Milkiland EBITDA margin guidance: 14% in 2012

Milkiland (MLK PW) expects to raise its EBITDA margin by 2 pp yoy to 14% in 2012, management said during a conference call yesterday. At the same time, management said 1Q12 results would be weak (figures to be announced on May 14), citing the ban on cheese exports to Russia and a lag in the renewal of state subsidies (the full effect is expected from April, according to management). The company is continuing to consider the acquisition of a cheese plant in either Russia, Poland or Belarus, for which the company already attracted a USD 100 mln loan at the end of December 2011, with a utilization period until September 2012.

Yegor Samusenko: Management’s EBITDA margin guidance is broadly in line with our expectation of a 13% EBITDA margin in 2012. We forecast Milkiland to earn EUR 296 mln in revenues in 2012, up 6% yoy, and EUR 38 mln in EBITDA, up 43% yoy. The company moved the publishing date for its audited 2011 annual report to April 30, the latest day allowed by WSE regulations.