Russian Sea Group announces its financial results for the first quarter of 2012
OJSC «Russian Sea Group», one of Russia's leading consumer food companies, has announced its key financial indicators for the first quarter 2012 based on unaudited management accounts, reports http://www.megafishnet.com/ with reference to the company.
Key financial Indicators for 1Q 2012 vs. 1q 2011
(in million of Russian Roubles)
- | 1Q 2012 | 1Q 2011 | % change |
Revenue | 4,008.4 | 4,677.4 | (14.3%) |
Chilled and frozen segment | 3,093.0 | 3,665.7 | (15.6%) |
Ready-to-eat segment | 867.3 | 1,009.3 | (14.1%) |
Aquaculture | 48.2 | 2.5 | - |
Gross margin | 576.6 | 536.8 | 7.4% |
Chilled and frozen segment | 12.0% | 11.8% | - |
Ready-to-eat segment | 23.1% | 10.9% | - |
Aquaculture | 8.4% | (242.9%) | - |
Selling, general and administrative expenses | (585.9) | (686.7) | (14.7%) |
Operating profit | (9.3) | (149.9) | (93.8%) |
Interest income | 1.8 | 0 | - |
Interest expense | (104.5) | (83.6) | 25.0% |
Exchange gain | 108.0 | 64.4 | 67.6% |
EBITDA | 38.8 | (115.6) | - |
Net (loss) / profit | 3.4 | (189.8) | - |
In Q1 2012 consolidated revenue of the Group decreased in comparison with the same period of the previous year by 14.3% and amounted to RUR 4,008.4 million. Consolidated EBITDA amounted to RUR 38.8 million in comparison with loss of RUR (115.6) million in Q1 2011. Net profit amounted to RUR 3.4 million as compared to the net loss of RUR (189.9) million in Q1 2011.
Chilled and frozen distribution segment
In Q1 2012 sales to external customers reduced by 15.6% to RUR 3,093.0 million mainly due to decrease in sales of imported pelagic fish which experienced a significant price increase following quota reduction for herring and mackerel. Gross margin was 12.0% compared to 11.8% in Q1 2011. Gross margin was adversely affected by a need to sell stock of herring and mackerel that was built at the end of 2011 with lower mark-up than was originally anticipated.
Ready-to-eat segment
In Q1 2012 sales to external customers reduced by 14.1% to RUR 867.3 million rubles which was largely driven by conservative procurement of Alaska pollock roe and salmon roe during 2011 fishing period. As a result we experienced shortage of these products in Q1 2012. Also we still experienced negative impact of price increase for herring products undertaken at the end of 2011, although this effect started to smooth out at the end of Q1 2012.
Gross margin increased to 23.1% as compared to 10.9% in Q1 2011 due to the margin recovery in delicacy red fish category at a time when the salmon and trout purchase prices stabilized and the margin maintenance in herring preserves category at a time when the raw fish prices went up.
Aquaculturesegment
The segment's revenue increased to RUR 77 million in 1Q 2012. Sales to external customers amounted to RUR 48.2 million as compared to RUR 2.5 million in 1Q 2011. Gross margin increased to 8.4% but is lower than expected mainly due to the shortage discovered when the cages with fish were taken out.
Key costs and expenses
In 1Q 2012 the Group's selling, general and administrative expenses decreased by RUR 100.8 million. But as percentage of revenue these expenses remained almost unchanged at the level of 14.6%.
Interest expense increased by 25.0% from RUR 83.6 million in 1Q 2011 to RUR 104.5 million in 1Q 2012. In 1Q 2012 the average effective interest rate was equal to 11.19%.
In 1Q 2012 the Group had exchange gain in amount of RUR 108 million.
The Group consolidated net profit amounted to RUR 3.4 million in 1Q 2012.