E-Malt.com News article: Russia: Baltika shareholders approve the dividend payment for 2007

The annual General Shareholders Meeting of Baltika Breweries held on April 29 approved the Company’s performance, financial accounting and the annual report for 2007, according to company’s press release, April 30. Dividends per share rose by 32% compared to the dividends paid for 2006.

In 2007, the Company’s revenues increased by 29.5% compared to 2006. The strong financial results of 2007 made it possible for the Company to raise the dividend payment by 32% compared to the year before.

The high level of dividends was ensured thanks to an increase in the production capacity at Baltika plants, the growing volume of sales and a number of projects to raise operating efficiencies carried out in the course of 2007. A further contributing factor to the growth of revenue and profits per share was the reduction of the Company’s issued share capital resulting from by buying back Baltika shares from shareholders willing to participate which was directed, inter alia, at improving the capital structure and enhancing the attractiveness of investing in Baltika Breweries.

The stable financial situation and decreasing the number of shares traded made it possible to raise the dividend payments in a record manner, establishing the dividend at 52 rubles per share for both ordinary and preference shares. This decision corresponds to Baltika’s dividend policy, which is directed at yearly increases in the dividends paid out. In accordance with the decision of the Shareholders Meeting, payment of the first part of the dividend will start on June 1, 2008 and the second part will be paid beginning September 1, 2008.

At the Shareholders Meeting of Baltika Breweries, the composition of the Company’s Board of Directors was also approved as follows:

* Artemiev, Anton
* Ikonnikov, Alexander
* Isosimov, Alexander
* Nicolson, John
* Rasmussen, Jørgen Buhl
* Søndenskov, Bjørn
* Stevenson, Andrew

Furthermore, Baltika shareholders elected the members of the Internal Auditing Committee, approved the appointment of the Company’s auditors — ZAO KPMG, A & P Audit CJSC and Ernst & Young LLC -, approved the amount of compensation to the members of the Board of Directors and approved the decision for Baltika to participate in the non-profit All-Russian Association of Employers within the Russian Union of Industrialists and Entrepreneurs.

Baltika Breweries is the largest FMCG company in Russia. Since 1996 it has been the leader on the Russian beer market. The Baltika brand is second in Europe in terms of sales. The Company comprises 11 breweries across all of Russia. It has a wide portfolio of brands and its employee’s number around 12,000.


30 April, 2008