Galakton’s Net Revenue Up 24% to USD 63.4 mln in 2007

Galakton (GALTN: BUY), one of the leading Ukrainian dairy products manufacturers, increased net revenue by 24.3% yoy to USD 63.4 mln in 2007. The company increased its net income to USD 331.9 ths. Olha Pankiv: We projected financials combined for Galakton and its core holding (92% stake) – Kremenchuk Dairy. Based on Galakton’s results, and given Kremenchuk’s sales being historically ~60% of Galakton’s, we believe, the two companies reached our expected sales of USD 94 mln in 2007. We confirm our BUY recommendation for the stock, and will provide more details after Kremenhcuk Dairy’s 2007 financials are available.