Losevo Group assets put up for sale after production halts
According to SPARK, agricultural enterprise Losevo LLC recorded revenue of 27 million rubles and a loss of 39 million rubles last year. Its analytical balance sheet lists long-term liabilities of 593 million rubles and short-term liabilities of 604 million rubles. Losevo Dairy Plant LLC reported annual revenue of 153 million rubles and a profit of 4,000 rubles. Its liabilities comprised 99 million rubles in long-term obligations and 497 million rubles in short-term obligations. Nail Beglov and Alexander Maurer own 75% and 25% of the business, respectively.
Dmitry Kumanovsky, an analyst with the Bonus Fabula Telegram channel, estimated the agricultural enterprise Losevo's total debt at 1.197 billion rubles and the amount subject to enforcement proceedings against it at 2.9 million rubles. His calculations put its debt at 100 times the value of its assets. Kumanovsky believes a sale is possible at a substantial discount to the debt and estimates a likely transaction value of 13–30 million rubles for the agricultural enterprise. He explained that creditors generally agree to repayment at a 50% discount, while banks may sell distressed debt for 1% of its face value to release the provisions covering 100% of that debt.
Market participants and industry specialists interviewed were skeptical about the prospects of finding buyers. One market participant said that, to be attractive, the enterprise would need its own raw milk supply or reliable sourcing, as well as established sales channels. In his view, Losevo has neither advantage. Another person interviewed by the publication believes most processors, including local companies, are operating below capacity and therefore have no interest in acquiring additional production facilities.
Irina Ivanova, development director at consulting company IDS, offered a different assessment of capacity utilization in the industry: in her view, spare capacity is mainly found at smaller plants, while efficient businesses operate at full capacity. Nevertheless, she also considers finding a buyer for Losevo a difficult task. Ivanova explained that dairy plants are currently focused on fully utilizing their existing facilities, while high borrowing costs limit their willingness to acquire new assets. Meanwhile, she said, large numbers of small businesses are being offered for sale.
Market participants also noted increasing competition among producers of finished dairy products. Georgy Zhitmarev, development director at Piskarevsky Dairy Plant, said retail chains had added new Russian and Belarusian brands to their ranges over the past year and a half to two years. He described their products as high-quality and affordable. In Zhitmarev's assessment, these conditions make it particularly difficult for producers of expensive products to enter the market.
The group was established in 2006 on the basis of the bankrupt Sosnovaya Gorka state farm in the Vyborg district of Leningrad Region. Its founders were Alexander Maurer and Nail Beglov, the son of Ali Beglov, who previously headed LUKOIL-Bunker. In addition to producing raw milk and products under the Losevo brand, the group made cheese, raised livestock for meat and grew strawberries. It also had its own retail chain, including a food market with a café on Petrovsky Island; that outlet closed in 2020.
The business's position began deteriorating around 2021. The company eliminated its cattle herd and began buying raw milk from outside producers. Production was suspended and then restarted that same year. In 2023, a corporate dispute arose between the co-owners, but it did not lead to significant changes at the company. Operations stopped again in the summer of the current year; in August, the company announced another suspension of production. It currently has no plans to resume operations.
