AGRO1 Dec 2011 07:41
Commenting on the results, Maxim Basov, a member of the Board of Directors of ROS AGRO PLC and CEO of the Group said:
Considering the 9 month results of 2011, we can acknowledge that despite the negative impact of the drought in 2010 and extremely volatile situation on world markets, the company has shown sustainable results and has strong cash flow.
Over the past nine months we have faced significant macroeconomic uncertainty, which has seriously affected the dynamics of world commodity prices, while also breaking the correlation between world and domestic prices. The result has been that we have not earned the money that was targeted for cane sugar.
The significant reduction in market sales prices, which among others was caused by the uniquely high yield, especially in the sugar and agricultural divisions, has forced us to lower sales volumes in the current year in order to achieve better results in a period with more attractive market prices. At the same time, we are satisfied with the results of the B2C sugar division, which has given us more stability during a period of high price volatility
We are also very pleased with the positive dynamics in the meat division, which has shown a significant increase in the results despite the costs of the Tambov bacon project which had only expenditure component before its startup.
We continue to focus on operational efficacy, which permits us to accomplish more stability in any market situation with impossibility to influence the dynamics of sales prices.
The company has shown the record production levels and achieved all planned goals in production of all business divisions. We would like to confirm that all of our key investment projects remain on schedule and within budget.
The Group is looking to the future with confident and we continue to believe that our focus on operational efficiency and strong financial position will allow the company to achieve its strategic goals.