Razgulay posts FY 2010 net profit of 143 million roubles

Razgulay posts FY 2010 net profit of 143 million roubles
Russian agricultural producer, Razgulay, has posted a FY 2010 net profit of 143 million roubles under IFRS.

The net result compares with a FY 2009 net loss of 1.56 billion roubles, with EBITDA rising from 3 billion roubles in FY 2009 to 4.3 billion for FY 2010, despite revenues falling from 29.16 billion roubles in FY 2009 to 24 billion for FY 2010.

Dmitry Shteinsapir, a member of the Board of Directors of Razgulay Group said the result reflected an improving organisational structure.

“Indicators show a significant improvement in financial stability and reduction of the leverage. So, we can see almost twofold increase profitability of EBITDA and the reduction of debt / EBITDA ratio from 8.5 in 2009 to 5.8 in 2010. In addition, as a result of organizational structure optimizing, the administrative expenses decreased by almost 20%, and amounted to 1.9 billion, compared to 2.3 billion rubles in 2009.”

Shteinsapir added that Razgulay would be looking to phase out low margin production over the course of 2011.

“In 2011, according to the new development strategy, we plan to implement a series of consecutive actions to phase out low-margin operations and concentrating on strategic directions, which should significantly affect the performance of the company and its financial results."