OREANDA-NEWS. MMK announces its consolidated financial statements under IFRS for Q2 2015.

Revenue growth was primarily due to the rouble's strengthening and the increase in the average steel price during the quarter, which compensated for the decreasing sales volume.

Cost of sales growth was primarily due to the rouble's strengthening versus the US dollar this quarter. Cost of sales grew more slowly than revenue due to the favourable environment on the commodities markets and the Company's continuous cost optimisation efforts. Selling, general and administrative (SG&A) expenses grew primarily due to the increase in selling expenses resulting from the changes in accounting recognition of transportation costs reimbursed to counterparts. As a result, these costs will be recognised on a gross basis in revenue and selling expenses.

The effect for each of these lines amounted to USD 17 mln in Q2 2015. EBITDA for Q2 2015 grew q-o-q which provided an EBITDA margin of 30.0%. The Company's profit increased for the quarter and reached a five-year record. Free cash flow in Q2 2015 remained flat q-o-q, despite growth in CAPEX.