On Friday night, the company announced that the full report of the results for the third quarter will publish on Monday 19 November.CEDC. However, decided to give advance.
The creation of the reserve too high resulted in unintentional understatement of the balance due.
The company's management has concluded that as a result of the adjustment, receivables as at 30 June 2012 were understated by the amount of U.S. $ 5.8 million, taxes other than income taxes were understated by the amount of $ 0.1 million, the impact of the translation of foreign currency transactions was overstated by EUR 0.3 million, and the cost of sales and operating expenses for the three and six months ended June 30, 2012, were overstated by $ 6 million, which resulted in an understatement of net profit for the three and six months ended June 30, 2012 r . in the amount of $ 6 million "- the company said in a news release."
CEDC's operating profit in the third quarter of 2012 amounted to 28.5 million zł, compared to 23.4 million zł before rokiem.Zgodnie U.S. GAAP (CEDC is also listed on the New York Stock Exchange) in the third quarter of 2012, net income runner Polish market and its largest vodka producer in Russia amounted to U.S. $ 35.8 million ($ 0.44 per share), compared to a net loss of € 848.7 million (U.S. $ 11.71 per share). Diluted number of shares used to compute net income per ordinary share amounted to 81.8 million - for the third quarter of 2012 and 72.6 million for the same period in 2011
Sales increases in Poland
Management explained that the decrease in revenues in the third quarter, the negative effect of exchange rate differences. Points out, however, that the gross margin increased year on year from 38 to 43 percent. CEDC has managed to increase the re-sale of vodka in Poland, both in terms of quantity and value - by 6 and 27 percent.
Mniejsza o 22 proc. Less than 22 percent was quantified while sales in Russia, which is primarily related to inventory captured from the rise in excise duty introduced on 1 July 2012
.Despite the challenges we face in this period, changes in leadership and operational control procedures are starting to deliver improved results. Efforts have been done to improve enforcement of the pricing policy and focus on a more favorable product mix in our key sales markets, resulted in comparable improvements in gross margin and a significant improvement in comparable operating profit - says David Bailey, interim president of the CEDC is responsible for the finances of the company and the Polish market .
Tariko The fullness of power not for Tariko
It is the management of the company criticized a few days ago in a letter to investors roust Tariko, owner of Russian Standard. The letter posted on the SEC led to the rapid depreciation of shares of CEDC.
Tariko is the second interim presidents CEDC is responsible for Russia. Chela is also on the board of directors, together with the numbering eight members (two of them is to give Tariko). Russian billionaire to be together with affiliates more than 19 percent CEDC shares. Records of the alliance with the company in July of this year, saying that eventually - in exchange for their help in the repayment of bonds worth U.S. $ 310 million - to increase its stake to 43 percent.
Tariko threatened that if they do not get full power in our company, it will consider withdrawing from the alliance with the company. It supported the second of the major shareholders, Mark Kaufman (no more than 9 percent. Shares in the CEDC).
In response to the allegations and claims Tariko committee of the Board of Directors has published a letter to investors, which ensures that the CEDC still want to talk about an alliance with Russian Standard. Points out, however, that as long as there is no interest Tariko guaranteeing him full power, so he can not get one. "If you Tariko and Russian Standar want full control of the company, they should make an offer to acquire 100 per cent. Shares" - written by a committee.
Proportion to Tariko is and so much power - in fact manages Russia, which accounts for about 70 percent. The letter also pay attention to the company Tariko is also still CEDC competitor in many markets.
CEDC Committee notes, however, that if Tariko does not intend to, or is not able to meet their financial obligations, then CEDC needs to know as soon as possible.
Bond, the repayment of which is to help Tariko passed since the March 2013
Analysts do not expect that Tariko resign from the alliance of CEDC. It will, however, seek to obtain the greatest influence in the company.