UST-LABINSK, RUSSIA — Kuban Agro Holding reported on May 17 a net profit of 2 billion rubles ($30.7 million) in 2015, a 79.4%-increase compared to 1.1 billion rubles in 2014. The company’s revenue increased by 32% to 10 billion rubles compared to 7.3 billion rubles in 2014.

Kuban Agro Holding includes 25 enterprises in five divisions: agriculture, seed production, grain processing and storage, sugar production and meat processing. The company is a part of the Basic Element Group. Basic Element, through its affiliates, owns significant stakes in and operates a number of companies in many segments: energy, manufacturing, financial services, construction, aviation, agriculture and others.

Agro Kuban Holding’s winter grains segment produced 230,000 tonnes, up 9% from 211,000 tonnes year on year. Its corn segment production was down 9.4% from 48,000 tonnes to 43,5000 tonnes. A decrease in arable crop yield was caused by a severe drought in summer 2015. However, it was balanced by growing prices of the crops (for example, sunflower price has risen by over 50%) and increased export revenues.

Kuban Agro sold 5,400 tonnes of seeds, a 4%-increase compared to 2014. Revenue generated from seed sales grew by 85% in 2015. The company has created 24 hybrids of its own high-yielding corn brand Ladozhsky since 2008. Five of the hybrids were produced and registered in 2015. Kuban Agro’s fast pace in new seed hybrids production is comparable to the world’s leading agricultural companies.

“The company will continue to implement an investment program focused on irrigation, revamp of Ladozhsky corn plant and Svoboda sugar refinery, development of its own retail chain,” said Andrey Oleynik, chairman of the board of Kuban Agro. “Kuban Agro is also planning at least to repeat 2015 financial results with the help of grain export and increase in milk and meat production for a domestic market.”