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Russia's Baltika Posts 11 pct Jump in 2008 Profit

Source: Reuters
19/02/2009

Moscow, Feb 19, 2009 - Russia's leading brewer, Baltika , owned by Denmark's Carlsberg, said full-year profits jumped 11.1 percent, in spite of Carlsberg warning of flat sales in Russia in the fourth quarter.

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Baltika's revenues to International Accounting Standards grew 17.2 percent to 92.5 billion roubles ($2.54 billion), while earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 15.5 percent to 27.1 billion roubles, the company said on Wednesday.

On Tuesday, the board of Baltika, Russia's largest beer producer with a more than 30 percent market share, recommended a dividend payout of 85.1 roubles per share for last year, up from 52 roubles per share paid in 2007.

Baltika's net profits increased to 15.5 billion roubles last year from 14.0 billion in 2007, it said.

Denmark's Carlsberg, the world's fourth-largest brewer, gets more than half of its profits on the EBIT-level in eastern Europe.

In January, it warned of flat Russian growth in the fourth quarter after previously lowering its 2008 growth outlook for the Russian beer market to 1-2 percent from 5 percent.

On Wednesday, Carlsberg reported a 52 percent jump in 2008 operating profit before special items, slightly above expectations. It said customers in the key Russian market had continued to select premium beer brands.

Carlsberg last year hooked up with Dutch peer Heineken to buy Britain's Scottish & Newcastle (S&N) for 7.8 billion pounds ($13.79 billion). The deal handed Carlsberg all of eastern European venture Baltic Beverages Holding (BBH), including control of its crown jewel, Baltika. ($1=36.42 Rouble)



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