As part of preparing for a possible public offering, Birat Agri Limited has prepared projected financial statements for five financial years, FY 2083/84 to FY 2087/88. They are signed by our accountant, a director and the chairman. This post explains the main numbers and what lies behind them.
Read this first. These are projections, not results. They are not audited, and they are not an offer of shares.
The headline figures
| NPR million | FY 83/84 | FY 84/85 | FY 85/86 | FY 86/87 | FY 87/88 |
|---|---|---|---|---|---|
| Revenue | 1,120.0 | 1,901.5 | 2,091.5 | 2,283.5 | 2,390.4 |
| Net profit after tax | 95.7 | 150.8 | 159.8 | 182.5 | 195.0 |
| Total assets | 1,109.2 | 1,443.7 | 1,523.7 | 1,628.1 | 1,735.2 |
| Total equity | 873.1 | 1,123.9 | 1,183.7 | 1,266.2 | 1,361.3 |
| Long-term loans | 42.5 | 38.3 | 28.7 | 21.5 | 16.1 |
Two things stand out. The plan assumes revenue and profit rise as new capacity comes on line, and the company’s long-term borrowing falls every year.
Capital and dividends in the statements
The statements also assume a larger share capital, and they show a dividend each year. These are assumptions in a projection, and not a promise.
| NPR million | FY 83/84 | FY 84/85 | FY 85/86 | FY 86/87 | FY 87/88 |
|---|---|---|---|---|---|
| Issued share capital | 800.0 | 1,000.0 | 1,000.0 | 1,000.0 | 1,000.0 |
| New equity capital assumed | 613.9 | 200.0 | – | – | – |
| Dividend assumed | 50.0 | 100.0 | 100.0 | 100.0 | 100.0 |
The new equity capital is what the plan needs to build the new facilities. How and when any capital is raised is for the proposed offering, which is subject to regulatory approval. Dividends depend on the profits actually earned and on approval by the board and the shareholders. None is guaranteed.
What is behind the numbers
The projections follow the five-part model the company has described:
- Fish farming: managing commercial ponds for steady production.
- Aquafeed: floating and sinking feed, with more capacity planned.
- Processing: Pangasius fillets and other value-added products, planned.
- Storage and packaging: keeping products fresh and market-ready.
- Distribution: getting fish and feed to the people who buy them.
The statements also assume large investment in the first year in buildings, machinery and equipment for the new feed and processing facilities, with a smaller amount in the second year and little after that. They also include an investment in the livestock value chain, including poultry. That is a plan, not part of today’s business.
What the numbers depend on
Projections only come true if the plans do. They depend on regulatory approvals, funding, the construction and start-up of new plants, the price of raw materials such as maize and soybean meal, market demand, and the wider economy. Results may be better or worse.
About a possible share offering
Birat Agri has appointed NIC Asia Capital as issue and sales manager for a proposed public offering, subject to legal and regulatory approval. Nothing in this post is an offer or an invitation to buy shares. The issue size, price, dates and how to apply will be announced officially, and only those announcements should be relied upon.
Download the full statements
The company has approved the full projected financial statements for public download. They include the projected financial position, income statement, cash flow and supporting schedules for all five years (11 pages, PDF, about 5 MB).
The statements are projections. Audited results and official notices will be published on this site when they exist.
