Baltika Brewing registered a net profit of USD 64.4 million for the first six months of 2003, a decline of 10.6% from the same period a year ago. As reported yesterday by the Baltika press service, the decline was largely attributable to amortization costs of major capital investments and to increases in energy costs ranging from 15% to 30%. The figures were derived using US accounting standards.

In addition, the sharp increase in the value-added tax early in 2003 had a significant lowering effect on sales. The volume of sales (including VAT and excise taxes) in the January-June period this year came to USD 440 million, 4% under the year before. Actual volume of sales was down 6%, to USD 336 million.

Baltika sold 8 million hecto-kilolitres of beer in the first half of 2003. First-half data had the company holding 21.1% of the Russian domestic beer market. Export sales for the firm were up 9% as compared with sales in the first half of 2002 and came to 497,000 hecto-kilolitres.

Baltika, founded in 1990, registered in July 1992. Its original book value was approximately USD 40.2 million divided among 107,087,200 units of common stock and 13,485,600 shares of preferred Type A with par value of 1 rouble. The chief stockholder is Baltika Beverage Holding (with 74.24% of the company's stock).

News source: www.rosbaltnews.com
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