Demetra-Holding

Demetra-Holding is a representative in the grain export logistics market in Russia.

Demetra-Holding LLC is a vertically integrated grain holding that combines assets in the field of transport export logistics and trading. The holding includes Russian grain terminals - Novorossiysk Grain Terminal LLC (100%), Novorossiysk Bread Products Plant PJSC (35.36%), Zernovoy Terminal Complex Taman LLC (50%).

The holding owns 50% -1 shares in United Grain Company JSC, a 50.01% stake in the railway operator RusTransCom, in the structure of which the operator in railway grain transportation in Russia is Rusagrotrans JSC.

The company also owns 100% of the shares of a large grain exporter - Mirogroup Resources LLC (included in the top 3 grain exporters in Russia) and 100% of Ipatovsky Bread Products Plant LLC.

Performance indicators

2023: Profit - 7.27 billion rubles

At the end of 2023, one of the largest grain traders in the Russian Federation, Demetra-Holding, got rid of losses, receiving a net profit of 7.27 billion rubles. In 2022, the company's net losses were measured at 7.33 billion rubles. The holding's revenue during this time almost doubled and reached 202.98 billion rubles. This was reported in the reporting under RAS, which was published in early April 2024.

According to Interfax, citing financial documents from Demetra Trading LLC, the company's gross profit in 2023 reached 19.97 billion rubles, which is 27% more than a year ago. Profit from sales soared 22 times and amounted to 17.85 billion rubles. Profit before tax in 2023 amounted to 7.8 billion rubles against a loss of 8.39 billion rubles a year earlier.

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From the materials of the holding it also follows that in 2023 its commercial expenses decreased by about 8 times and amounted to 1.73 billion rubles. During the reporting 12-month period, the company recorded 373.1 million rubles of income from participation in other organizations (in 2022 there was no income under this item).

As of December 31, 2023, Demeter-Holding's receivables increased to 72.15 billion rubles from 66.87 billion rubles a year earlier. Accounts payable increased in comparison with the same periods from 12.545 billion rubles to 13.344 billion rubles.

By the end of 2023, Demetra-Holding combined assets in the field of export logistics and grain trade. It includes the largest Russian grain terminals - Novorossiysk Grain Terminal (100%), Taman Grain Terminal Complex (50%), Novorossiysk Bread Products Plant (NKHP, 35.36%) and other assets. Most of the company's assets were acquired using debt financing.^[1]

History

2024

Purchase of Our Union elevator complex

Demeter Trading bought the Our Union elevator complex in the Oryol region. This deal was announced on October 18, 2024. Read more here

Purchase of Jade wagon company

The large Russian logistics company Demetra-Holding completed the acquisition of the Jefrit wagon company, as a result of which the holding replenished its fleet of innovative gondola cars and cement hoppers. This became known in August 2024. The deal included about 1.8 thousand units of rolling stock. Read more here

Purchase of SibPromAgro

One of the largest grain traders in the Russian Federation, Demetra-Holding, bought SibPromAgro. Information about this transaction was registered in the Unified State Register of Legal Entities (USRUL) at the end of May 2024. Read more here.

Purchase of Siam Consulting IT Company

The largest grain trader in Russia, Demetra-Holding, bought the Siam Consulting IT company. Information about this transaction was reflected in the Unified State Register of Legal Entities (USRUL) in April 2024. Read more here.

2023

Southern Sea Investment bought a stake in Demetra Holding

Demetra-Holding LLC, which owns assets in the Kuban, sold its stake to Oman Southern Sea Investment LLC. This became known on July 11, 2023.

According to Vedomosti, the deal is technically complex-structured, one of its stages is an additional issue. According to the source of the publication, the Omani Southern Sea Investment LLC is not a direct buyer of VTB's share, but an anchor investor is one of the buyers of the additional issue carried out by the grain holding. The interlocutor of the newspaper said that as a result of the transaction, the shares of the Russian owners of Demeter Holding will be increased, noting that these data will not be disclosed.

Southern Sea Investment bought a stake in Demetra Holding

The press service of Demetra-Holding LLC confirmed to TASS the conclusion of a deal with the Oman investment fund.

We confirm that following the results of a multi-stage transaction, a company will appear among the shareholders of Demetra Holding, the beneficiary of which is an investment fund owned by the state of Oman, the holding said in a statement.

Eduard Zernin, chairman of the board of the Union of Grain Exporters, told Vedomosti that companies from the Middle East are showing interest in Russian agribusiness, especially in the one engaged in the production and export of crops.

Our business is interesting to them primarily as a strategic move towards ensuring the food security of their and friendly countries, although the financial attractiveness of such investments also plays a role, Zernin added.

By July 2023, Demetra-Holding owns assets in the field of export logistics and trading. The holding, in particular, includes the largest grain terminals in Russia: Novorossiysk Grain Terminal (100%), Novorossiysk Bakery Plant (35.36%), and the Taman grain terminal complex (50%).^[2]

VTB's exit from the grain business

On July 6, 2023, it became known that VTB had withdrawn from the capital of the Demetra Holding grain trader. Thus, the bank implemented the plan mentioned earlier.

We are out of the grain business. We had a share in the Demeter Holding, less control, there is about 45%. We implemented it. The other day the deal was closed. I cannot say who the buyer is - this is his right to declare himself. The price is objective, the margin is decent, - the head of VTB told reporters on the sidelines of the Andrey Kostin Financial Congress of the Bank of Russia (quoted by July 6 TASS , 2023), while not disclosing either the financial terms of the agreement or its other parameters.

VTB left the grain business by selling 45% of Demetra Holding

Kostin spoke about VTB's plans to sell his stake in the holding on June 12, 2023 in an interview with Reuters. He reported that the buyer had already been found. Demeter Holding told the agency in July 2023 that they had been informed about VTB's withdrawal from the shareholders, but declined to comment further.

As far as we know, the deal to change the share composition is complex, complex, goes through several stages. We will provide additional information after the completion of all processes, the holding's press service told Interfax.

By July 2023, Demeter Holding is a major grain trader in southern Russia. The company owns the Oktyabrsky, Dishninsky elevators, Ipatovsky bakery and grain terminals in Novorossiysk and Taman. The organization also owns shares in OZK JSC, Rusagrotrans, the поле.рф agricultural marketplace and other enterprises. The holding includes Demeter Trading, whose grain export in 2021-2022 amounted to 2.8 million tons.^[3]

New CEO

At the end of April 2023, the grain trader Demetra-Holding announced the appointment of Alexei Gribanov as the new CEO of the company. He replaced Sergei Emdin, who, before heading Demeter, led the telecommunications operator Tele2. Read more here.

Rent 10 thousand square meters. in BC "Hermitage Plaza"

On January 25, 2023, it became known that the Demetra Holding grain trader rented about 10,000 square meters. m in the Hermitage Plaza business center, which is located next to the Mayakovskaya metro station in the center of Moscow. Two consultants who worked with this complex told Vedomosti about a major deal in the capital's office market. According to them, the agreement between the parties was signed at the end of 2022.

Hermitage Plaza Business Center in the center of Moscow

The representative of Demeter Holding confirmed the information about the transaction. According to him, by January 2023, the company and related structures occupy areas in various metropolitan facilities (among them, for example, the Tower on the Embankment in the Moscow City business center and the Black & White business center on Kozhevnicheskaya Street in Zamoskvorechye). In the summer of 2023, the holding plans to transfer them all to the Hermitage Plaza. This, according to the interlocutor of the publication, will reduce operating costs for the maintenance of offices, as well as quickly establish business processes and internal corporate communications.

The total area of ​ ​ the Hermitage Plaza is 42,000 square meters. m, rentable - 35,700 square meters. m According to data from open sources, the requested rental rate here is 30,000 rubles per sq. m, the OREH indicator (operating expenses) is about 8,000 rubles per "square." Thus, an annual lease of 10,000 square meters. m can cost 456 million rubles, but it is possible that the holding received a significant discount during the negotiations and will rent for a smaller amount - less than 400 million rubles a year, the publication says. According to real estate consultants cited by Vedomosti, Demetra Holding will pay about 300-330 million rubles annually for the new office.^[4]

2022

Demeter-Holding became the owner of the Поле.рф

On November 7, 2022, it became known that Demetra-Holding became the sole owner of the Поле.рф agribusiness marketplace. Earlier, this project, launched in July 2021, belonged on a parity basis to the holding and venture capital investment company Ji Ai Invest. Read more here.

VTB reduced its stake in the company to 45% amid US sanctions

In February 2022, immediately after the introduction of US sanctions against VTB, the bank, as a result of an additional issue, reduced its stake in Demetra-Holding, which unites its grain assets. The state bank, as follows from the information on the holding's website, now owns a share of 45% of the grain holding. Previously, VTB was the owner of Demeter-Holding with a share of 50% plus one share.

The share of VTB's strategic partners in the grain business, which entered the capital of Demeter-Holding in April 2020, increased as a result of the transaction: we are talking about the investment company Marathon Group and the structure of the founder of Baltika and the ex-president of Olimpstroy Taimuraz Bolloyev. In 2020, its structure, developing projects in agriculture "Agronova," received 25% of "Demeter-Holding," and Marathon Group - 24.99%. Now 27.5% of Demeter-Holding, according to the company, belongs to Granum JSC affiliated with Bolloev, and another 27.49% - Marathon Group.

The representative of Demeter-Holding explained to RBC that the transaction was planned: the holding "completed the planned procedure for increasing the authorized capital, which lasted about two months." The funds raised, as the company representative explained, will be used to reduce the debt burden. The decision was made by key investors as part of the business development strategy approved in early 2021, and it "will allow Demeter-Holding to continue the confident development of key business areas and build an effective vertically integrated ecosystem of grain logistics, trading and export," the company added.

2021: Sergei Emdin - the new CEO of the company

On July 1, 2021, VTB announced the appointment of Sergei Emdin as the new CEO of its grain company Demetra-Holding. Vitaly Sergeychuk, who has held this position since 2019, became chairman of the company's board of directors. Read more here.

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