OREANDA-NEWS. August 31, 2009. JSC Concern "KALINA," one of Russia’s largest perfumery and cosmetics producers, has announced its consolidated IFRS financial results for the first half 2009.

Sales and gross profit of the Company for the 1 half 2009 reached 6,793 million rubles and 3,228 million rubles respectively, attributing to increase of 24.3% in sales and 13.0% in gross profit over the same period of 2008.

Key figures from the Company’s consolidated financial statements for the first half 2009 compared to the respective figures of the first half 2008 are given below. The Company’s full IFRS consolidated financial report is available on the Company's web-site at www.kalina.org.

In Rubles and in Million

January-June 2009

January-June 2008

% Change

Sales

6,793

5,465

24.3%

Gross profit

3,228

2,856

13.0%

percentage of sales ( %)

47.5%

52.3%

-

EBITDA*

871

746

16.7%

percentage of sales ( %)

12.5%

13.7%

-

Operating profit

724

557

30.0%

percentage of sales ( %)

10.7%

10.2%

-

Net income

259

326

-20.6%

percentage of sales ( %)

3.8%

6.0%

-

 

Within the framework of its development strategy the Company concentrates efforts on active promotion of its branded products and makes significant investments into development of brands distribution During the first half 2009 Concern launched more than 155 novelties of branded products. In particular the Company re-launched “Black Pearl” and “Dr. Scheller” lines of skin care products. As a result the Company’s sales and gross profit in 1 half 2009 increased by 24.3% and 13.0% respectively compared to the same period of 2008. High share of branded products in the Company’s sales support and even allows to slightly increase operating margin to 10.7% in the first half 2009.

Negative changes in financial markets as well as devaluation of Russian ruble against US dollar and Euro in the second half of the year 2008 and in the beginning of 2009 resulted in growth of  the interest expenses in 1 half 2009 by 81.9% compared to the 1 half 2008 as well as caused foreign exchange losses in amount of 121.2 million rubles. Boosting of the mentioned costs consequently resulted in reduction of the net profit in 1 half 2009 by 20.6% compared to 1 half 2008 and respective decrease in net margin to 3.8%.