Operating results 1H 2024

Novabev Group (ticker:BELU), Russia's largest alcoholic beverage company, has demonstrated growth in key operating indicators for the second quarter and the first half of 2025 compared to the same periods in 2024.

Key figures

• In a stagnating market, the company is showing stable growth. Total sales exceeded 4.4 million 9L cases in the second quarter (+13%), approaching 8 million 9L cases for the half-year (+5%).
• Sales of in-house products in Russia totaled 3.6 million 9L cases (+16%) in the second quarter and 6.2 million 9L cases (+6%) for the half-year.
• Sales of imported partner brands approached 850 thousand 9L cases (+5%) in the second quarter and reached 1.5 million 9L cases for the half-year.
• WineLab: the number of outlets reached 2,131 in June, with sales up 25.8% in the second quarter and 22.7% for the half-year.

Highlights

• Premium brands continue to strengthen. Brands in this category are showing double-digit growth rates, positively impacting margins.
• The fastest growing brands for the period are Orthodox (+55%) and Belaya Sova (+36).
• Among non-vodka brands, Troublemaker whiskey (+155%) and Green Baboon gin (+33%) showed the most positive dynamics.
• The Tête de Cheval Blanc de Blancs sparkling wine was included in the Wine Map of Russia 2025.
• Among imported brands, Barceló rum (+21%) and Noy Armenian cognac (+18%) saw growth, as did Concha y Toro (+32%), Cono Sur (+18%) and Torres (+16%) wines.
• The imported wine portfolio features several new products, including: JP. Chenet from South Africa, a country that showed 60% growth last year. There is also 0.375 liters of Frontera in response to consumer demand for smaller bottles.
• The range of brands, both in-house and imported, was expanded at METRO, O'KEY, Azbuka Vkusa, Aromatny Mir, Auchan, Bristol, Verny, Globus, Dixy, Lenta, Magnit, Krasnoe & Beloe, Perekrestok, and Pyaterochka.
• The company is the number one supplier of spirits by volume in all channels, including federal key accounts.
• Novabev Group topped Forbes' list of the largest alcohol producers in Russia.
• NKR Rating Agency confirmed the group's financial stability by assigning it a rating of AA.ru with a stable outlook.
• In June, Drink International published the 2024 Millionaire's Club international ranking, which includes spirits brands with sales exceeding 1 million 9-liter cases. Arkhangelskaya, Belenkaya, and Tsar are among the top 30 global vodka brands.

WineLab results

• Sales increased by 25.8% for the quarter and by 22.7% for the first half of the year.
• The strong performance is driven by traffic and average ticket, with growth of 14.2% and 10.2% for the quarter and +11.8% and 9.7% for the half year, respectively.
• The number of outlets increased by 90 during the first half of the year, reaching 2,131 stores by the end of June 2025.
• The dynamics of LFL sales were positive in the second quarter. Average ticket growth was the main driver of LFL sales, and LFL traffic increased by 2.7% in the second quarter.
• Total LFL sales for the first half of the year were +8.9%, with LFL average ticket accounted for 8.7% of the growth.
• 280,000 e-orders were picked up in WineLab stores in June.
• The industry's first specialized RetailMedia platform in the country was launched in June. It includes ad placements on the WineLab mobile app and website, and later on screens in retail outlets. This will help attract marketing budgets from advertisers.
• The WINCLUB loyalty system has evolved to cover more than 9.2 million people, with 4.6 million of whom participate in the point-based program and personalized services.
• WineLab continues to grow. Sales and the number of outlets are increasing, establishing it as a key element in the Novabev Group.

The Novabev Group has achieved impressive results thanks to its relationships with partners, the strength of its brands and team, and its commitment to innovation. The group is focused on development and improvement: AI is being introduced, and retail marketing and e-commerce are being actively developed. Together with the progressive work on internal processes, including automation and digitalization, these efforts are having a visible effect. The company is once again increasing its market share, demonstrating its sustainability and leadership.