BPHO
OJSC "Baranovichi Cotton Production Association"
UNP: 200166488 · 7 Fabrichnaya St., Baranovichi, Brest Region 225410
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 242 209 | 256 552 |
| Intangible assets | 101 | 105 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 1 028 | 1 029 |
| Long-term financial investments | 298 | 298 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 243 636 | 257 984 |
| Inventories | 35 973 | 41 441 |
| — materials | 14 220 | 15 664 |
| — work in progress | 8 728 | 8 299 |
| — finished goods and merchandise | 10 755 | 15 208 |
| — goods shipped | 2 270 | 2 270 |
| Deferred expenses | 66 | 26 |
| VAT on acquired goods, works, services | 66 | 43 |
| Short-term receivables | 24 779 | 17 547 |
| Short-term financial investments | 33 | — |
| Cash and cash equivalents | 868 | 75 |
| Other short-term assets | 3 026 | 1 613 |
| Total Section II (short-term assets) | 64 811 | 60 745 |
| BALANCE (assets) | 308 447 | 318 729 |
| Charter capital | 18 985 | 18 985 |
| Reserve capital | — | — |
| Additional capital | 144 240 | 156 575 |
| Retained earnings (uncovered loss) | -104 839 | -94 741 |
| Total Section III (equity) | 58 386 | 80 819 |
| Long-term loans and borrowings | 185 367 | 109 184 |
| Long-term lease liabilities | — | — |
| Deferred income | 6 767 | 5 469 |
| Other long-term liabilities | 6 579 | 9 010 |
| Total Section IV (long-term liabilities) | 198 713 | 123 663 |
| Short-term loans and borrowings | 0 | 62 214 |
| Current portion of long-term liabilities | 0 | 10 216 |
| Short-term payables | 51 348 | 41 817 |
| — to suppliers, contractors, providers | 42 966 | 27 825 |
| — on payroll | 935 | 730 |
| — on lease payments | — | — |
| Total Section V (short-term liabilities) | 51 348 | 114 247 |
| BALANCE (equity and liabilities) | 308 447 | 318 729 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Real equity is negative: share capital of 18,985 minus the accumulated uncovered loss of 104,839 = −85,854k BYN (−75,756 a year earlier). The uncovered loss exceeds share capital 5.5-fold; the positive Section III total (58,386) rests solely on revaluation surplus of 144,240.F1.410 · F1.460 · F1.490 · F1.450
- Equity contracted by 27.8% over the year (80,819 → 58,386k BYN) despite net profit of +1,196: revaluation surplus fell by 12,335 (156,575 → 144,240) and the uncovered loss grew by 10,098. Profit did not hold the capital base.F1.490 · F1.450 · F1.460 · F2.210
- Long-term assets of 243,636k BYN are not backed by own funds: with real equity at −85,854 they are covered by long-term liabilities of 198,713 — coverage of 0.46, against 1.06 if equity is counted together with the revaluation surplus.F1.190 · F1.410 · F1.460 · F1.590 · F1.490
- There is no own working capital: the provision ratio is −2.86 — short-term assets of 64,811k BYN are entirely debt-financed, and borrowed funds also finance part of the long-term assets.F1.490 · F1.190 · F1.290
- Long-term loans and borrowings of 185,367k BYN equal 233% of annual revenue of 79,549; the line grew 69.8% over the year (109,184 → 185,367), while total debt including the short-term portion grew 8.2%. The portfolio was refinanced within the year: 184,240 drawn, 185,270 repaid; interest paid was 12,131k BYN versus 698 a year earlier.F1.510 · F2.010 · F1.610 · F4.081 · F4.091 · F4.093
- Debt was shifted from short-term to long-term: short-term loans 62,214 → 0 and the current portion of long-term debt 10,216 → 0, while long-term debt grew 109,184 → 185,367k BYN. Short-term liabilities fell by 55% (114,247 → 51,348) — a change of maturity, not a reduction of debt.F1.610 · F1.620 · F1.510 · F1.690
- Receivables grew by 41% (17,547 → 24,779k BYN) against revenue growth of 11% — customer deferrals are growing faster than sales.F1.250 · F2.010
- Payables to suppliers grew by 54% (27,825 → 42,966k BYN) and total short-term payables by 23% (41,817 → 51,348): current operations are financed by deferred payment.F1.631 · F1.630
- Financing-activity flows are comparable to revenue: income of 20,975 and expenses of 19,571k BYN against revenue of 79,549 — the year's result is formed by large offsetting amounts.F2.120 · F2.130 · F2.010
- Inventories fell by 13% (41,441 → 35,973k BYN) and finished goods by 29% (15,208 → 10,755) against revenue growth of 11%: more was sold than produced and the warehouse was drawn down.F1.210 · F1.214 · F2.010
- The net result changed sign: +1,196k BYN against a loss of 12,705 a year earlier; net profitability of 1.5% against −17.7% to revenue.F2.210 · F2.010
- Operating cash flow F4.040 BYN +14,110k — 17.7% of revenue; inflows F4.020 177,436 against outflows F4.030 163,326. A year earlier these flows nearly matched (108,623 against 108,699, result −76), so the comparison is against a residual near zero rather than a small base. Interest F4.093 took BYN 12,131k out of that flow — almost the entire operating result.F4.040 · F4.020 · F4.030 · F2.010 · F1.270 · F4.093
- Current ratio 1.262 against 0.532 a year earlier: short-term assets BYN 64,811k cover short-term liabilities BYN 51,348k. The improvement came from shifting debt into long-term (F1.610 62,214 → 0, F1.620 10,216 → 0), not from asset growth.F1.290 · F1.690 · F1.610 · F1.620
- Revenue grew by 11.0% (71,676 → 79,549k BYN) and profit on sales by 59.7% (3,079 → 4,918); sales profitability to revenue moved 4.30% → 6.18%.F2.010 · F2.060
- Administrative expenses cut 6.4% (6,558 → BYN 6,136k) against 11% revenue growth; selling expenses, however, rose 1,143 → BYN 1,545k (+35.2%).F2.040 · F2.010 · F2.050
Recommendation
OJSC "BPHO" is a structurally complex case in the pilot: a textile-industry enterprise (cotton fabrics, OKED 13201) under the "Bellegprom" concern, 100% state-owned, with deeply negative real equity despite a formally positive F1.490, and at the same time — with signs of an operational turnaround in 2025.
Recommendation: Restructuring — (not privatization — a buyer will not take an enterprise with an accumulated loss of −BYN 104,839k against debt of 185,367; not liquidation — operating activity is viable and has turned positive; not state investment in pure form — the debt structure and real balance-sheet value of assets must be reviewed first). Therefore restructuring — a review of the debt structure (a possible haircut or conversion into a state stake), revaluation of assets at real value, and if necessary a program of phased write-down of the accumulated loss against future profit — becomes the only workable scenario, one that leads neither to premature privatization (on the current balance-sheet picture there will be no buyers) nor to liquidation of a viable operating base.
Why restructuring. Key figures of the reasoning: accumulated loss F1.460 = −104,839, which is 5.5× the charter capital; equity is positive only thanks to revaluation F1.450 = 144,240 (247% of F1.490, real equity = 18,985 − 104,839 = −85,854). Long-term-asset coverage on real capital = 0.46 — meaning real equity + long-term liabilities cover only 46% of long-term assets; the remainder is closed by additional capital F1.450 144,240 — revaluation. Long-term debt grew 70% over the year (109,184 → 185,367), while short-term debt zeroed out — a term restructuring took place, but at the high price of an additional BYN 76,183k of long-term debt. Against revenue of 79,549 — debt/revenue = 2.33×, a high load for the textile industry with its long operating cycle and currency exposure.
At the same time, the 2025 operating picture improved significantly: net profit moved from a loss of −12,705 to a profit of +1,196 (sign-flip), OCF massively positive +14,110 (vs −76 prior), the current ratio 1.262 against 0.532 a year earlier, net profitability added 19.23 points. This means: the business is viable at the operational level, the problem is in the balance-sheet structure and debt legacy.
Confidence: MEDIUM — the financials are clean (all six sanity checks reconcile), but several questions require further work: the nature of the reorganization (3 disclosures 2024-10, 2024-11, 2026-03 — what exactly is being reorganized?), interpretation of the other-capital-changes row F3.169 (−36,273 — a bookkeeping correction or a real economic event?), industry norms for Belarusian textiles under sanctions, and the fundamental methodological question of the long-term-asset coverage metric under deeply negative real equity. The score is capped: with negative real equity the model assigns no value above 0.85 regardless of other indicators.