Supply Shortage Forces Wimm-Bill-Dann Profit Warning

Leading Russian dairy-focused consumer goods giant Wimm-Bill-Dann (WBD) has issued a full-year (fiscal year ending December 2009) profit warning, with Q4 milk shortages expected to have weighed down earnings before interest, taxes, deprecation and amortisation (EBITDA). Revised down to between US$300-310mn, estimated FY09 EBITDA is expected to be at least 14.1% lower on a year-on-year (y-o-y) basis. Despite the profit warning, which WBD attributes to a one-off supply-side shock, BMI believes the diversified firm's 2010 growth prospects remain attractive with significant room for growth across its core dairy

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