Evgeny Tugolukov
00:00 — 05.03.2021 / Media coverage

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

SINGAPORE, March 5, 2021
 * 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 /CNW/ -- 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").    


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
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.