Concern Kalina has recently published a report on its financial success in the first quarter of 2007. The company’s sales and gross profits amounted to 1,978,800,000 RUR and 1,062,900,000 RUR, respectively, with net profit going down 32.5% against January-March 2006: the figure only reached 144,559 million RUR (against 214,072 million a year earlier).

‘This drop in profits can be largely explained by previous expenses (150.6 million) that have only been accounted for this year due to a number of technicalities in Russian accounting standards; as for reports drawn up in compliance with the IAS, these outgoings were all written down last year,’ the company’s press officer explains.