E-Malt.com News article: 1436

Quinsa, the holding company for the Latin American brewer Quilmes, has posted that its second quarter core profits rose strongly, with earnings before interest, tax, depreciation and amortisation (EBITDA) of US$30.2m versus US$4.7m for the same period last year. Meanwhile EBITDA margin improved 19 percentage points to 24.9%. Beer sales volumes increased 34% to 2.69 million hectoliters versus 2 million hectoliters a year earlier principally due to strong improvements in Argentina, where the market has been recovering after a dismal 2002, and to the addition of volume from AmBev's former southern cone operations. The company reported net profit (loss) after tax improved to a loss of US$ 11.1 million, or US$ 0.084 per share, compared to a loss of US$ 36.3 million, or a negative US$ 0.344 per share for the second quarter 2002.

Commenting on the results for the second quarter, Agustin Garcia Mansilla, Quinsa's CEO, stated: "We are extremely enthused with the Company's performance this year. Supporting this performance is the fact that we have been implementing cost and revenue synergies according to plan, having in fact over-achieved some of our targets to date."
"This has increased our expectations regarding the Company's prospects for the year, since the full effect of the measures implemented will only be seen as the year progresses. Further, we will continue to put in place additional synergies throughout the rest of the year and into 2004."

The recovering Argentine economy apart, Quinsa also attributed the strong rise in sales volume to the consolidation of operations of the southern assets of Companhia de Bebidas das Americas (AmBev) that bought 37.5% of Quinsa in January. "This has increased our expectations regarding the company's prospects for the year," it said.

Quinsa is a Luxembourg-based holding company, which controls 85 % of Quilmes International (Bermuda) ("QIB"). The remaining 15 % share had been owned by Heineken International Beheer B.V. ("Heineken") until it sold its participation in QIB in January 2003. Their former stake is now held by Beverage Associates (BAC) Corp. ("BAC") and by Companhia de Bebidas das Americas - AmBev ("AmBev"). BAC and AmBev hold 6.4% and 8.6% of QIB's shares, respectively.



15 August, 2003