On December 15, 2011 Kristall’s Board of Directors held its meeting in Moscow. The meeting discussed the results of the company’s activities for the first nine months of the current year and summarized the preliminary results for the whole 2011 year.
The Board approved the 2012 budget, the company’s key performance indices, and well as the Strategic Development Plan up to the year of 2020. The plan stipulates considerable investments into technical re-equipment of the company – about 3,2 billion roubles (in 2011 Kristall invested into technical re-equipment and innovational activities 165 million roubles. The investments into the optimization of the manufacturing structure of the company is made with the aim of productivity enhancement by means of modernization of equipment and machinery, introduction of state-of-the-art technology at all the stages of polished diamonds manufacturing. The amount of investments in 2012 is approved in the aggregate of 136 million roubles.
According to the preliminary results, in 2011 the anticipated revenue from realization of products will be 15,638 million roubles. The anticipated profit of Kristall before taxation will amount 320 million roubles (net profit – 250 million roubles), which is 2,5 times more that the earlier approved figure.
The Board of Directors approved the Regulations on procurement activities in accordance with the Law FZ No.223 “On procurement of works and services”.
The company presented the report on reduction of administrative expenses in 2011. The savings amounted 11 percent per one product piece.