Russian diary firm Wimm-Bill-Dann Foods OJSC has posted a first quarter group sales jump of 18.4% to US$385.7m compared to the same period last year, despite ongoing pressure due to raw materials costs in beverages, the company said.
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Gross profit at the group increased 35.7% year-on-year as operating income increased three-fold to $29.7m, and adjusted EBITDA grew two-fold to $44.3m during the quarter.
Sales in the dairy segment increased 23.3% to $286.1m, driven by volume growth and an increase in selling prices in the main product categories, while baby food sales at the group increased 25.5% to $26.1m helped along by increased proportions of higher priced products such as drinkable yogurts, purees and juices in the overall product mix, the company said.
Sales in the beverages segment stayed almost flat at $73.5m due to a higher proportion of less expensive products.
Wimm-Bill-Dann CEO Tony Maher said: “I am very pleased with the excellent results we posted in the first quarter of 2006. Sales grew by an impressive 18%, the growth was almost entirely organic. For the first time in many quarters, we saw gross margin recovery for the group as a whole. Group gross margin stood at 29.5%, compared to 25.7% a year ago, this was achieved despite ongoing pressure due to raw materials costs in beverages.
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By GlobalData“I have also had the opportunity over the past two months to get to know our management team as well as visit more than 20 of our 30 plants across Russia and the CIS. Alongside the impressive numbers reported today, what I’ve seen in my first months gives me real confidence that we have the tools necessary to achieve our strategic objective of maintaining our leadership and enhancing profitability while at the same time making full use of our considerable geographic reach and brand portfolio.”
