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BELUGA GROUP announces its financial results for the full year 2017

06
april 2018

BELUGA GROUP (MOEX:BELU), one of the leading spirits producers in Russia, today announces consolidated financial results for the full year 2017 prepared in accordance with International Financial Reporting Standards (IFRS).

Key financial figures for the full year 2017, and major corporate events:

2017

Shipments in volume terms

 +2%

Net revenue

 +4%

Alcohol segment revenue

 +4%

Operating income

 +15%

EBITDA

 +13%

Net profit

 +138%

 

- Synergy Group has become BELUGA GROUP;

- Beluga brand - absolute leader in the super premium segment in Russia[1];

- Exports of Beluga brand increased by 24%;

- Belenkaya brand - No. 1 vodka in Russia[2];

- Myagkov brand is one of the leading brands in sub-premium segment;

-  Export operations increased by 28%, import operations by 51%;

- BELUGA GROUP and Bacardi began the production of whiskey William Lawson's Super Spiced at the Moscow-based Group’s distillery Georgievsky .

Commenting on the financial results, CEO of BELUGA GROUP Alexander Mechetin said: "Last year, we strengthened our market positions, building up our leadership through business diversification and organic growth. Special attention was paid to operational efficiency and the introduction of innovative technologies in all areas of activity. Alongside with favorable market conditions, this allowed BELUGA GROUP to increase sales in value terms by 6%, operating profit by 15%, and net profit by 138%. A number of external factors also had a positive impact on our indicators: the ongoing legalization of the market, a balanced state excise policy, stabilization of the work of the USAIS in the retail system. Consumers' purchasing power is under restoration and this also positively influences the market.

In 2017, ВELUGA GROUP created a serious foundation for further improvement of profitability indicators due to the measures aimed at increasing business performance, namely: reducing financial costs, optimizing production and expanding the logistics platform.

Active development was continued by Beluga - the flagship super premium brand of BELUGA GROUP - its export shipments grew by 24% and almost amounted to half of its sales. The brand has demonstrated a significant growth on the markets of Israel (+74%), Poland (+71%), Bulgaria (+26%), Germany (+24%). Moreover the brand’s sales rose up to 22% through Duty Free channel, which is one of important in export business. Those indicators are testifying to great international potential of BELUGA GROUP’s flagship brand.

In 2017, the Company also developed exclusive distribution of products from partner companies. According to the results of the year, the Company’s import showed a 51% growth (962 thousand deciliters), the wine direction increased by 86% (522 thousand deciliters).

In conclusion, I note that today BELUGA GROUP is taking the leading positions in the market, possessing a diversified portfolio consisting of leading brands, great and unique distribution platform, while being the No. 1 among independent importers of premium spirits. These successes would have been unachievable without our friendly, professional team. I have no doubt - in 2018 we will continue the effective and successful development”.

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[1] In volume terms. According to IWSR data 2016.

[2]In value terms.  LLC Beluga Market calculations are based in part on retail trade audit data of Nielsen Russia for the Vodka Category for the period of December 2016-November 2017 in the Russian Federation as of 07.02.2018. (Copyright © 2018 AC Nielsen LLC).