Highlights for Q1 2009:
“The first quarter laid a solid foundation for the year, particularly in terms of substantial margin improvement and a balance sheet that’s healthier than ever,” said Tony Maher, Wimm-Bill-Dann’s CEO. “The company continues to perform very well in all business segments despite the challenges in the economic environment.
“We’re working to maximise the return from our marketing and advertising investments, with a focus on gaining share in higher margin categories. As of the end of the first quarter, our market share in juices increased 170 basis points in volume terms compared to the end of the first quarter 2008. Our market share in baby food improved 240 basis points in volume terms over the same period, while our market share in yogurts and desserts increased 140 basis points in volume terms over the same period of time.
“Our gross margin for the first quarter of 2009 expanded to 32.5%, up 250 basis points on a year-on-year basis. Ebitda margin also improved in the quarter to 14.1%, up 170 basis points vs the prior year period.
“We substantially enhanced our capital structure to ensure that we’re operating from a position of financial strength in the near-term, and have the flexibility to pursue growth initiatives over the long-term. Last quarter, we paid down our bond using internal funds, and this quarter we reissued some of those bonds on more favourable terms. This secondary issue of three billion roubles was sold at the lowest yield to market of any major Russian issuance this year – a significant accomplishment for Wimm-Bill-Dann and a testament to the strength of our business. Our continued efforts to improve our working capital efficiency led to us generating over $85m in free cash flow, which, among other things, allowed us to repurchase 3.6% of our outstanding share capital in the open market in the form of ordinary shares.
“Looking ahead, we understand that the current environment will continue to pose its challenges and we’re working to manage the business through the near-term hurdles while improving our competitive position and our ability to execute on long-term opportunities. The soundness of our strategy and the strength of our balance sheet will help us navigate the issues of today and position the company optimally for sustainable growth as the economic environment improves.”
Source: Wimm-Bill-Dann
© FoodBev Media Ltd 2024