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. Last Updated: 07/27/2016

Wimm-Bill-Dann Sees 70% Profit Fall

Wimm-Bill-Dann reported on Thursday a 70 percent fall in first-quarter net profits on the back of foreign exchange losses but showed better margins because of lower input cost.

The company said net income fell to $12.6 million, while sales declined in line with the forecast by 29.4 percent to $516.8 million. EBITDA margin was up to 14.1 percent from 12.4 percent a year ago. Analysts had expected margins to rise to 13.8 percent on the back of lower raw milk prices. The firm said sales were affected by the exchange rate and partially offset by the improved sales mix.

Dollar revenue declined from a 35 percent ruble devaluation seen in November to January, while adjusted net income in rubles increased by 25.1 percent year on year.

The firm added that it had raised more than $85 million in free cash flow last quarter and bought back 3.6 percent of its own stock in the open market.