OREANDA-NEWS. On 21 May 2008 was announced, that according to Russian accounting standards, JSC Acron’s consolidated revenues for the first quarter of 2008 were 12,094 million rubles, 57% more than the 7,711 million rubles reported in the first quarter of 2007. Production costs increased 12% to 5,139 million rubles, compared to 4,585 million rubles in the first quarter of 2007.

Operational profit rose by 173% to 5,462 million rubles against 2,002 million rubles in the first quarter of 2007; the operating margin was 45% (vs. 26% in 2007).

Net profit in the fiscal period was 9,153 million rubles. Net profit was influenced by the revaluation of financial investments to the market value, the effect of which was 5,178 million rubles. Net profit disregarding the revaluation of financial investments therefore grew by 223% to 3,974 million rubles against 1,232 million rubles in the first quarter of 2007.

EBITDA more than doubled and increased by 186% to 5,605 million rubles against 1, 958 million rubles in the first quarter of 2007; the EBITDA margin was 46% (vs. 25% in first quarter of 2007).

In the first quarter of 2008 JSC Dorogbuzh boosted its revenues by 45% to 2,824 million rubles against 1,953 million rubles in the first quarter of 2007.

Net profit in the fiscal period was 2,688 million rubles. Net profit was influenced by the revaluation of financial investments to the market value, the effect of which was 1,862 million rubles. Net profit disregarding the revaluation of financial investments therefore totalled 826 million rubles, which is 2.9 times higher than the 287 million rubles reported in the first quarter of 2007.

EBITDA more than doubled and increased by 157% to 1,157 million rubles against 451 million rubles in the first quarter of 2007; the EBITDA margin was 41% compared to 23% a year earlier.

“The exponential growth in the Acron Holding’s financials is a huge potential for the company’s further expansion,” says Aleksandr Popov, Senior Vice President of JSC Acron. “The increase in output, cost controls and a favourable world fertilizer market have had a positive effect.

The 2007 reconstruction of JSC Acron’s assets at its Veliky Novgorod production site resulted in a significant increase in the output of key products in the first quarter of 2008. And despite a limited supply of apatite concentrate since the beginning of the year, JSC Dorogobuzh was able to keep output high.

“Strong demand for the Holding’s products has been supported by rising food prices throughout the world, despite the sharp price increases for mineral fertilizers. Even before the end of the month following the first quarter, the global prices for urea, ammonium nitrate, urea-ammonium nitrate and NPK grew 37%, 11%, 18% and 8%, respectively.”

Complete first quarter 2007 RAS consolidated financial statements for JSC Acron and JSC Dorogobuzh are available at www.acron.ru/investor_annual.html