PR88368

SINGAPORE,March5,2021/PRNewswire=KYODO JBN/--

-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)

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