WIMM-BILL-DANN FOODS OJSC CONTINUES TO POST PROFITABLE GROWTH IN THIRD QUARTER AND NINE MONTHS OF 2009

Highlights for the third quarter and nine months of 2009

• Group gross margin improved to 36.0% in the third quarter of 2009 compared to 33.7% in the third quarter of 2008, and to 34.6% in the first nine months of 2009 from 32.2% in the same period last year
• EBITDA  margin improved significantly to 16.8% in the third quarter of 2009 compared to 14.1% in the third quarter of 2008, and 15.5% in the first nine months of 2009 from 12.9% in the same period last year
• Operating profit margin increased by 290 basis points to 12.5% in the third quarter of 2009, and by 230 basis points to 11.1% in the first nine months of 2009
• Group revenue in US dollars decreased 27.3% year-on-year to US$1,595.6 million in the first nine months of 2009, driven by ruble devaluation, and partially offset by stronger mix
• Net income in US dollars increased 43.5% year-on-year to US$44.5 million in the third quarter of 2009
• On a constant currency basis, (in rubles) net income almost doubled in the third quarter of 2009 compared to the third quarter of 2008, and increased by 33.1% year-on-year in the first nine months of 2009
• Operating cash flow rose 12.8% year-on-year to US$190.0 million in the first nine months of 2009

“In the beginning of 2009 Wimm-Bill-Dann pledged profitable growth despite strong macro-economic headwinds. The third quarter once again demonstrated the viability of our approach, the resilience of our brands and our business model,” said Tony Maher, Wimm-Bill-Dann’s Chief Executive Officer.
“We have once again delivered strong results in all three business segments. For almost two years now Wimm-Bill-Dann has been demonstrating margin improvement and market share gains. This is no small achievement and is a result of our continued focus on streamlining our business and enhancing consumer loyalty. Group gross margins increased 230 basis points year-on-year to 36.0%. It also improved for each of the business segments, reaching 32.6% in dairy, 40.1% in beverages and 49.7% in baby food. Our EBITDA margin reached 16.8% in the third quarter of 2009, driven by further efficiency improvements and seasonally lower input costs. Our net profit in the third quarter grew 43.5% year-on-year and almost doubled in rubles.”
“Our healthy operating cash flow of US$190.0 million allowed us to be creative in marketing and aggressive in sales,” Tony Maher added.
 

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