Industry News       English French Dutch Spanish German Russian Italian Portuguese Portuguese Danish Greek Romanian Ukrainean Chinese Polish Korean
Logo Slogan_French


CASTLE MALTING NEWS in partnership with www.e-malt.com French
10 May, 2006



Brewing news UK: Scottish & Newcastle announces first quarter results from BBH

Scottish & Newcastle announced on May 10 first quarter results from its 50% owned joint venture Baltic Beverages Holding AB (BBH).

Within a Russian market estimated to grow at 3-5% in the medium term, share is expected to be gained whilst achieving price increases just below the level of local food and beverage price inflation. Following outstanding margin performance in 2005, margins are expected to remain stable at around 20%. The legal integration of our Russian businesses will be completed by the end of 2006 allowing BBH to consolidate its position as market leader in a competitive market.

EBIT margin declined by 1.1%pts in the first quarter to 11.9%. BBH continued to invest in consumer facing activity in the period including sales and trade marketing. This is part of their strategy to drive volume and market share gains in BBH’s markets going forward. There are two factors impacting margin movement in the period. The first quarter saw a one off reorganisation charge in Ukraine, adjusting for which, margins would be broadly in line with Q105. In addition, as reported in Q1 2005, prior year margin was unusually high due to a refocusing of marketing spend to later in the year. BBH expects margins in 2006 to be in line with last year at around 20%.

BBH was able to grow prices per litre by 5.7% in local currency. Mix development led to a 0.2% reduction as we see a lessening of the net sales impact of volume switch into PET.

Russia

In March 2006, Baltika Breweries announced that its shareholders voted in favour of the proposed merger of Baltika with Pikra, Vena and Yarpivo. An overwhelming majority of Baltika shareholders approved the deal at the March Extraordinary General Shareholders Meeting. When completed, the merger, by creating an exceptional portfolio of brands, will consolidate Baltika's position as market leader in Russia. BBH has confirmed its commitment to the Russian beer market by reiterating that it will take shares in the enlarged Baltika in exchange for its shares in each of Pikra, Vena and Yarpivo rather than cash.

The Russian market grew by 2% in the first quarter of 2006, a period that generally accounts for 15 - 20% of annual volume. This was undoubtedly impacted by the exceptional cold weather in Russia during the period. Within this market, BBH volumes experienced a slight decline of 1% resulting in a loss of 1.2%pts market share to 34.9%. There was some temporary volume disruption as we commenced harmonisation of our distribution arrangements in Russia. In addition, the competition has introduced large pack PET format to the market. BBH, which remains the clear market leader in Russia, has plans to bring new consumer offerings to the market this summer to further confirm our leadership position.

Focus on Ukraine

In Ukraine, BBH announced the appointment of a new Managing Director effective from 1 May 2006. We have confidence in the new management’s ability to improve business performance. For the first quarter, volumes in Ukraine grew by 12% against market growth of 17%, resulting in market share of 16.6%.

Strong pricing in the Baltics

The three Baltic State markets grew by 5.3% compared to the same period in 2005. BBH remains the clear market leader with combined share of 40.5%, despite growing volume slightly below the market. The first quarter saw volume growth with strong pricing improvement underpinning our strategy of developing a strong brand portfolio for margin growth.

Outstanding growth in Kazakhstan

The positive trend from 2005 has continued into the first quarter of 2006 with the Kazakhstan beer market growing by almost 36%. BBH has significantly outperformed the market rate reaching a market share of 31.6%, an improvement of 3.6%pts. BBH is doubling capacity in 2006.

Baltic Beverages Holding AB (BBH) is a 50:50 owned joint venture between Carlsberg Breweries A/S and Scottish & Newcastle plc. BBH operates 18 breweries in six countries in Eastern Europe, including Russia where it is the market leader with a 35% market share.





Revenir



E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .














Nous utilisons des cookies pour nous assurer que nous vous offrons la meilleure expérience sur notre site Web. Si vous continuez à utiliser ce site, nous supposerons que vous en êtes satisfait.     Ok     Non      Privacy Policy   





(libra 0.7813 sec.)