Minsk PLA

OJSC Minsk Production Leather Association

UNP: 600208238 · Gatovo agro-town, Minsk District, Minsk Oblast

Export-orientedHoldingsRestructuring

Identification

UNP600208238
OKED15110 — tanning and dressing of leather
Legal formOJSC
Governing bodyBellegprom Concern
State share99.88%
Parent holdingКонцерн «Беллегпром»
AddressGatovo agro-town, Minsk District, Minsk Oblast
Websitewww.mpko.by

Financial statements

k BYN

Line itemReporting yearPrior year
Fixed assets54 27349 786
Intangible assets125153
Investments in long-term assets5 0165 608
Long-term financial investments1414
Long-term receivables
Total Section I (long-term assets)59 42955 562
Inventories55 60943 254
— materials13 57512 140
— work in progress13 3979 355
— finished goods and merchandise28 63721 759
— goods shipped
Deferred expenses213175
VAT on acquired goods, works, services248142
Short-term receivables7 7399 028
Short-term financial investments3
Cash and cash equivalents6021
Other short-term assets
Total Section II (short-term assets)64 41152 603
BALANCE (assets)123 840108 165
Charter capital19 54519 545
Reserve capital
Additional capital24 38120 562
Retained earnings (uncovered loss)16 79417 405
Total Section III (equity)60 72057 512
Long-term loans and borrowings7 7157 458
Long-term lease liabilities
Deferred income13 46715 006
Total Section IV (long-term liabilities)21 18622 467
Short-term loans and borrowings2 8001 005
Current portion of long-term liabilities6 6094 963
Short-term payables31 49821 070
— to suppliers, contractors, providers29 01118 883
— on payroll920890
— on lease payments
Total Section V (short-term liabilities)41 93428 186
BALANCE (equity and liabilities)123 840108 165

Computed metrics

Current ratio
1.536
Prior: 1.866(-17.7%)
F1.290 / F1.690
Absolute liquidity
0.014
Prior: 0
(F1.260 + F1.270) / F1.690
Own working capital ratio
0.02
Prior: 0.037(-46.1%)
(F1.490 - F1.190) / F1.290
Sales profitability
4.62%
Prior: 8.67%(-4.05 pp)
F2.060 / F2.010 × 100%
Net profitability
0.49%
Prior: 5.72%(-5.23 pp)
F2.210 / F2.010 × 100%
Revenue dynamics
2.1%
(F2.010_N / F2.010_N-1) - 1
Debt dynamics
24.25%
(F1.510 + F1.610)_N / (F1.510 + F1.610)_N-1 - 1
Debt load
0.635
Prior: 0.578
(F1.590 + F1.690) / (F1.590 + F1.690 + F1.410 + F1.460)
Operating cash-flow margin
-3.4%
Prior: -2.76%
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

Red flags
  • Profitability collapsed: net profit F2.210 3,377 → BYN 293k (−91.3%), pre-tax profit F2.150 4,509 → 618; net profitability F2.210/F2.010 5.72% → 0.49%.F2.210 · F2.150 · F2.010
  • Credit debt grew by a quarter: F1.510+F1.610 7,458 + 1,005 = 8,463 → 7,715 + 2,800 = BYN 10,515k (+24.3%), with short-term loans nearly tripling. The current portion of long-term liabilities F1.620 also rose 4,963 → 6,609; interest paid F4.093 719 → 711.F1.510 · F1.610 · F1.620 · F4.093
  • Operating cash flow is negative for the second year running: F4.040 −1,630 → −BYN 2,049k against revenue F2.010 60,319, a ratio to revenue of −2.76% → −3.40%. The gap is closed by financing: the financing result F4.100 109 → 3,060.F4.040 · F2.010 · F4.100
  • Supplier settlements are being stretched: payables to suppliers F1.631 18,883 → BYN 29,011k (+53.6%) against total payables F1.630 21,070 → 31,498 — these became the main source of funding for working capital.F1.631 · F1.630
Yellow flags
  • Liquidity is falling: F1.290 64,411 / F1.690 41,934 = 1.54 against 1.87 a year earlier (−17.7%) — short-term liabilities grew faster than current assets (F1.690 28,186 → 41,934 against F1.290 52,603 → 64,411).F1.290 · F1.690
  • Own working capital cover is critically thin: (F1.490 60,720 − F1.190 59,429) / F1.290 64,411 = 0.020 against 0.037 a year earlier — equity covers long-term assets with almost nothing to spare.F1.490 · F1.190 · F1.290
  • Sales margin is compressing: profit on sales F2.060 5,123 → BYN 2,784k, sales profitability F2.060/F2.010 8.67% → 4.62%. Cost of sales F2.020 −50,144 → −53,090 and other current-activity expenses F2.080 −17,413 → −21,563 grew faster than revenue.F2.060 · F2.010 · F2.020 · F2.080
  • Inventories are building up: F1.210 43,254 → BYN 55,609k (+28.6%), including finished goods F1.214 21,759 → 28,637 and work in progress F1.213 9,355 → 13,397 — while revenue rose only 2.1%.F1.210 · F1.214 · F1.213 · F2.010
  • Revenue is nearly flat: F2.010 59,077 → BYN 60,319k (+2.1%); receipts from customers F4.021 61,255 → 61,640 (+0.6%).F2.010 · F4.021
Green signals
  • The current ratio stays above one: F1.290 64,411 / F1.690 41,934 = 1.54 — short-term liabilities are covered by current assets.F1.290 · F1.690
  • Real equity is positive: F1.410 19,545 + F1.460 16,794 = BYN 36,339k against a total F1.490 60,720; revaluation (additional capital F1.450 24,381) is a noticeable but not dominant part of it. The earned base is shrinking, however: F1.460 17,405 → 16,794 with net profit F2.210 of only 293 — more was distributed than earned.F1.410 · F1.460 · F1.490 · F1.450 · F2.210
  • Short-term receivables are falling: F1.250 9,028 → BYN 7,739k. The cash position recovered: F1.270 1 → 602, closing balance F4.130 602.F1.250 · F1.270 · F4.130

Recommendation

Suggested outcome
Restructuring
Category
Distressed
Health score
0.85
Confidence level
High

This leather-industry enterprise (tanning and dressing of leather) with near-full state participation faced a sharp contraction of profitability in 2025.

Recommendation: Restructuring — remediation of the cost and debt structure while preserving the viable production core — rather than privatization (the negative profit trajectory is unattractive to a buyer) or liquidation (the enterprise is solvent).

Why restructuring. With nominal revenue growth of 2.1%, net profit collapsed 91% (from 3,377 to 293k), and net profitability fell almost to zero (0.49%). The cause is the outpacing growth of costs: cost of sales grew 5.9%, other current expenses 23.8%. At the same time the credit load grew (total credit debt +24.25%, short-term loans almost tripled), payables to suppliers jumped 54%, and operating cash flow remained negative (−2,049k). Yet the balance sheet structurally retains stability: current liquidity of 1.54 is above the norm, real equity is positive and does not rest on revaluation, and bankruptcy risk is assessed as low.

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

Minsk PLA — BELSOE