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Dorogobuzh Releases 9M 2010 IFRS Consolidated Statements

Today Dorogobuzh (a company of the Acron Group) released its abridged unaudited IFRS consolidated statements for 9M 2010.

Financial Highlights

• Revenue totalled RUB 7.82 billion, up 1% year-on-year (9M 2009: RUB 7.72 billion
• EBITDA* was RUB 1.44 billion, down 29% year-on-year (9M 2009: RUB 2.02 billion)
• EBITDA margin was 18%, down from 26% for 9M 2009
• Net profit totalled 1.35 billion, down 5% year-on-year (9M 2009: RUB 1.42 billion)

* EBITDA is calculated as operating profit adjusted for depreciation and amortisation, exchange rate gain/loss and other non-cash and extraordinary items.

Operating Results

• Sales totalled 1,052,000 tonnes, down 17% year-on-year
• Sales of complex fertilisers were down 10% from 9M 2009 to 416,000 tonnes
• Sales of ammonia and nitrogen fertilisers shrank by 16% year-on-year to 598,000 tonnes
• Sales of non-organic compounds were down 62% year-on-year to 62,000 tonnes

Comments on Key Items

The key factor affecting the net profit and EBITDA was the scheduled overhaul of Dorogobuzh’s principal production facilities. The ammonia unit was under repair from July 17 through August 20, 2010. This resulted in considerably lower sales in the reporting period. However, lower sales were offset by higher prices for mineral fertilisers in the global market, resulting in unchanged revenue year-on-year.

Dorogobuzh was able to almost completely compensate for lower net profit through its non-operating activity, specifically due to higher financial income and profit on the sale of shares in Acron during the share buyback declared by the parent company.

 Financial Statements