Rusagro profits caned

RIA Novosti/Aleksey Nikolskyi
Russia’s flagship food producer, Rusagro Group reported a dramatic decrease in net profits to 1,026 billion roubles for the first 9 months of 2011, that’s despite improved production efficiency figures and growth of Group net sales.

The company attributed the results to significant increase of commodity prices due to economic uncertainties. As a result the company failed to meet its revenue targets from sales of cane sugar.

However, net sales in all divisions have increased as well as production output says Maxim Basov, CEO of ROS AGRO Group.

“Above all sugar sales increased by 37% to 20,886 billion roubles while meat net sales were also 17% up to 3,740 billion roubles. Agricultural sales increased by 66% to 1,993 billion roubles.”

Basov adds that the vegetable oil production facility in Samara has opened, and there are more big capital expenditure projects underway in the Tambov and Belgorod regions.

ROS AGRO Group basic financials

Rus Agro IFRS
Rus Agro IFRS

The company reported under IFRS