“Finam” raised the assessment of shares of Wimm-Bill-Dann

Investment Company "Finam" raised the target price of ordinary shares of Wimm-Bill-Dann Foods (WBD) to the level of $ 73.4 at the end of 2010, retaining the recommendation "buy" these securities. Financial indicators WBD up 3 quarters of 2009 have demonstrated its ability to take advantage of positive market conditions in commodity prices and optimize costs. This, as well as the persistence of low commodity prices in the 4 th quarter 2009 and increased consumer demand against the background of positive trends in the economy, shares of the company will realize the potential growth in 2010.

"The financial results of the company for 9 months of 2009 were slightly above market expectations. The figures in dollar terms was influenced by the volatility of the national currency. WBD sales fall in ruble terms was only about 1.4%. If the observed reduction of revenues a year a year in the segment of "Milk" segments "Baby Food" and "drinks" have shown quite a good momentum, leveling falling revenues core segment, "- said in a research note" Finam ".

Positive commodity markets make it possible WBD also record the history of performance indicators: gross margin increased by more than 2.3 percentage points up to 36% in the 3 quarters. "The strong results helped the company to increase the net margin to 6,9%, despite a slight increase in the cost WBD on debt service, - analyst IK" Finam "Sergey Phylchenkov. - Optimization of costs enabled the company, including to reduce the effective tax rates up to 24% from 28.5% a year earlier. Given the relatively weak dynamics of commodity prices in the 4 th quarter, as well as their lower level compared to the same period of 2008 to Finam expect that the results of WBD in part on the basis of profitability in 2009 will be no worse than the performance displayed by the company for 9 months .

In the conservation situation of the "expensive" borrowing WBD has a fairly comfortable level of debt burden, and one of the lowest ratios of net debt to EBITDA in the sector, analysts say Finam. "Following the 3 rd quarter 2009 ratio of net debt to EBITDA in 2009 amounted to about 0,9, - says Mr. Phylchenkov. - At the same time in its loan portfolio WBD has a fairly high proportion of long-term borrowings (80%), which enables the company not have no problems with refinancing its current debt. We believe that in future the company will be able to finance its investment program in the most part at their own expense, and the ratio net debt /EBITDA will not exceed 1 ".

In the "Finam" do not exclude the possibility of a "Wimm-Bill-Dunn" transactions in MA, that can positively impact a company"s business: "About $ 206 million on the balance of Wimm-Bill-up 3 quarters may indirectly indicate the intent management to expand the production base through acquisitions. The company in early 2009 did not exclude such possibilities, focusing on the segment of baby food. "

investment company analysts believe that market rates securities WBD are attractive level. "Shares" Wimm-Bill-Dann "on the Russian sites are traded in real time with a coefficient of EV /EBITDA 2010 to the level of 6.1, representing almost 30% discount to the relevant indicators of companies analogs developed countries", - says Mr. Phylchenkov .

Department of Public Relations and Media Investment Holding Finam.
Today"s leaders and growth, and trading volume knocked out by action Uralkali
Quotations of "black gold" steadily moving up on the anomalous cold in the U.S. and Europe
External background allowed "bulls" to take the initiative in their hands and lead the market higher levels of highs last year
The greatest interest of buyers is concentrated in stocks in metallurgical engineering: more than 10% gain weight paper Severstal, MMK and Norilsk Nickel
Domestic production in the U.S. have become the main driver of growth of U.S. stock indices
Russia"s oligarchs are queuing for the London listings
Until the end of the session, Russia"s stock market may make another attempt to reach the daily maximum
During the period from 28 to 31 December 2009 the ld40eaders of the negative impact on RTS Index became shares of Gazprom, Rosneft and LUKoil
Deputy Minister of Finance Savchenko considers unreasonable interference with the strengthening of the hryvnia exchange rate of the NBU

Leave a comment