The Danish brewer Bryggerigruppen has posted net loss decrease in Q1 2004. The brewer announced on April 27 that net loss for the quarter was DKK11.3m (US$1.765m) against a loss of DKK37.5m year-on-year. Sales (net revenue) for Bryggerigruppen rose by 4% to DKK552.2m from DKK530.5m, as the brewer sold 856 hectolitres of beer and other products, a 5.5% increase year-on-year. The increase was primarily attributable to Denmark and the Caribbean. The distribution company Impec Holding SAS in the Caribbean was not included in the financial statements in Q1-Q3 2003.


The company’s free cash flow fell further into the red, however, to –DKK122m compared with –DKK57m. Bryggerigruppen said that it had significant expenses from its marketing campaign that includes the launch of two new lagers. The company maintained its full-year guidance of a pre-tax profit of between DKK280m and DKK320m.

Q1 Report 2004 of The Danish Brewery Group Page 5 of 10 In Denmark, both sales and revenue increased over Q1 2003. It is estimated that both total soft drinks sales and beer sales in Denmark showed slight declines in the first three months of the year, and therefore The Danish Brewery Group has won market shares in both segments in Q1. Progress was recorded for, among other products, Faxe Kondi (the launch of Faxe Kondi 2), for Royal Export, for Mirinda and in the lager segment, where supplies under the COOP contract were commenced in March.

In Lithuania, the total beer market showed a slight increase over Q1 2003. The Tauras products developed satisfactorily, whereas, for the Kalnapilis brand, the period was characterised by the preparations for the brand relaunch, which took place in early March. In Q1 2003 contract production was still carried out for Latvia, which was not so in 2004. In spite of a significant increase of marketing expenses over Q1 2003, the result in Lithuania improved in the period. The situation in Poland continued to be unsatisfactory with sales and revenue declines. A new CEO will take over at 1 May 2004.

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