Grodno Meat-Packing Plant

OJSC Grodno Meat-Packing Plant (consolidated statements)

UNP: 500043292 · 25 Myasnitskaya St., Grodno, Republic of Belarus 230005

Export-orientedHoldingsPrivatization

Identification

UNP500043292

OKED10110 — production of meat and meat products, including poultry meat

Legal formOJSC

Governing bodyGeneral meeting of shareholders

Address25 Myasnitskaya St., Grodno, Republic of Belarus 230005

Financial statements

k BYN

Line item	Reporting year	Prior year
Fixed assets	233 476	194 364
Intangible assets	1 570	1 758
Income-bearing investments in tangible assets	11 462	10 566
Investments in long-term assets	25 607	24 942
Long-term financial investments	14 041	14 041
Long-term receivables	18	120
Total Section I (long-term assets)	286 176	245 795
Inventories	92 636	80 478
— materials	61 761	54 264
— work in progress	7 328	6 228
— finished goods and merchandise	9 625	11 419
— goods shipped	2 974	—
Deferred expenses	702	527
VAT on acquired goods, works, services	504	787
Short-term receivables	84 194	58 772
Short-term financial investments	6 298	10 081
Cash and cash equivalents	4 156	7 231
Other short-term assets	7	7
Total Section II (short-term assets)	188 582	157 883
BALANCE (assets)	474 758	403 678
Charter capital	31 494	31 494
Reserve capital	120	74
Additional capital	136 821	116 978
Retained earnings (uncovered loss)	148 296	128 248
Total Section III (equity)	316 731	276 794
Long-term loans and borrowings	1 051	4 619
Long-term lease liabilities	43	194
Deferred income	8 968	3 457
Total Section IV (long-term liabilities)	10 075	8 889
Short-term loans and borrowings	66 470	28 527
Current portion of long-term liabilities	15 890	27 025
Short-term payables	63 878	61 220
— to suppliers, contractors, providers	43 469	42 736
— on payroll	5 818	4 934
— on lease payments	795	1 193
Total Section V (short-term liabilities)	147 952	117 995
BALANCE (equity and liabilities)	474 758	403 678

Computed metrics

K1 · Current ratio

1.275

Prior: 1.338(-4.71%)

F1.290 / F1.690

K1 · Own working capital ratio

0.162

Prior: 0.196(-17.35%)

(F1.490 - F1.190) / F1.290

K2 · Sales profitability

8.62%

Prior: 9.23%(-0.61 пп)

F2.060 / F2.010 × 100%

K2 · Net profitability

2.83%

Prior: 4.29%(-1.46 пп)

F2.210 / F2.010 × 100%

K3 · Revenue dynamics

7.6%

(F2.010_N / F2.010_N-1) - 1

K3 · Debt dynamics

103.71%

(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1

Operating cash-flow margin

2.11%

Prior: 9.68%

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

Total credit debt more than doubled over the year: from 33,146 to 67,521k BYN (+104%), predominantly through short-term loans (28,527 → 66,470).

Yellow flags

Net profit fell 28.8% year on year (39,203 → 27,897k BYN) while revenue grew 7.6% — margin compression.
Operating cash flow weakened sharply: from 88,511 to 20,732k BYN, the flow margin falling from 9.7% to 2.1%.
Bottom-line profitability fell from 4.3% to 2.8%; sales profitability from 9.2% to 8.6%.
Short-term receivables grew 43% (58,772 → 84,194) and inventories 15% (80,478 → 92,636), tying up working capital.
Liquidity at the lower bound of the norm: current 1.275 (norm ≥1.25), working-capital ratio 0.162 (norm ≥0.15).

Green signals

Operating cash flow remains positive (20,732k BYN) despite the weakening.
Revenue is growing (+7.6%), the enterprise is profitable (net profit 27,897k BYN), dividends are paid.
Real equity is positive and significant (about 179,910k BYN excluding revaluation), the balance sheet grew on real activity.
Long-term debt is shrinking (4,619 → 1,051), the debt load concentrated in the short leg and being serviced.

Recommendation

Suggested outcome

Privatization

Category

Stable

Health score

1.02

Confidence level

High

The enterprise is profitable and growing revenue (+7.6%), but 2025 showed a marked deterioration in the quality of the result: net profit fell by almost a third while turnover grew, the net margin fell from 4.3% to 2.8%, and operating cash flow weakened more than fourfold (flow margin 2.1% versus 9.7%). The main warning signal is the more-than-doubling of total credit debt (from 33,146 to 67,521k BYN), with the increase falling on short-term loans that closed the gap from working capital being tied up in grown receivables (+43%) and inventories (+15%). Liquidity holds at the very lower bound of the norms. At the same time the foundation is stable: real equity is significant and positive, the balance sheet grows on real activity, long-term debt is shrinking, and the flow remains positive. The profile fits restructuring: the business is operationally viable, but the working-capital financing structure and margin compression require management intervention before the short-term debt load becomes critical.