Kristall outlined how to distribute record profit

The Board of Directors of OAO PO Kristall, Russia’s largest diamond manufacturer, held a meeting in Moscow on May 11 setting the stage for a similar annual event. The Board has preliminarily approved the company’s annual report, financial statement, profit and loss account for 2011, as well as recommendations on distribution of profits, according to a press release received by Rough&Polished.
The Board considered the company’s report on procurement activities in 2011 and also a report on its performance to reduce its expenditure indicator while buying goods, works and services, which was lowered by 12.2 per cent per one unit of finished products in 2011.
Since in 2011 Kristall earned the highest revenue in the history of the company, its distributable profit also exceeded all previous levels.
While distributing the profit, the Board of Directors took into account the recommendation of the Federal Agency for State Property Management, under which it was advised to allocate 39.21% of net income for dividends and remunerate the company’s management due to fulfillment of key performance targets.
The Federal Agency for State Property Management plans to issue an executive order tentatively scheduled for June 15, 2012 and related to the decisions of the Annual General Meeting of Shareholders of OAO PO Kristall.
The company’s revenue in 2011 reached RUB 16,732.08 million, or 56% higher than the planned target and an increase of 38% over the previous reporting period (in 2010 the manufacturer’s revenue was RUB 12,103.0 million). Kristall’s net profit in 2011 exceeded that of 2010 more than 1.5 times (RUB 287.995 million vs RUB 187.825 million). The average monthly salary of workers employed by the manufacturer in 2011 went up by 20.6% and reached RUB 33,236. The company paid a total of RUB 779.625 million in taxes to the state budgets of all levels.