OREANDA-NEWS. On 18 May 2009 Acron (RTS, MICEX and LSE: AKRN) announced its consolidated RAS results for Q1 2009.

Financial Highlights

• Revenue totalled RUB 9.89 billion, down 18% year-on-year (Q1 2008: RUB 12.09 billion).

• Operating profit was RUB 2.02 billion, down 63% from RUB 5.46 billion in Q1 2008.

• EBITDA* shrank 60% year-on-year to RUB 2.25 billion (Q1 2008: RUB 5.64 billion).

• EBITDA margin was 23%, down from 47% in Q1 2008.

• Net profit totalled RUB 2.67 billion, including a gain of RUB 3.72 billion due to a mark-to-market revaluation of Acron’s financial investment. Net loss before revaluation was RUB 1.05 billion, against net profit of RUB 3.97 billion in Q1 2008.

Alexander Popov, chair of Acron’s Board of Directors, commented on the Group’s performance:

“Acron’s financials deteriorated year-on-year. This trend was fuelled by a significant decline in global prices for mineral fertilisers and a spike in production costs. Furthermore, in Q1 we experienced slipping demand for organic and non-organic compounds, which affected the Group’s performance in these segments.

“On the other hand, demand for mineral fertilisers, especially nitrogen fertilisers, recovered to a certain degree, and the Group was able to significantly increase its fertiliser sales, thus compensating for lower prices.”