Russia: Russian beer giant, Baltika Brewery, announced on March 26 its revised results for 2003. Company’s net profit decreased 10.2% to US$ 123 million from US$ 137 million in 2002. EBITDA dropped 3% to US$ 227 million. Operating profit fell by 12% year-on-year to $168.5 million. However Baltika’s net sales increased 8% to US$ 737 million from US$ 683 million versus last year. In 2003 the brewer sold 16.17 million hl of beer 07% more then in 2002.

“The fourth quarter of 2003 was especially successful as sales growth came close to the market’s growth at 7% above the level of the fourth quarter of 2002. This was accomplished thanks to new marketing solutions and to the first positive contribution arising from the new distribution system,” Baltika said in a statement.

At the end of 2003, Baltika held a 20.6% share of the Russian beer market. A policy of actively promoting its products abroad and new marketing initiatives made it possible to increase export sales by 9% compared with 2002. Sales volume amounted to 1 million hectoliters.

No guidance was given for 2004, but Baltika said that, during the first half of 2004, there are plans to complete the reorganisation of the system of sales with a view to attaining 100% penetration in the retail sales network and strengthening its control over route to market and price formation.

30 March, 2004