Russia 110328 Basic Political Developments

Cherkizovo meat 2010 net profit up 21% to $144 mln

http://en.rian.ru/business/20110328/163243141.html

Net profits for Cherkizovo Group, one of Russia's leading meat producers, grew 21% year on year in 2010 to $144.4 million to US GAAP, the company said on Monday.

The company's 2010 revenues increased 17% to $1.188 billion last year. EBITDA in the same period increased 20% to $218.7 million, while adjusted EBITDA margin was at 18%.

Gross profit for the year grew by 15% to $323.9 million, while the gross margin was at 27%.

The company's net debt stood at $580.2 million as of December 31, 2010. The effective cost of debt was below 3%, the company said.

"The outlook for 2011 is challenging. The operational impact of steep rises in grain and other feedstock input costs will largely be felt in the coming months, and we anticipate that these will only be partially offset by higher pricing," Cherkizovo Group CEO Sergei Mikhailov was quoted as saying in a statement.

"This reflects an unusually weak pricing environment in the last quarter of 2010, despite commodity inflation, partly as a result of short-term oversupply of meat in the market due to destocking by less efficient producers and individual households in response to rising feed costs. Combined with an increased share of poultry imports late in 2010, it has put downward pressure on selling prices, especially for poultry sales in the first quarter of 2011," he said.

Cherkizovo stock is listed on the MICEX and RTS in Russia and the London Stock Exchange.

MOSCOW, March 28 (RIA Novosti)

Nanotech Signs Accord with Russian Company for Manufacture and Distribution of Green Polyurethane

http://www.azom.com/news.asp?newsID=28572

By Cameron Chai

EPOD Solar declared that its wholly-owned subsidiary, Nanotech Industries International has signed an accord with Nanotop, a Russian company owned by Leonid Tavrovsky, for the production and distribution rights of its Hybrid Non-Isocyanate Polyurethane or Green Polyurethane, in the Russian Federation.

According to the signed accord, Nanotop in order to continue as the sole importer, producer and distributor of Nanotech’s Green Polyurethane product in the Russian Federation will need to achieve minimum level of pre-fixed sales targets. Nanotech is anticipated to receive the first order worth $240,000 from Nanotop.

According to Leonid Tavrovsky, owner of Nanotop, combination of low-cost benefit, isocyanate-free formulation and exceptional chemical properties of the Green Polyurethane offers huge potential in the Russian market. He expressed his excitement to be the sole distributor of the unique product in the Russian Federation.

Source: http://www.nanotechindustriesinc.com/

Posted Mar 28, 2011

Waterstone could link with Russian billionaire to buy back firm

http://thescotsman.scotsman.com/business/Waterstone-could-link-with-Russian.6741436.jp
Published Date: 28 March 2011

By PETER RANSCOMBE

BUSINESS CORRESPONDENT

TIM Waterstone could team up with Russian billionaire Alexander Mamut to buy back his eponymous chain of book shops from HMV.

Shares in HMV Group climbed 4.5 per cent on Friday after the firm effectively slapped a "for sale" sticker on its Waterstone's business as the music retailer struggles to deal with its mounting debts.

Waterstone founded the book-selling chain in 1982 using a redundancy pay off. WH Smith took a stake in Waterstone's in 1989 and bought out its founder in 1993, before selling the chain to HMV in 1998 for £300 million.

The imminent initial public offering of Euroset, Mamut's mobile phone retail business, looks set to bolster the Russian's war chest head of a possible deal.

Mamut has already built a 6.1 per cent stake in HMV, expected to make about £75m from the sale of Waterstone's, which has some 4,500 staff spread across more than 300 branches in the UK, including 26 in Scotland.

The cash would go towards paying down HMV's £130m debt, although the entertainment retailer stressed on Friday: "The group's lending banks continue to be supportive, our banking facilities remain fully available and the group is continuing to maintain a regular and constructive dialogue with its lenders." Other potential bidders reportedly hovering around the group include retail restructuring specialist Hilco - which has owned Allied Carpets, Habitat and MK One.

Hilco is thought to be interested in HMV Canada, the other business being sold off by HMV.

But Nick Bubb, a retail analyst at Arden Partners, warned that investors should not expect any sale of the Canadian arm to raise much money.

Bubb said: "Hilco will pay nothing for HMV Canada, which is moving into loss. There is no alternative to having a big rights issue, so caveat emptor - 'Let the buyer beware'."

Bubb, who predicted a "rescue" shares placing is on the cards for HMV, added: "Group pre-tax profit halved in 2010-11 to about £39m and we expect it to halve again in 2011-12."

HMV has faced increasing competition from online retailers and supermarkets in its core CD and DVD markets.

The chain is one of the few music and video retailers still standing after the recession claimed high street names including Borders UK, Woolworths and Zavvi, which was previously Virgin Megastore.

In last week's Budget, Chancellor George Osborne promised to even the tax playing field for companies such as HMV.

He said: "We're going to tackle the exploitation of low value consignment relief that has left our high street music stores fighting a losing battle with warehouses in the Channel Islands."

HMV has been broadening its product mix as part of a fightback, branching into areas including technology and other entertainment-related products.

Last year, it unveiled a push into live music after buying Mama Group, which owned venues including the Edinburgh Picture House, the Warehouse in Aberdeen and the Hammersmith Apollo in London.