Profitagro-BEL
OJSC "Profitagro-BEL"
UNP: 600028840 · 38 Lenin St., Shchitkovichi agro-town, Shchitkovichi rural council, Starye Dorogi District, Minsk Region 222920
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 42 568 | 40 443 |
| Intangible assets | — | — |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 63 | 40 |
| Long-term financial investments | — | — |
| Long-term receivables | 59 | 69 |
| Total Section I (long-term assets) | 42 690 | 40 552 |
| Inventories | 17 481 | 16 441 |
| — materials | 4 721 | 4 820 |
| — work in progress | 1 107 | 1 062 |
| — finished goods and merchandise | 149 | 11 |
| — goods shipped | — | — |
| Deferred expenses | 25 | 67 |
| VAT on acquired goods, works, services | 1 578 | 2 990 |
| Short-term receivables | 850 | 758 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 65 | 259 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 19 999 | 20 515 |
| BALANCE (assets) | 62 689 | 61 067 |
| Charter capital | 8 245 | 8 245 |
| Reserve capital | — | — |
| Additional capital | 11 599 | 8 811 |
| Retained earnings (uncovered loss) | 24 118 | 23 891 |
| Total Section III (equity) | 43 962 | 40 947 |
| Long-term loans and borrowings | 6 883 | 7 751 |
| Long-term lease liabilities | 4 379 | 4 316 |
| Deferred income | — | — |
| Total Section IV (long-term liabilities) | 11 262 | 12 067 |
| Short-term loans and borrowings | 1 460 | 1 478 |
| Current portion of long-term liabilities | 207 | 207 |
| Short-term payables | 5 798 | 6 368 |
| — to suppliers, contractors, providers | 3 075 | 1 861 |
| — on payroll | 378 | 312 |
| — on lease payments | 1 499 | 1 881 |
| Total Section V (short-term liabilities) | 7 465 | 8 053 |
| BALANCE (equity and liabilities) | 62 689 | 61 067 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Net-profit catastrophic collapse: 4,387 → 223 (-95% YoY), prior-year profit nearly wiped outF2.210
- Net profitability compression -21.73pp (22.78% → 1.05%): catastrophic net-profitability erosionF2.412
- Sales profitability compression -6.64pp (10.64% → 4.00%): operating margin halved by cost inflationF2.411
- Cash position collapse: 259 → 65k BYN (-75%), liquid reserves depletedF1.270 · F4.130
- Investing-activity expenses: F2.110 5 → 1 474 thousand BYN — the largest contributor to the F2.140 swing from +968 to −1 902F2.110 · F2.140
- Cost inflation outpacing revenue: cost of sales +20.4% vs revenue +9.8%, structural margin pressureF2.020 · F2.010
- Finance-activity expenses: F2.130 185 → 1 269 thousand BYN (×6.9) — while debt is declining, F1.510+F1.610 9 229 → 8 343F2.130 · F1.510 · F1.610
- Payables to suppliers +65% (1,861 → 3,075): possible payment delays to suppliersF1.631
- Revenue growth: F2.010 19 255 → 21 144 thousand BYN (+9.8%), with customer receipts F4.021 21 072 → 21 793F2.010 · F4.021
- Strong liquidity 2.679 against the 1.0 threshold: short-term assets 19 999 cover short-term liabilities 7 465F1.290 · F1.690
- Permanent capital covers long-term assets at 1.294 ((F1.490+F1.590)/F1.190) — acceptable structural adequacyF1.490 · F1.590 · F1.190
- Capital growing +7.4% (40,947 → 43,962): equity expansion via revaluation 2,792 + retained 223F1.490 · F2.220
- Long-term liabilities declining -6.7% (12,067 → 11,262): responsible deleveraging — loans -11.2%F1.590 · F1.510
- OCF margin positive 9.66% (2,043 from operations): operations generate cash despite the profit collapse — operating engine intactF4.040 · F2.010
Recommendation
OJSC "Profitagro-BEL" is a district-level agricultural producer with a state share of 98.311%, located in the agro-town of Shchitkovichi, Starye Dorogi district, Minsk region; the activity profile is crop farming (grains, potatoes, vegetables) and livestock (cattle, milk). The enterprise historically existed as OJSC "Shchitkovichi" and changed its name to "Profitagro-BEL" in 2022–2023.
Recommendation: Privatization. At the same time, the profit-collapse magnitude (−95%) rules out naive privatization without conditions — privatization should be accompanied by buyer obligations on cost discipline (cost-of-goods cap relative to pricing), an explanation of the rise in finance-activity expenses, and justification of the one-off rise in investing-activity expenses under F2.110. A sale to a larger Belarusian player is excluded: in a competitive district agribusiness sector it would lead to undesirable market concentration, against the purpose of the reform. Any acquisition that could create a dominant position or raise economic-sovereignty concerns is assessed case-by-case by the National Asset Management Agency.
Why privatization. The 2025 financial profile shows a sharp paradox: while preserving an operationally healthy structure (current ratio 2.68 strong, OCF margin +9.66%, permanent capital covers long-term assets at 1.294, capital growing +7.4%, debt declining −9.6%), the enterprise experienced a catastrophic collapse in net profit — F2.210 net profit crashed from BYN 4,387k in 2024 to BYN 223k in 2025 (−95% YoY). The decomposition shows three drivers: (1) operating margin compression — cost of sales rose 20.4% against revenue +9.8%, lowering sales profitability from 10.64% to 4.00% (−6.64 pp); (2) a rise in investing-activity expenses — F2.110 grew from BYN 5k to BYN 1 474k; (3) a rise in finance-activity expenses — F2.130 from BYN 185k to BYN 1 269k. The combined effect of investing-financing activity is −BYN 1,902k against +968 a year earlier (a flip of −2,870).
Despite the dramatic profit decline, the operating engine remains intact: operating cash flow F4.040 was +BYN 2,043k (vs +2,972 prior, margin 9.66%), above the typical benchmark for the agro-sector. Capital grew 7.4% (40,947 → 43,962) mainly via revaluation of long-term assets (F2.220 +2,792, reflected in F3.152). Long-term liabilities shrank 6.7% (−BYN 805k), including active loan repayment F4.091 +38% (1,632 → 2,256) — the behavior of a responsible issuer, not an enterprise in distress.
The logic: current ratio strong (2.68 against the 1.0 threshold), long-term-asset coverage by permanent capital at 1.294, OCF positive, capital growing, debt declining, revenue growing in real terms — fundamentally this is not a candidate for restructuring/state investment/liquidation, but an enterprise with the operating metrics of a working business amid a one-off profit failure. District-level agribusiness is a competitive sector (many similar enterprises across Belarusian districts), and a 98.311% state presence is not justified by strategic importance; a sale to specialised operators with production-efficiency expertise — farming enterprises and private agribusinesses — is a path to improving the margin without loss of production output. The profile is close to Kamenets Rayagroservis (privatization, stable MEDIUM), though that one was a trading activity (purchase/sale of agrochemicals) and Profitagro is direct agricultural production: different sub-types but the same district-level agribusiness outcome category.
Confidence: MEDIUM. The reason — a 1-year snapshot with major profit volatility does not allow confidently separating one-off events (asset write-off + forex) from the start of structural deterioration (if cost inflation continues into 2026). The FY-2 baseline (2024) shows sound margins; the FY-1 snapshot (2025) shows the collapse; FY+1 (2026) data will be needed to validate what kind of year 2025 was. An expert review is prioritized on the divergence between long-term-asset coverage and own-working-capital provision, and on the dividend anomaly.