PAVA says IFRS retained earnings grew by 31.1%

In 2008, grain processor OJSC PAVA increased retained earnings by USD4,053,000, representing an increase of 31.1% from the year 2007, according to the IFRS-based financial statements. Retained earnings is considered as a valuable source for investing in the company’s current activities as well as expanded agricultural production (OJSC RAD subsidiary) and deep wheat processing business.

The growth of capital was driven by active acquisition of land assets – by the end of 2008 OJSC RAD controlled over 160,000 ha – and their further revaluation following the global trend of appreciating land prices. Preparing for private placement, the company introduced a new structure which led to better efficiency and enhanced its market value.

The positive developments in the marketplace In 2008 increased IFRS net revenue to USD160,893,000, and continuous trend towards improved profitability was brought in by 84% upswing in high-margin exports. The company said, improvements in financial results are expected to increase investor appeal and allow to raise additional equity.