BELUGA GROUP announces the financial results for 2020

BELUGA GROUP announces the financial results for 2020: net revenue increased by 23%, exceeding 63 billion rubles, EBITDA increased by 42%, reaching 9.2 billion rubles, and net income grew by 72%, approaching 2.5 billion rubles.

BELUGA GROUP (MOEX: BELU), the leading alcohol company in Russia, announces the IFRS consolidated financial results for 2020.

Financial highlights and main corporate events:

The group showed sustained development, a double-digit growth of sales and strong financial results in a volatile and turbulent 2020. High performance was achieved thanks to the company's unique business model. It combines the production of a wide range of brands, including product innovations, large-scale distribution and WineLab, in-house specialized retail chain, which allows BELUGA GROUP to interact directly with customers. These key components of the group's business enable it to provide uninterrupted supplies and quickly adapt its tactics to changes in the external environment. The focus on operational efficiency and commitment to a diversification strategy were also important success factors.

The group continued to strengthen popular brands and presented promising new products in the vodka category, strengthened its position in the whiskey, gin and rum categories, and focused on the development of the wine product line: the group sold more than 1 million bottles of Golubitskoe Estate still wines and launched Tête de Cheval sparkling wines which are made using a traditional Champagne method. In addition to the production and distribution of its own products, BELUGA GROUP continues to exclusively represent partner brands, and at the end of the year, it occupies a leading position among independent importers of spirits and wine in Russia. Sales of partner brands at the end of the year exceeded 2.7 million 9L cases.    

Sales of Beluga vodka showed positive dynamics in Germany, Poland and Israel. In the US, a key market for the brand, it showed impressive growth of +30%.

Commenting on the financial results, CEO of BELUGA GROUP Alexander Mechetin said, “The company has successfully met all the challenges of this difficult year—the crisis in the consumer market, the unfavorable epidemiological situation, and the rapid transition of activities to the digital channel. Thanks to a vertically integrated model that allows us to control all business stages, from the creation of products to their sale, as well as a diversification strategy that includes, in addition to the production and distribution of brands in different segments, our own retail chain, WineLab, partner brands and foreign markets, the group has achieved double-digit growth in all major operating and financial indicators. For example, operating profit increased by 54%; EBITDA, by 42%; and net income, by 72%; the same indicator for continuing operations increased by 82%.

To date, BELUGA GROUP represents more than 150 brands, including its own brands produced at five group-owned distilleries and one winery, as well as partner brands, represented by spirits from William Grant's & Sons, Camus, Torres Brandy and Ron Barcelo and an extensive wine portfolio, including Torres, Masi, Faustino, Cono Sur, Mateus and others. Starting in 2021, we are expanding our cooperation with Sazerac and are starting to represent Early Times bourbon and Fireball whiskey liqueur in Russia; the latter is the best-selling whiskey brand in the United States, which indicates the great potential of the product in the domestic market. JP.Chenet, a world-famous and promising brand, has also been added to our wine portfolio. In general, BELUGA GROUP brands are represented in all categories and price segments, with the main focus on the premium segment. Beluga vodka, the company's flagship brand, is gaining popularity abroad, the brand is sold in 120 countries on five continents.

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