Kazakhstan Kagazy increases 2007 net profit by 443 percent

business and economy

Kazakhstan Kagazy increases 2007 net profit by 443 percent

By SRI ⋅ July 1, 2008 ⋅

Kazakhstan Kagazy Plc, one of the Central Asia’s largest producers of paper, corrugated board and packaging, and a leading industrial real estate development company in Kazakhstan, earned $12.5 million in net profit in 2007 vs. $2.3 million in 2006, according to consolidated financial results for the twelve months ended December 31, 2007.

“Our full year 2007 results show strong growth in paper business. Following the acquisition of Kazupack, Kagazy has successfully combined its production facilities and expanded its market share for corrugated products to 25 percent,” the company’s press release quoted Yuriy Bogday, CEO of Kazakhstan Kagazy Plc.

According to consolidated financial results, total assets increased 89.8 percent year $631.4 million compared to previous year, consolidated revenues rose by 42 percent year, and EBITDA was up 93 percent to $16.6 million.

The company said in the statement that it expected paper revenues to grow at a lower rate than in 2007 as the domestic and international credit crisis has had a dampening effect on the real economy.

Kazakhstan Kagazy also announced the acquisition of Astana Contract, the largest warehouse operator in Kazakhstan, in April 2008, for $57.6 million. This acquisition should further foster Kagazy’s position as the leader in the industrial real estate market in Kazakhstan.

Kazakhstan Kagazy Plc runs Central Asia’s largest producer of paper, corrugated board and packaging products. It also operates one of the leading industrial real estate development companies in the country through Prime Estate Activities Kazakhstan LLP (Peak), which owns approximately 711 hectares of prime land, located mostly newly created industrial zones of Kazakhstan major cities. Kazakhstan Kagazy Plc’s securities are listed under the symbol ‘KAG’ on the London Stock Exchange.

(Silk Road Intelligencer)