OREANDA-NEWS. June 6, 2011. Acron (RTS, MICEX and LSE: AKRN) released its unaudited IFRS consolidated condensed interim financial statements for Q1 2011.

Financial Highlights

• Revenue totalled RUB 13.87 billion, up 21% year-on-year (Q1 2010: RUB 11.43 billion)

• EBITDA* was RUB 4.60 billion, up 93% year-on-year (Q1 2010: RUB 2.39 billion)

• EBITDA margin was 33%, up from 21% in Q1 2010

• Net profit more than doubled to RUB 3.81 billion (against RUB 1.75 billion in Q1 2010)

• Net debt decreased 10% to RUB 25.74 billion

* EBITDA is calculated as operating profit plus depreciation and amortisation, profit (loss) from currency exchange and other non-cash and non-standard items.

Comments on Key Items

Revenue was up 21% due to strong global mineral fertiliser prices. Revenue outpaced costs, boosting the Group’s operating profit and margin.

Net profit more than doubled for the reasons mentioned above, as well as due to a stronger rouble in Q1 2010, which resulted in an exchange gain of RUB 1.75 billion from revaluation of the Group’s liabilities in foreign currency.

Positive operating cash flow in the reporting period was RUB 3.37 billion, providing the cash needed to finance the Group’s investment activity, which in Q1 2011 totalled RUB 1.78 billion, and considerably decrease its debt burden. The Group’s net debt decreased by RUB 2.58 billion and the LTM EBITDA**/net debt ratio was 2.1, down from 2.7 at the end of 2010.

Chairman of the Board of Directors Alexander Popov comments on the results:

“Given the combination of factors, including a favourable pricing background and a well-balanced sales structure, in Q1 Acron achieved excellent financial results. Strong cash flow and cost controls allowed Acron to sustain a comfortable debt level and at the same time focus on large-scale financing of its investment programme.

At 33%, the higher EBITDA margin reflects our efficient operations and shows promise for the sector as a whole. We can see the global fertiliser market on the upswing: demand exceeds supply, meaning that producers will be able to maintain high capacity utilisation rates and positive pricing dynamics for their products.”