Razgulay posts 1H 2009 Net Loss of 986 million Roubles

Russian agricultural producer, Razgulay, has posted a 1H 2009 Net Loss of 986 million Roubles under IFRS.

The bottom line compares with a 1H 2008 Net Profit of 1 billion Roubles, with 1H EBITDA falling from 1.5 billion Roubles in 2008 to 1.4 billion roubles in 2009, despite 1H Revenues rising from 11.5 billion Roubles in 2008, to 13 billion Roubles this year.

The company says the results reflect net financing costs rising to 1.4 billion Roubles from 700 million in 1H 2008, with distribution expenses rising by 1 billion Roubles due to sales volumes of grain nearly doubling to 1.3 million tones, and grain exports rising from 125 thousand tones to 521 thousand tonnes. Grain prices were down by 35% year on year during the half, with sugar prices rising 35%, and rice prices rising 28%.

Razgulay noted 6M Capital Expenditure of 790 million Roubles, which sees 37% more land under crop in October with significant increases in grain storage and shipping capacity, and a 14% increase in sugar yields due to the modernization of its sugar mills.