The Group evaluates performance and makes investment and strategic decisions based on a review of the profitability of the Group as a whole, and based on operating segments. The company's operating segment has been determined based on reports reviewed by CEO, assessed to be Сompany's chief operating decision maker (“CODM”), that are used to make strategic decisions.
It was determined, that the Group has one operating segment – the extraction, production and sales of potash fertilizers.
The financial information reported on operating segments is based on the management accounts which are based on IFRS. The CODM performs an analysis of the operating results based on the measurements of:
- revenues net of freight, railway tariff and transshipment costs;
- operating profit;
- tonnes of potash sold, in thousands;
- cash cost (“CC”) per unit sold (cost of sales adjusted for depreciation and amortisation); and
- cash capital expenditures net of VAT (“Cash CAPEX”).
Business segment assets and liabilities are not reviewed by the CODM and therefore are not disclosed in these consolidated financial statements.
a) The following is an analysis of the Group's revenue and results from continuing operations for reportable segment:
|Revenues net of freight, railway tariff and transshipment costs||21, 23||1,850,970||2,645,414|
|Tonnes of potash sold in thousands||10,952||11,205|
|CC per unit sold (US dollar per tonne)||35||33|
The measurement of CC per tonne of potash sold reconciles to the IFRS reported figures on a consolidated basis as follows:
|Cost of sales||22||549,766||568,758|
|Depreciation and amortisation||22||(171,395)||(195,268)|
|Tonnes of potash sold, in thousands||10,952||11,205|
|CC per tonne of potash sold (US dollar per tonne)||35||33|
b) Geographical information
The analysis of Group sales by region was:
|China, India, South East Asia||952,949||1,388,746|
|Latin America, USA||632,751||860,819|
|Europe, other countries||341,749||467,359|
The sales are allocated by region based on the destination country.
c) Major customers
The Group had no external customers which represented more than 10% of the Group’s revenues in the years ended 31 December 2016 and 2015.