E-Malt.com News article: 2364

SUN Interbrew Limited, a leading brewer in Russia and Ukraine, announced on March 18 its financial results for the fourth quarter and full year ended 31 December 2003. The Company has had a very successful 2003 marked by a number of significant achievements: Beer volume growth was up 28.6% vs. 2002; Net Turnover increased by 24.8% vs. 2002; EBIT growth was 121.6%; EBITDA for the year was €100.8m, or 34.7% higher than in 2002. Furthermore, if one were to strip out the negative currency impact compared to 2002, EBITDA for the year would be €117.7m or 57.3% higher than in 2002; Net Income is €21.3m and increased by €24.9m from a loss situation in 2002.

This performance was achieved through strategic developments in a number of key business areas: More effective route to market by building partnerships with distributors and increasing brand visibility and availability; Strengthening of existing brands and introduction of new, higher margin brands; Innovations, particularly in packaging; Operational excellence; Optimization of brewing efficiencies.

The above activities led to an average market share growth of 2.7%, which reached 14.5% in Russia in 2003, from 11.8% in 2002. In the fourth quarter of 2003 the Company's market share in Russia reached 15.5%, 3.4% higher than in the fourth quarter of 2002. In Ukraine, the Company's leading position was further strengthened with the average market share increasing from 32.2% in 2002 to 34.3% in 2003. In the fourth quarter the market share reached 36.6%.

In both countries the Company successfully introduced innovations and has now established itself as a market leader in this field. The following examples illustrate the Company's efforts in both packaging and brand innovation: In 2003 SUN Interbrew revolutionized the beer market by introducing the breakthrough PET technology PIVOPACK® bottle, which has the same shelf life as a glass bottle. The Company's Premium and Core brands in Russia, Sibirskaya Korona® and Klinskoye®, were presented in a new proprietary bottle. In Russia, the Company successfully launched a new Klinskoye® dry beer variety, Samurai, as well as the Sibirskaya Korona® wheat beer variety, Beloye. In Ukraine, progress of the Chernigivske® wheat beer variety, Bile, was a huge success.

In addition, the strong growth of global brands Stella Artois® and Staropramen® supported the Company's effort to establish a solid position in the Super Premium segment of its markets. Other global brand, Beck's® , was also launched at the end of 2003 in both Russia and Ukraine.

In 2003 SUN Interbrew Russia sold 10.8m hl of beer vs. 8.1m hl last year. This represents an increase of 33.2% compared to an overall beer market growth of 7.4%. On a quarter-to-quarter basis, sales volumes increased by 55.9% in the fourth quarter versus the same quarter in 2002.

The volume of beer sales for SUN Interbrew Ukraine grew by 11.8% to 1.1m hl in the reported quarter, with full year growth of 20.0% to 5.3m hl. With total industry growth of 13.0% SUN Interbrew Ukraine boosted its market share by 2 percentage points up to 34.3%.

SUN Interbrew Limited is the second largest brewer in Russia and the largest brewer in Ukraine. The company is a strategic partnership between Interbrew, one of the largest brewers in the world, and the SUN Group, which has operated in the region since 1958, and in the beer sector of Russia and the CIS since the early 1990s. The company's main brands are Stella Artois®, Beck's®, Staropramen®, Sibirskaya Korona ®, Klinskoye ®, and Tolstiak® in Russia, and Stella Artois®, Beck's®, Chernigivske®, Rogan®, Taller® and Yantar® in Ukraine. SUN Interbrew is a public company registered in Jersey, whose shares are listed in Luxembourg and traded on the Luxembourg, Frankfurt and Berlin stock exchanges.


19 March, 2004