Today Acron (RTS, MICEX and LSE: AKRN) announced its consolidated RAS results for Q1 2009.
Financial Highlights
- Revenue totalled RUB 9.89 billion, down 18% year-on-year (Q1 2008: RUB 12.09 billion).
- Operating profit was RUB 2.02 billion, down 63% from RUB 5.46 billion in Q1 2008.
- EBITDA* shrank 60% year-on-year to RUB 2.25 billion (Q1 2008: RUB 5.64 billion).
- EBITDA margin was 23%, down from 47% in Q1 2008.
- Net profit totalled RUB 2.67 billion, including a gain of RUB 3.72 billion due to a mark-to-market revaluation of Acron’s financial investment. Net loss before revaluation was RUB 1.05 billion, against net profit of RUB 3.97 billion in Q1 2008.
*EBITDA is calculated as operating profit plus depreciation and amortization
Acron’s Sales
|
Q1 2009 (‘000 tonnes) |
Q1 2008 (‘000 tonnes) |
YOY | |
|---|---|---|---|
| Ammonia | 71.8 | 66.2 | 8.5% |
| Straight nitrogen fertilisers, incl. | 569.1 | 424.3 | 34.1% |
| Ammonium nitrate | 412.9 | 321.0 | 28.6% |
| Urea | 75.8 | 71.5 | 6.0% |
| Urea ammonium nitrate (UAN) | 80.3 | 31.7 | 153.2% |
| Complex fertilisers, incl. | 550.5 | 613.6 | -10.3% |
| NPK | 493.7 | 543.9 | -9.2% |
| NP | 0.0 | 5.7 | |
| Dry blends | 56.8 | 64.0 | -11.3% |
| Organic compounds, incl. | 40.9 | 97.6 | -58.1% |
| Methanol | 1.4 | 33.3 | -95.8% |
| Formalin | 2.1 | 6.5 | -67.0% |
| Urea formaldehyde resins (UFR) | 37.4 | 57.8 | -35.4% |
| Non-organic compounds, incl. | 151.6 | 227.6 | -33.4% |
| Low-density and technical grade ammonium nitrate | 53.7 | 62.5 | -14.2% |
| Calcium carbonate | 76.0 | 115.2 | -34.0% |
| Liquid carbon dioxide | 7.4 | 10.8 | -31.0% |
| Argon | 1.7 | 1.9 | -11.3% |
| Hydrochloric acid | 12.8 | 37.2 | -65.6% |
Alexander Popov, chair of Acron’s Board of Directors, commented on the Group’s performance:
“Acron’s financials deteriorated year-on-year. This trend was fuelled by a significant decline in global prices for mineral fertilisers and a spike in production costs. Furthermore, in Q1 we experienced slipping demand for organic and non-organic compounds, which affected the Group’s performance in these segments.
“On the other hand, demand for mineral fertilisers, especially nitrogen fertilisers, recovered to a certain degree, and the Group was able to significantly increase its fertiliser sales, thus compensating for lower prices.”