OREANDA-NEWS. August 15, 2011. JSC Concern "KALINA," Russia's largest cosmetics producer, has announced its consolidated IFRS financial results for the 1st half 2011.

Sales and gross profit of the Company for the 1st half 2011 were 5,496 mln rubles and 2,806 mln rubles respectively, attributing to increase of 8.9% in sales and 5.1% in gross profit in comparison to the 1st half of the year 2010.

Key figures from the Company's consolidated financial statements for the 1st half 2011 compared to figures of the respective period of the year 2010 are given below. The Company's full IFRS consolidated financial report is available on the Company's web-site at www.kalina.org.

Financial Results (IFRS)

In Rubles and in Million

January-

January-

% Change

 

June 2011

June 2010

 

Sales

5 496

5 049

8,9%

Gross profit

2 806

2 671

5,1%

percentage of sales ( %)

51,1%

52,9%

-

EBITDA*

802

713

12,6%

percentage of sales ( %)

14,6%

14,1%

-

Operating profit

719

564

27,4%

percentage of sales ( %)

13,1%

11,2%

-

Net income

365

304

20,0%

percentage of sales ( %)

6,6%

6,0%

-

*EBITDA - earning (loss) before interests, taxes, amortization and depreciation.

Sales growth by 8.9% in 1st half 2011 was achieved due to the Company's concentration on active promotion of branded products and investments into development of brands distribution. During the 6 months of the year 2011 Concern launched 133 novelties of branded products. Gross profit of the Company for the 1h2011 increased by 5.1% compared to figures of the respective period of the year 2010, while gross margin decreased to 51.1% compared to 52.9% because raw materials inflation was higher than inflation for finished goods.

Operating profit in the 1st half 2011 increased by 27.4% compared to the 1h2010 due to the gross profit growth and keeping advertising expenses (in % of sales) on the same level.

In 1 half 2011 the Company continued the work on reducing foreign exchange risks, as well as on the debt structure optimization. Total financial debt at the end of 1h2011 decreased by 20% compared to the respective period of the year 2010 and amounted to 3,548 mln. rubles. The share of middle- and long-term debt amounted to 69% of the total financial debt of the Company.

In May 2011, the Company completed charter capital decrease. The Company's charter capital after redemption comprises 6,438,348 ordinary shares.

In 1h2011 the Company entered the deal on sale of DSN business, which includes brands "Dr. Scheller Das Naturkonzept" and "Phyto Solution" to BCG Baden-Baden Cosmetics Group AG. The selling price for DSN business received by the Group on July, 1 2011 amounted to EUR 1.350.000.