OJSC Pava 2008: shows stable financial position

Barnaul / RU. (pava) One of the major Russian grain processors OJSC Pava, operating three mills and grain elevators in the Russian Altay and Krasnoyarsk regions, has summed up its financial results for 2008, according to RAS standards.

Pava´s non-consolidated revenue advanced 35,7 percent and amounted to 3’878’358’000 RUB as a result of the rising income from new product launches (Zhitnitsa flour, wheat germ oil) and the growing number of business partners – the company said in a statement. Non-consolidated revenue was also positively affected by the company´s marketing strategy, brand reputation and production quality.

Pava`s liabilities were reduced by 10’382’000 RUB (around 0,7 percent). The grain-processor achieved this result due to effective measures in the company´s activities, mills´ productivity and cutting costs, which allowed to release extra funds for paying off the debt.

Non-consolidated revenue rise and net debt reduction modified the net-debt / Ebitda ratio. This index went down from 5,9 to 8,6 (31 percent) proving the growth in liquidity.

Pava´s sales profit amounted to 223’372’000 RUB, increasing 55 percent. Growth of this figure can be explained by rising prices for products in 2008 and new markets opening (export volume reached 70’000 tons, increasing 84 percent).

One of the major profit indexes, Ebitda, advanced 43,8 percent and amounted to 252’342’000 RUB. Sales profit rise contributed to growth of this figure. Ebitda profitability increased 5,9 percent due to export growth and business processes improvement.

Pava is an agricultural producer, which successfully fulfilled its obligations on the bond loan of series 02. 293’618 bonds to the amount of 293’618’000 RUB were presented for repayment, which accounts for 29,36 percent of the total volume of the second issue. Having completed all demands for bonds, the company again proved its reliability in public bond market.