PAVA Sales Profit Margin Up by 14.3%

PAVA’s unconsolidated revenue over the period increased by 35.7% reaching RUR3,878,358,000 with new products and higher sales volume, while operational profit (RUR223,372,000) saw a faster growing pace of 55%.

02/06/09 According to unconsolidated financial statements based on RAS, Russian agricultural and processing company PAVA experienced an increase in sales profit margin in 2008 against the previous year. Profitability of sales grew by 14.3%, reflecting an important positive trend against the background of higher turnover and sales profit.

PAVA’s unconsolidated revenue over the period increased by 35.7% reaching RUR3,878,358,000 with new products and higher sales volume, while operational profit (RUR223,372,000) saw a faster growing pace of 55% due to price environment of the grain processing market and production cost savings.

Moreover, for two years PAVA retained leading positions in Russian flour exports with a 77.5% boost of overseas sales in 2008, which contributed to improved margins and strengthened the company’s standing in the highly competitive industry.

The company views it as an encouraging sign for successful implementation of new projects and transition to a vertically integrated structure. “While development of own agricultural operations will secure us against price volatility, we will be able to generate more income in PAVA’s current areas of business”, comments Andrey Ananin, PAVA Director General. ”Efficient management and favourable cashflow forecasts are crucial for enhancing the projects investment appeal”.