OREANDA-NEWS. March 29, 2010. Wimm-Bill-Dann Foods OJSC [NYSE: WBD] today announced its financial results for the full year and the fourth quarter ended December 31, 2009.

Highlights for the full year and the fourth quarter of 2009

• Group gross margin improved 110 basis points year-on-year to 33.4% in the full year of 2009
• Group gross margin decreased to 30.1% in the fourth quarter of 2009 from 32.7% in the fourth quarter 2008, driven by acute shortage and sharp increase in raw milk costs at the end of 2009
• EBITDA margin increased to 14.1% in the full year of 2009 compared to 12.8% in 2008
• On a constant currency basis (in rubles), EBITDA increased by 8.5% year-on-year in the full year of 2009
• Group revenue in US dollars decreased 22.8% year-on-year to USD 2,181.1 million in the full year of 2009, driven by ruble devaluation, and partially offset by improved sales mix in Dairy and stronger volumes in Beverages and Baby Food
• Operating profit margin improved to 9.2% in the full year of 2009 from 8.7% in 2008
• Net income in US dollars increased 14.6% year-on-year to USD 116.5 million in the full year of 2009
• On a constant currency basis (in rubles), net income increased by 46.4% year-on-year in the full year of 2009
• As of the end of the full year of 2009, our net debt decreased by 30.5% year-on-year to USD 275.3 million
• Our free cash flow grew to USD 187.0 million in the full year of 2009 from USD 139.8 million in the same period of 2008

“Wimm-Bill-Dann achieved solid growth in profitability and significantly improved its balance sheet in 2009 despite continuing macroeconomic pressure and a temporary shortage of raw milk late in the year, which impacted dairy sales and margins in the fourth quarter,” said Tony Maher, Wimm-Bill-Dann’s Chief Executive Officer. “While we were forced to restrict the production of some of our dairy products in the fourth quarter, on the whole, we succeeded in further strengthening our market position. We increased our market share and maintained our leading market position in baby food. We accelerated share gains in beverages, enhancing our market position. Furthermore, and most importantly, we are confident in the fundamentals of all of our markets and remain fully committed to our strategy of profitable growth coupled with sound financial discipline.”

“Group revenue in US dollars decreased 22.8% year-on-year to USD 2,181.1 million in the full year of 2009, and by 7% year-on-year to USD 585.5 million in the fourth quarter of 2009, driven by ruble devaluation, and partially offset by improved sales mix in dairy and stronger volumes in beverages and baby food. Group revenue in rubles stood flat year-on-year in the fourth quarter of 2009.”

“For the full year of 2009, group gross margins increased 110 basis points year-over-year to 33.4%, reflecting improved gross margins in all business segments. In 2009, gross margin in beverages increased 60 basis points to 39.7%, dairy improved 30 basis points to 29.4%, and baby food continued its extraordinary performance, reaching 48.0%, up 110 basis points. Additionally, our EBITDA margin increased 130 basis points year-over-year to 14.1% in 2009, evidence of our efforts to drive efficiency gains and cost savings throughout the business.”
 
“Despite the new challenges we faced in 2009, we remain optimistic about the coming year. We made significant progress in the last year strengthening our operations, investing in our brands, expanding our market share, and strengthening our balance sheet,” Tony Maher added.