Winemaker Abrau-Durso more than doubles net profit in H1
MOSCOW. Aug 20 (Interfax) - OJSC Abrau-Durso, a Russian producer of sparkling wines, posted a net profit of 77.2 million rubles to Russian Accounting Standards in the first half of 2013, compared to 34.5 million rubles in the same period last year, the company said in its quarterly report.
Revenue in the first half was unchanged year-on-year at 43.3 billion rubles.
Analysts at Rye, Man & Gor Securities forecast that Abrau-Durso will see average annual revenue growth of 11% in 2013-2017 and could increase its EBITDA margin to 30% by 2017.
The company can maintain profitability with a decrease in the sales growth forecast from 34 million bottles to 23.5 million bottles in 2016, Rye, Man & Gor Securities reckons.
Abrau-Durso increased sales by volume by 17% in the first half, while the Russian market for sparkling wine shrank by 37%.
OJSC Abrau-Durso manages the assets of the eponymous sparkling wine house owned by the SVL group.
The Abrau-Durso estate was established in 1870 by order of Tsar Alexander II. In the Soviet era, Abrau-Durso was the leading maker of Soviet sparkling wine. SVL, headed by Boris Titov, who is currently Russia's ombudsman for entrepreneurs' rights, bought 58% of the winery in 2006. In 2011, the company bought 42% of shares from an eponymous government company owned by the Krasnodar Territory.
Nielsen estimates that Abrau-Durso's market share in Russia's 19 largest cities at 5.5% by volume and 8.3% by value.
