Russia: Baltika could increase 2006 dividend payments by 62%

The board of directors at Baltika Breweries recommended that shareholders vote at their annual general meeting on May 15 to pay dividends of 39.5 rubles per common and preferred shares for 2006, the company said in a statement, according to Interfax News Agency, April 11.

Baltika paid 24.33 rubles for all shares in 2005 dividends. The shareholders will also approve other standard items at the AGM.

Baltika has charter capital of 175.083 million rubles, which is divided into 161.543 million common shares and 13.54 million preferred shares with par value of one ruble each.

The company increased revenue to International Financial Reporting Standards (IFRS) 20.8% to 1.74 billion euros in 2006. Net profit rose 42.2% to 330.9 million euros, gross profit increased 29% to 931.8 million euros and operating profit grew 40.8% to 427.1 million euros. The company's operating profit margin was 24.6%, up 3.5 percentage points from 2005.

Baltika sold 37.2 million hectoliters of products in 2006, up 10.3% from 2005. Beer sales accounted for 36.6 million hectoliters of sales, up 10.6% from the previous year.

Baltika unites ten breweries in nine Russian regions. Baltika merged with the Vena, Yarpivo and Pikra breweries in 2006. BalticBeverages Holding is the main shareholder in Baltika with 85.6% of the company's charter capital.

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