Today Acron (RTS, MICEX and LSE: AKRN) released its unaudited IFRS consolidated condensed interim financial information for Q1 2010.
IFRS Financial Highlights
• Revenue totalled RUB 11.43 billion, up 21% year-on-year (Q1 2009: RUB 9.43 billion)
• EBITDA* was RUB 2.39 billion, up 9% year-on-year (Q1 2009: RUB 2.19 billion)
• EBITDA margin was 21%, down from 23% in Q1 2009
• Net profit totalled RUB 1.75 billion (against a net loss of RUB 0.85 billion in Q1 2009)
*EBITDA is calculated as operating profit plus depreciation and amortisation, profit (loss) from currency exchange and other non-cash and non-standard items.
• Sales totalled 1,345,000 tonnes, down 3% year-on-year
• Sales of complex fertilisers were up 9% from Q1 2009 to 601,000 tonnes
• Sales of ammonia and nitrogen fertilisers were down 15% year-on-year to 547,000 tonnes
• Sales of organic chemicals and non-organic compounds were up 2% year-on-year to 197,000 tonnes
Comments on Key Items
The Group recorded a significant net profit in Q1 2010 against a loss in Q1 2009. Operating results were largely the same as in Q1 2009, but the sales structure underwent changes. Due to the recovery in the global mineral fertiliser market, Acron saw improved sales of its complex mineral fertilisers. The Group’s facilities also increased their output of organic and non-organic compounds. Together with higher prices, this allowed Acron to increase its revenue in the reporting period by 21%.
The USD/RUB rate was stable in 2010, minimising negative exchange effects. However, a stronger rouble in the reporting year had a negative effect year-on-year on operating profit and EBITDA.
The Group is steadily reducing its loan portfolio with its positive operating cash flow and free cash. Acron’s net debt in the reporting period declined to RUB 23.55 billion from RUB 24.73 billion in late 2009. In addition, the company stuck to its scheduled level of investments, primarily in resource base development, including over RUB 430 million invested in its NWPC phosphate project in the reporting period.
Chairman of the Board of Directors Alexander Popov comments on the results:
“The macroeconomic recovery makes us feel comfortable in terms of both our operations and our financial standing. We are in line with our strategy of becoming an effective vertically-integrated company to remain a competitive market leader and increase shareholder value.”