PAVA Sums Up Financial Results for 2008

One of the major Russian grain processors PAVA has summed up its financial results for 2008, according to RAS standards.

Barnaul, Russia, July 17, 2009 --( One of the major Russian grain processors PAVA, operating three mills and grain elevators in the Altay and Krasnoyarsk regions, has summed up its financial results for 2008, according to RAS standards.

PAVA`s nonconsolidated revenue advanced 35.7 percent and amounted to RUR 3,878,358,000 as a result of the rising income from new product launches (Zhitnitsa flour, wheat germ oil) and the growing number of business partners. Nonconsolidated revenue was also positively affected by the company`s marketing strategy, brand reputation and production quality.

PAVA`s liabilities were reduced by RUR 10,382,000 (around 0.7 percent). The grain-processor achieved this result due to effective measures in the company`s activities, mills` productivity and cutting costs, which allowed to release extra funds for paying off the debt.

Nonconsolidated revenue rise and net debt reduction modified the net-debt/EBITDA ratio. This index went down from 5.9 to 8.6 (31 percent) proving the growth in liquidity.

PAVA`s sales profit amounted to RUR 223,372,000, increasing 55 percent. Growth of this figure can be explained by rising prices for products in 2008 and new markets opening (export volume reached 70,000 tons, increasing 84 percent).

One of the major profit indexes, EBITDA, advanced 43.8 percent and amounted to RUR 252,342,000. Sales profit rise contributed to growth of this figure.

EBITDA profitability increased 5.9 percent due to export growth and business processes improvement.

PAVA is an agricultural producer, which successfully fulfilled its obligations on the bond loan of series 02. 293,618 bonds to the amount of RUR 293,618,000 were presented for repayment, which accounts for 29.36 percent of the total volume of the second issue. Having completed all demands for bonds, the company again proved its reliability in public bond market.

PAVA`s financial results show its stable financial position in spite of global economic recession.

Elena Usova