29th Apr 2009 08:12
April 28, 2009
Acron Releases its 2008 Consolidated IFRS Statements
Acron (RTS, MICEX and LSE: AKRN) today released its consolidated audited IFRS results for 2008.
IFRS Financials for 2008
EBITDA* totalled RUB 17.48 billion, up 104% year-on-year (2007: RUB 8.59 billion).
EBITDA margin was recorded at 41%, against 28% in 2007.
Net profit was RUB 9.89 billion, up 75% year-on-year (2007: RUB 5.67 billion).
Earnings per ordinary share grew 84% to RUB 214.4, against RUB 116.1 in 2007.
Operating Results
Major Acquisitions in 2008
Alexander Popov, Chair of Acron's Board of Directors, comments on the Group's performance:
"While 2008 marked tremendous financial and operational success for the Group as it took advantage of opportunities for further growth, Acron also faced major challenges amid the global financial crisis.
"I believe our key achievement this year was building a fully vertically integrated business, including mining, processing, logistics and distribution. We won the potash license and started construction of the phosphate mine at Oleniy Ruchey. Last year, we launched a liquid fertiliser transshipment terminal and acquired a dry bulk terminal in Estonia. We added our own international trader to our distribution network and built an expansive distribution system in China. These transformations laid a strong foundation for the Group to weather the crisis and sustain its growth in the future.
"In 2008, the Group strengthened its position in a new role as a public company. Its shares were listed at the Russian RTS and MICEX stock exchanges and at the London Stock Exchange. We saw strong interest in our company from Russian and international investors in the capital markets, which opens up new opportunities for raising capital as soon as the financial markets stabilize.
"Despite the deteriorating market in Q4, the Group's financial performance hit record levels, enabling Acron to pay RUB 3.8 billion in dividends to its shareholders in Q1 and H1.
"We realize that the year ahead is going to be challenging. With the spring planting season underway, fertiliser demand has stabilised, but prices are still at 2006-2007 levels. Demand for organic and non-organic compounds is slipping. However, we believe this trend is temporary and expect demand to rebound in H2 2009. The Group plans to run its capacities at an average load of 80% throughout the year, which will enable our facilities to operate in a stable manner without interruptions.
"In this challenging market environment, we have to adjust our growth strategy. We still plan to invest in further enhancement of our vertical integration, including construction of the Oleniy Ruchey phosphate mine and construction of an ammonia transshipment terminal in Estonian Sillamäe. Another priority is strengthening the Group's positions in its key markets. Demand is still high in Russia and China, and we are striving to build up our sales by developing our own distribution capability and offering higher value to the customers.
"Acron is focused on controlling and efficiently managing costs. Furthermore, the Group aims to makes its product portfolio and its capacities more flexible to reflect changing market demand. We have already decided to cut back on our investment program, reducing the scope or postponing some of our expansion initiatives. We plan to continue with only those projects we believe to be of strategic importance, as well as projects with a short payback period. Before adding any more capacity, we will look at market trends and study trends in demand for fertilisers and other products.
"Debt refinancing is an important strategic task right now. As of the end of 2008, Acron's aggregate bank debt totalled approximately USD 1 billion. In 2009, we are working to refinance our loan portfolio and improve its structure. We already have agreements in place to refinance debt worth over USD 400 million out of our total USD 630 million short-term debt ."
Financial Highlights
|
2008 |
2007 |
YOY, % |
|
|
Profit and Loss Statement |
|||
|
Revenue (RUB mn) |
43,131.6 |
31,105.2 |
39 |
|
Cost of sales (RUB mn) |
(19,771.2) |
(18,943.5) |
4 |
|
EBITDA (RUB mn) |
17,475 |
8,585.8 |
104 |
|
Operating profit (RUB mn) |
16,139.1 |
7,576.2 |
113 |
|
Net profit (RUB mn) |
9,891 |
5,668.3 |
75 |
|
Net profit per share (RUB) |
214.41 |
116.10 |
84 |
|
Assets |
63,031 |
43,499.5 |
45 |
|
Loans and borrowings payable |
28,823.2 |
5,499.1 |
424 |
|
Cash and cash equivalents |
4,008.8 |
1,335.3 |
200 |
|
Net debt |
24,936.3 |
4,306.6 |
479 |
|
Cash flow from operations |
10,167.3 |
5,584.2 |
127 |
Our complete financial statements and a 2008 performance presentation are available at www.acron.ru
Note: The exchange rate used for currency translations was RUB 29.3804 to USD 1 as of December 31, 2008; and RUB 24.5462 to USD 1 as of December 31, 2007. Average exchange rate was RUB 24.8740 to USD 1 in 2008, and RUB 25.5516 to 1 USD in 2007.
For Further Information:
Acron
Elena Kochubey - Tel: +7 (495) 777 08 65
Head of Public Relations
Ilya Popov - Tel: + 7 (495) 411 55 94
Head of Investor Relations
Notes to editors
Acron is a leading Russian and global mineral fertiliser producer with a diversified product portfolio consisting of multi-nutrient fertilisers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2008, the Group's output of ammonia and mineral fertilisers (exclusive of own use) totaled 3.6 million tonnes. The Group's key markets are Russia, China and other Asian countries, Europe, Latin America, and FSU countries.
Acron employs over 13,000 people. In 2008 the Group's consolidated revenues under IFRS were RUB 43,132 million (US$ 1,734 million), and net income was RUB 9,891 million (US$ 398 million). Acron's ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol "AKRN".
Acron has three production facilities - Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron's logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Tallinn port. The Group operates distribution networks in Russia and China.
Acron plans to enhance its vertical integration and secure supplies of phosphate and potash inputs through the development of its own mineral resource base. The Group owns licences to develop two apatite-nepheline ore deposits in the Murmansk region and a potassium-magnesium salts deposit in the Perm region (both located in Russia).
Related Shares:
AKRN.L