OREANDA-NEWS. Kuban Agroholding, one of Russia’s largest agribusinesses and part of Basic Element, announces their full year production and financial results for 2012.

Revenue in 2012 totaled USD 224.3 million (USD 229.6 million in 2011)

Net profit in 2012 of USD increased by 31.9% to 21.1 million (USD 16 million in 2011)

Kuban Agroholding had wheat production in 2012 of 117,700 tonnes compared to 167,200 tonnes in 2011, barley production of 16,300 tonnes (33,300 tonnes in 2011), corn production of 48,100 tonnes (46,800 tonnes in 2011), soya beans production of 25,700 tonnes (23,500 tonnes in 2011), sunflower production of 22,400 tonnes (19,700 tonnes in 2011), sugar beet production of 392,600 tonnes (400,600 tonnes in 2011).

Milk production in 2012 amounted to 40,900 tonnes (39,600 tonnes in 2011). Live cattle weight gain in 2012 was 1,600 tonnes (1,700 in 2011), live pigs weight gain was 3,800 tonnes (5,500 tonnes in 2011).

In 2012, the Company’s sugar refinery processed 522,400 tonnes of sugar beet (compared to 575,600 tonnes in 2011) and had sugar production of 56,800 tonnes (73,800 tonnes in 2011).

Commenting on the results, Anton Ulanov, CEO of Kuban Agroholding, said:

"2012 was a challenging year for the Russian agricultural market, despite this Kuban Agroholding achieved the net profit increase by approximately 30%.

During 2012, we decreased our production costs, which was directly due to our focused efforts on managing our cost base, developing agritechnologies and facilities renovation.

The adverse impact on our winter wheat crop in 2012 saw the yield decrease to 4,570 tonnes per hectare, but we were able to increase the net profit for wheat production due to our focus on decreased cost production and favourable market conditions".