Nesvizh Pharmaceutical Plant
OJSC "Nesvizh Pharmaceutical Plant"
UNP: 600031159 · 8 Sovetskaya St., Alba settlement, Nesvizh District, Minsk Region 222603, Republic of Belarus
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 52 728 | 50 052 |
| Intangible assets | 52 | 28 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 2 434 | 1 581 |
| Long-term financial investments | — | — |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 55 214 | 51 661 |
| Inventories | 14 912 | 11 454 |
| — materials | 8 774 | 6 729 |
| — work in progress | 954 | 1 127 |
| — finished goods and merchandise | 5 093 | 3 598 |
| — goods shipped | — | — |
| — other inventories | 91 | — |
| Deferred expenses | 28 | 24 |
| VAT on acquired goods, works, services | 38 | 2 |
| Short-term receivables | 11 958 | 8 183 |
| Short-term financial investments | — | — |
| Cash and cash equivalents | 9 503 | 13 303 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 36 439 | 32 966 |
| BALANCE (assets) | 91 653 | 84 627 |
| Charter capital | 6 395 | 6 395 |
| Reserve capital | 3 248 | 2 723 |
| Additional capital | 47 619 | 43 737 |
| Retained earnings (uncovered loss) | 30 288 | 29 122 |
| Total Section III (equity) | 87 550 | 81 977 |
| Long-term loans and borrowings | — | — |
| Long-term lease liabilities | — | — |
| Deferred income | 2 | 6 |
| Provisions for future payments | 29 | 21 |
| Total Section IV (long-term liabilities) | 31 | 27 |
| Short-term loans and borrowings | 703 | 174 |
| Current portion of long-term liabilities | — | — |
| Short-term payables | 3 369 | 2 449 |
| — to suppliers, contractors, providers | 2 246 | 560 |
| — on advances received | 130 | 28 |
| — on taxes and duties | 208 | 312 |
| — on social insurance and security | 152 | 152 |
| — on payroll | 514 | 496 |
| — on lease payments | — | — |
| — to the owner of property (founders, participants) | — | — |
| — to other creditors | 119 | 901 |
| Deferred income | — | — |
| Total Section V (short-term liabilities) | 4 072 | 2 623 |
| BALANCE (equity and liabilities) | 91 653 | 84 627 |
Computed metrics
Integrity checks
Checks passed: 6 of 6
Signals
- Operating cash flow turned negative: −545k BYN against +11,893 a year earlier (−1.3% of revenue against +26.8%), with profit on sales of 5,185. Cash went into working capital: inventories grew 30% (11,454 → 14,912) and receivables 46% (8,183 → 11,958).F4.040 · F2.010 · F2.060 · F1.210 · F1.250
- Short-term loans and borrowings grew fourfold: 174 → 703k BYN (+304%), with no long-term loans at all.F1.610 · F1.510
- Profit is compressing at every level while revenue fell 6.9%: profit on sales −30% (7,454 → 5,185k BYN), pre-tax −42% (5,496 → 3,173), net −45% (4,299 → 2,374). Sales profitability to revenue moved 16.82% → 12.56% and net profitability 9.70% → 5.75%.F2.060 · F2.150 · F2.210 · F2.010
- Revenue fell by 6.9% (44,324 → 41,266k BYN); cost of sales fell 7.8%, but administrative expenses grew 10.5% (10,702 → 11,826) despite the lower volume.F2.010 · F2.020 · F2.040
- Finished goods grew by 42% (3,598 → 5,093k BYN) and materials by 30% (6,729 → 8,774) against falling revenue — stock is building up against turnover.F1.214 · F1.211 · F2.010
- Cash fell by 29% (13,303 → 9,503k BYN): with operating cash flow negative, the year was closed out of the existing balance — dividends paid were 1,506 against 164 a year earlier, and capital expenditure was 3,252.F1.270 · F4.040 · F4.092 · F4.061
- Payables to suppliers grew fourfold (560 → 2,246k BYN) and total short-term payables by 38% (2,449 → 3,369); current liquidity fell from 12.57 to 8.95.F1.631 · F1.630 · F1.290 · F1.690
- There are almost no liabilities: 31k BYN long-term and 4,072 short-term against assets of 91,653 — an essentially debt-free structure.F1.590 · F1.690 · F1.300
- Own working capital covers 89% of short-term assets: the provision ratio is 0.887; short-term assets are 36,439k BYN against liabilities of 4,072.F1.490 · F1.190 · F1.290 · F1.690
- Equity grew by 6.8% (81,977 → 87,550k BYN): revaluation added 4,453, retained earnings 1,166, and reserve capital grew from 2,723 to 3,248.F1.490 · F2.220 · F1.460 · F1.440
- The business remains profitable and pays its owner: net profit of 2,374k BYN, profit tax of 531 and dividends paid of 1,506. Capital expenditure held at 3,252 against 3,539 a year earlier.F2.210 · F2.160 · F4.092 · F4.061
Recommendation
Pharmaceutical production — a national-security sector (availability of medicines, especially under sanctions pressure on imports). Removing the sector from state control is inexpedient, which rules out privatization. The trajectory is worsening (revenue −6.9%, weakening cash flow) — proactive state investment in modernization and market-share retention is required. The state already extracts value via the National Development Fund (65% of net profit) — the enterprise is within the orbit of state priority.
OJSC "Nesvizh Plant of Medical Preparations" — manufacture of pharmaceutical preparations (revenue BYN 41,266k, balance sheet BYN 91,653k) within RUE "UKH of the 'Belfarmprom' holding" (a republican pharma holding). Location: Minsk region, Nesvizh district, Alba settlement.
Recommendation: Special state review. Strategic sector: manufacture of pharmaceutical preparations — Belarus's national security (availability of medicines, especially in the context of the sanctions impact on imports). The state should not withdraw this sector from state control (rules out privatization). Financial health fundamentally strong: capital 87.5M, long-term-asset coverage 1.586, zero long-term liabilities, current ratio 8.95 — this is not a distressed enterprise, restructuring is unwarranted (rules out restructuring). Not liquidation: profitability is preserved (net profitability 5.75%), dividends are real, capex sustained — the enterprise generates value (rules out liquidation). Deteriorating trajectory calls for targeted state funding: revenue −6.9%, OCF FLIP, working capital absorbing cash — what is needed is strategic investment in: (a) market expansion (export to Russia, CIS, EAEU), (b) technological modernization (the R&D project of building 7 at BYN 6,000k is already planned), (c) marketing to retake market share, (d) holding-level consolidation of related pharma producers. State funding should be proactive to restore the growth path.
Why special state review. The financial fundamentals are strong: long-term-asset coverage by permanent capital 1.586 (strong category), liquidity 8.949 (extreme — nearly 9× above norm), own working capital ratio 0.887 (88.7% of working capital is own), long-term liabilities ~zero (BYN 31k), capital BYN 87,550k — a structurally healthy production base. Net profitability 5.75% (profitable), sales profitability 12.56% (operationally profitable), real dividends (1,506 paid). HOWEVER: all indicators are trending deteriorating:
- Revenue −6.9% (44,324→41,266) — real decline ~13–15% adjusting for inflation
- Sales profitability −4.25pp (16.82→12.56)
- Net profitability −3.95pp (9.70→5.75)
- OCF FLIPPED to negative (−545 vs +11,893 prior): operations absorbing cash through working-capital growth (inventories +30%, receivables +46%, finished goods +42%)
- Cash position −28.6%
- Short-term bank loan +304% (174→703) — first-time reliance on bank short-term funding
- State value extraction (F3.168 = BYN 1,121k contributions to the National Development Fund + 430 dividends = 1,551 into the state — 65% of net profit extracted)
If there is no intervention, the predicted trajectory: revenue continues declining → OCF stays negative → working capital becomes funded by bank debt → predictable distress in 2–3 years.
Confidence: HIGH. A FULL+FY-1 source with an extensive audit + 23 pages of notes + 10 pages of breakdowns — the most qualitative source in the pilot to date. Confidence baseline HIGH per matrix v2.1. Caveats:
- the state-extraction channel reveals a government extraction mechanism that shifts the interpretation of operating profitability
- The 1-year deterioration trend requires 2–3 years to confirm direction (recovery or sustained decline)
- Holding context limits standalone fidelity — group-level intercompany transactions may account for part of the decline
Recommended next steps for a partnered session: open the Notes to understand the drivers of the revenue decline + working-capital absorption. If export contracts are disrupted (sanctions) — the funding scope shifts to diversification; if domestic price compression — to regulatory engagement; if internal inefficiency — to operational reform.