PPF Group's net profit decreases to 216 mln euro in 2011
MOSCOW. June 5 (Interfax) - PPF Group's net profit in 2011 reached by 100 million euro to 216 million euro, the group said in a statement.
The group's CFO, Pavel Horak, said that the decrease in profit had been the result of the operations of Energy and Industrial Holding (a joint venture of PPF Group, K&T Group and Daniel Kretinsky).
Horak said: "The decrease in net profit compared to 2010 was primarily driven by the results of Energy and Industrial Holding in 2010." However, he said that these results do not show a negative trend for the long-term. Horak added that he believes the asset returns are now in a growth phase.
At the same time, the group's Russian bank, Home Credit, made a contribution to the net profit results, which PPF has described as "a record".
Other companies in the group, such as insurance holding Generali PPF, Nomos-Bank and Polymetal , demonstrated stable results for 2011. According to PPF Group's audited consolidated results according to international financial reporting standards (IFRS), the group's consolidated assets on December 31, 2011 stood at 14.357 billion euro. "This result was a record for the group," PPF said.
The group's assets increased by 16% from 12.383 billion rubles in 2010.
PPF Group successfully completed major projects in 2011 such as its acquisition of a 100% stake in Russian electronics retailer Eldorado, as well as developer projects and the agro-business in Russia.
Furthermore, PPF restructured its stake in Czech company Energy and Industrial Holding. The group acquired a 50% interest in Czech lottery company Sazka.
The group's equity in 2011 went down by 3% to 4.268 billion euro from 4.424 billion euro at the end of 2010. The slight reduction in equity was the result of the group's purchase of 49.9% stake in Eldorado.
The group's strategy focuses on sector diversification and concentration on investments over 100 million euro, the statement said.