Kuban Agroholding announces full year production and financial results for 2013
09.04.2014

Ust-Labinsk, 9 April 2014 - Kuban Agroholding, one of Russia’s largest agribusinesses and part of Basic Element, announces their full year production and financial results for 2013. 

Headline results:

· Net profit totaled USD 23 million, a 14%-increase compared to 2012

· EBITDA margin increased to 32% compared to 23% in 2012

· The company’s revenue reached USD 210 million compared to USD 224 million in 2012

Kuban Agroholding production for 2013:

· Winter grains production of 198,000 tonnes, up from 135,000 tonnes in 2012

· Sunflower production of 25,500 tonnes, up from 22,400 tonnes in 2012

· Corn production of 58,000 tonnes, up from 43,000 tonnes in 2012

· Soya beans production of 30,000 tonnes, up from 25,700 tonnes in 2012

· Sugar beet production of 450,000 tonnes, up from 396,200 tonnes in 2012

Commenting on the results, Anton Ulanov, CEO of Kuban Agroholding, said:

“Despite a decrease in pork prices and worsened quality of wheat affected by adverse weather conditions in 2013, we have achieved a significant net profit increase. Profitability has grown due to high output of tilled and industrial crops and growth in premium quality milk production.

One of the main focuses of Kuban Agroholding is to enhance productivity and reduce production costs.

We continued to develop our production system in 2013 with the result of USD 5.53 million of cost reductions. We restructured Agroholding assets in 2013, closing a number of non-performing assets while keeping productive facilities and jobs.

Agroholding’s wheat output reached 58 centners/ha (45.7 centners/ha in 2012), barley output of 52.4 centners/ha (35.9 centners/ha in 2012) which exceeds average results in Krasnodar region by 4.9%.

Kuban AgroHolding’s tilled and industrial crops output exceeded average results in Krasnodar region by 30-70%.

Sunflower output totaled 37.7 centners/ha (31.5 centners/ha in 2012), corn output reached – 91.6 centners/ha (69.9 centners/ha in 2012), soy beans – 27 centners/ha (22.2 centners/ha in 2012), sugar beet – 600 centners/ha (534.6 centners/ha in 2012).

Milk production in 2013 amounted to 45,000 tonnes (40,900 tonnes in 2012). Average annual milk production per forage-fed cow reached 6.1 tonnes (5.3 tonnes in 2012). Live cattle weight gain in 2013 was 2,400 tonnes (1,600 in 2012), live pigs weight gain was 2,800 tonnes (3,800 tonnes in 2012).

In 2013, the Company’s sugar refinery Svoboda processed 563,000 tonnes of sugar beet (compared to 522,400 tonnes in 2012) and had sugar production of 65,700 tonnes (56,800 tonnes in 2012).