Milkiland reports 29% sales growth in 2010

Milkiland (WSE: MLK PW), the CIS fourth largest dairy producer, reported its 2010 audited financials yesterday. The company`s revenue grew 29% y-o-y to EUR 258.5 mln, EBITDA up by 49% y-o-y to EUR 44.5 mln with an EBITDA margin of 17.2% vs. 14.9% in 2009. Net income surged 2.7x y-o-y to EUR 22 mln (EPS of EUR 0.86). Revenue growth was spread organically between segments with the cheese & butter division growing at a faster 41% pace compared to a 12% y-o-y sales growth in the whole milk segment. The cheese & butter line contributed the most to company’s overall EBITDA growth; this segment EBITDA was up 46% y-o-y to EUR 33.8 mln. The whole milk segment contribution to EBITDA remained flat at EUR 7.8 mln (vs. EUR 7.9 mln 2009) and ingredients segment contributed EUR 2.7 mln (50% up y-o-y). The company’s projected 2011 CapEx are EUR 25 mln. Yegor Samusenko: The reported EBITDA is above our expectations. Despite the growing prices for raw milk in 2010 the company boosted its bottom line as it managed to transfer the increase in inputs costs to consumers.