Agrofirm Luchniki

OJSC Agrofirm Luchniki

UNP: 600043549 · 5A Tsikova St., Luchniki agro-town, Slutsk District, Minsk Oblast

District-levelSubsidy-dependentPrivatization

Identification

UNP600043549
OKED01500 — mixed farming (crop production combined with livestock)
Legal formOJSC
Governing bodyState (90.67% of the charter fund); governing body — general meeting of shareholders
State share90.67%
Address5A Tsikova St., Luchniki agro-town, Slutsk District, Minsk Oblast

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets40 22836 350
Intangible assets
Income-bearing investments in tangible assets
Investments in long-term assets741 618
Long-term financial investments
Long-term receivables
Total Section I (long-term assets)40 30237 968
Inventories21 57518 356
— materials10 7899 416
— work in progress607348
— finished goods and merchandise53115
— goods shipped
Deferred expenses
VAT on acquired goods, works, services2 8283 038
Short-term receivables4 0082 019
Short-term financial investments
Cash and cash equivalents11871
Other short-term assets
Total Section II (short-term assets)28 52923 484
BALANCE (assets)68 83161 452
Charter capital20 86220 862
Reserve capital4242
Additional capital16 72213 992
Retained earnings (uncovered loss)15 85913 234
Total Section III (equity)53 48548 130
Long-term loans and borrowings1 0741 668
Long-term lease liabilities2 4571 775
Deferred income
Total Section IV (long-term liabilities)3 5313 443
Short-term loans and borrowings2 1341 887
Current portion of long-term liabilities764598
Short-term payables8 9177 394
— to suppliers, contractors, providers7 1275 913
— on payroll392369
— on lease payments998813
Total Section V (short-term liabilities)11 8159 879
BALANCE (equity and liabilities)68 83161 452

Computed metrics

Current ratio
2.415
Prior: 2.377(+1.6%)
F1.290 / F1.690
Absolute liquidity
0.01
Prior: 0.007
(F1.260 + F1.270) / F1.690
Own working capital ratio
0.462
Prior: 0.433(+6.7%)
(F1.490 - F1.190) / F1.290
Sales profitability
19.3%
Prior: 12.38%(+6.92 pp)
F2.060 / F2.010 × 100%
Net profitability
9.19%
Prior: 9.1%(+0.09 pp)
F2.210 / F2.010 × 100%
Revenue dynamics
10.96%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
-9.76%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
0.295
Prior: 0.281
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
1.31%
Prior: 5.71%
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

Yellow flags
  • Profit is growing but cash is not: operating cash flow F4.040 1,533 → BYN 391k, its ratio to revenue F2.010 5.7% → 1.3%, while net profit F2.210 rose 2,442 → 2,737.F4.040 · F2.010 · F2.210
  • Funds are tied up in working capital: inventories F1.210 18,356 → BYN 21,575k (+17.5%), including materials F1.211 9,416 → 10,789; short-term receivables F1.250 2,019 → 4,008 doubled — faster than revenue (+11.0%).F1.210 · F1.211 · F1.250 · F2.010
  • A noticeable part of the result is state support: other current-activity income F2.070 BYN 965k (per the form's breakdown, state support for current expenses) against net profit F2.210 2,737.F2.070 · F2.210
  • Financial-activity expenses F2.130 rose 2.6-fold, 1,080 → BYN 2,805k, and this is NOT interest: interest paid F4.093 barely moved, 310 → 317. The investing and financing result F2.140 −775 → −2,567 cut profit from current activity F2.090 5,304 down to the final 2,737.F2.130 · F4.093 · F2.140 · F2.090
Green signals
  • Revenue grew: F2.010 26,847 → BYN 29,789k (+11.0%). In cash the growth is barely confirmed — receipts from customers F4.021 25,307 → 25,568 (+1.0%).F2.010 · F4.021
  • The margin improved sharply: profit on sales F2.060 3,325 → BYN 5,749k, sales profitability F2.060/F2.010 12.4% → 19.3%. The source is an almost flat cost of sales F2.020 22,312 → 22,603 (+1.3%) against rising revenue; gross profit F2.030 4,535 → 7,186.F2.060 · F2.010 · F2.020 · F2.030
  • Liquidity is solid and rising: F1.290 23,484 → 28,529 against F1.690 9,879 → 11,815, a ratio of 2.38 → 2.42; own working capital cover (F1.490 − F1.190) / F1.290 0.43 → 0.46.F1.290 · F1.690 · F1.490 · F1.190
  • Earned capital is large and growing: F1.410 20,862 + F1.460 13,234 → 15,859 = BYN 36,721k against a total F1.490 53,485 and additional capital F1.450 16,722. Credit debt was reduced: F1.510+F1.610 1,668 + 1,887 = 3,555 → 1,074 + 2,134 = 3,208 (−9.8%) — but liabilities overall grew: lease obligations F1.520 1,775 → 2,457 and F1.636 813 → 998, and the current portion of long-term debt F1.620 598 → 764.F1.410 · F1.460 · F1.490 · F1.450 · F1.510 · F1.610 · F1.520 · F1.636 · F1.620

Recommendation

Suggested outcome
Privatization
Category
Financially strong
Health score
1.23
Confidence level
High

Agrofirm Luchniki is a district-level agricultural enterprise (Slutsk District) with a stable financial position and good operating profitability.

Recommendation: Privatization — with a stable profile and conditions (cost discipline, justification of capital investment, gradual reduction of subsidy dependence), consistent with the logic of transferring district agricultural enterprises to sector investors.

Why privatization. Revenue grew 11% on real activity, sales profitability rose from 12.4% to 19.3%, and net profit increased to 2,737k BYN. The balance sheet is solid: current liquidity 2.42, working-capital ratio 0.46, real equity sustainably positive, credit load down 10%. Two caveats temper the assessment: cash flow from current activity weakened sharply (OCF margin 5.7% → 1.3%) due to funds being tied up in inventories and receivables — for the agricultural cycle this is a seasonal phenomenon rather than a sign of distress; and about a third of net profit is provided by state support (without it profit would be 1,772k).

Confidence: HIGH. The source is annual reporting for 2025, a complete F1–F4 set; all 6 cross-form consistency checks pass.

Agrofirm Luchniki — BELSOE