Acron posts 9M 2008 Net Profit jump of 228%
Russian fertilizer producer, Acron, has posted a 9M 2008 Net profit of $384 million under IFRS.
The bottom line result is up 228% on the $117 million Net Profit posted over the same period 2007, with EBITDA up 221% year on year to $596 million, on the back of Revenues of $1.32 Billion.
Commenting on the results in a press release, Alexander Popov, Acron’s Board Chairman, acknowledged the results were below market expectations, pointing to a seasonal drop in demand during the third quarter being accentuated by the global financial crisis, but noted that the company’s cash reserves and cash flow put the company in a stable position.
“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.”
Popov added that the new year would see sales increase, with the onset of the Northern growing season underpinning demand for Acron’s products.
“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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