Following a strong third financial quarter, Baltic Beverages Holding - a 50 per cent joint venture with Scottish & Newcastle and Denmark's Carlsberg, says it is set for further production expansion in the coming financial year.
Despite a weak rouble, which reflected poorly on the brewers performance in the all-important Russian market, BBH reported that its operating profit was up 3 per cent at $109 million. The firm confirmed its peformance figures in US dollars as it said that the currency had grown by 1 per cent against the rouble, during the period, whereas the euro had dropped by 16 per cent.
Reflected a Russian market share up 1.5 per cent to 33.1 per cent against the same period a year earlier, BBH said that its Russian beer and spirit volumes were up 12 per cent.
Of late the Ukraine market has shown huge market growth, the group has said that it is currently struggling to meet demands. It added that production constraints are expected to be halted when it new brewery is opened up in Kiev in the Spring of next year. The brewer's share of this market jumped by 1.1 per cent for the quarter to 21.4 per cent, compared to the same quarter last year.
In the Baltic states the group's market share dropped by 0.7 per cent to 45.3 per cent for the quarter. of its sales to 45.3 per cent volumes because of the continuing impact of increased competition in the PET beer sector. However sales were still up for the quarter, with net sales up by 16 per cent on volume sales of 8 per cent, compared to the same period last year. The brewer added that it expects to meet increased demand for PET beer in the future as it steps up production for the sector.
"BBH remains confident in the growth prospects for its markets and anticipates continued profitable volume growth in the fourth quarter," the drinks group said in a press statement.
Currently BBH is Russia's market leader and enjoys a dominant position in Estonia, Latvia and Lithuania. Its core brands include Baltika, Samara and Yarpivo.