Gorodeya Sugar Plant
OJSC "Gorodeya Sugar Plant"
UNP: 600031529 · 2 Zavodskaya St., Gorodeya urban settlement, Nesvizh District, Minsk Region 222611, Republic of Belarus
Identification
Financial statements
k BYN
| Line item | Reporting year | Prior year |
|---|---|---|
| Fixed assets | 418 831 | 389 221 |
| Intangible assets | 156 | 54 |
| Income-bearing investments in tangible assets | — | — |
| Investments in long-term assets | 5 170 | 2 958 |
| Long-term financial investments | 1 514 | 1 514 |
| Long-term receivables | — | — |
| Total Section I (long-term assets) | 425 765 | 393 869 |
| Inventories | 191 736 | 181 470 |
| — materials | 58 196 | 43 672 |
| — work in progress | 9 548 | 6 792 |
| — finished goods and merchandise | 123 992 | 131 006 |
| — goods shipped | — | — |
| Deferred expenses | 125 | 115 |
| VAT on acquired goods, works, services | 804 | 1 634 |
| Short-term receivables | 102 742 | 92 265 |
| Short-term financial investments | 8 | 1 |
| Cash and cash equivalents | 3 337 | 9 246 |
| Other short-term assets | — | — |
| Total Section II (short-term assets) | 298 752 | 284 731 |
| BALANCE (assets) | 724 517 | 678 600 |
| Charter capital | 50 091 | 50 091 |
| Reserve capital | 229 | 192 |
| Additional capital | 350 497 | 310 593 |
| Retained earnings (uncovered loss) | 101 565 | 89 279 |
| Total Section III (equity) | 502 382 | 450 155 |
| Long-term loans and borrowings | 27 616 | 27 468 |
| Long-term lease liabilities | 2 992 | 4 287 |
| Deferred income | 5 417 | 4 901 |
| Total Section IV (long-term liabilities) | 36 026 | 36 657 |
| Short-term loans and borrowings | 135 446 | 110 835 |
| Current portion of long-term liabilities | 7 772 | 23 355 |
| Short-term payables | 41 662 | 55 285 |
| — to suppliers, contractors, providers | 31 506 | 48 507 |
| — on payroll | 2 010 | 1 734 |
| — on lease payments | 1 656 | 1 349 |
| Total Section V (short-term liabilities) | 186 109 | 191 788 |
| BALANCE (equity and liabilities) | 724 517 | 678 600 |
Computed metrics
Integrity checks
Checks passed: 1 of 6
Failed checks indicate gaps or inconsistencies in the source filing itself (typically in form F4, the cash-flow statement), not data-entry errors. The balance sheet (assets = liabilities) reconciles for every enterprise.
Signals
- Short-term bank debt rose sharply: F1.610 110,835 → 135,446 (+22.2% YoY). With revenue declining in real terms this is refinancing risk if banks tighten. Cash coverage: 135,446 vs F1.270 3,337 = 40.6x — concentrated short-term debt against a minimal cash buffer.
- Margin compression: K2_sales -2.57pp (17.49% → 14.92%), K2_net -1.19pp. Cost of sales up +7.4% on revenue +5.6% — goods/services getting more expensive faster than selling prices. Possible causes: rising input costs (beet, gas, fertilizer), pricier imported components.
- K3 revenue +5.6% nominal — sub-inflation (BY CPI ~7-9% in 2025), in real terms a slight contraction in volume.
- Finished goods 123,992 (51% of all stocks 191,736); down slightly from 131,006 (-5.4%) — mild destocking, but stockpiles remain large. Sugar storage is normal for a seasonal cycle, but 124m in stocks vs 481m revenue = 25.8% — above typical retail (~15-20%).
- Cash position fell from 9,246 to 3,337 (-63.9%). Against revenue 481m, cash 3.3m = 0.69% — an insufficient buffer for an enterprise of this scale.
- Dividends declared 8,920k BYN to the 'Belgospishcheprom' concern: net profit 37,605 → distributed 25,319 (of which 8,920 dividends, 16,399 — profit taxes + reserves + other). Without F3 the distribution structure cannot be verified exactly. Dividend outflow + rising short-term debt = a joint signal that cash flow goes to the owner while working capital is bank-financed.
- Related-party-transaction disclosure: 2 events in 2025 (June, December). Not read this session — require expert review. Related-party transactions in a state-owned enterprise may be routine (intra-concern) or a transfer-pricing signal.
- Operating profit positive and meaningful: K2_sales 14.92%, K2_net 7.82%. This is a profitable, non-subsidy-dependent operation — in contrast to loss-making peers where sales K2 turns negative. The state earns income from this enterprise, it does not fund it.
- K1 current ratio 1.605 (above the 1.25 norm, +8.1% YoY) — solid liquidity headroom.
- K1_SOS provision +0.256 (norm ≥0.15, +29.5% YoY) — own working capital in norm and rising. permanent capital confidently covers long-term assets (1.265x).
- Equity growing: 450,155 → 502,382 (+11.6%) via retained earnings (+12,286) and revaluation of long-term assets (+39,904 → additional capital).
- Short-term payables down: 55,285 → 41,662 (-24.6%), including to suppliers 48,507 → 31,506 (-35.0%). A reverse signal to Bogushevichi: the enterprise pays suppliers faster, does not stretch. Healthy financial discipline.
- Dividends to the owner — a concrete 8,920k BYN income to the republic via the 'Belgospishcheprom' concern. The state gets a real cash return on its stake.
- Long-term debt stable (F1.510 27,468 → 27,616, +0.5%), no bumpy refinancing.
Recommendation
OJSC "Gorodeya Sugar Plant" is a large (balance sheet BYN 724,517k, revenue BYN 480,948k, 1,023 employees) profitable enterprise in the "Belgospischeprom" concern, one of Belarus's four sugar plants. State share 100% (Republican). Financial condition is structurally healthy: current K1 1.61 (> threshold), K1_OWC +0.256 (> threshold), sales K2 14.92%, net K2 7.82%, permanent capital confidently covers long-term assets (1.265x). The enterprise pays dividends into the concern (BYN 8,920k for 2025), which confirms real profitability and a cash return on state capital.
The privatization outcome was chosen because (a) a profitable enterprise with clear economics — a private owner can operate it without state support and preserve value; (b) the sugar sector is mature, technology is standard, market price-discovery works (world sugar prices) — there is no need for state investment for a technological breakthrough; (c) a 100% state share with proven operational stability is upside for privatization revenue: the state can realize the asset without loss of production capacity (4 plants in the whole country, Gorodeya among the largest by production share); (d) restructuring is not required — the fundamentals are healthy; (e) liquidation contradicts the logic (a profitable asset).
Confidence MEDIUM (not HIGH) on two grounds. First: only forms F1+F2 are available (without F3 and F4) — we cannot verify operating cash flow (F4 absent) or changes in equity (F3 absent), which sets baseline confidence to MEDIUM. Second: there are margin-compression signals (sales K2 −2.57pp, net K2 −1.19pp, K3 debt +17.9%) — the enterprise is not on a downward trajectory, but at a pivot point: continued margin compression may require revisiting the outcome in the next reporting period.
Privatization while preserving strategic significance (sugar — food security; 4 plants in the whole country) requires conditions: either minority-share retention by the state, or a golden share, or conditions on production continuity + workforce protection. This is a policy-level question; the pre-recommendation is flagged for further refinement at the level of the responsible authority.