Russia's largest brewery Baltika, announced yesterday that its net profit for the first nine months of the year rose to US$114.9m, compared with $97.5m in the same period last year.

However, in further evidence that the Russian beer market is struggling to meet the high growth rates expected of it, analysts said the numbers were well below their expectations.

Revenue at Baltika, which is 73.6% owned by Baltic Beverage Holding (BBH), which in turn is 50-50 owned by Carlsberg Breweries and Scottish & Newcastle, totalled US$560.9m, up from US$397.3m, in line with expectations.

However, the company reported a rise in selling, general and administrative expenses to US$111.8m in January-September from US$39.8m a year earlier, partly on account of its expansion into the canned beer sector this year.