Wimm-Bill-Dann Foods OJSC Continues To Post Strong Revenue And Substantial Volume Growth Across All Segments In Third Quarter And Nine Months Of 2010
Wimm-Bill-Dann Foods OJSC [NYSE: WBD] today announced its financial results for the third quarter and nine months ended September 30, 2010.
Highlights for the third quarter and nine months of 2010
- Group revenue increased 18.8% year-on-year to US$1,895.9 million in the first nine months of 2010, and 22.3% year-on-year to US$640.9 million in the third quarter of 2010, driven primarily by strong volume growth across all business segments
- Group gross profit grew 4.5% to US$576.6 million in the first nine months of 2010 from US$551.9 million in the same period last year, and 6.5% to US$200.8 million in the third quarter of 2010 from US$188.6 million in the third quarter of 2009
- Group gross margin declined 420 basis points year-on-year to 30.4% in the first nine months of 2010, as a result of continued pressure of raw milk costs
- EBITDA 1 was US$239.6 million in the first nine months of 2010 compared to US$246.6 million in the same period of 2009
- Net income declined to US$92.7 million in the first nine months of 2010 from US$109.4 million in the first nine months of 2009
“Yet again we delivered strong volume growth in each of our business segments,” said Tony Maher, Wimm-Bill-Dann’s Chief Executive Officer. “Our strong sales growth and stable bottom line, despite record raw milk prices, are a testament to our ability to adjust our sales mix, the power of our brands and the strength of relationships with our suppliers, our customers and our consumers.”
“We saw a robust 15% jump in group volumes in the third quarter and 10% increase for the first nine months of the year. The unusually hot summer led to an unprecedented spike in raw milk prices which has affected all players. Our long-term supplier relationships allowed us to manage this challenge better than others and our unrelenting focus on cost and supply chain management helped us reduce the impact on our margins. In particular, we were pleased by our ability to deliver sequential improvement in our dairy gross margins of 60 basis points during the third quarter.”
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