Acron Group’s 2019 IFRS Net Profit up 80% to USD 383 Million

23 March 2020

Acron Group’s 2019 IFRS Net Profit up 80% to USD 383 Million

Today Acron (Moscow Exchange and LSE: AKRN) released its audited consolidated IFRS financial statements for 2019.

Key Financials

• Revenue was RUB 114,835 million, up 6% year-on-year, (2018: RUB 108,062 million). In dollar equivalent, revenue was up 3% to USD 1,774 million from USD 1,723 million.
• EBITDA* was down 4% year-on-year to RUB 35,749 million (2018: RUB 37,053 million). In dollar equivalent, EBITDA was down 7% to USD 552 million from USD 591 million.
• EBITDA margin was 31%, against 34% a year before.
• Net profit was up 86% year-on-year to RUB 24,786 million (2018: RUB 13,318 million). In dollar equivalent, net profit increased 80% to USD 383 million from USD 212 million.
• Net debt was up 2% to RUB 75,185 million, against RUB 74,025 million as of 2018 year-end. In dollar equivalent, net debt was up 14% to USD 1,215 million from USD 1,066 million.
• Net debt/EBITDA was 2.1, up from 2.0 as of 2018 year-end. In dollar equivalent, the ratio was 2.2, against 1.8 as of 2018 year-end.

Operating Results

• Output of key products stood at 7,458,000 tonnes, down 1% year-on-year.
• Sales of key products totalled 7,569,000 tonnes, up 4% year-on-year.

Alexander Popov, Chair of Acron’s Board of Directors, commented on the results:

“In 2019, Acron Group’s sales hit a record high of 7.6 million tonnes, and the sales geography expanded to cover 78 countries worldwide. Over the course of the year, the Group implemented several investment projects. The ammonia unit upgrades at Dorogobuzh and construction of the nitric acid unit in Veliky Novgorod were completed and operate efficiently. Another two major projects entered the active implementation stage: urea granulation will be commissioned in the second quarter of 2020, and the construction of the Urea-6+ unit will be completed in early 2021. In 2019, the Group made capital investments of USD 294 million, its maximum amount for the last five years.