-Driven by an increase in gain from change in fair value of biological assets 
and agricultural products, mainly due to rising global prices of agricultural 
produce, gross profit rose 70.3% yoy to S$14.6 million 
-Declares a final dividend of 1.157 Singapore cents per share (FY2019: 0.7 
Singapore cents per share) to reward shareholders, representing a dividend 
payout ratio of 20%


SGX-Listed Don Agro International Limited("Don Agro") (SGX Ticker: GRQ) and its 
subsidiaries (collectively the "Group"), one of the largest agricultural 
companies based in the Rostov region of Russia, has announced its financial 
results for the full year ended 31 December 2020 ("FY2020"). Read the full 
press release here( 
http://investor.donagroint.com/newsroom/20210301_180113_GRQ_3LKUVH2EWP9USNHA.1.pdf)


Financial Highlights (S$'000)
 
 FY2020
 FY2019
 Change (%)
 
Revenue 
 
 30,996
 35,431
 (12.5)
 
Cost of Sales 
 
 (25,587)
 (33,354)
 (23.3)
 
Gain from change in fair value of biological assets 
and agricultural produce
 
 9,217
 6,512
 41.5
 
Gross Profit 
 
 14,626
 8,589
 70.3
 
Gross Profit Margin (%) 
 
 47.2
 24.2
 23.0 pts
 
Net Profit
 
 8,696
 5,223
 66.5
 

The Group recognised a 41.5% yoy increase in gain from change in fair value of 
biological assets and agricultural produce to S$9.2 million for FY2020. The 
gain was mainly attributable to the trend of rising agricultural produce prices 
globally, especially for sunflower and wheat which the Group produces. As a 
result, gross profit grew 70.3% yoy to S$14.6 million for FY2020, while gross 
profit margin expanded 23.0 percentage points to 47.2% for the same period.

Overall, the Group delivered a 66.5% yoy increase in net profit to S$8.7 
million for FY2020.

Mr. Evgeny Tugolukov, Executive Chairman of Don Agro said, "Due to changing 
consumer preferences favouring wheat-based products, we are optimistic that Don 
Agro will continue to be a beneficiary of higher export prices driven by robust 
global demand. At the same time, strong domestic demand and stable consumption 
of local agricultural produce will ensure that local prices remain 
well-supported. For our livestock business, we do not expect significant 
fluctuations for this segment and it continues to chart steady growth. Looking 
ahead, we will continue to execute our near-time initiatives including, among 
others, expanding our arable land bank and accelerating growth into new markets 
so as to drive earnings resiliency and maximise value for our shareholders."

In line with its IPO plans to expand its arable land bank, the Group recently 
acquired Volgo-Agro LLC ("Volgo-Agro"), an agricultural company based in the 
Volgograd region of Russia. Through the acquisition of Volgo-Agro, the Group's 
controlled land bank rose by 10,040 hectares or 18.9% to 63,240 hectares in 
total, allowing it to quickly raise production volume to capitalise on the 
burgeoning global demand for wheat and wheat-based products. Volgo-Agro's close 
proximity to important trading routes linked to the Middle East and Asia will 
offer attractive new opportunities to reach new markets and customers, so as to 
drive long-term sustainable growth for the Group.

For more information on Don Agro, please visit: http://donagroint.com/

Contact for Media&Enquiries:
tech@financialpr.com.sg 
Tel:(65)-6438-2990

SOURCE:Don-Agro-International-Limited