ANALYSIS: Almaty distillery plant JSC (Kazakhstan) activity results for 2008

/IRBIS, Valeriya Grishenko, March 3, 09/ - February 24, 2009 Almaty distillery plant JSC (Almaty, further - the company) securities of which are listed on Kazakhstan Stock Exchange (KASE), provided KASE with the copy of court order of Specialized interregional economical court of Almaty (in the headline and further - SIEC) dated February 16, 2009. In accordance with the ruling Almaty interregional economical court, having considered application of GTC LLP on acknowledgement of bankruptcy of ALVZ, ruled to accept the application into court procedure and initiate proceedings. Earlier, February 26, 2009 the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) adopted the resolution "On suspension of coupon unsecured bonds offering of Almaty distillery plant JSC due to default on interest payment obligations on earlier offered coupon bonds. We remind that November 14, 2008 the mentioned company informed in official letter to KASE that it suspend the payment of the third coupon interest to holders of its bonds KZ2C0Y05C523 (KASE official list, the second sub- category of category "Non-rated debt securities"; ALVZb1; KZT1,000, KZT2.0 bn.; 04.05.07 - 04.05.12, semiannual coupon indexed to inflation rate, 13.00 % APR for the reporting period; 30/360). The company must have paid the mentioned coupon interest, amounting KZT130,000,000.00 within November 4 through November 17, 2008. January 9, 2009 the company sent to KASE the regular official letter where explained reasons of untimely fulfillment of mentioned obligations. According to company's message, "difficult economic situation on the alcohol products market of the republic (hardening of government requirements on taxation, marketing, negative influence on the internal market of imported products, significant decline of purchasing abilities), and the influence of general macro economic trends (expensive raw materials, tariffs, complication of relations with production equipment providers) caused the current situation of the oldest alcohol products producer of Kazakhstan", and informs on measures undertaken by it to repay the mentioned interest till March 31, 2009. The following is the analysis of financial status of Almaty distillery plant JSC, conducted by IAFM IRBIS and based on data, provided in financial statements of the company for 2008. By the results of analysis, we may distinguish the list of main tendencies of company's development by results of year 2008: 1. company's net loss made KZT416.5 m. against net income, amounting KZT23.1 m. in 2007; 2. total assets sum grew by 31.6 % to KZT5,096.2 m.; 3. company's obligations grew by 28.5 % to KZT2,187.0 m.; 4. company's shareholders equity grew by 34.0 % to KZT2,909.2 m. Such high level of total loss of the company was conditioned from one hand, by fall of revenues from products realization by 45.4 %, on the other, sharp growth of charges: administrative charges grew 2.3 times, financing - 3.2 times, others - 4.1 times. At that, we note that in 2008 charges for production exceeded 52.0 % incomes from its realization. Growth of total assets sum 31.6 % was conditioned by growth of value of long-term assets by 46.3%. But at that, value of short-term assets grew only by 5.7 % over the year (sharp reduce of monetary sum by 51.0 %, reserves - 50.6 %). Total sum of company's obligations grew by 28.5 % at the expense of growth of long-term obligations by 47.4 % (the growth was leveled by fall of short- term obligations sum by 24.0 %). Growth of shareholders equity was provided by the growth of reserves capital (by 50.1 %) but note that the sum of uncovered loss by year results grew 3.2 times. DETAILED ANALYSIS OF ALMATY DISTILLERY PLANT JSC FINANCIAL RATIOS IS REPRESENTED BELOW: Analysis of company's liquidity Current liquidity indicator, determining the degree of requirement satisfaction of company's current obligations by current assets, made 4.3 in 2008 (3.1- in 2007). Liquidity level increased by 39.1 % at the expense of decreasing short-term obligations 24.0 %. According to analysis of assets liquidity, company's reserves have decreased significantly: in 2007 this indicator made KZT444.0 m., in 2008 fell 50.6 % to KZT219.5 m. Analysis of assets` management In 2007 inventory turnover ratio made 1.3, and in 2008 - 1.4. The growth of ratio characterized Almaty distillery plant JSC from positive side, but we note that company's inventory and proceeds from products realization decreased. At that, changing dynamic of fixed assets turnover shows that long-term assets increased 46.3 %. Analysis of financial stability By results of 2008 the balance of the company fixed considerable amount of loan assets. At that, this tendency of foreign financing growing for provision of its current activity observed at the end of 2007as well. Analysis of profitability indicators During 2008 ROA indicator fell from 0.01 to 0.08. It tells on inefficiency of assets use for gaining profit. ROE indicator also fell from 0.02 to 0.14. ------------------------------------------------------- 2008 2007 ----------------------------------------- ------ ------ Main indicators (KZT m.) Gross proceeds -162.1 136.9 EBIT -312.7 65.0 ----------------------------------------- ------ ------ Liquidity indicators Current liquidity ratio 4.3 3.1 Fast liquidity ratio 3.7 2.1 ----------------------------------------- ------ ------ Assets` management indicators Inventory turnover ratio 1.4 1.3 Total assets turnover ratio 0.1 0.2 ----------------------------------------- ------ ------ Financial stability indicators Stake of borrowed assets ratio 42.9 % 43.9 % Borrowed assets shareholders equity ratio 0.8 0.8 ----------------------------------------- ------ ------ Profitability indicator Return on assets (ROA) -0.08 0.01 Return on equity (ROE) -0.14 0.02 ------------------------------------------------------- [2009-03-03]