Agrokombinat Dzerzhinsky

OJSC Agrokombinat Dzerzhinsky

UNP: 600112292 · 8 Zavodskaya St., Fanipol, Dzerzhinsk District, Minsk Region

City-formingOblast-levelExport-orientedSubsidy-dependentPrivatization

Identification

UNP600112292

OKED01470 — poultry farming

Legal formOJSC

Governing bodyMinsk Oblast Executive Committee

State share94.15%

Address8 Zavodskaya St., Fanipol, Dzerzhinsk District, Minsk Region

Financial statements

k BYN

Line item	Reporting year	Prior year
Fixed assets	1 490 539	1 225 513
Intangible assets	887	526
Income-bearing investments in tangible assets	1 420	1 441
Investments in long-term assets	364 527	325 771
Long-term financial investments	148	96 911
Long-term receivables	2	—
Total Section I (long-term assets)	1 857 657	1 650 175
Inventories	451 806	416 765
— materials	250 763	241 150
— work in progress	49 789	48 002
— finished goods and merchandise	19 772	12 651
— goods shipped	—	—
Long-term assets held for sale	1 051	1 247
Deferred expenses	7 441	10 531
VAT on acquired goods, works, services	17 344	15 375
Short-term receivables	234 225	184 277
Short-term financial investments	331	1 023
Cash and cash equivalents	25 065	12 844
Other short-term assets	15	53
Total Section II (short-term assets)	737 278	642 115
BALANCE (assets)	2 594 935	2 292 290
Charter capital	92 313	51 497
Reserve capital	178	25
Additional capital	852 138	720 627
Retained earnings (uncovered loss)	459 542	409 595
Total Section III (equity)	1 404 171	1 181 744
Long-term loans and borrowings	423 083	373 932
Long-term lease liabilities	48 421	41 869
Deferred income	133 552	110 069
Other long-term liabilities	31 352	134 218
Total Section IV (long-term liabilities)	636 408	660 088
Short-term loans and borrowings	193 809	180 165
Current portion of long-term liabilities	57 050	83 276
Short-term payables	299 192	184 475
— to suppliers, contractors, providers	165 132	123 953
— on advances received	7 924	8 305
— on taxes and duties	3 510	1 151
— on social insurance and security	1 988	1 387
— on payroll	13 813	10 876
— on lease payments	19 936	21 121
— to the owner of property (founders, participants)	25	23
— to other creditors	86 864	17 659
Deferred income	4 305	2 542
Total Section V (short-term liabilities)	554 356	450 458
BALANCE (equity and liabilities)	2 594 935	2 292 290

Computed metrics

K1 · Current ratio

1.33

Prior: 1.425(-6.7%)

F1.290 / F1.690

K1 · Own working capital ratio

-0.615

Prior: -0.73

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

K2 · Sales profitability

12.63%

Prior: 15.19%(-2.56 пп)

F2.060 / F2.010 × 100%

K2 · Net profitability

9.59%

Prior: 10.7%(-1.11 пп)

F2.210 / F2.010 × 100%

K3 · Revenue dynamics

10.9%

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

K3 · Debt dynamics

11.33%

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

Operating cash-flow margin

21.01%

Prior: 12.33%

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

Own-working-capital provision is deeply negative (−0.62): long-term assets (1,857,657k BYN) substantially exceed equity, and working capital is financed by borrowings — typical of capital-intensive livestock farming
Profitability is declining: sales profitability from 15.2% to 12.6%, net profitability from 10.7% to 9.6% — cost pressure (cost of sales +13.1%, administrative +23.6%) outpaces revenue growth (+10.9%)
Overdue loan and borrowing debt of 8,343k BYN; overdue payables grew from 20,275 to 31,463k BYN
Short-term payables rose 62% (184,475 → 299,192), including +33% to suppliers and a 4.9× rise to other creditors (17,659 → 86,864)
Receivables grew 27% (184,277 → 234,225), with the overdue portion at 107,527 (46% of the total)

Green signals

Operating cash flow is strong and growing: the operating-activity result was 201,081k BYN (+89%), with an OCF margin of 21.0% against 12.3% a year earlier
Revenue rose 10.9% (863,151 → 957,194k BYN) — growth on real operating activity; FX revenue of 290,688 (30% — the export component)
Current ratio 1.33 — above norm (1.25) despite a heavy balance sheet
Net profit held at the prior-year level (91,787 against 92,349) despite rising costs
Real equity is positive (+551,855k BYN); net assets of 1,404,171 are growing
Debt load grows moderately (+11.3%) against a multiple rise in turnover; the main financing inflow is refinancing (1,788,031 received, 1,750,707 repaid)

Recommendation

Suggested outcome

Privatization

Category

Stable

Health score

1.06

Confidence level

High

A large agro-industrial combine (poultry) with a stable operating core: revenue grew 10.9%, operating cash flow is strong and growing (201,081k BYN, 21% margin), the current ratio is above norm, and net profit held at the prior-year level. The balance sheet reconciles on all six control checks. At the same time there are signs of strain typical of capital-intensive livestock farming: long-term assets substantially exceed equity (own-working-capital provision −0.62), profitability is declining under cost pressure (cost of sales and administrative expenses growing faster than revenue), and overdue payables increased. These factors do not reach a critical level — real equity is deeply positive, cash flow is strong, debt grows moderately — but they call for cost discipline and working-capital control. The combination of a viable business with growing cash flow and the fact that state ownership is not critical for commercial poultry farming makes privatization (with conditions preserving the line of business and agricultural use) a well-founded base case; should margin pressure intensify, the alternative is restructuring of the debt and cost base.