RUSSIA: Weak rouble sours Wimm-Bill-Dann profits
Net income down 0.1%
Sales up 27.3% on 2008
Baby food and dairy segment sales down
Wimm-Bill-Dann Foods, Russia's largest dairy processor, has reported a dip in net income for the first nine months of 2009, hurt by the devaluation of the rouble.
Net income in US dollars dropped 0.1% to US$109.4m for the period ended 30 September.
However, third-quarter net income was up 43.5% at $44.5m as a drop in finance costs offset a 3.4% fall in quarterly operating income.
Moreover, on a constant-currency basis (in rubles), in the first nine months of 2009, net income increased by 33.1% year-on-year. Sales climbed 27.3% to reach $1.59bn.
"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," said Tony Maher, Wimm-Bill-Dann's CEO.
Nevertheless, sales in US dollars in the company's dairy segment tumbled 31.6% to $1.2bn in the first nine months of 2009. This was driven primarily by the negative exchange rate.
In the company's baby food segment, sales in US dollars also dropped, by 7.8% to $176.8m, also due to the unfavourable exchange rate.
Click here for the company's results release or check back later for further insight into Wimm-Bill Dann's nine-month results.
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