UK: BBH Q3 net sales jump by a quarter

Most popular

PepsiCo's successful response to COVID-19

Coronavirus special - US Distilled Spirits Council

just-drinks speaks to Bombay Sapphire VP

Tariffs risk reversing Australian wine's hard work

Heineken faces China distribution gap - comment


Scottish & Newcastle has announced the Q3 results (July to September 2004) from its 50%-owned joint venture Baltic Beverages Holding (BBH).

The company said today (4 November) that investments in sales, distribution and marketing are delivering strong growth in a positive market.

BBH saw 22% beer volume growth in the third quarter. Net sales were up 27% in US dollar terms to US$527m, while EBITDA was up 19%, also in US dollar terms, to US$180m. Operating profit rose by 15% to US$145m.

The company said BBH remains confident in the growth prospects for its markets, and anticipates continued profitable volume growth in the fourth quarter.

The third quarter showed a continuation of the good volume trends established in the early summer, with a strong sales and marketing-led turnaround, especially in its key Russian market.
In the third quarter, BBH's market share in Russia grew by 2.9% points to 35.9% compared to the third quarter of 2003. For the nine month period January to September market share was 0.4% points higher at 33.6%.

In the Ukraine, the new brewery in Kiev enabled the company to grow share, and strengthen its number two position in the market. For the third quarter, BBH's share, including Baltika imports was 20.6%, 0.4% points higher than in the previous year. On the same basis for the nine months to September market share grew to 23.3%, 1.8% points higher than in the previous year.

In the Baltics, very heavy competition in Latvia from the aggressive pricing of cheap PET product, has distorted what is overall a profitable and steadily growing region. As a consequence, market share fell in the third quarter: down 1.8% points to 42.8%. For the nine months to September market share is down 2.3% points at 42.1%.

Net sales for the third quarter in US dollars grew by 27% on volume growth of 22%. In Russia, achieved prices per SKU grew by around 7%, only slightly below the prevailing inflation rate for food and beverages.

BBH's margin performance in the third quarter was an improvement on the trend in the first half. EBITA margin was 27.5%, 2.8% points lower than in the same period last year, due to higher sales, distribution and marketing costs. Marketing costs have increased by 3% points of net sales, more than the total decline in margin for the period.

As a consequence of this improvement in trend, EBITA margins for the nine months to September were 21.3%, a significant improvement on the half year. For the full year the company is maintaining its guidance for EBITA margin of between 19 and 20%.

Related Content

Cuervo hints at M&A move as third-quarter sales soar - results data

Cuervo hints at M&A move as third-quarter sales soar - results data...

Remy Cointreau Q3 fiscal-2020 - preview

Remy Cointreau Q3 fiscal-2020 - preview...

Constellation Brands Q3 fiscal-2020 - preview

Constellation Brands Q3 fiscal-2020 - preview...

Coca-Cola HBC eyes full-year growth after Q3 rise - results data

Coca-Cola HBC eyes full-year growth after Q3 rise - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..

Forgot your password?