Orsha Meat-Canning Combine (consolidated)
Open Joint-Stock Company Orsha Meat-Canning Combine (consolidated reporting)
UNP: 391741234 · 34 Shklovskaya St., Orsha
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 231 451 | 209 311 |
| Intangible assets | 152 | 105 |
| Investments in long-term assets | 371 | 457 |
| Long-term financial investments | 904 | 1 976 |
| Long-term receivables | 7 192 | 6 010 |
| Total Section I (long-term assets) | 240 070 | 217 859 |
| Inventories | 26 256 | 21 108 |
| — materials | 9 840 | 11 018 |
| — work in progress | 5 522 | 4 030 |
| — finished goods and merchandise | 10 894 | 6 060 |
| Deferred expenses | 88 | 161 |
| VAT on acquired goods, works, services | 161 | 371 |
| Short-term receivables | 67 183 | 68 908 |
| Short-term financial investments | 6 595 | 5 614 |
| Cash and cash equivalents | 571 | 988 |
| Other short-term assets | 9 | 55 |
| Total Section II (short-term assets) | 100 863 | 97 205 |
| BALANCE (assets) | 340 933 | 315 064 |
| Charter capital | 124 506 | 121 506 |
| Additional capital | 44 807 | 32 437 |
| Retained earnings (uncovered loss) | 11 751 | 8 020 |
| Total Section III (equity) | 181 064 | 161 963 |
| Long-term loans and borrowings | 13 105 | 3 650 |
| Long-term lease liabilities | 339 | 631 |
| Deferred income | 46 348 | 47 428 |
| Other long-term liabilities | 184 | 236 |
| Total Section IV (long-term liabilities) | 59 976 | 51 945 |
| Short-term loans and borrowings | 58 870 | 46 113 |
| Current portion of long-term liabilities | 5 837 | 21 268 |
| Short-term payables | 32 598 | 33 712 |
| — to suppliers, contractors, providers | 14 076 | 13 505 |
| — on advances received | 14 671 | 17 163 |
| — on social insurance and security | 534 | 323 |
| — on payroll | 1 476 | 1 064 |
| — on lease payments | 292 | 292 |
| — to the owner of property (founders, participants) | 715 | — |
| Deferred income | 2 588 | 63 |
| Total Section V (short-term liabilities) | 99 893 | 101 156 |
| BALANCE (equity and liabilities) | 340 933 | 315 064 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Sharp rise in debt load: total loans and borrowings grew 44.6% over the year (49,763 → 71,975k BYN), short-term loans +27.7% (46,113 → 58,870). Interest payable (6,494k BYN) almost entirely consumes operating profit.
- Net profit collapsed 8.5× (8,031 → 946k BYN) while revenue grew 21%. The positive result is held at a token level; the margin of safety before a loss is minimal.
- Liquidity at the lower bound: current ratio 1.01 — current assets barely cover short-term liabilities, short of the 1.25 norm. Own-working-capital provision is negative (−0.585): working capital is financed by borrowings.
- The combine acts as a financial donor to other concern enterprises: long-term loans of 7,449k BYN were extended (to Orsha Poultry Farm, the grain combine, and Tolochin Rayagroservis for farm modernization). Part of the loans raised serves group financing rather than the combine's own needs.
- Consolidated reporting: the figures reflect the group, including absorbed subdivisions, not a single legal entity.
- Falling financing-activity profit: financing-activity income fell from 13,665 to 3,230k BYN (a large one-off component a year earlier), which deepened the drop in the net result.
- Operations are steadily profitable: profit on sales 16,747k BYN, sales profitability stable (8.8%). The core business is profitable.
- Operating cash flow returned to positive: +6,644k BYN against −4,190 a year earlier (a 3.5% margin).
- Equity is real, not inflated by revaluation: retained earnings are positive and growing (8,020 → 11,751), revaluation additional capital is only 25% of equity.
- Revenue grew 21% (157,435 → 191,230k BYN) — growth on a real operating basis, not from revaluation.
- The state is a controlling owner (88.11% stake), ensuring management stability and access to state support (subsidies on loan interest from oblast and republican budgets).
Recommendation
OJSC Orsha Meat-Canning Combine is a meat-processing enterprise in Orsha, part of the state Vitebsk Concern Meat-and-Dairy Products (state share 88.11% — controlling). The reporting is consolidated and reflects the group. Unlike the neighbouring Orsha grain combine, this enterprise is operationally viable: the core business is steadily profitable (profit on sales 16,747k BYN, sales profitability 8.8%), revenue grew 21%, operating cash flow is positive (+6,644k BYN), and equity is real.
The problem is not the operating model but the financing structure. The debt load rose sharply: total loans and borrowings +44.6% over the year, and interest on them (6,494k BYN) almost entirely absorbs operating profit — as a result net profit collapsed 8.5×, to a token 946k BYN. Liquidity sits exactly at one (current ratio 1.01, below norm), there is no own working capital (provision −0.585), and working capital is financed by borrowings. A substantial part of the loans raised serves not the combine's own needs but its role as a financial donor to other concern enterprises — the combine extended long-term loans of 7.4m BYN to a poultry farm, the grain combine and a rayagroservis for farm modernization.
Restructuring is recommended — in the sense of recovering the debt and financial structure (refinancing, reducing the interest burden, revising the practice of intra-group lending out of borrowed funds) rather than financial recovery of insolvency: the enterprise is solvent and operationally profitable. The alarming signal is the trajectory: if the pace of debt growth and the interest burden continue, the token net profit will turn into a loss. Since the state is the controlling owner, the decision on debt restructuring and ordering of intra-group financial flows is within its direct competence. The assessment should account for the combine's role in the concern: its financial burden is partly driven by group obligations rather than its own activity.