Russia: Baltika-owned Pikra brewery reported loss of RUR34 million for 1H 2006

Pikra, a brewery in Krasnoyarsk that is being merged into top Russian brewer Baltika, posted a net loss of RUR33.8 million in the first half of 2006, compared to a net profit of 17.5 million rubles in the same period of last year, the company said in a financial statement, Interfax News Agency released October 11.

Loans came due, which affected the brewery's financial results for the first half, a source at the company told Interfax. However, production grew compared to the same period last year, he said.

Pikra financial highlights for the first half of 2006 ('000 rubles): Pikra’s 1H 2006 sales were said to have decreased to 537,451 hl from 803,251 hl in 1H 2005. Pikra's payables decreased to 206.122 million rubles as of June 30 from 215.432 million rubles at the beginning of the year, and receivables dropped to 228.922 million rubles from 34.463 million rubles. The company's assets shrank to 2.259 billion rubles from 2.31 billion rubles.

Pikra is the biggest producer of beer and non-alcoholic beverages in the Krasnoyarsk territory. Following the completion of an exchange of Pikra shares for new shares in Baltika Brewing Company in July, Baltika now owns 92% of Pikra stock. Pikra will become the Baltika-Krasnoyarsk branch.

Baltic Beverages Holding (BBH) owns more than 80% of Baltika. Baltika plans to complete its takeover of Vena, Pikra and Yarpivo by December as part of the consolidation of BBH's Russian assets.