Rusagro's Q3 Net Profit Drops 37% to 15.9 Billion Rubles as Sugar and Crops Weigh

Rusagro Group (Rusagro), one of Russia's largest agricultural holdings, drew a mixed line under the third quarter of 2024: net profit under International Financial Reporting Standards dropped 37% year-on-year to 15.9 billion rubles, the agroholding said in a financial statement released on November 11, 2024. Adjusted EBITDA fell 29% year-on-year to 10.6 billion rubles, and the EBITDA margin narrowed to 14% from 21% a year earlier. Revenue, by contrast, kept growing — up 6% year-on-year to 76.2 billion rubles.

Nine months: revenue up, profit halved

The nine-month statement shows the same split between a growing top line and a compressing margin. Key figures from the company's report:

• 9M 2024 revenue: 215.3 billion rubles, up 21% year-on-year;
• 9M 2024 adjusted EBITDA: 24.4 billion rubles, down 20%; margin of 11% against 17% a year earlier;
• 9M 2024 net profit: 19.4 billion rubles, down 50% year-on-year;
• Q3 2024 revenue: 76.2 billion rubles, up 6% year-on-year.

Net profit fell primarily on the back of the decline in adjusted EBITDA and the effect of foreign exchange differences, the company noted — meaning the drop reflects both operating compression and currency revaluation rather than a single bad segment.

Oils and fats keep the top line moving

Ramping up production and boosting sales volumes in the oil and fat business contributed mainly to the rise in revenue, Timur Lipatov, CEO of Rusagro Group of Companies LLC, said in a press release accompanying the results.

"The Rusagro team boosted the segment's operating indicators on the back of organic growth in bulk oil production after completing modernization of the Balakovo Oil Extraction Plant and increasing capacity 30% at the end of 2023. Moreover, the group acquired a 50% stake and control over the NMGK Group in mid-2023, thereby solidifying Rusagro's position on the Russian market and establishing another incentive to ramp up exports," Lipatov said.

Price dynamics on the pork market also positively affected total revenue, he added — two growth engines, bulk oil and pork, working in the same quarter.

Sugar and crops pull in the other direction

The drag came from the group's older pillars. Revenue from the sugar segment decreased owing to a decline in sales volumes: the company had a lower sugar inventory carryover going into the season, and the temporary ban on exporting sugar from Russia in July and August 2024 removed two months of external demand. In the agricultural segment, revenue declined specifically because of lower crop yields resulting from unfavorable weather conditions in 2024.

Balance sheet: leverage at a record low

Despite the profit slide, the quarter strengthened the group's financial position. "The company continues to demonstrate positive dynamics in net debt, which decreased 25% amid growth in available liquidity. The net debt/adjusted EBITDA ratio has decreased to a record low of 0.99x," Lipatov said. A leverage ratio below 1x is a rare position for an agricultural holding in a high-rate environment and leaves room for the capital investment programme the group has been running.

What to watch next

The full-year 2024 results will show whether the oils and fats expansion can keep offsetting the weaker sugar and crop season, and whether the record-low leverage survives the capex cycle. The Q3 statement, as reported by Interfax, already marks the point where Rusagro's growth mix shifted decisively toward processing — bulk oil and branded fats — and away from raw agricultural output and sugar carryover.