24 Sep 2009 12:39

Synergy lowers IFRS net profit by 9.6% in H1 to 512 mln rubles

MOSCOW. Sept 24 (Interfax) - OJSC Synergy, on of Russia's leading alcohol produces, decreased its IFRS net profit by 9.6% year-on-year to 512 million rubles in the first half of 2009 owing to an increase in financial expenditures.

The company said in its materials that sales revenue in the first half came to 7.78 billion rubles, up 8% year-on-year. Gross profit went up by 3.6% to 2.68 billion rubles while operational profit increased by 26.3% to 1.2 billion rubles, the company said in a statement. Synergy's EBITDA went up by 29% to 1.398 billion rubles compared to 1.08 billion rubles in the first half of 2008.

The costs of product sales in the period went up by 10% to 5.1 billion rubles. Synergy's economic and administrative expenses shrank by 32% to 548 million rubles thanks to a program for reducing total costs. Commercial expenditures edged up by 02% to 1.039 billion rubles.

In the first half of 2009, Synergy increased financial expenditures by 114% to 634 million against 296 million rubles in the same period of 2008. The company said the increase was the result of rising interest rates on loans in light of the financial crisis. The increase in financial expenditures was driven by a drop in net profit, the company said.

The positive net cash flow from Synergy's operations in the first half came to 276 million rubles against a negative cash flow of minus 367 million rubles in the same period of 2008.

Synergy produces liquor at seven distilleries in five federal districts, including Ussuriisky Balzam, Khabarovsky, Uralalko in Perm, Alviz in Arkhangelsk and ROOM in Nizhny Novgorod.

The company conducted an IPO on Russia's MICEX and RTS exchanges in November 2007, raising $190 million by placing 2.72 million shares at $70 each.