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Don Agro posts 16.9% drop in FY earnings to $5.2 mil, proposes maiden dividend of 0.7 cent per share

Stanislaus Jude Chan
Stanislaus Jude Chan • 2 min read
Don Agro posts 16.9% drop in FY earnings to $5.2 mil, proposes maiden dividend of 0.7 cent per share
This Russian agricultural company is wrestling the bear market -- and seems to be coming out on top. The counter is trading 27% higher than its IPO price of 22 cents in February this year.
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SINGAPORE (Mar 31): Russia-based agricultural company Don Agro International saw its full-year earnings fall 16.9% to $5.2 million for FY2019 ended December, from $6.4 million a year ago.

Earnings per share dropped to 4.17 cents for FY2019, compared to 5.11 cents for FY2018.

The decline came despite a 45.3% jump in revenue to $35.4 million in FY2019, from $24.4 million a year ago.

This was led by an increase in revenue from the sale of crop production on the back of slightly higher yield per hectare of land and higher market price.

There was also an increase in the revenue from sale of livestock and milk, due to an increase in the milk yield per cow per day and slightly higher price of raw milk.

However, cost of sales surged 51.5% to $33.4 million, outpacing the increase in revenue.

Consequently, gross profit for FY2019 dipped 5.2% to $8.6 million.

Administrative expenses climbed 64.4% to $2.1 million on an increase in wages and salaries due to hiring of new administrative personnel as well as an increase in costs related to information, consulting and other professional services to meet statutory requirements.

As at end December, cash and cash equivalents stood at $4.6 million.

Net asset value per share of the group stood at 29.97 cents as at Dec 31, 2019, compared to 23.54 cents a year ago.

The group has proposed a maiden final dividend of 0.693406 cent per share for FY2019, amounting to total dividends of $1.04 million, or 20% of its FY2019 net profit.

“Despite uncertainty on the export prices of wheat due to the ongoing Covid-19 pandemic, strong domestic demand and the stable consumption of local agricultural produce will ensure that local wheat prices remain well supported,” says Evgeny Tugolukov, executive chairman of Don Agro.

“Furthermore, we do not expect significant changes within the livestock segment as we continue to chart steady growth,” he adds.

Shares in Don Agro closed at 28 cents on Monday, before the results announcement. The counter is trading 27% higher than its initial public offering (IPO) price of 22 cents in February this year.

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