NEWS RELEASE
For Immediate Release - 29 April, 2016
Chelyabinsk Zinc Plant Announces 2015 Consolidated Financial Results
Chelyabinsk, Russia - April 29, 2016 - Chelyabinsk Zinc Plant (LSE, MOEX: CHZN), Russia's largest producer of zinc and zinc alloys, is pleased to announce its audited consolidated IFRS financial results for the year ended December 31, 2015.
2015 HIGHLIGHTS
- Chelyabinsk Zinc Plant's (CZP) revenue totaled RUB 24,013 mln.
- EBITDA amounted to RUB 4,789 mln or 20% of revenue.
- Net profit was RUB 3,750 mln or 16% of revenue.
Consolidated financial results
| (in millions of Russian Roubles) | 2015 | 2014 | Change, % |
| Revenue | 24,013 | 16,508 | 45% |
| Gross profit | 5,945 | 4,715 | 26% |
| Gross margin, % | 25% | 29% | |
| EBITDA(1) | 4,789 | 3,825 | 25% |
| EBITDA margin, % | 20% | 23% | |
| Profit before income tax | 4,886 | 2,955 | 65% |
| Net profit | 3,750 | 2,353 | 59% |
| Net margin, % | 16% | 14% |
(1) EBITDA, for any relevant period, represents operating profit before interest, income tax, depreciation and amortization.
EBITDA is not a measurement of CZP's operating performance presented in the financial information, prepared in accordance with IFRS, and should not be considered as an alternative to operating profit or any other performance measure derived in accordance with IFRS or other relevant financial framework.
Revenue
2015 consolidated revenue increased by 45% to RUB 24,013 mln as compared to revenue for 2014.
The average LME zinc price in 2015 decreased by 11% as compared to 2014 and amounted to US$1,928 /tonne. The average LME lead quotes decreased by 15% to US$1,784 /tonne. Positive effect on revenue was made by the growth of exchange rates (US Dollar, Pound Sterling, Kazakhstan Tenge) against the Russian Rouble.
Revenue structure
In 2015, revenue of JSC CZP increased by 42% as compared to 2014 and amounted to RUB 17,942 mln (2014: RUB 12,644 mln). The growth of revenue was due to 59% increase of USdollar/Russian Rouble exchange rate (2015: RUB 61.3; 2014: RUB 38.6) and increase of zinc and zinc alloys sales on the domestic market and export by 27% (2015: 119.7 thousand tonnes; 2014: 94.0 thousand tonnes).
Revenue of the Brock Metal Company Limited for 2015 amounted to RUB 5,406 mln, 58% higher than in 2014 (RUB 3,412 mln). This increase was due to 48% growth of Pound Sterling/Russian Rouble exchange rate (2015: RUB 93.7; 2014: RUB 63.4) and 12% growth of zinc alloys sales (2015: 36.4 thousand tonnes; 2014: 32.5 thousand tonnes).
Revenue of LLP Nova Zinc for 2015 increased by 47% compared to 2014 and amounted to RUB 666 mln (2014: RUB 452 mln). The increase was due to 32% growth of Kazakhstan Tenge/Russian Ruble exchange rate (2015: RUB 0.28; 2014: RUB 0.22) and growth of lead concentrate export sales.
Cost of Sales
Cost of materials and consumables used primarily comprises of the cost of zinc concentrate, zinc containing raw materials, materials for alloys production and auxiliary materials used in the production process. The main reasons of changes were the growth of raw materials price due to increase of exchange rates against the Russian Rouble, volume growth of purchased raw materials (due to structure changes of zinc and zinc alloys sales related to JSC CZP) and growth of auxiliary materials prices.
Net profit
Net profit for 2015 totaled RUB 3,750 mln compared to RUB 2,353 mln for 2014. The main factors of net income growth were the Russian Rouble devaluation, growth of zinc and zinc alloys domestic and export sales and also the reversal of previously accrued impairment loss of LLP Nova Zinc property, plant and equipment.
About Chelyabinsk Zinc Plant
Chelyabinsk Zinc Plant is the leading Russian zinc producer. In 2015 the plant produced 171,002 tonnes of saleable SHG zinc.
According to consolidated IFRS accounts, revenue in 2015 was RUB 24,013 mln and EBITDA was RUB 4,789 mln.
Ordinary shares of CZP are traded on the Moscow exchange under ticker CHZN and Global Depository Receipts (GDR) are traded on the London Stock Exchange under ticker CHZN.
Investor and Media Contacts:
Natalya Vasilieva, PR, ngv@zinc.ru
Tel: +7 (351) 799-01-52
Evgeny Ponomarev, IR, eyp@zinc.ru
Tel: +7963 998-55-58
This announcement may include forward-looking statements. CZP's actual results may differ materially from those made in or suggested by the forward-looking statements contained in this announcement. By their nature, forwarding-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Even if the actual results are consistent with the forward-looking statements contained in this announcement, those results may not be indicative of results or developments in future periods. CZP does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this announcement.
