PMCR’s 1H06 net income declined by 25.0% y/y to CZK 1.09bn, which is 11.4% below our estimate and 16.5% below BBG consensus. Thus annualized EPS came at CZK 796 in comparison to our EPS of CZK 898 and market’s CZK 953.
Revenues declined by 16.5% y/y, which is 7.2% below our estimate and 6.0% below BBG consensus. It is mainly due to lower number of units sold 9.7bn in comparison to 10.6bn year before (-8.5% y/y). Average revenue per pack thus declined from CZK 10.8 to CZK 9.9. Demand was negatively impacted by higher excise tax.
EBITDA declined by 29.2% y/y to CZK 1.71bn, what is 5.3% below our estimate. The difference was caused mainly by changes in inventories and lower employees expenses.
EBIT declined by 26.2% y/y to CZK1.49bn, what is 7.6% below our estimate as amortization came at CZK 200m while we expected CZK 171m.