Strategic report

Company Overview

2016 Revenue

1.3 bn USD

Commercial output

6.5 mn t

Acron Group is a leading vertically integrated mineral fertiliser producer in Russia and in the world.

Its wide range of products includes complex and nitrogen fertilisers, as well as industrial products. In 2016, it sold 6.4 mn t of main products.

With two large chemical production facilities, phosphate mining operations, a project to develop a potash deposit, transportation infrastructure and an international distribution network, the Group leverages vertical integration of its business processes as a platform for dynamic development.

The Group continuously expands its production capacity, develops distribution opportunities and diversifies its product portfolio.

Acron Group Highlights

  • Leading vertically integrated producer of NPK and nitrogen fertilisers, among the top four in Europe and top ten in the world by NPK capacity
  • Vertical integration in nitrogen and phosphate; implementation of potash project underway
  • Extensive logistics and distribution network with sales in 63 countries
  • Listed on Moscow Exchange and LSE
  • Over 11,000 employees in six countries
Financial Performance (IFRS) 2016 2015
Revenue (RUB mn) 89,359 92,019
Operating profit (RUB mn) 20,898 38,426
Net profit (RUB mn) 25,525 16,706
Earnings per share/GDR (RUB) 656.21/65.62 367.12/36.71
EBITDA (RUB mn)* 29,856 40,978
EBITDA margin (%) 33 45
Assets (RUB mn) 194,287 226,774
Available-for-sale investments (RUB mn) 17,965 4,956
Short-term borrowings (RUB mn) 39,886 12,995
Long-term borrowings (RUB mn) 39,231 68,611
Net debt (RUB mn)** 51,949 51,185
Cash flow from operating activities (RUB mn) 18,102 36,531
Capital expenditures (RUB mn) 12,128 15,107
Sales of key products (‘000 t)*** 2016 2015
Ammonia 269 18
Nitrogen fertilisers 2,811 2,547
Complex fertilisers 2,060 1,781
Organic synthesis products 187 214
Non-organic compounds 686 716
Apatite concentrate 339 356
Total 6,352 5,632
2016 2015
Number of the Group’s employees 11,201 13,261

* EBITDA is calculated as operating profit adjusted for depreciation of fixed and amortisation of intangible assets, exchange rate profit or loss and other non-cash and non-standard items.
** Inclusive of irrevocable bank deposits
***
Does not include operating results of Chinese Hongri Acron facility, which was sold in 2016.