagro is one of the largest vertically integrated agricultural holdings in Russia.

The Сompany accounts for a significant share of the domestic production of pork, sugar, agricultural products, and oils and fats. According to the final data for 2022, the number of Сompany employees averaged 19.8 ths people, and total revenue after inter-segment eliminations and other income was RUB 240.2 billion.
Agricultural business Fats and oil business Meat business Sugar business Corporate center and joint service center Revenue 83,0 138,2 159,0 222,9 240,2 RUB bn 240,2 +8% RUB bn 52% 19% 17% 12% 2018 2019 2020 2021 2022
. The share of business segments was calculated without inter-segment eliminations and other income
Adjusted EBITDA 16,2 20,0 32,0 48,1 45,0 RUB bn 45,0 −6% RUB bn 37% 36% 23% 4% 2018 2019 2020 2021 2022
. The share of business segments was calculated without inter-segment eliminations and other income
Average headcount 15,2 19,7 19,3 19,0 19,8 thousand people 19,8 +4% 39% 22% 20% 15% 4% 2018 2019 2020 2021 2022

Agriculture
segment

Sales indicators

Financial indicators

−62% 23 ths tonnes sunflower seeds −55% 148 ths tonnes soya +6% 817 ths tonnes wheat −10% 3 247 ths tonnes sugar beet +127% 162 ths tonnes corn

Financial indicators

Revenue 2022 −24 % 32,0 RUB bn Adjusted EBITDA −58% 9,8 RUB bn EBITDA margin −25 pp p. 30%
№4 Position in Russia landowner in Russia 660 ths ha Land landing 567 ths ha of arable land
. Source: BEFL
Average headcount −2% 4,0 ths employees
Production indicators +1% 3,680 mn tonnes of sugar beet +25% 1082 mn tonnes of cereal crops −17% 342 mn tonnes of oil crops

Oil and Fats segment

Sales indicators

Financial indicators

+15% 40 ths tonnes of consumer margarine −26% 116 ths tonnes of bottled oils +9% 145 ths tonnes of mayonnaise −12% 298 ths tonnes of industrial fats −6% 369 ths tonnes of raw oil +3% 601 ths tonnes of meal