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. Last Updated: 07/27/2016

Baltika Posts 2000 Profit Of $79.3M

ST. PETERSBURG — Baltika Brewery on Monday posted bullish financial results for 2000, as the company continues its strategy of focusing on volume and revenue growth.

Russia's largest brewery reported a 66.7 percent increase in revenue to $333 million from $199 million in 1999. Gross profit rose 50 percent year-on-year to $108.9 million, a Baltika spokesman said. Net profit rose 65 percent to $79.3 million. Total output increased 65 percent, beating out the industry average of 22 percent and hitting 999 million liters.

"The figures speak for themselves," said Yekaterina Ozimkina, head of Baltika's finance department. "Last year's growth outdid our expectations, and we're on the road to our goal of capturing 25 percent of the entire beer market in Russia."

Ozimkina estimated Baltika's current market share at 20 percent, but said more exact figures would be available April 30, when the company announces its first-quarter results for 2001.

But analysts say Baltika's marketing strategy may have its pitfalls. "The segment of the market Baltika is targeting is more competitive as margins are lower in a mass market," said Kim Iskyan, an analyst at Renaissance Capital.

Baltika, 75 percent owned by the Swedish Baltic Beverages Holding, is planning to increase its foreign market share. Iskyan said Baltika plans to boost exports to China, Mongolia, Europe and the United States and build a new brewery in Belarus.