Revenue in dairy products segment of Rusagro decreased by 5% in the third quarter of the year

At the same time, consolidated revenue increased by 10% to 41.1 billion rubles compared to the third quarter 2019. The most significant growth was in the meat segment (+23%) and the agricultural segment (+20%), and the fat and oil segment also increased by 12%. The sugar segment and dairy products reduced revenue by 10% and 5%, respectively, the document says. Sales of Rusagro dairy products totaled 7.1 thousand tons in the third quarter.

‘In the third quarter of 2020, sales of dairy products decreased by 2% to 7.1 thousand tons, mainly due to a reduction in sales of baby formula, which was accompanied by a 13% drop in the price of this product category. The sale price of cream also decreased by 12%,’ the report says.

By the way, the sales price of cheese and cheese products, according to the report, amounted to 207.1 rubles without VAT in the third quarter.

Earlier we wrote that Rusagro might sell its dairy business. ‘We believe that our initial approach in this segment is no longer relevant. First, the cheese market in Russia will not grow significantly, and the profitability of this business will not be high enough. In other words, even if we become the third player in this segment, the size of this business will still not be the same as the group's strategy requires. It will make much more sense for management to continue developing in the four areas where we are successful. The second reason is excessive investment in this market,’ said CEO of Rusagro Maxim Basov in August.

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