Acron, one of Russia’s largest mineral fertilizer producers, saw first quarter 2011 net profits jump 120 percent year-on-year to 3.81 billion rubles ($136.70 million) to IFRS, boosted by high fertilizer prices and a strong ruble, the company said on Monday.
“Revenue was up 21 percent due to strong global mineral fertilizer prices. Revenue outpaced costs, boosting the group’s operating profit and margin,” the company said in a statement.
“Net profit more than doubled for the reasons mentioned, as well as due to a stronger ruble in the first quarter of 2011, which resulted in an exchange gain of 1.75 billion rubles from revaluation of the group’s liabilities in foreign currency.”
EBITDA soared 93 percent to 4.60 billion rubles, while EBITDA margin increased to 33 percent from 21 percent.
Net debt fell 10 percent to 25.74 billion rubles.
“We can see the global fertilizer market on the upswing: demand exceeds supply, meaning that producers will be able to maintain high capacity utilization rates and positive pricing dynamics for their products,” Acron Board of Directors Chairman Alexander Popov was quoted in the statement as saying.
MOSCOW, June 6 (RIA Novosti)