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PRNewswire
PRNewswire
Articles 

Don Agro posts 66.5% increase in net profit to S$8.7 million for FY2020

March 05, 2021 | About:

PR Newswire

  • Driven by an increase in gain from change in fair value of biological assets and agricultural products, mainly due to rising global prices of agricultural produce, gross profit rose 70.3% yoy to S$14.6 million
  • Declares a final dividend of 1.157 Singapore cents per share (FY2019: 0.7 Singapore cents per share) to reward shareholders, representing a dividend payout ratio of 20%

SINGAPORE, March 5, 2021 /PRNewswire/ -- SGX-Listed Don Agro International Limited ("Don Agro") (SGX Ticker: GRQ) and its subsidiaries (collectively the "Group"), one of the largest agricultural companies based in the Rostov region of Russia, has announced its financial results for the full year ended 31 December 2020 ("FY2020"). Read the full press release here.

Financial Highlights (S$'000)


FY2020

FY2019

Change (%)

Revenue


30,996

35,431

(12.5)

Cost of Sales


(25,587)

(33,354)

(23.3)

Gain from change in fair value of biological assets
and agricultural produce


9,217

6,512

41.5

Gross Profit


14,626

8,589

70.3

Gross Profit Margin (%)


47.2

24.2

23.0 pts

Net Profit


8,696

5,223

66.5

The Group recognised a 41.5% yoy increase in gain from change in fair value of biological assets and agricultural produce to S$9.2 million for FY2020. The gain was mainly attributable to the trend of rising agricultural produce prices globally, especially for sunflower and wheat which the Group produces. As a result, gross profit grew 70.3% yoy to S$14.6 million for FY2020, while gross profit margin expanded 23.0 percentage points to 47.2% for the same period.

Overall, the Group delivered a 66.5% yoy increase in net profit to S$8.7 million for FY2020.

Mr. Evgeny Tugolukov, Executive Chairman of Don Agro said, "Due to changing consumer preferences favouring wheat-based products, we are optimistic that Don Agro will continue to be a beneficiary of higher export prices driven by robust global demand. At the same time, strong domestic demand and stable consumption of local agricultural produce will ensure that local prices remain well-supported. For our livestock business, we do not expect significant fluctuations for this segment and it continues to chart steady growth. Looking ahead, we will continue to execute our near-time initiatives including, among others, expanding our arable land bank and accelerating growth into new markets so as to drive earnings resiliency and maximise value for our shareholders."

In line with its IPO plans to expand its arable land bank, the Group recently acquired Volgo-Agro LLC ("Volgo-Agro"), an agricultural company based in the Volgograd region of Russia. Through the acquisition of Volgo-Agro, the Group's controlled land bank rose by 10,040 hectares or 18.9% to 63,240 hectares in total, allowing it to quickly raise production volume to capitalise on the burgeoning global demand for wheat and wheat-based products. Volgo-Agro's close proximity to important trading routes linked to the Middle East and Asia will offer attractive new opportunities to reach new markets and customers, so as to drive long-term sustainable growth for the Group.

For more information on Don Agro, please visit: http://donagroint.com/

Contact for Media & Enquiries:
[email protected]
Tel: (65) 6438 2990

Cision View original content:http://www.prnewswire.com/news-releases/don-agro-posts-66-5-increase-in-net-profit-to-s8-7-million-for-fy2020--301241213.html

SOURCE Don Agro International Limited


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