BELUGA GROUP announces the financial results for the first half of 2019

BELUGA GROUP announces the financial results for the first half of 2019: net profit increased by 10%, amounting to 452 million rubles, EBITDA increased by 41%, amounting to 2,703 million rubles.

BELUGA GROUP (MOEX: BELU), the leading alcohol company in Russia, announces consolidated financial results for the first half of 2019 prepared in accordance with the International Financial Reporting Standards (IFRS).

Financial highlights and main corporate events

Consistent implementation of diversification strategy in 1H2019 has enabled the group to strengthen its positions in the industry.

The partners’ brands which are represented by BELUGA GROUP exclusively in Russia continue to develop positively. Grew both spirits, where the drivers are products of William Grant & Sons, rum Barcelo and cognac Camus, and wine brands, which starting from this year include world famous names, such as Torres, Billecart-Salmon and others.

Exports show positive trend. Vodka Beluga solidly grew in Kazakhstan, Israel, Poland, Germany, Italy and other countries, as well as in Duty Free channel, which has doubled its sales compared to the same period last year. The new releases of 2018 – Copper Horse and Green Baboon – were introduced to export markets.

The expansion of the company’s own retail chain WineLab continues: the number of outlets for the first half of the year increased on 78 and totaled to 545. By the end of the year the amount will approach 600 outlets.

As Alexander Mechetin, the CEO of BELUGA GROUP, commented on the company’s financial performance: “In the first half of 2019, the group showed solid results: the net profit has grown by 10%, the operating profit – by 23%, and the EBITDA – by 41%.

We continue our development from vodka-oriented company focused on Russia, who we used to be ten years ago, to the business embracing all categories of alcohol beverages in Russia and internationally. Besides, significant attention is paid to innovations in own retail, aspiring to deliver the best possible service to our customers.

Speaking about brands of our own production, I’d like to mention several activities. Within the reporting period all ten SKUs of premium wine brand Golubitskoe Estate, represented by classic and reserve ranges, were launched and the first sales has started, which indicate that customers admire this product. By the end of the year we will introduce sparkling wine Tete de Cheval – which is the primary focus of the winery. Besides wine, we expand whisky category, adding to Scotch and Irish – American one – bourbon Eagle’s Rock. We develop growing brandy category. Introduce innovations in vodka category launching ‘Myagkov with organic spirit’.

Exports and Imports develop steadily. Portfolio of partners’ brands is represented by the strongest names, which due to our unique distribution system we represent on a very high level in Russia. When it comes to performance of our products abroad, I’d like to mention growth of awareness of super premium vodka Beluga. This is our flagman, which keeps gaining more recognition and admirers worldwide. In general, exports of the company’s brands show dynamism: performing exceptionally well in India +39%, Turkey +50%, Germany +24%. Good results are in Duty Free channel +7%, with the USA, Europe and Latin America growing significantly.

Constant company’s development, deep understandings of market situation and trends, as well as aspiration to deliver the best products at the best prices to our customers enable us to gain the leading positions in the sector and show good financial results”.