Today Acron (Moscow Exchange and LSE: AKRN) released its consolidated condensed IFRS financial statements for 9M 2014.
• Revenue was up 2% year-on-year to RUB 52,676 million (USD 1,489 million) (9M 2013: RUB 51,697 million)
• EBITDA* was up 3% year-on-year to RUB 12,811 million (USD 362 million) (9M 2013: RUB 12,380 million)
• EBITDA margin was 24%, unchanged year-on-year
• Net profit was up 21% year-on-year to RUB 9,695 million (USD 274 million) (9M 2013: RUB 8,010 million)
• Production of key products totalled 4.840 million tonnes, up 6% year-on-year.
• Sales of key products totalled 4.813 million tonnes, up 4% year-on-year.
Senior Vice President Alexander Popov comments on the performance results:
“While Acron Group’s growth in financial performance slowed in Q3 due to the planned long-term overhaul at JSC Dorogobuzh, the Group’s efficiency actually improved. EBITDA margin was up to 25% in Q3, against 24% in Q2. This was driven by several factors, including a successful programme to reduce costs, internal phosphate raw materials production, tariff freezing at natural monopolies and the weakening rouble.
The Group continues to move forward with its investment programme. The Group will pass the peak of an investment phase on the Ammonia-4 project at the end of this year. The first stage of the Oleniy Ruchey mine project is expected to reach annual capacity of 1.1 million tonnes of apatite concentrate. Alongside already realized expansions of urea and UAN production, these projects will provide further growth for the Group’s operating performance.
The Group’s dollar-denominated net debt remains stable. The weakening of the rouble observed at the moment delivers a strong positive effect on the Group’s financial performance. In Q4 we expect to see significantly stronger financials, which will also lead to a decrease in the relative debt load in dollar terms.”
The full version of Acron Group’s financial statements is available at www.acron.ru/en.
Note: The exchange rate for currency conversion was RUB 39.3866 for USD 1 as of 30 September 2014 and RUB 32.7292 for USD 1 as of 31 December 2013. The average exchange rate in Q3 2014 was RUB 35.3878 for USD 1.
* EBITDA is calculated as operating profit adjusted for depreciation and amortisation, Forex gains or losses, and other non-monetary and non-core items.