Synergy increases net profit 14% in 2016
MOSCOW. April 5 (Interfax) - Vodka producer Synergy increased net profit 14% to 275 million rubles in 2016.
Net revenue was up 17% to 35.9 billion rubles, the company said.
Gross profit rose 15% to 14.5 billion rubles. Gross margin was 40.4% compared to 41.3% a year earlier.
EBITDA increased 12% to 3.2 billion rubles and EBITDA margin was 9% from 9.4% in 2015.
Shipments of alcohol goods rose 18% to 11.6 million decaliters.
The company also said it rapidly developed distribution of imported products from partner companies last year. Synergy's imports increased 44% to 665,000 decaliters.
According to the press release, revenue from the alcohol segment was 29.3 billion rubles, up 12% on 2015. Gross profit increased 20% to 13 billion rubles and gross profit margin fell to 44.5% from 45.6% in 2015.
Revenue from the food segment fell 4% to 6.6 billion rubles. Gross profit declined 18% to 1.5 billion rubles; gross profit margin was 22.5% against 26.4% in 2015.
The company said that the results in the food segment worsened, in particular, due to the negative poultry meat pricing environment, leading to a decrease in revenues against a growth in the cost of feed and raw materials.
The company also said that total debt as of December 31, 2016 increased 7.1% to 9.1 billion rubles. Net debt was 8 billion rubles, up 10.4% on December 31, 2015. The net debt/EBITDA ratio was 2.5x compared to 2.53 in 2015.
"Synergy increased its net revenue 17%, the alcohol segment revenue - 23% and gross profit - 15%, with an 18% increase in shipments in volume terms. One of the major factors that influenced the growth of performance of both Synergy and the country's whole legal alcohol market was significant reduction of illegal producers share. It was mainly due to the government's active work for suppressing such activities. Moreover, we note gradual recovery of consumers' purchasing power that also positively influenced the company's financial results," Synergy CEO Alexander Mechetin was cited as saying in the press release.
Synergy produces spirits at seven plants (Traditsii Kachestva, Alviz, ROOM, UralAlko, Mariinsky LVZ, Ussuriisky Balzam, Khabarovsky LVZ). The main vodka brands are Beluga, Myagkov and Belenkaya.
