Wimm-Bill-Dann posts 3Q 2010 net income of $21 million
The 3Q net result is down 52.7% year on year from the $44.5 million net result posted for 3Q 2009, with 3Q EBITDA down 9.4% year on year to $80 million, despite 3Q sales rising 22.3% year on year to $640.9 million.
The 3Q figures made for a 9M 2010 net income of $92.7 million, down 15.2% year on year, with 9M EBITDA dropping 2.8% year on year to $239.6 million, as 9M sales rose 18.8% to $1.895 billion.
The company noted increased 3Q financial expenses climbed $16.9 million, compared to $5.9 million in 3Q 2009. CEO Tony Maher focused on the strong revenues growth with the impact of the summer drought hitting milk prices.
“We saw a robust 15% jump in group volumes in the third quarter and 10% increase for the first nine months of the year. The unusually hot summer led to an unprecedented spike in raw milk prices which has affected all players. Our long-term supplier relationships allowed us to manage this challenge better than others and our unrelenting focus on cost and supply chain
management helped us reduce the impact on our margins. In particular, we were pleased by our ability to deliver sequential improvement in our dairy gross margins of 60 basis points during the third quarter.”
Maher also noted that the recent purchase of Wimm-Bill-Dann by Pepsico was an expression of confidence in the Russian market and would bring tremendous opportunities.
“We are also very pleased with the recently announced agreement with PepsiCo. This transaction is a great vote of confidence in the Russian market and recognizes the value of Wimm-Bill-Dann’s strong, high-growth platform and product portfolio, while bringing tremendous value to our shareholders. PepsiCo is a global leader in the food and beverage industry and we are excited about the opportunities that this deal brings. Together we will be the largest FMCG company in Russia with a comprehensive portfolio of products and an unmatched distribution network that will deliver benefits to our shareholders, customers, suppliers and employees,”