Milkiland’s sales grow 5% y-o-y in 1H11

Milkiland (WSE: MLK PW), a diversified dairy producer operating in Russia and Ukraine, reported its 1H11 financials on Monday: revenue grew by 5% y-o-y to EUR 127.5 mln, driven by better prices and increased cheese sales in Russia. Gross profit decreased by 19% y-o-y on changes in government subsidies. EBITDA decreased by 15% y-o-y to EUR 18.7 million; EBITDA margin declined from 18.1% to 14.7% one year earlier due to higher input costs, according to the company statement. Net profit fell 43% y-o-y to EUR 6.7 million, mainly due to one-off expenses. Net margin was 5.2% vs. 9.7% in 1H10. Net debt decreased by 63% since end-1H10 to EUR 35.8 mln.