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Dorogobuzh Releases IFRS Consolidated Statements for 2010

Today Dorogobuzh (a company in the Acron Group) released its consolidated audited IFRS statements for 2010.

2010 IFRS Financial Highlights
• Revenue totalled RUB 11.04 billion, up 11% year-on-year (2009: RUB 9.98 billion)
• EBITDA*  was up 7% year-on-year to RUB 2.59 billion (2009: RUB 2.43 billion)
• EBITDA margin was 23%, down from 24% in 2009
• Net profit totalled RUB 2.33 billion, up 46% from RUB 1.60 billion in 2009

Operating Results
• Sales totalled 1,435,000 tonnes, down 13% year-on-year
• Sales of ammonia and mineral fertilisers were down 11% from 2009 (at 1,375,000 tonnes)
• Sales of non-organic compounds were 60,000 tonnes, down 44% year-on-year

Analysis of Financial Highlights
Dorogobuzh’s revenue was up 11% in 2010 due to increased demand and higher global fertiliser prices, despite a considerable reduction in sales resulting from a prolonged ammonia unit shutdown.

EBITDA was up 7% year-on-year. While still high, EBITDA margin was down slightly to 23% from 24% in 2009, largely due to higher raw materials costs.

Net profit in 2010 was up 46% year-on-year. In addition to operating income, Dorogobuzh profited from the sale of some of its financial investments, including Acron shares.

Dorogobuzh’s net debt increased by a factor of 2.2 to RUB 5.76 billion due to its intensive involvement in Acron Group’s large-scale investment programme. In contrast, short-term debt makes up a mere 9% of Dorogobuzh’s total debt. The net debt/EBITDA ratio was 2.2, which is a comfortable debt level for the Company.

Note: The RUB/USD exchange rate was RUB 30.4769 as of December 31, 2010 and RUB 30.2442 as of December 31, 2009; the average 2010 exchange rate was RUB 30.3765, and the average 2009 rate was RUB 31.7669.

 *EBITDA is calculated as operating profit plus depreciation and amortisation, profit (loss) from currency exchange and other non-cash and non-standard items.

Download Financial Statements