Wimm-Bill-Dann Foods OJSC announces impressive revenue and net profit growth for nine months against challenging global environment

Wimm-Bill-Dann Foods OJSC [NYSE:WBD] today announced its financial results for nine months and the third quarter ended September 30, 2007

Highlights of nine months 2007:

·Group sales saw impressive 40.4% growth to US$1,758.3 million
·Gross profit increased 43.4% to US$578.4 million
·Underlying operating income rose 30.2% to US$168.3 million
·Underlying net income increased 33.4% to US$105.6 million
·Underlying EBITDA[1] increased 30.9% to US$229.4 million
·Earnings per share grew to US$2.40 from US$1.50

Commenting on the results, Tony Maher, Wimm-Bill-Dann’s chief executive officer said, “We are very pleased with the strong results we achieved for the first nine months of 2007 especially in the most challenging raw material cost environment. Despite a sharp rise in raw milk prices, we continued to improve our EBITDA margin to 13.5% in the third quarter of 2007 compared to 12.7% in the second quarter of 2007. During the nine months of 2007 net profit growth was a solid 33.4% and we continued to show impressive revenue growth of 40.4% at the group level.

“Our beverages business continues to progress well realizing a solid 28.6% sales increase and a significant margin improvement to 40.4% in the first nine months of 2007 from 34.4% in the same period last year. Our dairy division delivered strong results during first nine months of 2007 with sales increasing 43.1% to US$1,328.7 million, while gross margins decreased only slightly – a significant achievement given the sharp rise in the price of raw milk. Our baby food division continued to gain momentum with sales increasing 44.0% to US$119.0 million while gross margins expanded to 44.4% from 41.3% in the prior year period.

“In conclusion, I am pleased with our performance for the 9 month period as we continue to successfully execute on our strategy and deliver on our commitment to improve our route-to-market and invest in building consumer preference in our brands. I am confident that Wimm-Bill-Dann is well positioned to continue to achieve consistently strong results and significant value for our customers and stockholders.”