Kazakhstan Kagazy reports $17.3 million Q1 loss

business and economy

Kazakhstan Kagazy reports $17.3 million Q1 loss

By SRI ⋅ July 2, 2009 ⋅

(SRI) - Kazakhstan Kagazy, Central Asia’s largest producer of paper, corrugated board and packaging products, reported a net loss of $17.3 million in the first quarter of 2009, as the company’s performance was negatively affected by the February devaluation of the tenge.

The company’s financial situation has deteriorated in dollar terms since the first quarter of 2008: Its cash balances fell to $47.5 million as of March 31, 2009, from $79.7 million on March 31, 2008. Net debt rose to $188.4 million from $68.0 million in the same time period.

Kagazy’s revenues totaled $15.1 million, with 82 percent coming from the paper business.

“Foreign exchange losses amounted to $24.5 million on Euro and US dollar denominated borrowings as a result of the Kazakh tenge devaluation in February of 2009,” the company said in a statement.

“Despite difficult market conditions, Kagazy generated revenue growth of 6.2% year on year, denominated in Kazakh tenge, in the first quarter. The company’s net result was impacted by $24.5 million of foreign exchange losses, following the devaluation of the national currency in February 2009,” Kagazy’s CEO Yuriy Bogday said in a statement.