Baltika [RTS: PKBA], a leading Russian brewery, said Thursday its net profit calculated to International Financial Reporting Standards (IFRS) rose 16.3% year-on-year in the first half of 2006 to 94.7 million euros (about $120 million).

Baltika, which controls 24% of the Russian beer market, said its sales had grown 18.2% in the reporting period to 531.6 million euros (about $675 million) and gross profit had risen 24.4% to 286.9 million euros (about $364 million).

Baltika, which owns the popular Baltika and Arsenalnoye brands, with market shares of 10.9% and 5.4%, respectively, also said its earnings before interest, taxes, depreciation and amortization (EBITDA) had expanded 21.5%, year-on-year, in the first half of 2006, to 162.4 million euros (about $206 million) and its operating profit had increased 23.8% to 124.8 million euros (about $158 million).

Baltika, which is majority-owned by Baltic Beverages Holding AB (BBH), said its sales in kind had grown 4% to 11.2 million hectoliters.

In July, Baltika made major increases in the charter capital of three smaller breweries in a merger effort: from 0.17% to 92.76% in St. Petersburg-based Vena, from 21.59% to 91.9% in Krasnoyarsk's Pikra and from 0.03% to 87.19% in Yarpivo in Yaroslavl.

Vena, Pikra and Yarpivo are part of Baltic Beverages Holding AB (BBH), Baltika's major shareholder since 1993.

Baltika increased its stakes in the smaller breweries in a share-swap deal, which allowed BBH to swap its holdings in Pikra, Vena and Yarpivo for additional stock of Russia's leading beer maker.

Established in St. Petersburg in 1990, Baltika has five breweries in St. Petersburg, Rostov-on-Don, Tula, Samara and Khabarovsk, with total capacity of 24 million hectoliters a year. Baltika produces Foster's and Carlsberg under license in Russia and sells its products in Russia and 38 other countries.

News source: en.rian.ru
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