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Acron Announces IFRS Consolidated Results for 9 Months of 2008

JSC Acron (LSE, RTS and MICEX: AKRN) today Announces its Unaudited Results for the Company and its Consolidated Subsidiaries (the “Group”) for the 9 Months Ended September 30, 2008.

9 Months Highlights:


  • The Group’s revenue reached RUB 36,295 million, up 67 per cent year-on year (nine months 2007: RUB 21,674 million);
  • EBITDA* rallied 221 per cent to reach RUB 16,369 million, against RUB 5,100 million in nine months of 2007;
  • EBITDA margin totaled 45 per cent, against 24 per cent in the same period last year;
  • The Group’s net profit reached RUB 10,549 million – up 228 per cent year-on-year from RUB 3,212 million;
  • Earnings per ordinary share surged 233 per cent to reach RUB 222.58 against RUB 66.88 in nine months 2007.

*EBITDA is calculated as operating profit plus depreciation and amortization.

Note: Average exchange rate was USD 1 to RUB 24.2279 in nine months 2008 and USD 1 to RUB 25.5033 in nine months 2008


Product 9 months 2008 ‘000 tonnes 9 months 2007 ‘000 tonnes YOY (%)
Straight nitrogen fertilisers, incl. 1,275 1,399 -9%
Ammonia 165 235 -30%
Urea 167 255 -35%
Ammonium nitrate 731 909 -20%
Urea-ammonium nitrate 213 -
Multi-nutrient fertilisers, incl. 1,589 1,967 -19%
NPK 1,407 1,687 -17%
NP 8 42 -80%
Dry blends 174 238 -27%
Organic synthesis products, incl. 264 265 0%
Methanol 81 101 -20%
Formalin 16 22 -28%
Urea-formaldehyde resins 167 142 18%
Inorganic synthesis products, incl. 687 695 -1%
Industrial grade ammonium nitrate 207 158 31%
Liquid carbon dioxide 36 44 -18%
Calcium carbonate 354 369 -4%
Argon 5 5 0%
Hydrochloric acid 85 119 -29%

Key Developments of Q3

Acron’s ordinary shares were admitted to London Stock Exchange Official List (AKRN).

Alexander Popov, chairman of Acron’s Board of Directors, commenting on the Group’s performance:

“The results turned out to be somewhat below market expectations, as late in the third quarter Acron’s performance was affected by seasonal drop in demand, which sank even deeper due to global financial crisis.

“Amid consumers’ liquidity crunch fertiliser sales have not reached their expected level. Starting from November we had to cut our fertiliser production. However, today our cash flow from operations and accumulated cash are sufficient to service our debt, pay salaries and settle trade payables. Still, all companies of the Group are cutting their costs and managing expenses.

“In Q3 Dorogobuzh decreased its fertiliser sales due to overhauls of its production facilities in September through October. Hongri Acron experienced certain difficulties selling its output in the domestic Chinese market.

“In late September, demand for mineral fertilisers plummeted in certain markets, which affected the Group’s sales. However, Acron’s companies have diversified product mix and, therefore, are able to switch to industrial products, which are still in stable demand. While mineral fertiliser sales are falling, industrial segment is on the rise. Thus, industrial grade ammonium nitrate sales were up 31%, sales of urea-formaldehyde resins grew 18%.

“Despite global economy turmoil, we hope to see more stable sales of mineral fertilisers. Q1 is traditionally a good one for the Group, as Russian, CIS and European companies start buying fertilisers to apply them later in the spring. Therefore, we do expect our sales to increase.”

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