Sodrugestvo Reports Financial Results for Fiscal Year 2010By Sodrugestvo Group, PRNE
Wednesday, October 20, 2010
Net Revenues Increase Significantly in Year-over-year Comparison
KALININGRAD, Russia and NEW YORK, October 21, 2010 - Leading Russia-based agro-industrial company Sodrugestvo Group reported a
strong increase in net profit in its 2010 fiscal year ending June 30, 2010.
The company reported US$32 million in net profit on revenues of US$857
million compared to US$3 million in net profit on revenues of US$845 million
the year prior.
The company reported significant positive gains across many financial
metrics, including EBITDA (US$81.6 million in 2010 compared to US$41.1
million); operating profit (US$55 million vs. US$14 million); and significant
increases in both operating and gross margins, all compared to fiscal year
In the past year, Sodrugestvo focused mainly on improving its operations
and controlling its costs, which it believes this will continue to serve the
company's long-term growth strategy. In terms of investments, the company
completed a minority-stake investment in the North Dakota Oilseed Mills
canola processing mill in Northwood, North Dakota, USA in February 2010. In
addition, its Transagro subsidiary acquired 350 grain railcars, making it one
of the largest private players in the sector in Russia. The acquisition was
refinanced by the European Bank for Reconstruction and Development.
Finally, Sodrugestvo recently announced the creation of a joint-venture
in Brazil with one of the country's largest farmer's cooperatives, Carol. The
transaction is expected to close during the fourth quarter of 2010, allowing
Sodrugestvo to expand its footprint in the country.
"Despite the continuation of the global economic downturn, our business
stays strong as costs remain under control and we are gradually seeing the
impact of the large investments we made over the last few years, in
particular in Kaliningrad. We plan to continue to invest in Russia and to
grow our facility in Kaliningrad into a major specialized hub for the export
and import of agricultural commodities from and into the Baltic region and
the former Soviet Union, as well as to seek appropriate external expansion
opportunities," said Stephane Frappat, CEO of Sodrugestvo Group. "Sodrugestvo
also benefited from the strength of the Russian agricultural sector
throughout the crisis. In addition, European Union sales continued to grow,
now representing nearly 40 percent of the company's total revenues."
About Sodrugestvo Group
Sodrugestvo Group (www.sodrugestvo.com), founded in 1994, is a
rapidly growing agro-industrial company serving farmers in regional markets
globally. The company specializes in the processing of soybeans and rapeseed
(canola) for food products and animal feed. In 2009-10, Sodrugestvo crushed
more than 1.1 million tons of soybeans and rapeseed, making it a leading
player in Northern, Central and Eastern Europe. The company is vertically
integrated with three business units — specialized infrastructure (including
deep-water sea port terminals), logistics (including railcars and storage
facilities) and processing and marketing (of proteins and oils from vegetal
and animal commodities).
Headquartered in Kaliningrad, Russia, the company has 18 facilities
located in nine countries including Russia, Denmark, Brazil and the United
States. With consolidated sales of US$857 million in its fiscal year ending
June 30, 2010, Sodrugestvo has enjoyed average annual growth of 15 percent or
more for the last 10 years. Sodrugestvo employs 900 and is privately held.
This release is available online in the Feintuch Communications media
room located at www.feintuchcommunications.com
Jules Abraham, +1-212-808-4904, jules at feintuchpr.com, or Savannah Tikotsky, +1-212-808-4903, savannah at feintuchpr.com, both of Feintuch Communications
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