Zarneni Hrani’s consolidated sales in 2008 reached BGN 176.7m. The company was not established as an entity until November 2007 so any YoY comparisons would not be meaningful. The firm’s revenues in Q4 of last year were BGN 29.6m compared to c. BGN 36m for December 2007. The EBITDA margin during the year was 3.4% (BGN 6m) but it deteriorated in the last quarter of 2008 crossing into negative territory (negative BGN 0.1m) compared to 18% for December 2007. Huge depreciation allowances normally originated from the BGN 149m depreciable assets of the company: in 2008 they totaled BGN 4.3m or more than two thirds of the firm’s EBITDA. The above combined with the net interest expense of BGN 5.6m – a result of the 37% YtD growth in loans to BGN 115m (60% debt to equity ratio) - would have taken the company into the red if it has not been for the BGN 12m net FX gain, the source of which Zarneni Hrani did not disclose. As a result, the company did manage to report a profit (BGN 7.8m) in 2008 but if we make adjustments for its extraordinary FX gains, the firm would have reported a loss of approximately BGN 6.7m.