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 deeply negative: F1.410+F1.460 = -85,854k BYN (current), -75,756 (prior). Accumulated loss is ×5.5 the charter capital — F1.490 is positive only thanks to revaluation F1.450 = 144,240.
- Long-term-asset coverage on real capital <0.5 (0.4632) — structural concern <1.0: real equity + long-term liabilities do not cover long-term assets. Permanent-funding gap = 243,636 − (58,386+198,713)+144,240 = ~135,178k BYN (financed by paper revaluation only).
- Accumulated loss deepening three years running: −71,271 (2023) → −94,741 (2024) → −104,839 (2025). 2024 increment: −23,470 (loss + reorg); 2025: −10,098 (F3.166 uncoded row 168 + loss netting).
- Long-term loans F1.510 +69.8%: 109,184 → 185,367. Massive new debt against negative real equity. Versus 2025 revenue — 233% (185,367 / 79,549) — a high debt load for the textile sector.
- K1 SOS −2.8583 (deep production-norm violation, ~19× under). Long-term-asset coverage marginal-low even before the real-equity adjustment.
- Massive financial activity in 2025: loans received 184,240 + repaid 185,270 = net refinancing. Bumpy financial activity F2.120/130 (curr +/-19-20k, prior +/-24-37k) — exposure to FX swings.
- Reorganization — an active ongoing process: 3 disclosures 2024-10, 2024-11, 2026-03 ('Information on the reorganization of the company') — nature not documented in the source card. May change the legal-entity status in Phase 3+.
- Long-term debt rising, but short-term zeroed out (F1.610: 62,214 → 0; F1.620: 10,216 → 0). Term restructuring already happened — short-term to long-term, but the price of this restructuring = +76,183 LT debt.
- Receivables F1.250: 17,547 → 24,779 (+41%) on revenue +11% — growing faster than revenue, an indicator of cash-collection issues.
- Payables to suppliers F1.631: 27,825 → 42,966 (+54%) — funding operations via supplier trade credit (+15,141 free trade credit).
- Finished goods F1.214: 15,208 → 10,755 (−29%). Against revenue +11% — favourable for now (sold more than produced), but may be destocking, not sustained sales growth.
- FX expense F2.132 = 12,478 (2025); 24,080 (2024) — declining, but still ~16% of revenue. Exposure to currency volatility is structural.
- F3.168 uncoded row: -36,273 (F1.450 −24,979 + F1.460 −11,294) — an uncoded capital movement in the standard form. Possibly: removal from revaluation + recognition of a realized loss. Requires expert interpretation.
- Operational turnaround 2025: net profit swing −12,705 → +1,196 (∆ +13,901), F2.060 +60% (3,079 → 4,918), K2 net +19.23pp.
- OCF massively positive: F4.040 = +14,110 (vs −76 prior). OCF margin 17.74% — sustainable if held.
- K1 current ratio back to norm: 0.5317 (critical) → 1.2622 (above 1.25). Short-term loans zeroed out — the main driver.
- Revenue +10.98% YoY — above BY inflation 5-7% in 2025 → real growth (~+4-6%).
- K2 sales recovery: 4.30% → 6.18% (+1.89pp). Not yet sector-strong (textile norm ~8-12%) but a positive trend.
- Clean audit: ALC 'FORAUDIT' 19 March 2026, unqualified, full 2025 period.
- Reduced admin expenses: F2.040 −6.4% (−6,558 → −6,136) on revenue +11%. Cost discipline starting to appear.
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. This duality defines the 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).
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 = 0.4632 — meaning real equity + long-term liabilities cover only 46% of long-term assets; the ~BYN 135m gap is closed by paper 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 76m 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 (F2.121/132 exchange differences ~16–30% of revenue).
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), current K1 returned to the normal range at 1.262, net K2 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. 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.
Confidence MEDIUM-LOW — the financials are clean (6/6 sanity, 14/14 F2 arithmetic, F3 chain clean, long-term-asset coverage in the structural-concern zone), 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 F3.168 uncoded row (−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.