Russian brewer Baltika, jointly held by Carlsberg and Scottish & Newcastle said on August 26 its first half net profit declined to $64.41 million from $72.08 million in 2002.

"A sharp increase in excise taxes at the beginning of 2003 negatively affected the sales volumes. Net sales declined six percent compared to 2002 and fell two percent more than gross sales," Baltika said in a statement.
Gross sales were down to $368.87 million from $384.93 million, the brewer said, while net sales took a further hit from rising excises. Net sales fell to $336.05 million from $356.37 million, while excise taxes rose to $32.82 million from $28.56 million.

Baltika, Russia's biggest brewer, has led a chorus of industry complaint about rising excise taxes, saying the government is stifling what should be a growing business in a country where beer consumption is low by European standards.
It blames the rising price of beer for declining consumption.

The accounts, calculated to U.S. Generally Accepted Accounting Principles, showed operating profit down to $84 million from $76 million, further pressured by an increase in selling, general and administrative expenses, though cost of goods sold fell.

29 August, 2003