Rosinter restaurants posts 9M 2010 net profit of 213.6 million roubles

Russian restaurant chain holding Rosinter Restaurants has posted a 9M 2010 net profit of 213.6 million roubles under IFRS

­The 9M 2010 net result compares with a net loss of 226 million roubles for 9M 2009, with EBITDA jumping 59% year on year to 747.2 million roubles, as revenues rose 17.2% year on year to 7.126 billion roubles.

Rosinter noted increased same store sales, as well as a boost from newly opened restaurants, with CEO Sergey Bashev referring to the expansion program and marketing strategy that brought Rosinter’s restaurant numbers to 359.

“In third quarter of 2010 our company has demonstrated further improvement in sales trend and net profit margin. Same store sales growth for the third quarter increased to 7.3% from 6.0% in first half of 2010. In total during first nine months of 2010 consolidated revenue increased by 17.2% as compared to the same period of 2009 and net profit reached 213.6 million rubles. During nine months of 2010 we have opened 8 new corporate and 16 new franchise restaurants. To maintain our growth targets in the balance of 2010 and 2011 we have built an inventory of potential new locations, 29 of which are presently under construction and will be opened later this year and early next year. In 2010 we continue to reinforce our marketing activities and we are confident that our strong commitment and focus on customers would translate into improved financial results in the future.”

Chief Financial Officer, Victor Shlepov, added that the group had continued to restructure debts and reduce operational expenses.

“In the third quarter we have fully completed our SPO and further reduced debt to 1,412 million rubles which is 35.8% lower than at the begging of 2010. By end of November we have also completed the restructuring of our debt portfolio that resulted in improvement of its maturity profile with long-term component increased to 81%. It is important to highlight that during first nine months of 2010 our company has done significant work on ensuring better operating performance and positive financial results of each store. As part of this strategy we decided to close several corporate outlets which brings us sustainable positive effects on operating profit. In 2010 we launched legal restructuring program that already gave positive influence on effective tax rate and savings in SG&A expenses. Our better operational performance strengthens internal fund generation and allows us to increase the pace of corporate development.”