Russia: Ochakovo net profit increased to RUR198.508 million in 1H 2006
Moscow's Ochakovo Brewery, one of the major producers of beer and other beverages in Russia, increased net profit 450% year-on-year to 198.5 million rubles in the first half of 2006 from 36 million rubles in the same period of 2005, the company released August 14, Interfax News Agency Via Thomson Dialog NewsEdge announced August 16. EBIDTA rose 12.6% and reached RUR 3.55 million.
The increase in net profit is attributable to an increase in sales revenue, the release says.
The Ochakovo Brewery opened in 1978 and was incorporated in 1993. The company's largest shareholders are its top executives. Ochakovo sold 721.1 million liters of beverages in 2005, down 0.2% from 2004. Beer sales dropped 3.2% to 508 million liters, while sales of low- alcoholic drinks fell 17.5% to 89.3 million liters. Sales of nonalcoholic beverages, however, jumped 43.22% to 118.9 million liters, while sales of kvass (a lightly fermented traditional beverage) skyrocketed 75% to 43 million liters.
Officials stressed that the company has shifted to other marketing and brand portfolio approach. It also revised packaging strategies and spent US$18 million in advertising and trade-marketing campaigns.
Commenting on the company’s good results, General Director Vladimir Antonov said: “For the next half of year we plan to maintain the positive dynamics in sales of Ochakovo products through increasing beer sales and adjusting the seasonal year-on-year drop of kvass sales.
“For this purpose we intend to upgrade the standing of our main beer and kvass brands Ochakovskii. Starting from August we plan to start a new marketing campaign in which we will put a strong emphasis on TV advertising,” he added.
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