18 August, 2008- During the first six months of FY 2008, Belvedere Group confirmed the sound growth of its business in its principal markets, with sales that reached Euro 577.5 million, showing a steady increase of +24.5%, or +12.2% on a constant basis.
Growth by Geographic Area
In Poland, business grew by +55.7% (+11.2% on a comparable basis and at constant exchange rates) and accounted for 62% of the Group’s sales. The distributors contributed EUR 94.6 million to half-yearly sales. Our Group’s market share in vodka for the first six months of 2008 remained at a satisfactory level of 25.7% (compared to 27.8% a year ago. Source: AC Nielsen), reflecting the success of our strategy of “trading up” with our newly-introduced brands, adopted 2 years ago.
In France, sales grew by 5.3% and accounted for 18.5% of our Group’s sales. Only the wine business, which has now stabilized, showed a decline of 25% compared to the same period last year. In accordance with the turn-around plan we have implemented, the price increases implemented since the beginning of the FY (more than 10% on average) should make it possible for this subsidiary to return to profitability in the second six months of this FY.
In the United States, Belvédère had sales of € 31.1 million, or 5.3% of total sales. This level of business includes € 3.1 million in billings for vinegar and cooking wine sold in early April and deconsolidated since the second half year of 2008. The premium vodka, Sobieski, 7th largest selling brand nationally, experienced an exceptional market launch in this strategic territory, with sales reaching more than 100 000 cases (9L) during the 1st half-year of 2008.
In Lithuania and Bulgaria, we confirmed our dynamic growth with increases of 29.8% and 46.3%, respectively, accounting for 5.2% and 1.5%, respectively, of our Group’s total billings.
Prospects
On the basis of the strong trend shown by Belvédère since the beginning of the fiscal year and taking into consideration the seasonality of our sales, our Group confirmed its objective of reaching sales of approximately €1.2 billion in 2008, for an EBITDA close to € 60 million.