19 Nov 2008 07:12
November 19, 2008
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:
Financials:
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
Sales:
| 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 fertilizers. 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."
For Further Information:
Acron
Elena Kochubey - Tel: +7 (495) 777 08 65
Corporate Communications
Ilya Popov - Tel: + 7 (495) 411 55 94
Chief Expert
Information and Research Department
Notes to editors
Acron is a leading Russian and global mineral fertiliser producer with a diversified product portfolio consisting of multi-nutrient fertilisers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2007, the Acron group's total fertiliser sales volume was 4.4 million tonnes. The Company's key markets are Russia, China and other fast growing developing markets of South Asia, Latin America and former Soviet Union.
Acron employs over 12,000 people in Russia and China. In 2007 the Acron group's consolidated revenues under IFRS were RUB 31,105 million (US$ 1,267 million), and net income was RUB 5,668 million (US$ 231 million), and for the three months ended 31 March 2008 consolidated revenues under IFRS were RUB 11,661 million (US$ 496 million) and net income was RUB 3,963 million (US$ 169 million). Acron's ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol "AKRN".
Acron has three production facilities - Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron's logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Tallinn port. The Company operates distribution networks in Russia and China.
Acron plans to enhance its vertical integration and secure supplies of phosphate and potash inputs through the development of its own mineral resource base. The Company owns licences to develop two apatite-nepheline ore deposits in the Murmansk region and a potassium-magnesium salts deposit in the Perm region (both located in Russia).
Complete IFRS financial statement for 9 months of 2008 is available at www.acron.ru/investor_annual.html
AKRN.L (AKRN)