The lack of turnover growth may be put down mainly to the poor weather conditions in January, when production was suspended for a period of three weeks, the company said. The net sales revenue of the company amounted to 22.742 mln leva (11.62 mln euros) in the first quarter of 2007.
The heavy winter conditions this year (unlike the mild winter of 2007) affected negatively the operations of the company and the revenue of its subsidiaries, according to a company statement published on x3news.com.
Kaolin booked 1.347 mln leva (688,700 euros) gross profit for the first quarter of 2008. The company posted 5.464 mln leva non-consolidated profit in the first three months of 2007.
In addition to the exceptionally bad meteorological conditions during the first half of the reporting period under review, the increase in the prices of liquid fuels; respectively, of transport services, as well as the continuing depreciation of the US dollar, also influenced unfavorably the results of the company.
Notwithstanding the above factors, the management of the company reaffirms its expectations for a 20-percent year on year growth in consolidated revenue for the first quarter of 2008.
Kaolin is expected to publish its preliminary consolidated results for the first quarter of the year in the middle of May.
Kaolin specializes in the exctraction and processing of kaolin, silica sand, limestone, dolomite, chamotte, feldspar and etc.
Kaolin's stock was last traded on the Bulgarian Stock Exchange (BSE) at a price of 12.30 leva (6.28 euros) per share. The company launched an IPO in 2007, selling its shares at a price of 13.50 leva (6.9 euros) apiece.