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BELUGA GROUP announces its operational results for the first half of 2018

12
july 2018

BELUGA GROUP announces its operational results for the 1H2018.

BELUGA GROUP delivered a solid first half year performance. The company’s overall sales grew +2,5% to 6 291 thousand 9L cases.

The sales of the company’s own brands remained almost at the same level and reached 5 765 thousand 9L cases.

The portfolio of imported brands demonstrated a very good first half year performance – the sales were +27% and totaled 526 thousand 9L cases.

Export operations continues their growth, sales increased on 17% and amounted to 224 thousand 9L cases. The growth was driven mainly by Beluga vodka, which keeps strengthening its presence in super-premium segment in the world market.

The partnership of Bacardi and BELUGA GROUP for local bottling of William Lawson’s and William Lawson’s Super Spiced goes on. The volume of production under the agreement increased nearly three times compared to the same period in 2017.

Chief Executive Officer of BELUGA GROUP Alexander Mechetin commented on the results for the 1H2018: “The group showed good performance. We focus on premiumization of our portfolio with emphasis on the development of premium and sub-premium segments, where we create and distribute high-quality brands with interesting DNAs and positioning. We launched two new products in premium segment this year – Snow Owl and Copper Horse. The market showed interest in them, the sales solidly grow and we hope for success of these brands in the future. Vodka Arkhangelskaya accelerates in sub-premium segment. The brand grew 3 times compared to the same period last year and became one of the leaders in sub-premium segment”.

I should mention a good development of import operations. Sales of the partners’ brands grow both organically and due to new agreements.

The company also increased sales abroad. Italy, Germany, Israel, Bulgaria and Poland demonstrate good performance. India again shows substantial growth, and may enter the top-3 export markets for Beluga vodka at the year-end. We expect improvement of the results in the UK (the 2nd biggest market after the USA) and Greece due to new agreements with local distributors in these countries. A series of trade marketing activities were held in the Duty Free channel timed to FIFA World Cup and it also led to growth of sales.

The first half year performance of the company is sustainable. We will continue to develop our strategy and strengthen the company’s position in the market in the next period as well”.