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Investment case

  3. Investment case
Large and resilient spirits and wine market Novabev Group offers a unique exposure to resilient spirits and wine market with strong organic growth potential
Vodka is among the most popular spirits across the world with Russia and USA being the key markets
Russian market is stable in volume terms with consumers shifting towards higher-margin products: wine and premium beverages
Russia market has a clear and predictable regulatory framework and provides additional government support for local wine producers, including Novabev Group
Reliable and resilient business during times of economic downturns
Diversified product mix and brand portfolio, as well as own specialized retail chain and expanding e-commerce “click-and-collect” sales makes Novabev Group well equipped for changing alcohol consumption preferences.
Brand leaders: unique portfolio of own and
imported brands Portfolio of Novabev Group includes more than 30 own and 110 world-known brands.
Our flagship brand is Beluga, the No. 1 super-premium vodka in Russia
Steady growth of own brands: vodka "Belenkaya", "Arkhangelskaya" and "White Owl", as well as Fox & Dogs whiskey, Green Baboon gin, Golubitskoe Estate and Tête de Cheval wines
Innovations are embedded in the DNA of the company: new product launches, selective rebranding and modern promotion tools
A key figure in the alcohol market Novabev Group is among top-10 spirits companies globally, and its flagship brand is widely known all over the world.
Indisputable leadership in Russia: No. 1 producer in key segments and No. 1 independent importer of spirits and wines
Vertically integrated business: control of all operational stages from the production of ethanol to the sale of beverages to consumers
Diversified business with a growing share of revenue from high-margin products
Proprietary fast-growing specialized alcohol retail chain "Winelab"
Ambitious growth strategy In 2021 Novabev Group has announced its new strategy with the goal to double its business by the end of 2024.
Expansion of the "Winelab" chain to increase the volume of direct sales and better understand consumer’s preferences
Diversification of the brand portfolio with a focus on high-margin products and the development of the wine segment
Flexibility in decision-making and rapid response to existing and new trends on the market
Development of the "Winelab" E-com segment utilizing the “click-and-collect” system to increase the average check for online orders
Focus on efficiency Notable operational performance with focus on returns to shareholders
Double-digit revenue growth
Attractive EBITDA margin
Continuous deleveraging with target Net Debt / EBITDA ratio of < 1.0x by 2024
Industry leading return metrics with one of the highest ROIC in the industry
In-depth analysis of customer preferences using Big Data
Transparent dividend policy: payments of at least 50% of consolidated net profit
Well-experienced management and adherence
to highest ESG standards
The key management team has been working in the company since its foundation
Top management owns more than 5% of the company's shares
The Board of Directors consists of nine people with three independent non-executive directors
Responsibility in the use of natural resources, recycling of materials and proper disposal of industrial waste
Providing equal opportunities to applicants and employees
Promotion of responsible alcohol consumption
Development of tourism and local communities with the help of the Golubitskoe Art Foundation and the Zarya Center for Contemporary Art
Geography map
Russia