Acron posts 1Q 2011 Net Profit of 3.81 billion roubles

Acron posts 1Q 2011 Net Profit of 3.81 billion roubles
Russian fertilizer producer, Acron, has posted a 1Q 2011 Net Profit of 3.81 billion roubles under IFRS.

­The profit was up from the 1.75 billion in Q1 2010 to 3.81 billion roubles posted for 1Q 2011, with 1Q EBITDA increasing increasing 93% year-on-year to 40.60 billion roubles, on the back of a 24% rise in revenues year-on-year to 13.87 billion roubles from 11.43 billion roubles in the 1Q 2010.

The company attributed the net result to a gradual growth of global mineral fertilizer prices and a stronger rouble in Q1 2010, which resulted in an exchange gain of 1.75 billion roubles from revaluation of the group’s liabilities in foreign currency.

Alexander Popov, Acron’s chairman, said an effective pricing and distribution strategy backed by increasing demand are supportive of company’s positive performance.

“Given the combination of factors, including a favorable pricing background and a well-balanced sales structure, in Q1 Acron achieved excellent financial results. Strong cash flow and cost controls allowed Acron to sustain a comfortable debt level and at the same time focus on large-scale financing of its investment program. We can see the global fertilizer market on the upswing: demand exceeds supply, meaning that producers will be able to maintain high capacity utilization rates and positive pricing dynamics for their products,”