Ekzon
OJSC "Ekzon"
UNP: 200433278 · 202 Lenin St., Drogichin, Brest Region 225612
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 10 086 | 12 409 |
| Intangible assets | 83 | 46 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 340 | 220 |
| Long-term financial investments | — | — |
| Deferred tax assets | 3 | — |
| Long-term receivables | — | — |
| Other long-term assets | — | — |
| Total Section I (long-term assets) | 10 512 | 12 675 |
| Inventories | 9 678 | 7 843 |
| — materials | 6 294 | 6 123 |
| — work in progress | 214 | 502 |
| — finished goods and merchandise | 3 170 | 1 218 |
| Deferred expenses | 13 | 229 |
| VAT on acquired goods, works, services | 5 | 8 |
| Short-term receivables | 7 981 | 7 210 |
| Short-term financial investments | 8 360 | 8 347 |
| Cash and cash equivalents | 6 697 | 6 170 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 32 734 | 29 807 |
| BALANCE (assets) | 43 246 | 42 482 |
| Charter capital | 796 | 796 |
| Reserve capital | 779 | 765 |
| Additional capital | 5 159 | 7 456 |
| Retained earnings (uncovered loss) | 29 266 | 26 321 |
| Total Section III (equity) | 36 000 | 35 338 |
| Long-term loans and borrowings | — | — |
| Long-term lease liabilities | — | — |
| Deferred income | — | — |
| Total Section IV (long-term liabilities) | — | — |
| Short-term loans and borrowings | — | — |
| Current portion of long-term liabilities | — | — |
| Short-term payables | 7 229 | 7 144 |
| — to suppliers, contractors, providers | 6 151 | 6 414 |
| — on advances received | 51 | 70 |
| — on taxes and duties | 498 | 180 |
| — on social insurance and security | 105 | 81 |
| — on payroll | 282 | 255 |
| — to other creditors | 142 | 144 |
| Deferred income | 17 | — |
| Total Section V (short-term liabilities) | 7 246 | 7 144 |
| BALANCE (equity and liabilities) | 43 246 | 42 482 |
Computed metrics
Integrity checks
Checks passed: 5 of 6
Failed checks indicate gaps or inconsistencies in the source filing itself (typically in form F4, the cash-flow statement), not data-entry errors. The balance sheet (assets = liabilities) reconciles for every enterprise.
Signals
- Operating-margin compression 2025: sales K2 -1.99pp (19.28% → 17.29%) — amid rising labour costs
- Operating cash flow 2025: OCF margin -4.91pp (10.81% → 5.90%) — more pronounced compression than the margin
- Labour-cost growth: F4.032 +20.49% YoY (5,145 → 6,199) — social pressure from minimum-wage / tariff scales
- Finished goods F1.214 +160% (1,218 → 3,170) — unexplained warehouse accumulation, requires interpretation (pharma seasonality / falling RF demand / product-mix change)
- Current-activity result F4.040 -39.8% (2,854 → 1,718) — operating cash flow down via the build-up of finished-goods stock and wage pressure
- Additional capital F1.450 -2,297 (7,456 → 5,159) via F2.220 -2,269 reversal of long-term-asset revaluation — revaluation share fell from 21% to 14% (still in the healthy range)
- Real equity +30,062 substantially positive, growing +10.86% YoY (27,117 → 30,062) — a structurally healthy enterprise not relying on revaluation for positive equity
- Two-axis long-term-asset coverage: real equity POSITIVE; coverage 2.86 on real capital (in the healthy zone ≥1.5) and 3.42 on standard — structurally healthy classification
- Fully debt-free: F1.510=0, F1.520=0, F1.610=0, F1.620=0 — no long- or short-term loans
- K1 liquidity 4.52 (norm ≥1.25, 3.6× the norm); K1_SOS 0.78 (norm ≥0.15, 5.2× the norm) — extreme structural strength
- Cash-rich: F1.270(6,697) + F1.260(8,360) = 15,057 = 35% of the balance; OCF positive +1,718
- Revenue real growth +4.31% (nominal +10.31% above inflation 5-7%) — pricing power present
- Net profit growing +11.77% nominal (3,000 → 3,353) — bottom-line healthy despite operating-margin compression
- Dividends F3.166 +287% (77.4 → 300) — payout expansion, the state owner has started demanding a return on capital
- Clean audit: LLC 'MAiS Konsalt Belstroy' — opinion 'fairly presented in all material respects'
Recommendation
Ekzon is a pharmaceutical production in Drogichin (Brest region, district-center population ~14 thousand), 99.1964% state-owned, OKED 21201 (manufacture of pharmaceutical preparations). For the 2025 financial year the enterprise shows an exceptionally strong structural picture: real equity +BYN 30,062k positive and growing (+10.86% YoY), long-term-asset coverage 2.86 on real capital (in the healthy zone), a complete absence of debt load (F1.510/520/610/620 = 0), liquidity K1 4.52 (3.6× the norm), K1_OWC 0.78 (5.2× the norm), a cash-rich structure (35% of the balance sheet in cash + short-term financial investments). These characteristics make the enterprise ready to operate independently without the need for state support.
However, in the operating dimension there is a margin-compression signal: sales K2 −1.99 pp (19.28% → 17.29%), OCF margin −4.91 pp (10.81% → 5.90%), labor-cost growth F4.032 +20.5% YoY. These changes are characteristic of a broad cross-section of the Belarusian state sector in the 2025 financial year and are not an enterprise-specific dysfunction. Net profit nonetheless still grows +11.77% thanks to the investing+financing segment (exchange differences balance +342, interest receivable 327). The preservation of a healthy bottom line amid operating-margin compression demonstrates the enterprise's ability to absorb macro pressure through active cash management.
Recommended outcome: privatization / stable / MEDIUM confidence. Ekzon represents an ideal candidate for commercial privatization: profitability is stable, the balance sheet is clean, there are no unresolved debt obligations, and pharmaceuticals as a sector has potential for commercialization without loss of the strategic function (via tender covenants on preserving production capacity and social obligations). MEDIUM confidence is due to: (a) ambiguity in the typological classification regarding the state-ownership organ (the Belbiofarm concern vs the regional executive committee — external verification required); (b) the unexplained accumulation of finished goods F1.214 +160% (either pharma seasonality, or weakening demand, or a change in the mix — qualitative interpretation needed); (c) a small discrepancy on check 6 (F3.151 row total vs net profit — a strict mismatch of 14 in the reserve-fund allocation, attribution to be clarified).