Efes Breweries International said today that operating profits for its full year had leapt 63% on the back of sales value and volumes increases of 51% and 44% respectively. However, net profit fell on the back of one-off items.

In 2004, EBI's consolidated sales volume was approximately 7.6m hectolitres, representing an increase of 44% over 5.3m hectolitres in 2003.

In 2004, EBI had an average market share of 8% by value in the Russian beer market, growing its volumes by 54% over 2003 against an estimated market growth of 11%.

Net sales on a consolidated basis in 2004 and 2003 were US$398.5m and US$264.1m, respectively, reflecting growth of approximately 51% over the same period in the previous year and exceeding the volume growth for the same period.
Profit from operations increased by 63% in 2004 compared to 2003.

"Although 2004 was the first year reflecting a full year of production at four of the brewing facilities that EBI added during 2003, effective management of operating expenses enhanced profitability," a statement said.

EBI recorded EBITDA of US$98.3 and US$63.8 in 2004 and 2003 respectively reflecting a growth of 54% thereby an expansion of the corresponding EBITDA margin to 25%.

Net profit decreased by 33% to US$35.6 in 2004 from US$53.1 in 2003. Excluding the impact of one-off items in 2003 and 2004, in particular; (i) the capital gain of US$26.4 recorded as a result of acquisition of the Amstar Brewery in Russia in August 2003 partly through a share swap, and (ii) the recognition of impairment loss of US$4.4m for the investment in Ukraine in 2004 which is in the process of being sold, the increase in the adjusted net profit for the year was approximately 50%, in line with revenue growth.