BELUGA GROUP announces its financial results for 2018

BELUGA GROUP announces the financial results for 2018: net profit increased by 43%, amounting to 938 million rubles, EBITDA increased by 17%, amounting to 4,251 million rubles.

BELUGA GROUP (MOEX: BELU), the leading alcohol company in Russia, announces the IFRS consolidated financial results for 2018.

Financial highlights and main corporate events

	2018
Sales in volume terms	+1,4%
Net Revenue	+16%
EBITDA	+17%
Net income	+43%
Earnings per share	+97%

In 2018, the company continued to strengthen its market position and has implemented a number of projects to form the ground for its further sustainable development.

Imported brands exclusively represented by the Company in Russia have showed a significant positive dynamic of + 29.5%. The brands of William Grant & Sons, Ron Barcelo and the Torres Spirits have been the growth drivers in the alcohol segment. BELUGA GROUP received the Best Performance in Premium Spirits Award as the best sales partner of the premium portfolio of Torres brandy in 2018 in the world. In addition to organic growth, the wine industry is dynamically developing; the Group has signed contracts for exclusive distribution in Russia with world-famous wine brands such as Torres, Masi, Luce, Attems, Danzante, Gerard Bertrand, and Billecart-Salmon.

The company continues its development in international markets. Export keeps showing double-digit growth rates of + 32.5%. Beluga’s positions in Israel and India have been significantly strengthened, with Italy, Germany, Bulgaria, Holland and Austria, as well as the Duty Free channel showing good results.

Alexander Mechetin, the CEO of BELUGA GROUP, comments on the company’s financial performance: “In 2018, the Group have continued its qualitative development according to the strategy: strengthened its leadership in key market categories, continued diversifying its operations, paid special attention to improving operational efficiency, while demonstrating a significant positive dynamic of key financial indicators: net profit increased by 43%, operating profit – by 15%, EBITDA – by 17%.

In 2018, a number of new launches, such as Green Baboon gin and Troublemaker Irish whiskey, were implemented, which have harmoniously complemented the BELUGA GROUP portfolio, ensuring representation in all the main categories. I would also like to mention the success of our new products, such as the vodka brands Belaya Sova (Snow Owl) and Mednaya Loshadka (Copper Horse), the three- digit growth rate of the vodka Arkhangelskaya, and the positive dynamics of the categories of brandy, local whiskey and liqueurs. The acquisition of Pomest’ye Golubitskoe (Golubitskoe Estate), a high-end winery, has become one of the most important events of last year, starting a new page of Russian winemaking. In March of 2019, the premium range of still wines Golubitskoe Estate has been launched at our winery – it will soon be available in stores, primarily in the WineLab retail chain. WineLab, a chain of specialized alcohol boutiques, also continues a dynamical development. In 2018, the Group have doubled the number of stores. WineLab is an important sales channel for the Group and one of the most promising areas of development within the diversification strategy of BELUGA GROUP.

The consistency of BELUGA GROUP’s preformance in 2018 allows us to confidently set global objectives for 2019. The company will continue to develop business with an emphasis on the premium segment, and to strengthen its market position, offering great brands at good prices.”