Postavy Dairy Plant

Open Joint-Stock Company Postavy Dairy Plant

UNP: 300567362 · 84 Krupskoy St., Postavy, Vitebsk Region, 211875

Export-orientedOblast-levelRestructuring

Identification

UNP300567362
OKED10511 — milk processing (except canning) and cheese production
Legal formOJSC
Governing bodyGeneral Meeting of Shareholders; supervisory board; director
State share99.5286%
Address84 Krupskoy St., Postavy, Vitebsk Region, 211875
Websitewww.moloko.by

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets90 32561 875
Intangible assets7515
Income-bearing investments in tangible assets802
Investments in long-term assets3 03519 255
Long-term financial investments7 53232
Long-term receivables225722
Total Section I (long-term assets)101 22582 705
Inventories29 66117 045
— materials4 0073 745
— work in progress7010
— finished goods and merchandise24 45712 055
— goods shipped00
Deferred expenses104575
VAT on acquired goods, works, services6691 495
Short-term receivables89 34476 625
Short-term financial investments
Cash and cash equivalents2 1975 738
Other short-term assets
Total Section II (short-term assets)121 97599 478
BALANCE (assets)223 200182 183
Charter capital580580
Reserve capital2 2841 759
Additional capital46 20940 177
Retained earnings (uncovered loss)37 51834 775
Total Section III (equity)86 59177 291
Long-term loans and borrowings28 13313 370
Long-term lease liabilities2 7982 671
Deferred income1 3261 480
Total Section IV (long-term liabilities)32 25717 521
Short-term loans and borrowings89 97970 947
Current portion of long-term liabilities4 0553 203
Short-term payables9 63512 744
— to suppliers, contractors, providers4 7956 902
— on payroll2 0151 623
— on lease payments1 1921 572
Total Section V (short-term liabilities)104 35287 371
BALANCE (equity and liabilities)223 200182 183

Computed metrics

Current ratio
1.169
Prior: 1.139(+2.6%)
F1.290 / F1.690
Absolute liquidity
0.021
Prior: 0.066
(F1.260 + F1.270) / F1.690
Own working capital ratio
-0.12
Prior: -0.0563
(F1.490 - F1.190) / F1.290
Sales profitability
14.15%
Prior: 13.05%(+1.1 pp)
F2.060 / F2.010 × 100%
Net profitability
3.24%
Prior: 3.86%(-0.62 pp)
F2.210 / F2.010 × 100%
Revenue dynamics
4.2%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
40.08%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
0.782
Prior: 0.748
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
-2.42%
Prior: 3.16%
F4.040 / F2.010 × 100%

Integrity checks

Checks passed: 6 of 6

Balance sheet balances (assets = liabilities)
Cash-flow integrity
Cash-flow residuals
Cash position
Capital transition
Profit consistency

Signals

Red flags
  • There is no own working capital: (F1.490 86,591 − F1.190 101,225) / F1.290 121,975 = −0.12, against −0.06 a year earlier — working capital and part of long-term assets are debt-financed.F1.490 · F1.190 · F1.290
  • Operating cash flow F4.040 turned negative: −BYN 5,093k against +6,365 a year earlier; the gap was closed by borrowing — F4.081 raised 325,926 against F4.091 repayments of 291,804.F4.040 · F4.081 · F4.091
  • Debt F1.510+F1.610 grew 84,317 → BYN 118,112k (+40.1%), mostly short-term F1.610 70,947 → 89,979. Interest paid F4.093 4,550 → 8,394 (+84.5%), financing-activity expenses F2.130 8,698 → 11,892.F1.510 · F1.610 · F4.093 · F2.130
Yellow flags
  • Coverage of short-term liabilities is thin: F1.290 121,975 / F1.690 104,352 = 1.17 (up from 1.14), but 73% of short-term assets are receivables F1.250 89,344, while cash F1.270 fell 5,738 → 2,197.F1.290 · F1.690 · F1.250 · F1.270
  • Revenue F2.010 grew only 4.2% (201,657 → 210,122) while net profit F2.210 fell 7,784 → 6,813 (−12.5%).F2.010 · F2.210
  • Inventories F1.210 17,045 → 29,661 (+74.0%), mostly finished goods F1.214 12,055 → 24,457 (+102.9%) — funds are frozen in warehouse stock.F1.210 · F1.214
  • Equity rests on revaluation: additional capital F1.450 46,209 is 53% of equity F1.490 86,591; real equity F1.410 580 + F1.460 37,518 = 38,098 against long-term assets F1.190 101,225.F1.450 · F1.490 · F1.410 · F1.460 · F1.190
Green signals
  • Profit on sales F2.060 26,314 → 29,734 (+13.0%), sales profitability 13.05 → 14.15% — the core business is profitable.F2.060 · F2.010
  • Real equity is positive: F1.410 580 + F1.460 37,518 = BYN 38,098k, with retained earnings up 34,775 → 37,518.F1.410 · F1.460
  • The investment programme is active: fixed assets F1.110 61,875 → 90,325 (+46.0%), purchases F4.061 BYN 16,038k. It is debt-financed: the investing result F4.070 is −23,483 while long-term loans F1.510 grew 13,370 → 28,133.F1.110 · F4.061 · F4.070 · F1.510

Recommendation

Suggested outcome
Restructuring
Category
Distressed
Health score
0.79
Confidence level
High

Postavy Dairy Plant is an operationally viable milk-processing enterprise (sales profitability 14.15%, profit on sales up 13%, net profit 6,813k BYN), but with an unbalanced financing structure.

Recommendation: Restructuring. The underlying operating model is intact — this is about financial recovery, not a change of owner or liquidation. Restructuring should normalize the debt structure (converting short-term loans into long-term ones for the investment programme), restore positive operating cash flow through inventory and receivables management (89,344k BYN, two-thirds of current assets), and bring the working-capital provision to norm.

Why restructuring. Three factors drive the restructuring recommendation rather than privatization: own-working-capital provision is negative (−0.12), operating cash flow turned negative (−5,093k BYN against +6,365 a year earlier), and the credit load grew 40% over the year with interest paid F4.093 up from 4,550 to 8,394. The enterprise funds a large investment programme (fixed assets +46%) and growing warehouse stock (inventories +74%) with short-term loans — and that is the root of the problem: a margin-healthy business runs on a fragile, predominantly short-term debt leverage.

Confidence: HIGH. All 6 cross-form consistency checks pass.

Postavy Dairy Plant — BELSOE