Polotsk Dairy Plant

OJSC Polotsk Dairy Plant (including the Klyastitsy-Agro branch)

UNP: 391957753 · 35 Frunze Lane, Polotsk, Vitebsk Oblast 211413

Export-orientedRestructuring

Identification

UNP391957753
OKED10511 — manufacture of dairy products (milk processing, cheese production)
Legal formOJSC
Governing bodyAssociation (specific concern/state body — to be clarified against the register)
Address35 Frunze Lane, Polotsk, Vitebsk Oblast 211413

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets190 168158 214
Intangible assets7173
Income-bearing investments in tangible assets141140
Investments in long-term assets4 3449 115
Long-term financial investments2 3935 277
Long-term receivables110 671111 506
Total Section I (long-term assets)307 788284 325
Inventories51 35541 019
— materials28 61624 554
— work in progress1 9321 839
— finished goods and merchandise11 0574 529
— goods shipped34
Deferred expenses2 0462 566
VAT on acquired goods, works, services2 9683 421
Short-term receivables85 88782 335
Short-term financial investments17 37214 476
Cash and cash equivalents86473
Other short-term assets17 05717 546
Total Section II (short-term assets)176 771161 836
BALANCE (assets)484 559446 161
Charter capital110 47873 965
Reserve capital33
Additional capital72 90370 235
Retained earnings (uncovered loss)-67 620-38 763
Total Section III (equity)115 764105 440
Long-term loans and borrowings104 75463 570
Long-term lease liabilities8882 898
Deferred income1 5686
Total Section IV (long-term liabilities)110 02566 474
Short-term loans and borrowings50 16975 597
Current portion of long-term liabilities23 21341 677
Short-term payables185 106156 883
— to suppliers, contractors, providers76 77860 470
— on payroll2 4621 730
— on lease payments3 2345 560
Total Section V (short-term liabilities)258 770274 247
BALANCE (equity and liabilities)484 559446 161

Computed metrics

Current ratio
0.683
Prior: 0.59(+15.76%)
F1.290 / F1.690
Absolute liquidity
0.067
Prior: 0.055
(F1.260 + F1.270) / F1.690
Own working capital ratio
-1.086
Prior: -1.105(+1.72%)
(F1.490 - F1.190) / F1.290
Sales profitability
0.287%
Prior: 8.278%(-7.99 pp)
F2.060 / F2.010 × 100%
Net profitability
-10.559%
Prior: -1.28%(-9.28 pp)
F2.210 / F2.010 × 100%
Revenue dynamics
7.74%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
11.32%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
0.896
Prior: 0.906
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
-1.977%
Prior: 10.216%
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
  • The net loss deepened nearly ninefold: F2.210 −3,255 → −BYN 28,932k; net profitability F2.210/F2.010 −1.3% → −10.6%.F2.210 · F2.010
  • Operating cash flow turned negative: F4.040 +25,982 → −BYN 5,418k. Receipts from current activity F4.020 469,258 → 439,517 fell while payments F4.030 443,276 → 444,935 stayed almost flat.F4.040 · F4.020 · F4.030
  • The current ratio is below one: F1.290 176,771 / F1.690 258,770 = 0.68 — short-term liabilities are not covered by current assets.F1.290 · F1.690
  • There is no own working capital: (F1.490 115,764 − F1.190 307,788) / F1.290 176,771 = −1.09 — all working capital is funded by liabilities.F1.490 · F1.190 · F1.290
  • The operating core has collapsed to zero: profit on sales F2.060 21,052 → BYN 786k against revenue F2.010 274,008 — 0.3%. Other current-activity turnover is comparable to revenue and pushes the result negative: F2.070 205,476 against F2.080 207,045 yields profit from current activity F2.090 of −783.F2.060 · F2.010 · F2.070 · F2.080 · F2.090
Yellow flags
  • Cash is nearly exhausted: F1.270 473 → BYN 86k, closing balance F4.130 86 — against short-term liabilities F1.690 258,770.F1.270 · F4.130 · F1.690
  • Cost of sales outpaces revenue: F2.020 218,230 → 255,933 (+17.3%) against F2.010 254,320 → 274,008 (+7.7%); gross profit F2.030 36,090 → 18,075 — halved.F2.020 · F2.010 · F2.030
  • Credit debt grew: F1.510+F1.610 63,570 + 75,597 = 139,167 → 104,754 + 50,169 = BYN 154,923k (+11.3%). Within it the debt moved to the long end: F1.510 +64.8% while F1.610 and the current portion of long-term debt F1.620 41,677 → 23,213 both fell. Interest paid F4.093 12,214 → 9,756 declined, while financial-activity expenses F2.130 35,394 → 41,225 rose.F1.510 · F1.610 · F1.620 · F4.093 · F2.130
  • Settlements grow on both sides: payables F1.630 156,883 → BYN 185,106k (+18.0%), including suppliers F1.631 60,470 → 76,778 (+27.0%); receivables F1.250 82,335 → 85,887. Payables are twice the receivables.F1.630 · F1.631 · F1.250
  • Inventories grow faster than revenue: F1.210 41,019 → BYN 51,355k (+25.2%) against revenue +7.7%, including finished goods F1.214 4,529 → 11,057 — a 2.4-fold rise in a perishable product range.F1.210 · F2.010 · F1.214
Green signals
  • Revenue grew: F2.010 254,320 → BYN 274,008k (+7.7%). The growth is not confirmed in cash — receipts from customers F4.021 463,526 → 430,279 fell 7.2%.F2.010 · F4.021
  • The owner injected funds: charter capital F1.410 was increased 73,965 → BYN 110,478k (+36,513). It was this, not the year's result, that held total equity F1.490 105,440 → 115,764 up against the loss F2.210 −28,932.F1.410 · F1.490 · F2.210
  • The earned base remains positive: F1.410 110,478 + F1.460 −67,620 = BYN 42,858k. The accumulated loss keeps deepening, however: F1.460 −38,763 → −67,620, and only the contributed capital keeps the base positive.F1.410 · F1.460

Recommendation

Suggested outcome
Restructuring
Category
Critical
Health score
0.63
Confidence level
High

Polotsk Dairy Plant is an export-oriented milk processor that in 2025 entered a zone of financial breakdown while retaining operating activity.

Recommendation: Restructuring — the business model is viable but requires debt and cost remediation.

Why restructuring. Revenue grew 7.7%, but cost of sales added 17%, so profit on sales collapsed from 21.1m to 0.8m BYN and net loss grew nearly ninefold (×8.9) — to −28.9m BYN (−10.6% of revenue). Operating cash flow turned negative for the first time (−5.4m versus +26.0m a year earlier), current liquidity fell to 0.68 against the norm of 1.25, the working-capital ratio is deeply negative (−1.09), and the cash balance is almost exhausted (86k BYN). The enterprise is being held up by owner support (a capital contribution and a share issue exceeding 36m BYN) and asset revaluation. At the same time real equity remains positive — charter capital exceeds the accumulated loss, i.e. formal solvency does not rest exclusively on revaluation.

Confidence: HIGH. Liquidity and capital indicators sit in the critical zone, which warrants a conservative assessment. The source is annual reporting for 2025, a complete F1–F4 set; all 6 cross-form consistency checks pass.

Polotsk Dairy Plant — BELSOE