Today, Acron (RTS, MICEX and LSE: AKRN) released its non-audited condensed consolidated IFRS financial statements for H1 2011.
Financial Highlights
• Revenue totalled RUB 29.88 billion (USD 1,046 million), up 37% year-on-year (H1 2010: RUB 21.84 billion).
• EBITDA* doubled year-on-year to RUB 9.1 billion (USD 319 million) (H1 2010: RUB 4.6 billion).
• EBITDA margin was 30%, up from 21% in H1 2010.
• Net profit increased by a factor of 2.7 to RUB 6.77 billion (USD 237 million), against RUB 2.51 billion for the same period of 2010.
• Net debt decreased slightly to RUB 28.17 billion (USD 1,003 million) against RUB 28.31 billion at the end of 2010.
• Net debt/LTM EBITDA** was 1.9, against 2.7 at the end of 2010.
Comments on Key Items
Revenue increased 37% due to rising global mineral fertiliser prices and high capacity utilisation at the Group’s production facilities. The increase in EBITDA margin to 30% reflects improved operating efficiency at the Group’s enterprises.
The marked increase in net profit was due to higher income from operating activity and foreign exchange gains from revaluation of the Group’s debt obligations.
Alexander Popov, Chair of Acron’s Board of Directors, comments on the Group’s performance:
“As anticipated, Acron Group showed far better results in H1 2011 compared to H1 2010 due to favourable conditions in the agricultural and mineral fertiliser markets. Global prices remain high, fuelled by stable demand, primarily in heavily populated Asian countries.
The profitability of the Group’s operations is generating sufficient cash flow to fully finance large-scale investment projects without increasing the debt burden. Growing upstream integration and increasing efficiency of production facilities ensure the Group’s competitiveness in the long-term. For this reason, the Group continues to invest heavily in the development of its core business, namely expanding production capacities and implementing raw material projects.”
*EBITDA is calculated as operating profit adjusted by depreciation and amortisation, foreign exchange gains or losses, and other non-monetary and non-core items.
** LTM EBITDA is EBITDA for the past 12 months.