Postavy Dairy Plant
Open Joint-Stock Company Postavy Dairy Plant
UNP: 300567362 · 84 Krupskoy St., Postavy, Vitebsk Region, 211875
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 90 325 | 61 875 |
| Intangible assets | 75 | 15 |
| Income-bearing investments in tangible assets | — | 802 |
| Investments in long-term assets | 3 035 | 19 255 |
| Long-term financial investments | 7 532 | 32 |
| Long-term receivables | 225 | 722 |
| Total Section I (long-term assets) | 101 225 | 82 705 |
| Inventories | 29 661 | 17 045 |
| — materials | 4 007 | 3 745 |
| — work in progress | 70 | 10 |
| — finished goods and merchandise | 24 457 | 12 055 |
| — goods shipped | 0 | 0 |
| Deferred expenses | 104 | 575 |
| VAT on acquired goods, works, services | 669 | 1 495 |
| Short-term receivables | 89 344 | 76 625 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 2 197 | 5 738 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 121 975 | 99 478 |
| BALANCE (assets) | 223 200 | 182 183 |
| Charter capital | 580 | 580 |
| Reserve capital | 2 284 | 1 759 |
| Additional capital | 46 209 | 40 177 |
| Retained earnings (uncovered loss) | 37 518 | 34 775 |
| Total Section III (equity) | 86 591 | 77 291 |
| Long-term loans and borrowings | 28 133 | 13 370 |
| Long-term lease liabilities | 2 798 | 2 671 |
| Deferred income | 1 326 | 1 480 |
| Total Section IV (long-term liabilities) | 32 257 | 17 521 |
| Short-term loans and borrowings | 89 979 | 70 947 |
| Current portion of long-term liabilities | 4 055 | 3 203 |
| Short-term payables | 9 635 | 12 744 |
| — to suppliers, contractors, providers | 4 795 | 6 902 |
| — on payroll | 2 015 | 1 623 |
| — on lease payments | 1 192 | 1 572 |
| Total Section V (short-term liabilities) | 104 352 | 87 371 |
| BALANCE (equity and liabilities) | 223 200 | 182 183 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Negative own-working-capital provision: −0.12 against a ≥0.15 norm — all working capital and part of inventories are financed by short-term debt; there is no own working capital.
- Operating cash flow turned negative: −5,093k BYN against +6,365 a year earlier — operations did not generate cash in 2025, and the gap was covered by borrowing.
- Debt load grew 40% over the year (from 84,317 to 118,112k BYN), mostly from short-term loans (89,979k BYN); interest payable rose 52% (to 9,385k BYN).
- Current ratio 1.17 — below the 1.25 norm, though up from 1.14: short-term liabilities are almost equal to short-term assets.
- Revenue grew only 4.2% — below inflation, i.e. it shrank in real terms; net profit fell 12.5% (from 7,784 to 6,813k BYN).
- Inventories grew 74% (from 17,045 to 29,661k BYN), mostly finished goods (12,055 → 24,457) — possible slowing of sales, freezing funds in warehouse stock.
- Real equity (excluding revaluation) covers long-term assets only 0.70; the nominal cover of 1.17 holds up on revaluation, which is 53% of equity.
- Profit on sales grew 13% (from 26,314 to 29,734k BYN), with sales profitability improving to 14.2% — the core business remains profitable.
- Real equity is positive (+38,098k BYN): accumulated profit is real, not formed only by revaluation.
- Active investment programme: fixed assets grew 46% (from 61,875 to 90,325k BYN), with fixed-asset purchases of 16,038k BYN — the enterprise is modernizing production.
Recommendation
Postavy Dairy Plant is an operationally viable milk-processing enterprise (sales profitability 14.2%, profit on sales up 13%, net profit 6,813k BYN), but with an unbalanced financing structure. 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 debt load grew 40% over the year with interest expense up 52%. 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. 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. The underlying operating model is intact — this is about financial recovery, not a change of owner or liquidation.