WBS South (Agricultural Production Facility South)

"South" is one of the leaders of the domestic market and specializes in the production of essential food for April 2019:

• packaged sunflower oil;
• mayonnaise and ketchup;
• tomato paste and seasoning.

History

2024: Former co-owner of the Magnit chain Sergey Galitsky reduced his stake in the Yug SPP from 75% to 40%

On June 28, 2024, it became known that the founder and former co-owner of the Magnit chain, Sergei Galitsky, significantly reduced his participation in the business of the manufacturer of sunflower oil and sauces SPP Yug in the Krasnodar Territory. Its share in the company decreased from 75% to 40%.

According to Kommersant, United Capital JSC controlled by Galitsky in mid-May 2024 transferred part of its share to partners who had previously worked with him at Magnit. As a result, 25% of the shares of SPP Yug were transferred to Aslan Shkhachemukov, a former member of the board of directors of Magnit, and 10% to Aram Fundukyan, vice president of the Krasnodar football club owned by Galitsky. Another 25% was retained by Vladimir Hashig.

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Bloomberg

SPP "South" has existed for more than 25 years and produces sunflower oil under the brand "Kuban Favorite," as well as mayonnaise and sauces under the brand "South." The company's production is located in Armavir, Krasnodar Territory. At the end of 2023, SPP Yug acquired South Pole LLC, which owns a plant in Kropotkin in the same region.

As the newspaper notes, the revenue of the SPP "South" for 2023 amounted to 3.77 billion rubles, an increase of 1.4% compared to the previous year. Revenue of the South Pole for the same period increased by 44.4% and reached 8.29 billion rubles. According to Mikhail Burmistrov, general director of Infoline Analytics, the total cost of the business is at least 2-2.5 billion rubles.

The production of unrefined sunflower oil in Russia in January - May 2024, according to Rosstat, increased by 26.7% compared to the same period in 2023, reaching 3.6 million tons.

According to the publication, the profitability of the sunflower oil production business remains low, amounting to no more than 3-5%. The profitability of mayonnaise production can reach 10-12%, but the prospects for increasing volume in this segment are limited.^[1]

Notes