Prospectiuni 3Q 2011 results

The negative surprise came on the costs side, as despite the robust sales increase, operational profit was almost halved yoy at RON 7.5 mn, some 55% lower compared to our estimates, probably on higher third parties expenses. The net profit was also weak at RON 3.4 mn, down 74% yoy. Over 1-3Q sales were up 90% yoy to RON 216 mn, while net profit was 4x higher at RON 30.8. We view the results as negative and we expect a negative market reaction. We will update our model to incorporate the results, but we will maintain our buy recommendation.