Acron’s 9M18 revenue up 12% y/y

Highlights

• 9M18 revenue was RUB 77 779 million, up 12% y/y (9M17: RUB 69 289 million). In dollar equivalent, revenue was up 7% to US$1266 million from US$ 1188 million.
• EBITDA* was up 18% y/y to RUB 25 486 million (9M17: RUB 21 620 million). In dollar equivalent, EBITDA was up 12% to US$415 million from US$ 371 million.
• EBITDA margin was 33%, against 31% y/y.
• Net profit was RUB7366 million (US$120 million), down 27% y/y (9M17: RUB 10 135 million) because of a number of one-off events: a net exchange loss of RUB 4608 million due to a revaluation of assets, loans and liabilities, and a RUB 1890 million loss on derivatives.
• Net debt was up 4% to RUB 74 105 million, against RUB 71 123 million as of 30 June 2018. In dollar equivalent, net debt remained essentially unchanged at US$1130 million.
• Net debt/LTM EBITDA** was 2.2, against 2.3 as of 30 June 2018. In dollar equivalent, the ratio was 2.0, down from 2.2.

Operating Results

• Output of key products was 5.62 million t, up 3% y/y.
• Sales of key products totalled 5.44 million t, almost unchanged y/y.

Alexander Popov, Chair of Acron’s Board of Directors, commented: "Acron Group’s financials are steadily growing and demonstrate the sustainability of Acron Group’s business model. Over 9M18, EBITDA increased 12% y/y to US$ 415 million. EBITDA margin reached 33%. The decrease in net profit is not representative, as it was due to one-time factors. We are securely in control of our debt burden. Net debt/LTM EBITDA in dollar equivalent was down to 2.0.

“With higher output, positive conditions on the mineral fertilizer market and the commissioning of a new urea unit, we expect Q4 financials to hit a record high.

“After considering Acron Group’s operating results and given the current debt burden, in 2018 the Board of Directors recommended three times that the general meeting resolve to pay dividends totalling RUB 337 per share. Next year, we also plan to pay dividends three times, which is in line with the best global practices and our shareholders’ interests”.

Read the article online at: https://www.worldfertilizer.com/nitrogen/03122018/acrons-9m18-revenue-up-12-yy/