OREANDA-NEWS. In 2012, the leader in pork and feedstuff production in Russia ABH Miratorg continued to dynamically develop and demonstrate high financial indicators throughout all activities of the holding company. The company strengthened the status of the largest agriculture investor in Russia, bringing the total volume of realized investments of up to 90 billion rubles. The number of jobs created by ABH Miratorg exceeded 13 000.

According to the audited consolidated financial statements prepared in accordance with IFRS, the net profit of the leading agro business holding company in Russia for the year 2012 has increased by 87% compared to the year 2011 (6.00 billion rubles) and amounted to 11.20 billion rubles. Profit before tax, depreciation and financial expenses and income (EBITDA) during the reporting period totaled 15.19 billion rubles. ABH Miratorg revenues for 2012 year totaled 48.14 billion rubles, which is by 26.7 % more than the same period last year (38.00 billion rubles). Profitability by EBITDA increased significantly and accounted to 31.55%, compared with 24.84 % for 2011.

Indicator net debt/EBITDA was 3.7 as of 31.12.12 and amounted to 5,0 compared to 3.7 as of 31.12.11.

Throughout 2012 all Miratorg subdivisions continued to show strong growth performance. In 2012 total volume of grain crops harvested by Miratorg amounted to 297 000 tons which by 30% exceeds 2011 indicator (228 000 tons). In addition, in 2012 there was 421 000 tons of non grain crops harvested (hay, haylage, silage) which 3.5 times the number of feed harvested in 2011 (123 000 tons).

Based on the results of 2012 total volume of Miratorg feed production amounted to 768.85. thousand tons which by 80.7% exceeds 2011 indicator (425.5 thousand tons). In 2013 in Bryansk region there is planned the commissioning of the fourth feed mill plant with elevator with production capacity 360 000 tons of feed per year. The estimated production capacity of the 4th feed mill plant will be 1.46 million tons per year.

In 2012 pork production volume amounted to 280.2 thousand tons in live weight which is by 65% more than over the same period in 2011 (170.2 thousand tons). Based on the results of 2012 sows herd (the main herd) amounted to 121 thousand heads which is by 34% more than in the year 2011 (90 thousand heads). Production plan for 2013 has 363.2 thousand tons in live weight which is by 83 000 tons more than in 2012 and by 193 000 tons in 2011. Production growth will be achieved by reaching the designed capacity of swine complexes commissioned in 2012 as well as by growth performance.

Meat processing plant ABH Miratorg CJSC “SC Korocha” (Belgorod region) production volume in 2012 amounted to 182 000 tons which is by 42% more than in 2011 (128 000 tons). In spring 2013 the company is planning to launch high technology project Case ready (case ready pork production) with capacity 72 000 based on CJSC “SC Korocha”.

In 2011 ABH Miratorg continued to implement the strategy of import substitution. The share of sales of company’s own products through the distribution department of the holding amounted to 214 000 tons which is by 76% more than in 2011 (121, 5 thousand tons). The total volume of sales of the distribution department over 12 months 2011 amounted 366 000 tons whch is by 26% more the same indicator at the end of 2011 (289.3 thousand tons).

Throughout 2012 the holding was actively developing its own poultry project in Bryansk region as well as the project on high production meat cattle development in Bryansk and Kaliningrad region.

At the moment within the framework of Miratorg beef production project in Bryansk region 24 farms for cattle management are completed, 21 of them are stocked with Aberdeen Angus cattle arrived from Australia and the USA, and the total volume of heads amounts to 75 000 heads (where 4 200 are calves born at Bryansk Miratorg farms in spring-autumn 2012). For 2013 Miratorg is planning to complete the construction and cattle stocking of 27 farms, and the planned volume of breeding cattle by the end of the year is 120 000 heads.

In Ozersk district of Kaliningrad region there are commissioned 3 farms for cattle management by the holding, and the total volume of the breeding cattle amounts to 12 000 heads.

In the framework of the poultry project implementation at the moment ABH Miratorg is constructing 7 broiler poultry farms as well as modern meat processing complex, incubator, feed mill plant and elevator in Vygonichi district of Bryansk region. In Trubchevsk district there are 10 out of 12 planned poultry sites are being constructed.

Last year a production complex LLC Miratorg-West located in Kaliningrad region was successfully restored. Today it is the largest in Russia export-oriented enterprise in the production of finished products and semi-finished products, having no analogues in Russia in terms of organization of production processes, sanitary-hygienic safety standards, and applied technologies.

Production capacity of the enterprise is 60 000 tons per year.

Another ambitious project of the company started in 2012 has been the development of “Miratorg” retail chain. During the year there were 25 supermarkets opened in Moscow and Moscow region, in Vladimir, Tula, Rostov regions and Chuvashia.

Development of our own retail chain should make it possible to fully control the process of selling brand products, and offer it to customers at the best price and in accordance with Miratorg high quality standards eliminating the potential risks of loss. In 2013 the holding is planning to open about 300 new stores.

In accordance with the decision of the Board of Directors of the Bank of Russia dd. May 31, 2012 LLC “Miratorg Finance” stock bonds (registration release number 4V02-01-36276-R) were included in the Lombard list of the Bank of Russia.

July 13, 2012, one year after the initial appropriation, the international agency Fitch Ratings has affirmed ABH Miratorg ratings: long-term issuer default ratings (IDR) in foreign and national currencies at the "B" level and national long-term rating of “BBB (rus)”. Ratings estimations are stable. Affirming the ratings of the holding agency highlighted Miratorg strong positions in all key meat markets (beef, pork and poultry). According to Fitch Ratings, ABH "Miratorg" long-term IDR reflect the vertically integrated business model of the company at all stages of production, from the production of grain and feed to almost complete control of distribution which in turn gives the company a strong advantage relative to most competitors in the domestic market.In august 2012 ABH Miratorg fully carried out its obligations under the first bonded loan 01 series (State registration number-R) placed in August 2007, for a term of five years and a total nominal value of 2.5 billion rubles. The aggregate amount of the coupon income paid for the whole period of circulation of securities of "Miratorg finance" series 01 amounted to more than 1.1 billion rubles. Entering the public borrowing market was an important step in terms of specific financial tasks, and positioning the company as a reliable borrower. Today at the debt market the Holding is presented as a bonded loan for 3 billion rubles which was successfully placed in the 2011 year. Funds received from the bonds placements are effectively used for the development of the holding projects, that is why in the future "Miratorg" plans to continue to use this source of borrowing.

Summing up the results for 2012, ABH "Miratorg" President Viktor Linnik pointed out: “All the projects that we planned to start in 2012, have been implemented. Concerning certain results of the past year, I would like to highlight that we now fully provide ourselves with our own production feed, and our land bank increased by 100 000 ha last year and amounted to 316 000 ha that is by 47% more the year 2011 (216 000 ha) also by expanding the area for pasture for cattle production project in Bryansk region. Harmonious Miratorg team work and correctly chosen strategy contributed to the achievement of high results and active development of the holding. Of course, in doing so, we were helped by the policy carried out by the government towards farmers. And now we are holding a constructive dialogue with the government concerning maintaining the necessary conditions for the development of Russian agricultural producers within the framework of entering WTO".