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. Last Updated: 07/27/2016

Wimm-Bill-Dann Posts 44% Rise in Q3 Profit

Wimm-Bill-Dann said Wednesday that third-quarter profit rose 44 percent as the ruble’s gain led to a revaluation of dollar-denominated debt.

Net income increased to $44.5 million from $31 million a year earlier, Wimm-Bill-Dann said. The ruble appreciated 3.3 percent against the U.S. currency in the quarter. Profit growth was also helped by lower financial expenses as the company reduced debt, according to Sabina Mukhamedzhanova, an analyst at Bank of Moscow.

Sales declined 25 percent to $524 million, hurt by a drop in the value of the ruble compared with year-earlier levels and by lower sale volumes in the dairy division.

Earnings before interest, taxes, depreciation and amortization fell 11 percent to $88.2 million. Profitability on that basis widened by 2.7 percentage points to 16.8 percent of sales, beating Mukhamedzhanova’s forecast of about 14 percent. Margins were helped by a “low raw milk price and a favorable change of the mix in the dairy segment,” Svetlana Sukhanova, an analyst at UBS, wrote in a note.

Financial expenses dropped 76 percent to $5.9 million in the quarter as the company reduced net debt to $313 million at the end of September, down by 21 percent from a year earlier. Selling and distribution expenses fell 30 percent in the quarter, while general and administrative expenses dropped 16 percent.