Russian cosmetics maker Kalina Q1 net rises 16 pct

YEKATERINBURG, Russia, May 16 (Reuters) - Russia's top cosmetics maker Kalina (KLNA.MM: Quote, Profile, Research, Stock Buzz) posted a 15.6 percent jump in first-quarter net profit to $8.8 million, boosted by heavy advertising and new product launches.

The company, which makes Black Pearl and Pure Line creams, said in a statement on Friday its revenue to International Financial Reporting Standards rose by 29.3 percent to $124.9 million.

"During the first quarter of 2008 the company introduced to the market more than 100 new branded products and increased the average selling price by more than 12 percent compared with 2007," Kalina said in a statement, adding it had splashed out on a seasonal advertising campaign.

General Director Alexander Petrov said on a conference call the company spent 58.5 percent more on advertising than in the first quarter of 2007, or 14.5 percent of its revenue.

"As a result of these efforts, sales rose by nearly 30 percent," Petrov said.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 8 percent to $16.6 million.

"Kalina's Q1 '08 results were quite strong ... despite the fact that high advertising costs put pressure on EBITDA margin. We believe the figures bode well for the full-year results," said Maria Startseva, analyst at Uralsib.

"Moreover, the stock currently trades at a 2008E EV/EBITDA of 5.9 and P/E of 9.2, implying significant discounts of 54 percent and 55 percent to international market peers, respectively," Startseva said.

Shares in Kalina closed at 793 roubles, down 1 percent. The company has a market value of $327 million. (Reporting by Natalya Shurmina; Writing by Maria Kiselyova; Editing by David Holmes)