2007 Six Months and Second Quarter Financial Results
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| BALANCE SHEET | | | | | | |
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| | | EEK | | | € | |
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| (In thousands) | 30 | 30 | 31 | 30 | 30 June | 31 |
| | June | June | Decembe | June | 2006 | December |
| | 2007 | 2006 | r 2006 | 2007 | | 2006 |
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| ASSETS | | | | | | |
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| Cash and cash | 4,112 | 38,044 | 118,876 | 263 | 2,431 | 7,597 |
| equivalents (note | | | | | | |
| 2) | | | | | | |
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| Trade receivables | 143,86 | 114,63 | 71,944 | 9,194 | 7,327 | 4,598 |
| (note 3) | 4 | 6 | | | | |
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| Other receivables | 11,964 | 9,909 | 7,883 | 765 | 633 | 504 |
| and prepayments | | | | | | |
| (note 4) | | | | | | |
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| Inventories (note | 68,253 | 52,961 | 58,771 | 4,362 | 3,385 | 3,756 |
| 5) | | | | | | |
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| TOTAL CURRENT | 228,19 | 215,55 | 257,474 | 14,584 | 13,776 | 16,455 |
| ASSETS | 3 | 0 | | | | |
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| Non-current | | | | | | |
| assets | | | | | | |
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| Long-term | 7,140 | 8,780 | 7,740 | 456 | 561 | 495 |
| financial | | | | | | |
| investments (note | | | | | | |
| 6) | | | | | | |
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| Property, plant | 276,92 | 293,00 | 277,788 | 17,699 | 18,726 | 17,754 |
| and equipment | 2 | 0 | | | | |
| (note 7) | | | | | | |
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| Intangible assets | 721 | 937 | 990 | 46 | 60 | 63 |
| (note 8) | | | | | | |
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| TOTAL NON-CURRENT | 284,78 | 302,71 | 286,518 | 18,201 | 19,347 | 18,312 |
| ASSETS | 3 | 7 | | | | |
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| TOTAL ASSETS | 512,97 | 518,26 | 543,992 | 32,785 | 33,123 | 34,767 |
| | 6 | 7 | | | | |
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| LIABILITIES AND | | | | | | |
| EQUITY | | | | | | |
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| Current | | | | | | |
| liabilities | | | | | | |
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| Lease liabilities | 70,414 | 164 | 131 | 4,500 | 11 | 8 |
| (note 9) | | | | | | |
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| Trade payables | 40,140 | 28,602 | 27,472 | 2,565 | 1,828 | 1,756 |
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| Other payables | 101,56 | 105,38 | 59,463 | 6,491 | 6,735 | 3,801 |
| (note 10) | 3 | 6 | | | | |
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| Packaging | 39,022 | 33,657 | 23,147 | 2,494 | 2,151 | 1,479 |
| repurchase | | | | | | |
| obligation (note | | | | | | |
| 11) | | | | | | |
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| TOTAL CURRENT | 251,13 | 167,80 | 110,213 | 16,050 | 10,725 | 7,044 |
| LIABILITIES | 9 | 9 | | | | |
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| Non-current | | | | | | |
| liabilities | | | | | | |
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| Lease liabilities | 296 | 505 | 376 | 20 | 32 | 24 |
| (note 9) | | | | | | |
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| Equity (note 12) | | | | | | |
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| Share capital | 80,000 | 80,000 | 80,000 | 5,113 | 5,113 | 5,113 |
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| Statutory capital | 8,000 | 8,000 | 8,000 | 511 | 511 | 511 |
| reserve | | | | | | |
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| Other reserves | | | | | | |
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| Retained earnings | 145,40 | 227,09 | 227,099 | 9,293 | 14,514 | 14,514 |
| | 3 | 9 | | | | |
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| Profit / loss for | 28,138 | 34,854 | 118,304 | 1,798 | 2,228 | 7,561 |
| the period | | | | | | |
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| TOTAL EQUITY | 261,54 | 349,95 | 433,403 | 16,715 | 22,366 | 27,699 |
| | 1 | 3 | | | | |
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| TOTAL LIABILITIES | 512,97 | 518,26 | 543,992 | 32,785 | 33,123 | 34,767 |
| AND EQUITY | 6, | 7 | | | | |
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| INCOME STATEMENT | | | | | | |
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| (In thousands) | | EEK | | | € | |
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| | Januar | Januar | | January | January | |
| | y- | y- | | - | - | |
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| | June | June | | June | June | |
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| | 2007 | 2006 | 2006 | 2007 | 2006 | 2006 |
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| Sales revenue and | | | | | | |
| other income | | | | | | |
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| Sales revenue (note | 464,15 | 349,89 | 770,13 | 29,665 | 22,362 | 49,220 |
| 13) | 5 | 6 | 3 | | | |
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| Other income | 92 | 126 | 1,511 | 6 | 8 | 97 |
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| Total sales revenue | 464,24 | 350,02 | 771,64 | 29,671 | 22,370 | 49,317 |
| and other income | 7 | 2 | 4 | | | |
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| Expenses | | | | | | |
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| Changes in work in | | | | | | |
| progress and | | | | | | |
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| finished goods | -9,396 | -2,947 | -1,973 | -600 | -188 | -126 |
| inventories | | | | | | |
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| Cost of materials, | 194,42 | 138,66 | 303,88 | 12,426 | 8,862 | 19,422 |
| consumables and | 4 | 2 | 4 | | | |
| services used (note | | | | | | |
| 15) | | | | | | |
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| Other operating | 117,29 | 86,431 | 182,06 | 7,497 | 5,524 | 11,636 |
| expenses (note 15) | 1 | | 3 | | | |
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| Labour costs (note | 46,910 | 39,933 | 85,354 | 2,998 | 2,552 | 5,455 |
| 15) | | | | | | |
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| Depreciation and | 29,839 | 28,078 | 58,590 | 1,907 | 1,794 | 3,745 |
| amortisation charges | | | | | | |
| (notes 7, 8) | | | | | | |
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| Other expenses (note | 1,187 | 2,228 | 3,904 | 76 | 142 | 249 |
| 15) | | | | | | |
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| Total expenses | 380,25 | 292,38 | 631,82 | 24,304 | 18,686 | 40,381 |
| | 5 | 5 | 2 | | | |
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| OPERATING PROFIT | 83,992 | 57,637 | 139,82 | 5,367 | 3,684 | 8,936 |
| | | | 2 | | | |
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| Net financial items | 556 | 1,113 | 2,378 | 36 | 71 | 152 |
| (note 16) | | | | | | |
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| PROFIT BEFORE TAX | 84,548 | 58,750 | 142,20 | 5,403 | 3,755 | 9,088 |
| | | | 0 | | | |
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| Income tax expense | 56,410 | 23,896 | 23,896 | 3,605 | 1,527 | 1,527 |
| (note 18) | | | | | | |
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| PROFIT FOR THE | 28,138 | 34,854 | 118,30 | 1,798 | 2,228 | 7,561 |
| PERIOD | | | 4 | | | |
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| Basic earnings per | 3.52 | 4.36 | 14.79 | 0.22 | 0.28 | 0.95 |
| share (note 17) | | | | | | |
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| Diluted earnings per | 3.52 | 4.36 | 14.79 | 0.22 | 0.28 | 0.95 |
| share (note 17) | | | | | | |
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| INCOME STATEMENT, Q2 | | | | |
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| (In thousands) | EEK | € |
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| | 2007 | 2006 | 2007 | 2006 |
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| Sales revenue and other income | | | | |
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| Sales revenue (note 13) | 283,005 | 224,858 | 18,087 | 14,371 |
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| Other income | 22 | 48 | 1 | 3 |
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| Total sales revenue and other | 283,027 | 224,906 | 18,088 | 14,374 |
| income | | | | |
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| Expenses | | | | |
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| Changes in work in progress and | | | | |
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| finished goods inventories | -7,275 | -537 | -464 | -34 |
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| Cost of materials, consumables | 116,771 | 85,370 | 7,463 | 5,456 |
| and services used (note 15) | | | | |
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| Other operating expenses (note | 72,587 | 53,822 | 4,640 | 3,440 |
| 15) | | | | |
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| Labour costs (note 15) | 25,775 | 22,499 | 1,647 | 1,437 |
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| Depreciation and amortisation | 15,131 | 13,748 | 967 | 879 |
| charges (notes 7, 8) | | | | |
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| Other expenses (note 15) | -26 | 1,633 | -2 | 104 |
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| Total expenses | 222,963 | 176,535 | 14,251 | 11,282 |
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| Q2 OPERATING PROFIT | 60,064 | 48,371 | 3,837 | 3,092 |
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| Net financial items (note 16) | -475 | 598 | -29 | 38 |
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| Q2 NET PROFIT | 59,589 | 48,969 | 3,808 | 3,130 |
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| Basic earnings per share (note | 7.45 | 6.12 | 0.48 | 0.39 |
| 17) | | | | |
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| Diluted earnings per share | 7.45 | 6.12 | 0.48 | 0.39 |
| (note 17) | | | | |
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Review of performance and operating results
Saku Õlletehase AS ended first half year with revenues of EEK 464,2 million (EUR
29,67 m), in improvement 32,6% compared to previous year same period. Operative
profit of Saku Õlletehase AS has increased almost a half, i.e. 46% to be
amounted EEK 83,99 million (EUR 5,36 million), therefore being the leading
beverage company in Estonia.
In quantitative terms, beverage sales of Saku Õlletehas totalled 49,07 million
litres, 16% up on the period. Beer sales is amounted as 37,3 million litres from
total sales.
Despite of lots of sudden sales restrictions in the period and unfavourable
weather conditions, Saku has done great financial results in the period. Growth
of revenues and profit is based on implementation of business strategy, which is
focused on premiumness in product portfolio and efficiency, especially cost
control. Besides beer, Saku has contributed on other beverages development,
especially by water lines, which sales has increased by 75%.
Revenue growth of Saku is run by quality beer products, which is the strategic
strength of the company as well in domestic sales and in export. The company is
an overwhelming leader in premium and mainstream category (respectively 62% and
57% on the category).
75% from total sales of the company belongs to beer and beer drinks category.
During the period, Saku Õlletehase AS has renewed its corporate brand and made
packaging development for its main beer brand, Saku Original. Beer sales
increase is lead by premium brand Saku Kuld and mainstream brand Saku Original
as the most sold beer in Estonia.
In terms of premiumness, Saku has strengthened its position in market share in
terms of value and litres. According to research Company ACNielsen the value
share of the beer market is amounted 51%, follower is AleCoq Brewery (Olvi) by
34,3%. Volume share in beer trade market is of Saku Brewery is amounted as 47%,
following ALeCoq Brewery (Olvi) by 34%, Private labels 9,6%, Viru Brewery
(Harboe) 4,4%, Puls Brewery 0,8% and others 4,1%.
In aim to multiply revenue bases, the company continues enlargement on other
beverage products, which amounts as 25% from total sales. During a year Saku has
launched three new bottled coctails under the line Sin, Vichy Classique Ice Tea,
innovative long drink Zip Freezer and launched strawberry flavoured Kiss cider.
A domestic energy drink, Traffic was launched and international brand Strongbow
Gold was started to produce at Saku brewery under the licence of Scottish and
Newcastle. Bottled water sales of Saku has increased 75% during the period,
driven by flavoured near waters Viva Fresh product development.
During the period an export has increased, levelled as 18% from total sales.
Export is related mainly to the Baltic States and Finland. Premium brand, Saku
Kuld is started to distribute by Finnish maket leader company Sinebrychoff.
In 2007 has been the priority investments of the company product development
centre at Saku Brewery, which consists laboratory technology and experts
development program in aim to new product development for Estonia, Latvia and
Lithuania. In the centre has been created for the Baltic market cocktail drink
line Sin, Vichy Classique ice tea, beer drinks Dlight and Viva Fresh near
waters.
As the market leader, Saku Brewery invests in production and technology on
annual bases. Besides investments in laboratory and product development centre,
there has been important investments focused on cider wine production and
filling department regarding packaging development, especially new generation
cork technology.
On April there was an alcohol sales ban in Tallinn almost a week and after that
restricted in many regions in Northern Estonia which has influenced sales of II
quarter and could have impact for sales in the future.
Growth of company's experiences is influenced by production increase in the same
time. 30% increase of experiences compared to the last year same period, is lead
by spendings on goods, raw materials, packages, consumables and transportation.
Net profit in II quarter has increased 22%, amounted to 59,59 million EEK (EUR
3,80 m). Six months net profit totalled 28,1 m EEK (EUR 1,78 m), which is 19 %
less compared to last year same period because of dividend taxes payout in the
first quarter. Saku Õlletehase AS dividends were the highest ever last year,
which increased over 50% tax level compared to previous year.
25% of share-capital of Saku Õlletehase AS belongs to small private and
institutional shareholders.
Additional Information:
Kristina Seimann
Communication Manager
+372 508 400