Druzhba Poultry Farm
OJSC "Druzhba Poultry Farm"
UNP: 200047140 · 90 Zhemchuzhny rural council, 1.5 km west of Zhemchuzhny agro-town, Baranovichi District, Brest Region 225316
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 498 028 | 427 145 |
| Intangible assets | 1 334 | 204 |
| Income-bearing investments in tangible assets | 0 | 0 |
| Investments in long-term assets | 25 358 | 46 061 |
| Long-term financial investments | 40 | 40 |
| Long-term receivables | 678 | 725 |
| Total Section I (long-term assets) | 525 438 | 474 175 |
| Inventories | 186 830 | 167 321 |
| — materials | 102 990 | 89 486 |
| — animals being raised and fattened | 38 934 | 38 061 |
| — work in progress | 30 010 | 26 158 |
| — finished goods and merchandise | 14 896 | 13 616 |
| Deferred expenses | 705 | 553 |
| VAT on acquired goods, works, services | 5 650 | 5 480 |
| Short-term receivables | 24 668 | 24 395 |
| Short-term financial investments | 20 | 0 |
| Cash and cash equivalents | 4 898 | 3 704 |
| Total Section II (short-term assets) | 222 771 | 201 453 |
| BALANCE (assets) | 748 209 | 675 628 |
| Charter capital | 141 358 | 141 358 |
| Reserve capital | 425 | 425 |
| Additional capital | 212 600 | 169 779 |
| Retained earnings (uncovered loss) | 171 712 | 139 310 |
| Total Section III (equity) | 526 095 | 450 872 |
| Long-term loans and borrowings | 39 071 | 44 491 |
| Long-term lease liabilities | 23 531 | 22 996 |
| Other long-term liabilities | 39 | 3 923 |
| Total Section IV (long-term liabilities) | 62 641 | 71 410 |
| Short-term loans and borrowings | 2 208 | 1 156 |
| Current portion of long-term liabilities | 47 268 | 35 036 |
| Short-term payables | 107 826 | 116 157 |
| — to suppliers, contractors, providers | 84 187 | 94 805 |
| — on advances received | 4 352 | 3 905 |
| — on payroll | 5 515 | 4 763 |
| — on lease payments | 6 383 | 5 962 |
| Deferred income | 2 171 | 997 |
| Total Section V (short-term liabilities) | 159 473 | 153 346 |
| BALANCE (equity and liabilities) | 748 209 | 675 628 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Long-term assets of 525,438k BYN are not covered by own funds excluding revaluation: real equity of 313,070 (share capital 141,358 plus retained earnings 171,712) together with long-term liabilities of 62,641 falls short of them. Revaluation surplus of 212,600 is 40% of the Section III total.F1.190 · F1.410 · F1.460 · F1.590 · F1.450 · F1.490
- The cash position is thin relative to turnover: 4,898k BYN against short-term liabilities of 159,473 — 3.1%. Payments on current activities over the year were 728,414.F1.270 · F1.690 · F4.030
- The current portion of long-term liabilities grew by 35% (35,036 → 47,268k BYN); loan repayments were 44,856 against 29,548 a year earlier (+52%), with 52,739 newly drawn — debt is serviced by rolling it over.F1.620 · F4.091 · F4.081
- The gap between real equity and long-term assets widened over the year: fixed assets grew by 16.6% (427,145 → 498,028k BYN), of which 43,182 is revaluation, while retained earnings grew by 32,402 and long-term liabilities fell from 71,410 to 62,641.F1.110 · F2.220 · F1.460 · F1.590 · F1.190
- Leasing is growing faster than cash flow: lease payments of 15,681k BYN against 9,160 a year earlier (+71%); long-term lease liabilities are 23,531 and short-term 6,383.F4.094 · F1.520 · F1.636
- Inventories grew by 12% (167,321 → 186,830k BYN): materials by 15% (89,486 → 102,990), work in progress by 15% (26,158 → 30,010) and finished goods by 9% (13,616 → 14,896), against revenue growth of 14.8%.F1.210 · F1.211 · F1.213 · F1.214 · F2.010
- The swing in the investing-and-financing result (−6,593 → +5,924k BYN) is driven by income from financing activities: 15,741 against 2,985 a year earlier — this gain is unrelated to sales.F2.140 · F2.120 · F2.060
- Reserve capital is 425k BYN against a balance sheet total of 748,209 — no reserves have been accumulated.F1.440 · F1.300
- Net profit grew from 4,501 to 32,041k BYN; net profitability to revenue moved 0.96% → 5.95%.F2.210 · F2.010
- Profit on sales grew by 82% (18,605 → 33,851k BYN) and gross margin to revenue moved 11.8% → 14.4%: cost of sales rose 11.4% while revenue rose 14.8%.F2.060 · F2.030 · F2.010 · F2.020
- Own working capital turned positive: the provision ratio moved −0.116 → +0.003. Current liquidity moved 1.314 → 1.397 — short-term assets of 222,771k BYN against short-term liabilities of 159,473.F1.490 · F1.190 · F1.290 · F1.690
- Operating cash flow is positive and growing: 23,025k BYN against 12,896 — 4.3% of revenue against 2.8%. Capital expenditure is steady: 16,681 against 16,894.F4.040 · F2.010 · F4.061
- Credit load fell by 9.6%: loans and borrowings 45,647 → 41,279k BYN — 7.7% of annual revenue; other long-term liabilities were almost eliminated (3,923 → 39). Interest paid was 709 against 4,886 a year earlier.F1.510 · F1.610 · F2.010 · F1.560 · F4.093
- Payables to suppliers fell by 11% (94,805 → 84,187k BYN) while revenue grew by 14.8%.F1.631 · F2.010
Recommendation
OJSC "Poultry Farm 'Druzhba'" is a large (balance sheet BYN 748m, revenue BYN 538m) poultry-farming enterprise with a 96.59% state share and 1,113 minority shareholders, located in the Baranovichi district, Brest region; the sector is primary agribusiness production (OKED 01470 poultry breeding).
Recommendation: Privatization. Not state investment in pure form: the enterprise generates enough cash flow to self-finance growth (capex F4.061 −16,681 is covered by OCF +23,025), the tax exemption already provides effective state support, a 7× net profit does not require a state capital injection. Not restructuring: operational fundamentals are healthy, there is no distress. Not liquidation: a profitable strategic enterprise in the food-security sector. Privatization (with safeguards) makes sense because: (a) the financial profile is strong enough for buyer interest at a reasonable valuation; (b) the state does not extract significant value beyond normal dividends (2024 paid 112 — minor), so a transfer to private hands does not disrupt state finances; (c) the strategic food-security caveat suggests a partial sale / IPO with state retention (50%+1 vote OR a golden share) rather than full divestment — preserving state influence on food-production policy while monetizing a minority stake. Concrete privatization conditions for expert consultation: the target-buyer profile (a domestic agribusiness holding? a foreign strategic investor with food-security restrictions?), valuation methodology, retention level, social commitments (workforce protection in the rural area — the poultry farm is a major employer in Zhemchuzhny agro-town).
Why privatization. For 2025 it shows a resounding operational transformation: net profit grew more than 7× (4,501 → BYN 32,041k, +611.9% YoY), revenue +14.8% nominal (~+8% real against Belarusian inflation of 5–7%), net profitability skyrocketed +4.99 pp (0.96% → 5.95%), current liquidity made a sign-flip from below-norm (0.97) to healthy (1.40), OWC made a sign-flip from negative (−0.116) to slightly positive (+0.003). Credit load shrank 9.57%, the agribusiness tax exemption is active (F2.160=0), the audit is clean and unqualified, real equity substantial positive +BYN 313,070k. real-capital coverage of long-term assets = 0.715 — in the "maturing margin pressure" zone per the v2.3 two-axis matrix, but with positive real equity not distress; the gap is covered by revaluation of fixed assets (F1.450 = 212,600 = 40.4% of F1.490), typical for a long-established state enterprise with regularly revalued fixed assets.
Confidence: MEDIUM. Financials clean after source-typo corrections (6/6 sanity, F2 chain verified, liquidity, profitability and dynamics metrics computed), but source quality MEDIUM-LOW due to two distinct source typos detected via cross-validation: (1) an F1.490 TOTAL first-digit typo (526,095 stored as 426,095 — diff exactly 100,000); (2) F4.040 sign inverted both years (displayed −23,025 / −12,896, should be +23,025 / +12,896, verified via the F4.110 integral chain). Correct reading requires careful cross-validation, which raised the verification cost. Also, on the cost-inflation margin-squeeze macro trend of 2025 — counter-evidence: this enterprise in the food-production sector (like another food producer in the sample) shows the opposite direction — all three compression metrics (sales profitability / net profitability / OCF margin) improved, not compressed. This is the first counter-result: earlier cases observed in the sample showed the margin-compression direction, whereas here it is the opposite. The margin-squeeze effect may be a sector-specific subset rather than a universal macro, or this enterprise has structural protective factors (primary-production tax-exempt scale + state ownership) that exclude the margin-squeeze mechanism.