Verkhnedvinsk Butter & Cheese Plant
OJSC "Verkhnedvinsk Butter & Cheese Plant"
UNP: 300061219 · 1 Partizanskaya St., Yanino village, Belkovshchina rural council, Verkhnedvinsk District, Vitebsk Region 211622
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 89 120 | 78 114 |
| Intangible assets | — | — |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 25 712 | 23 511 |
| Long-term financial investments | 7 312 | 7 312 |
| Long-term receivables | 325 | 901 |
| Total Section I (long-term assets) | 122 469 | 109 838 |
| Inventories | 37 253 | 27 530 |
| — materials | 7 851 | 6 602 |
| — work in progress | — | — |
| — finished goods and merchandise | 29 402 | 20 928 |
| — goods shipped | — | — |
| Deferred expenses | 2 526 | 893 |
| VAT on acquired goods, works, services | 2 542 | 1 630 |
| Short-term receivables | 80 047 | 74 528 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 244 | 525 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 122 612 | 105 106 |
| BALANCE (assets) | 245 081 | 214 944 |
| Charter capital | 953 | 953 |
| Reserve capital | 77 | 77 |
| Additional capital | 70 650 | 62 644 |
| Retained earnings (uncovered loss) | 22 444 | 32 308 |
| Total Section III (equity) | 94 124 | 95 982 |
| Long-term loans and borrowings | 40 676 | 24 573 |
| Long-term lease liabilities | 4 979 | 2 371 |
| Deferred income | 94 | 155 |
| Total Section IV (long-term liabilities) | 45 833 | 27 173 |
| Short-term loans and borrowings | 79 322 | 71 437 |
| Current portion of long-term liabilities | 770 | 2 624 |
| Short-term payables | 25 032 | 17 728 |
| — to suppliers, contractors, providers | 15 207 | 10 013 |
| — on payroll | 2 978 | 2 245 |
| — on lease payments | 3 236 | 1 343 |
| Total Section V (short-term liabilities) | 105 124 | 91 789 |
| BALANCE (equity and liabilities) | 245 081 | 214 944 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Own working capital ratio = -0.23: deep negative, no own working capital; deterioration of -0.10 from -0.13 prior. Structurally the company is financed with other people's money — working capital is negative.F1.490 · F1.190 · F1.290
- Net profit fell -61% (3,478 vs 8,931) on revenue growth +17% — financial activity and one-off write-offs ate the operating results.F2.210 · F2.010 · F2.140
- Debt (F1.510 + F1.610) rose +25% YoY (96,010 → 119,998), faster than revenue (+17%). Debt/revenue ratio 38.4%.F1.510 · F1.610
- Long-term-asset coverage by real capital plus long-term liabilities (F1.410 + F1.460 + F1.590) / F1.190 = 0.57 with positive real equity — a capex-active phase with a high credit load.F1.410 · F1.460 · F1.590 · F1.190
- Current ratio 1.17 (F1.290 / F1.690 = 122,612 / 105,124) — coverage of short-term obligations is marginal against the declared threshold of 1.0.F1.290 · F1.690
- Net margin fell -2.23pp (1.11% vs 3.35%) — despite improving sales profitability.F2.210 · F2.010
- Revaluation share of equity 75% (F1.450/F1.490) — high; a significant part of F1.490 rests on paper revaluation.F1.450 · F1.490
- Finished goods F1.214 +40% (29,402 vs 20,928) — stock build-up on revenue growth +17%; possible overstocking or accelerated accumulation ahead of seasonal shipments.F1.214 · F2.010
- Interest paid (F4.093) rose +31% (7,721 → 10,134) — the cost of borrowed funds rises faster than operating profit.F4.093
- Long-term lease (F1.520) rose x2.1 (4,979 vs 2,371) — an added burden on operating cash.F1.520
- Sales profitability 15.28% (F2.060/F2.010), up +2.13pp over the year (13.15% → 15.28%).F2.060 · F2.010
- Revenue dynamics +17.18% (266,933 → 312,799).F2.010
- OCF margin 8.30% — stable, +0.15pp YoY; operating cash flow generated steadily (+25,969).F4.040 · F2.010
- Dividends paid 2,253 (+44% from 1,568 prior) — a signal of continued cash generation despite the paper dip in net profit.F4.092
- Real equity (F1.410 + F1.460) +23,397 is positive — retained earnings 22,444 exceed the charter capital of 953.F1.410 · F1.460
Recommendation
Verkhnedvinsky Maslosyrzavod is a small-mid dairy producer in a rural location of the Vitebsk region (Yanino village, population ~1–2 thousand), 99.74% state-owned, specializing in hard cheeses (the "YanCheese" brand with its own website and e-commerce channel yancheese.by).
Recommendation: Restructuring — (problematic tier); transition conditions: debt restructuring, a capex-completion commitment, employment preservation. The RB dairy industry is structurally export-oriented and has comparatively strong pricing power. State control of 99.74% is not justified by the enterprise's strategic significance: the cheese plant is neither unique nor critical to food security (other cheese producers are present in every region). The subsequent privatization with covenants (FX hedging, obligations to preserve the workforce in the rural location, completion of current investment programs) would give the buyer — likely a sector holding or a foreign investor with a dairy profile — the management tools to optimize the financial structure (refinancing at lower rates, an FX strategy), and the state an exit from a non-core asset while preserving the town-forming function in Yanino.
Why restructuring. The 2025 financial picture is split: the operating side is stable and improving (sales profitability 15.28% +2.13 pp, OCF margin 8.30% stable, revenue +17.18% real growth), but the balance-sheet structure is under pressure (own-working-capital ratio −0.23, debt +25% YoY, long-term-asset coverage by real capital plus long-term liabilities 0.57). The situation is typical of a leveraged, capex-active phase: the enterprise is building up fixed assets (+11.5% F1.190, capex F4.060 +72% YoY to 32,650) mainly through long-term debt (F1.510 +65%, F1.520 ×2.1). Net profit fell −61% — but this is not an operating failure (sales profitability rose); it is the result of an investing+financing loss of −19,427 (vs −2,693) and one-off write-offs of −11,153 on F2.230. Dividends were paid (+44% over the year).
Confidence: MEDIUM. The source is the 2025 annual reporting, a complete F1–F4 set; all 6 cross-form consistency checks pass.