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
- K1 SOS = -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.
- Net profit fell -61% (3,478 vs 8,931) on revenue growth +17% — financial activity and one-off write-offs ate the operating results.
- Debt (F1.510 + F1.610) rose +25% YoY (96,010 → 119,998), faster than revenue (+17%). Debt/revenue ratio 38.4%.
- Long-term-asset coverage on real capital = 0.5653 in the <0.7 zone with positive real equity — a leveraged, capex-active phase with a borderline structure.
- K1 current ratio 1.17 — below the 1.25 norm; marginal coverage of short-term obligations.
- K2 net margin fell -2.23pp (1.11% vs 3.35%) — despite improving K2 sales.
- Revaluation share of equity 75% (F1.450/F1.490) — high; a significant part of F1.490 rests on paper revaluation.
- 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.
- Interest payable (F2.131) rose +31% (10,134 vs 7,721) — the cost of borrowed funds rises faster than operating profit.
- Long-term lease (F1.520) rose x2.1 (4,979 vs 2,371) — an added burden on operating cash.
- K2 sales 15.28% — above typical for the production sector; up +2.13pp YoY despite inflationary pressure.
- K3 revenue +17.18% — above 2025 inflation, real growth positive (though small).
- OCF margin 8.30% — stable, +0.15pp YoY; operating cash flow generated steadily (+25,969).
- Dividends paid 2,253 (+44% from 1,568 prior) — a signal of continued cash generation despite the paper dip in net profit.
- Sanity checks 6/6 clean — statements internally consistent.
- Audit IE Semenkovich S.V.: 'fairly presented in all material respects' — unqualified.
- Real equity (F1.410+460) +23,397 positive — the company is structurally viable, not a paper-only construct.
- No bond-obligation breaches identified.
- Belarus dairy sector — structurally export-oriented, with protected access to EAEU markets; pricing power above the district-agri sector.
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). The 2025 financial picture is split: the operating side is stable and improving (sales K2 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 K1 −0.23, debt +25% YoY, long-term-asset coverage on real capital 0.5653 in the concern zone). 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 K2 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. The audit is clean, dividends were paid (+44% YoY), and no bond-obligation breaches were identified.
Recommendation: privatization (distressed tier, MEDIUM-LOW confidence) via tender with conditions (debt restructuring, a capex-completion commitment, employment preservation). The RB dairy industry is structurally export-oriented and has comparatively strong pricing power (sales K2 of 15%+ above the district-agribusiness sector's 5–8%). 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). 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.