Argentinian milk and dairy Masher released disappointing results in the first quarter which resulted in its 2012 bonds widening from a May 07 yield of 12.5% to a June 08 yield of 20.08%. That's quite a yield so we looked further int the results.
While net sales for the quarter increased 8.4% YoY EBITDA dropped from Ps.30.7 million in 1Q’07 to Ps.-20.8 million. This was primarily because exports collapsed.
The company did not account for government subsidy payments (compensaciones) during the quarter and that the farmers’ strike in March caused a deferral. Excluding these factors, 1Q’08 results would have been fairly comparable to 1Q’07 results!