OREANDA-NEWS. September 28, 2010. OJSC Rosinter Restaurants Holding (Rosinter), the leading casual dining restaurants chain in Russia and CIS (RTS and MICEX ticker: ROST), announced its financial results for the first half of the year ended June 30, 2010 prepared in accordance with IFRS. The Company’s unaudited interim condensed consolidated financial statements for first half 2010 are posted on our web page at www.rosinter.com, reported the press-centre of Rosinter.

FIRST HALF 2010 HIGHLIGHTS
Net sales increased by 16.9% to RUB 4,692 mln in first half of 2010 as compared to RUB 4,012 mln in the same period in 2009

Gross profit amounted to RUB 1,124 mln, for a gross margin of 23.9% as compared to 23.5% in first half of 2009

Operating profit amounted to RUB 293 mln, for an operating margin of 6.2% as compared to 3.8% in first half of 2009

EBITDA amounted to RUB 491 mln, for an EBITDA margin of 10.5% as compared to 8.9% in first half of 2009

Net profit amounted to RUB 111 mln, for a net profit margin of 2.4% as compared to net losses in first half of 2009

Gross debt decreased by 15.7% to RUB 1,855 mln, leading to a Net debt/EBITDA of 1.89x as at 30 June 2010 in comparison with 2.97x as at 31 December 2009

Operating cash flow before one-off investments in working capital increased 36.7% to RUB 295 mln in first half of 2010

Sergey Beshev, President and CEO:
“In line with our strategy of delivering profitable growth, in the first half of 2010 we posted net revenue of 4,692 million rubles which represents a 16.9% y-o-y growth. We also improved our EBITDA margin and posted a net profit of 111 million rubles.

In 2010 we continue developing our corporate network with a highly focused strategy in combination with the robust expansion of our franchise network. By end of first half of 2010 we had already opened 8 corporate and 10 franchise restaurants and had under construction 12 corporate and 20 franchise outlets which openings are planned for this year and early next year. Simultaneously, at restaurant level, we have been investing in modern equipment and upgrading the decor as part of our brand evolution initiatives. This will allow us to maintain our brands’ leading competitive position.

We made several steps to strengthen our management team in the first half of the year. We incorporated team members with international experience in our industry and, in order to reinforce our team’s strong commitment to achieving company’s goals, we implemented a new compensation program which also includes a stock-based incentive component for key members of the team”.

Victor Shlepov, CFO:
“Following our successful SPO, we reduced our debt level by 15.7% to 1,855 million rubles and reduced our average interest rate by 6% which will give us substantial savings on the cost of financing. In order to secure access to long-term financing our Company has registered on MICEX a bond issue for a nominal amount of 1,500 million rubles and as an additional step we have committed to a long-term corporate credit rating regular process, which led recently to a “B-“ rating initiation by Standard&Poor’s with stable outlook. Also I would like to highlight the increase in analytical coverage of our stock which combined with a wider post-SPO free float have positive impact on our shares liquidity”.