PAVA reduced product inventories by 29.6% in Q1 2009

According to RAS-based financial statements, major Russian grain processor PAVA reduced the product inventories by 29.6% in Q1 2009. The decrease of inventory levels stood at RUR75,789,000.

The period under review was quite challenging for OJSC PAVA, since it was preparing for the bond repurchase scheduled on May 6. Selling surplus product supplies allowed to accumulate more cash in the company’s accounts – the cash resources were up 74.6% in Q1 2009.

The rational principles of inventory control, which prevent overstocking, and smooth operational process enhance the company’s resilience against global liquidity crunch. PAVA was among the few Russian agribusinesses that totally fulfilled its obligations to bondholders, and has maintained strong pace of business expansion.