PAVA reports lowered net debt/EBITDA ratio by 31%
In 2008 major Russian grain processor PAVA improved liquidity and maintained sensible leverage despite expanding scope of business

BARNAUL, RUSSIA, May 28, 2009 /24-7PressRelease/ -- According to the company financial statements based on RAS, PAVA has reported 31% reduction in the net debt/EBITDA ratio over 2008, signifying substantially improved liquidity. Last year, the ratio went down to 5.9 from 8.6 in 2007 which shows the company's solid financial footing despite international economic downturn.

In 2008, PAVA was able to increase revenue by RUR1,020,281,000 (35.7%) and build a strong cash flow during the period, as it experienced considerable sales growth, especially in the area of exports with overseas sales rocketing by 77.5%. Price situation on the grain processing market was also conducive to better operational results.

Meanwhile, although new projects are implemented and the scope of business is expanding, PAVA maintained a rational funding approach keeping the company from being overleveraged and lowering the net debt.

The current strategy of OJSC PAVA is aimed at transition to a vertically integrated agribusiness and the company focuses its efforts on maximum solvency and transparency, while actively seeking investments. To recap, on May 6 PAVA successfully conducted the repurchase of 29.36% of the bond loan which is another proof of the company's reliability on the market of public borrowings.

Press Release Contact Information:

Yulia Chebotareva
PAVA OJSC
PR manager
Pushkina 38
Barnaul, Altay Region
Russia 656049
Voice: +7 3852 630155
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